MINISTRY OF EXTERNAL RELATIONS Trade Promotion Department BRAZILA BRAND OF EXCELLENCE

1st Summit of Heads of Government of IBSA, the -- Dialogue Forum - Brasília, September 2006 SOUTH-SOUTH COOPERATION BRINGS CLOSER VISIONS AND TIGHTER PARTNERSHIPS Presidential message ● Key issue ● Next steps ● IBSA Social Fund ● IBSA Business Summit ● Possible India-SACU-Mercosul FTA ● Sectors most likely to benefit ● Ethanol and biodiesel 2 Ministry of External Relations Phones: Trade InformationDivision E-mail: [email protected] Fax: 55-61-3411-8967 Phones: Trade Programmes Division www.braziltradenet.gov.br Website: [email protected] E-mail: [email protected] Fax: 55-61-3411-8790/6735 8998 Phones: 70170-900 Brasília-DF Esplanada dosMinistérios-BlocoH Palácio Itamaraty Anexo AdministrativoI-Sala220 Trade Promotion Department RELATIONS MINISTRY OFEXTERNAL Phones: Division Trade Promotion Operations E-mail: [email protected] Fax: 55-61-3411-8954 E-mail: [email protected] Fax: 55-61-3411-8957 Phones: Trade FairsandTourism Division E-mail: [email protected] Fax: 55-61-3411-6007 BRAZIL SEPTEMBER/2006 55- 55-61-3411-8989 55-61-3411-8793/8994/ 55- 55- 61-3411-8931/8951 61-3411-8960 61-3411-8529/8532 ENGLISH EDITOR Roberto Baraldi ASSISTANT DIRECTOR Dirceu Brisola DIRECTOR ANDEDITOR Dirceu Brisola(MT8.961) RESPONSIBLE DIRECTOR http://www.brazilnow.com Fax: 551138757100 Phone: 551136724323 01254-000 SãoPauloSPBrazil Av. Prof. AlfonsoBovero, 323 Editora BrazilNowLtda. Ipsis Gráfica PRINTED AT Solange Melendez GRAPHIC PRODUCTION Assaoka.D Comunicação GRAPHIC DESIGN Unica-Divulgação Gustavo Magalhães,Ricardo Stucker, Antônio Milena,ArunVishwakarma, PHOTOS Brian Nicholson CONTENTS Government Government are planned. are initiatives countries. Othersocial,culturalandenvironmental poorest livingconditionsintwooftheworld’s development andimproved sustainable fundwillpromote ofthethree-nation First projects cooperation IBSA FundisalandmarkforSouth-South 21 starting toflow. already commonalities, particularlyinbiofuels,andinvestments are countrieshavesignificant business involvement.Thethree for is thefocusofanIBSAWorking andisakeyarea Energy Group, cooperation Ethanol andbiodieseloffer great potentialfor 16 production. sectors suchasaircraft withintegrationpotentialin chemicals, aluminumandfurniture, andsteel, IBSA couldgiveSouthAfricanewmarketsforiron South Africanbusiness Closer commercial tiescouldbeaboostfor 14 andpharmaceuticals. highways, railwayengineering,healthcare portsand energy, alternative Automobiles, autoparts,aerospace, development Building businesslinksforSouth-South 10 Closer visionsandtighterpartnerships 8 The IBSApartnersataglance 7 South-South cooperationpact. inconsolidatingtheirinnovative continents takeamajorstepforward majordemocraticdevelopingnationsspanningthree Leaders ofthree IBSA holdshistoric1 3 PRESIDENTIAL MESSAGE TABLE COVER SOCIAL ALTERNATIVE ENERGY VIEW FROMSOUTHAFRICA BUSINESS st Summit ofHeads

COVER the legalframework neededto establish moredirect connectionsbetween thethree countries, Signature, duringthe Summit,ofatrilateralagreement onmaritime transportationwouldcomplete UN reform, energysources andabout developmentofalternative suchasethanolandbiodiesel. foraresumptionstanding aboutalternatives oftheDohaRound, abouthowtomoveaheadwith ing tofurtherharmonize positionsinforumssuchastheUNand WTO. free tradeagreement. And thethree agenda,seek- leaderswilldiscussmatterson theinternational will considertheoption ofestablishingaworkinggrouptoexamine formatsforapossibletrilateral portation, agriculture, energy, technicalnormsfortradeandtheinformationsociety. Thecountries wind powerandsolarenergy. Amorimsaidthatagreements mightbesignedinmaritimetrans- oceanography, healthandbiotechnology whileinenergy, cooperation islikelytofocusonbiofuels, In scienceandtechnology, forexample,there isexchangeofexperience innanotechnology, nology, theinformationsociety, tourismanddefense.Some have already seenimportantprogress. ,education,health,culture, publicadministration,socialthemes,scienceandtech- Working Groups havebeenestablished: tradeandinvestment;transportation;energy, agriculture, nations,” Amorimsaid. tions withdevelopedcountries-offeradecisive contributiontothebalanceddevelopmentofour es ofunderstandingbetweencountriesthe Southcan-withoutneglectingourimportantrela- policy.tegration, agoalofBrazilianexternal “We believethatinvigorating cooperationandprocess- Summit signalsthematuringofthree-nation pactandreinforces theprocess ofSouth-South in- cooperation programs oneverythingfrom ITandtransporttoagricultureenergy. andalternative issues,mostnoticeablyworldtrade,andisspawning ahostof negotiating positiononinternational mocratic developingnations.Created 2003, the IBSAinitiativehasalready fruitinacoordinated born process forbuilding South-South relations. important stepalongthepathtoconsolidatingwhatmanyseeasworld’s mostinnovativenew ofIBSA,theIndia-Brazil-SouthAfricaDialogueForum,theywillbe takingan Heads ofGovernment President LuizInácioLuladaSilvaofBrazilmeetSeptember13thinBrasíliaforthe1st Summitof education, cultureandtourismwillhelpmakeIBSAarealityfor more continents takeamajorstepforwardinconsolidatingtheirinnovative Leaders ofthreemajordemocraticdevelopingnationsspanning three involvement ofbusinessmen,academicsandartists,initiatives in The Brazilian External Relations MinistersaidthethreeThe BrazilianExternal countries would seektoadvanceunder- He saidtheSummitwouldassesprogress intrilateralcooperationtheareas forwhich IBSA RelationsMinisterCelsoAmorimtold“Brazil aBrandofExcellence”thatthe Brazilian External The Summitcrowns almostfouryearsofdiplomacyandgrowing bondsbetweenthree majorde- When PrimeMinisterManmohanSinghofIndia,President ThaboMbekiofSouth Africa and South-South cooperationpact.Growingtiesinmanysectors,the IBSA HOLDSHISTORIC 1 ST OF GOVERNMENT SUMMIT OFHEADS and morepeople.

3 Ministry of External Relations 4 Ministry of External Relations Minister said. “We would liketosee already around US$7billion,” the stimulate intra-group trade,whichis three sub-regions would further cial preference area between the sul andIndia.“Creating a commer African CustomsUnions, andMerco- Mercosul andSACU,theSouther commercial agreements between lateralization ofexistingpreferential be considerationofthepossibletri- most importantpossibilitieswould Brazil’s pointofview, oneofthe Summit, Amorimsaidthatfrom steps inIBSA,followingonfrom the trilateral trade. something essentialtodeveloping September March 2004 September June January 2003 September March 2006 August August March March 2005 May Asked whatmightbethenext Africa andPrimeMinisterManmohanSinghof India. Inácio LuladaSilvaofBrazil,President ThaboMbekiofSouth 1 for the1 Foreign ministersofthethree IBSApartnersmeetinNewDelhi Bihari Vajpayee ofIndia. President ThaboMbekiofSouthAfricaandPrimeMinisterAtal New York (USA),byPresident LuizInácioLuladaSilvaofBrazil, parallel tothe58 Principles andgoalsofIBSAare ratifiedinaspecialmeeting countries. Declaration ofBrasiliaissignedbyforeign ministersofthethree cooperation, invitingIndiatojoin. South Africadecidetocreate abodyforSouth-South Presidents LuizInácioLuladaSilvaofBrazilandThaboMbeki for 1 Business leadersfrom thethree IBSAcountriesmeetinBrasília Janeiro forthe3 Foreign ministersofthethree IBSApartnersmeetinRiode Rio deJaneiro. IBSA seminar-“EconomicDevelopmentwithSocialEquality”in IBSA countriessigntrilateralagreement forairtraffic. create theIBSABusinessCouncil. Business leadersfrom thethree countriesmeetinCapeTown to for the2 Foreign ministersofthethree IBSApartnersmeetinCapeTown Alleviation", the“IBSAFund”. Creation ofthe"IBSAFacilityforPovertyandHunger st IBSA Summit of Heads of Government, withPresidentIBSA SummitofHeadsGovernment, Luiz st IBSA BusinessSummit. st nd Key datesinIBSA Meeting oftheTrilateral Commission. Meeting oftheTrilateral Commission. rd th Meeting oftheTrilateral Commission. General AssemblyoftheUnitedNationsin n - eep SinghPuri told“BrazilaBrand of A project ofthethree peoples ple’s everydaylife,”theMinistersaid. only whenitbecomes partofpeo- me, IBSAwillbetruly consolidated businessmen andacademics. “For and theSummitincludesmeetingsof a more direct impactoneverydaylife, tion, culture andtourism,whichhave on initiativesintheareas ofeduca- this end,thecountriesare working of knowledgeabouteachother. To distance andthethree peoples’lack tant steptowards overcoming the it reach US$10billionnextyear.” Indian Ambassadorto BrazilHard- Amorim termedIBSAanimpor- Goals sooner ratherthanlater. Inthe meet theMillennium Development al interactionandhelping eachother moting closercultural and education- ment, withthethree countriespro- jective istoincrease trade andinvest- organizations mustplay theirpart. ment butbusinessmenandbusiness initial impetusontradeandinvest- come.” ofdistanceneedtobeover- borne the three countries-thebarriers mia, studentsandculturalentitiesof tion betweenbusinessmen,acade- andgrowingexpect earnest interac- to aproject ofthethree peoples.“I IBSA from aproject ofgovernments the summitwouldhelptransform said. historic first-everIBSAsummit,”he associated traditionalknowledge. netic resources andtheprotection of countries oforiginovertheirownge- Diversity, especiallytherightsof tion oftheConventiononBiological issues andtheeffective implementa- energy technologies,environmental form, theDohaRound,renewable summit were likelytoincludeUNre- nical regulations andagriculture. ing inshipping,standards andtech- signing MemorandaofUnderstand- noted IBSAcountrieswere closeto emulate thoseexperiences.”He tries intheirrespective regions to ences andencouragingothercoun- each other’s developmentalexperi- certed mannerthrough sharingof n our countriestomeetingtheMillen- said. “Ifeelthissummitwillorient national relations. but alsoanimportantvoiceininter- cies ofAsia,AfricaandLatinAmerica gether ofthethree majordemocra- represents notonlythecomingto- Excellence” thatforhiscountry, IBSA ium DevelopmentalGoalsinacon- The shortandmedium termob- mustprovideGovernments the The Ambassadorsaidhehoped “We haveourplatefullforthe Puri saidpoliticalissuesatthe “IBSA hascomealongway,” Puri ous globalissues. become majorglobalplayersonvari- longer run,theobjectivewouldbeto in 3-5years.” fruits maybegintotakeplacewith- trilateral arrangement.Thereal “We are veryoptimisticaboutthis potential isimmense,”Purisaid. 2.8% ofIndia’s globalexports.“The Latin Americatodayabsorbsonly 10 yearsthrough 2003-04.Evenso, to LatinAmericagrow 637%inthe and thishashelpedIndia’s exports ment withBrazilandSouthAfrica, 1997 topromote tradeandinvest- America andFocusAfricasince has beenrunningaFocusLatin ment: “OurMinistryofCommerce possible trilateralfree tradeagree- IBSA leadersmeetwithcolleaguesfrom China,theCongoandMexicoduring2006G8SummitinSt.Petersburg,Russia. other’s successstories.” India,forex- closer ties,wecanpartake ineach niche incertainareas andwitha action: ”Allthree ofushavecarveda from IBSA-generatedtrilateralinter- be Indiansectorsbenefiting most nology, avionicsandinfrastructure to energy, IT, pharmaceuticals,biotech- Puri saidheexpectedagriculture, Puri saidIndiaissupportiveofa A possiblefree tradeagreement biotechnology. successes inpharmaceuticals,ITand Africa cantakebenefitfrom India’s nology, whilebothBrazilandSouth Africa’s advancesinliquidfueltech- and biodiesel,from South Brazil’s progress inavionics,ethanol andbenefitfrom ample, canlearn global population -itwouldbe one 1.4 billionpeople-almost 22%of Swaziland. Encompassing justover Botswana, Lesotho, Namibiaand Venezuela, India, SouthAfrica, Brazil, Argentina,Paraguay, Uruguay, words, afree tradearea uniting African CustomsUnion. Inother members ofSACU,theSouthern members ofMercosul andtheother IBSA membersbutalsotheother This wouldinvolvenotjustthethree sible structures forafree tradearea. of aWorking Group toexaminepos- South AfricaandIndiatheformation in thiscontextisdiscussingwith tween thethree IBSApartners,and increased tradeandinvestmentbe- Brazil seesenormouspotentialfor sul-India, Mercosul-SACU andIndia- trade agreements between Merco- work already done onpreferential although the happen overnight, of “longmaturity”,not somethingto jo cautioned,thiswould beaproject India andtheSACU.However, Arau- lateral free tradeagreement with pressing aheadwiththeideaofatri- will begivingspecialattentionto presidency ofMercosul, andassuch tions. Union andforspecialtradenegotia- for relations withtheEuropean Ministry divisionwhichisresponsible Relations of theBrazilianExternal HenriqueFragaAraujo,head Ernesto countries involved,”saidCounselor profilecreased international ofthe development projects andthein- cial alliances,whichare essentialfor very real needtoformnewcommer- concept, butitcorresponds tothe in theworldeconomy. sumers, withagrowing participation world, intermsofpotentialcon- of thelargesttradegroupings inthe Brazil currently holds therotating “This iscertainlyanambitious

5 Ministry of External Relations 6 Ministry of External Relations al FTA wouldbereinforced bythe noting thatefforts towards atrilater- and generatingbusiness,”hesaid, ing interest from theprivatesector taking shape,andattractinggrow- which tostart. SACU represents agoodbasefrom is scopefor integrationofproduction plementary, andinmanyareas there The three economies are largelycom- ic growth andsocial development. policies aimedatpromoting econom- the factthatallare activelypursuing their respective continentsandfrom from thekeypositions theyoccupyin growing technologicalcapabilities, spective privatesectors,from their also from thedynamismofre- populations potentiallyinvolved,but bined sizeoftheeconomiesand tential derivednotjustfrom thecom- political sideofIBSA. “A networkofmutualinterests is Araujo saidthecommercial po - consideration. tiation suchastheonenowunder of awide-rangingcommercial nego- to expandmuchmore inthescenario in recent yearsandwouldbecertain cal investmentshavegrown sharply effectively inthird markets.Recipro- that willhelpthemcompetemore DevelopmentPro- South cooperation2005-2007”), the cooperation framework forSouth- South-South collaboration (“Third forge anewpath. is notnew. But IBSAishelpingto within thethree regions. initiatives embracingothercountries cleus tohelppromote South-South an exclusiveclubbutratherasanu- veloping world,notinthemannerof great democratic nationsofthede- nents andbringingtogetherthree organization spanningthree conti- Reporting onthe growth in The ideaofSouth-South dialogue us ofaSouth-South namic, efficient nucle- was tocreate thedy- cooperation. Thegoal life intoSouth-South way tobreath new was conceivedasa in thisedition,IBSA notes inhismessage South Cooperation IBSA andSouth- ways toimprove ruralproductivity inGuinea-Bissau. The IBSAFund-Tackling socialproblems inHaiti;explainingsimple As President Lula next fewyears,thegross domestic more inclusiveglobalization.” has alsoadvancedtheprospects for Africa (IBSA)andtheGroup of20 a of multi-Stategroupings suchasthat gramme notedthat“theemergence just underUS$18billion.” creased from around US$6billionto rise, whileAfrica’s tradewithAsiain- trade inservicesalsoregistering a nually duringthepastdecade,with ample, grew attherateof11%an- of today. South-Southtrade,forex- ments ofthedevelopedeconomies global demandandcurrency move- growth, of demographics,patterns match theeconomicsizeand developing countriesare setto as thatofdevelopedcountries.Some expected togrow uptotwiceasfast product ofdevelopingcountriesis with more tangibleresults.” scaling upSouth-South cooperation added upto“greater promise for – ofwhichIBSAwas anexample– organizations andthe privatesector” tween andamongStates, civil-society nomic alliancesandpartnerships be- the “increased sophisticationofeco- ing inmanydevelopingcountriesand proved policiesandinstitution-build- the UNDPsaid,togetherwithim- ography oftradeandeconomics”, mongst India,BrazilandSouth The UNDPsaidthat“overthe The emergenceofthis“newge- anrlgosHnu ulmCrsinChristian, Muslim Christian 50/53M/F IsiZulu,IsiXhosa, Afrikaans, 8% 30.3% Hindu,Muslim 47million 26.2%(Sep/05) 68/75M/F 9.2%(Jan/06,metropolitan 2.7% (2004) Portuguese Hindi,English,Hindustani, Main religions 3.9%(average2005) 187 million 27.9% 64/65M/F 5.25% (IPCA,Mar/06) Main languages 9%(2005) US$52billion(2005) Life expectancy(years) 5,6% US$55billion(2005) US$3,453 (2003) 1.13billion US$46,1billion(June2005) Unemployment 4,4%(2005) 31.2% Infant mortality US$110billion(Sep/05) US$27.7billion(Sep/05) US$118 Population aged0-14 US$120billion(2005est.) Population US$54billion(Jan/06) 4.9%(2005est.) US$81billion(2004/05) US$4,174 US$74 Inflation US$109billion(2004/05) Foreign debt US$134billion Total exports 2.3%(2005) US$667 Total imports 8.1%(est.)inFY2005/06 Foreign reserves Income percapita GDP growth urnyRpeRa Rand R6.35 Real R$2.34 Pretoria (Executive), Rs45.07 Rupee Brasília GDP SouthAfrica 1,221,038 km2 (US$1.00 atend2005) Exchange rate Democraticfederalrepublic; ThaboMbeki, Democratic federalrepublic; Democraticfederalrepublic; Currency NewDelhi LuizInácioLuladaSilva, 8,547,404km2 RepublicofSouthAfrica Brazil National structure A.P.J. AbdulKalam, FederativeRepublicofBrazil 3,287,590km2 Capital RepublicofIndia President India Land area Official name Item /country The IBSApartners from Microsec. Brazil: Central Bank, Ministry ofDevelopment,Tradefrom Microsec.Brazil:Central Bank,Ministry andCommerce, IBGE. lation, StatsSA;population, 0-14, CIAWorld FactBook.India:CIAWorld FactBookexceptGDP, fromBrazili trade and reserves excepttrade (SA/DTI,convertedatUS$1.00=R6.36);GDP,Sources -SouthAfrica:data from BrazilianForeignMinistry SA/Treas 4ohr.Sepedi,English,Setswana 14 others. lce 02eetd20 elected1999 nineprovinces 26statesplusfederaldistrict territories 28 statesand7union elected2002 elected 2002 US$727 billion(2005/06est.) regions) S78blin(05 US$237billion(2005est.) US$768 billion(2005) Sesotho, Xitsonga Bloemfontein (Judiciary) Cape Town (Legislative), an Foreign Ministry; FX an ForeignMinistry; ury andStats SA; popu- ury

7 Ministry of External Relations 8 Ministry of External Relations partners is US$4.4 billion,andgrow- parity. Total tradebetweenthethree lion ifmeasured atpurchasing power at US$1.8trillion,equal toUS$6tril- billion people.Thejoint GDPstands combined population ofalmost1.5 brings togethercountries witha countries. nized leadershipamongdeveloping different continentandwithrecog- ism andracialdiversity, each from a characterized bytheirmulticultural- group ofthree majordemocracies, strategic partnership Bringing countriescloser:anew great potential. tiative shouldbesmall,butwith and immediateimpact.Ourfirstini- thing thatwouldhaveaneffective vinced oftheurgencytodosome- Yet President MbekiandIwere con- G-77; andthenon-alignednations. oping countries;theUnitedNations’ such astheG-15,comprisingdevel- cooperation. new momentumintoSouth-South South AfricaandIagreed toinject when President ThaboMbekiof conceived onthedayItookoffice policy initiativeofmygovernment, logue Forumwasthefirstforeign IBSA isapioneerinitiative that We invitedIndiatocompletethe Some initiativesalready existed, The India-Brazil-SouthAfricaDia- The India-Brazil-SouthAfrica our visionscloser andour Dialogue Forum:Bringing A message from President LuizInácioLuladaSilvaofBrazil President A messagefrom partnerships tighter operation. Specifically inthearea of look forscientificand technicalco- countries havethesame goal. connections between ourthree tions. Negotiationsto improve air new modelforSouth-South rela- trade agreement whichpromotes a (SACU), seekingatrilateralfree AfricanCustomsUnion Southern tween Mercosul, Indiaandthe Preferential Trade Agreements be- and finance.We are expandingthe technical barrierstotrade,logistics like theharmonizationofstandards, increase trade,facinguptoissues tions, isaforumtodiscusshow main industrialandtradefedera- partnership betweenthecountries’ together better. other more, sothatwemightwork peoples’ desire togetknoweach lights IBSA’s basicmotivation:our tourism amongourcountrieshigh- transportation. Thestrong growth of technology, biotechnologyand energy, health,defense,information tious asourpartnership:agriculture, ties onarangeofsubjectsasambi- promote trilateralcooperationactivi- nological synergies. tant ways,withtechnicalandtech- plement eachotherinvariousimpor- ing fast.Thethree economiescom- IBSA alsooffers apromising out- The IBSABusinessCouncil,a We adoptedanActionPlanto P RESIDENTIAL MESSAGE three countries, butthree conti- our goalistobringtogether notjust in Juneof2003made itclearthat order forging anewinternational Bringing continents closer: of IBSA’s potential. will allhelpbuildgreater awareness changes ofteachersandstudents ages, sportingeventsandinter- ture co-productions, tourismpack- motion-pic- tals, scientificjournals, merce por- andinvestments.Internet leverage mutuallybeneficialcom- the BusinessCouncilwillincreasingly of thethree businesscommunities, greater involvementofseniorleaders ties shared byournations. With awareness ofthe substantialaffini- expand mutualknowledgeand events sponsored byIBSAwillhelp sities andacademicbodies.Cultural als andcreate linksbetweenuniver- planned tobringtogetherintellectu- countries. Seminarshavebeen that havealwaysseparatedour cultural andgeographicdistances cial inthiseffort toovercome the dence onfossilfuels. natives totheworld’s current depen- biodiesel safe,cleanandcheapalter- nership tomakeethanoland , weare workingforapart- The BrasíliaDeclaration adopted Participation ofcivilsocietyiscru- countries for alessasymmetric, valuable tooltomobilize developing strategic positions.The IBSAisanin- in whichourthree countries occupy with theendorsement oftheregions imperative, whichcan onlybearfruit Doha Round).Thisis animmediate trade(the form) andinternational tive security(UNSecurityCouncilre- the balanceofforces visàcollec- ing partnershipsthatcanimprove poverty. We are committedtobuild- ment, andtofighthunger security andsustainabledevelop- , topromote peace, marily oncooperationtostrengthen . Itsagendafocusespri- vulnerabilities withinthecontextof are centraltoreducing ournational awareness thatourforeign policies outofan nents. IBSAwasborn South cooperation. President Lula-Determinedtobuildreal South- and energycooperation. change, agenda suchasaidtoAfrica,climate vital issuesontheinternational ing industrializedpowers,todiscuss planned for LaosandPalestine.Each lection inHaiti,andothers are being approved recently for garbage col- Guinea-Bissau. Another project was promote sustainableagriculture in project managed bytheUNDPto Fund, whichisalready financinga poverty ledtocreation oftheIBSA campaign tofighthungerand Brazil andIndiaintheinternational world. Theefforts ofSouthAfrica, collective solidarityinourglobalized the countriesmostdependenton ate, practicalmeasures infavorof the simultaneousneedforimmedi- We are alsoaware, however, of order. competitive placeintheworld more independentandmore countries. agreements struckamongrich longer mere observersof veloping countriesare no negotiations attheWTO.De- agenda andthedynamicsof tion offorces changedthe and familyfarming.Thiscoali- withsmall-scale concerned India, whichismuchmore Group, could join with Cairns Africa, asmembersofthe explains howBrazilandSouth Brazil, IndiaandSouthAfrica fostered bytheIBSAamong 20. Theatmosphere oftrust p ences, waspresent forexam- barriers andeconomicdiffer- spective, overcoming cultural into abroader strategicper- respective nationalinterests G-8, runbytheworld’s lead- partners fordialoguewiththe tions havebecomeprivileged plains howthethree IBSAna- tion andrepresentation ex- le inthecreation oftheG- The capacitytoweaveour This capacityforcoordina- holds great promise. From Brazil’s standpoint,thefuture to consolidatethefuture ofIBSA. tunity tointensifythis dialogueand inBrasíliawill beanoppor- ernment tember’s SummitofHeads ofGov- work toachieveitspotential. Sep- own wayandattheir ownpace, South AfricaandBrazil,eachintheir also beheftydividends,asIndia, tience andcreativity butthere will IBSA willrequire perseverance,pa- ment andishere tostay. Organizing operation. momentum toourdialogueandco- sultation, andtoimpartrenewed nism forpoliticalandeconomiccon- We hopeto consolidatethismecha- meet inBrasíliaonSeptember13. of India,BrazilandSouthAfricawill precedented globalization. amorphous, undisciplinedandun- swer tothechallengesoftoday’s peratives. Rather, ithasbeenanan- or respond topolitical-militaryim- generate cleareconomicadvantages thatmight cific unifyingconcern tion. Itwasnotforgedaround aspe- dents from whichtodrawinspira- ences, IBSAhasnohistoricalprece- intraregional cooperationexperi- cooperation. Incontrastwithother tional issueswithactionsoftrilateral coordination around majorinterna- special way, IBSAcombinespolitical bereft oflegitimacy. Initsown very ingly interdependent worldorder so mental forthefuture ofanincreas- common objectiveswillbefunda- to mobilizejointactionsaround of ourdemocraciesandtheirability special responsibilities. Thestrength new threats alsopresent IBSAwith new opportunitiesforcooperation, prospects forcooperation Bringing societiescloser:new for thefund. mitted aninitialUS$1millionayear hascom- of theIBSAgovernments IBSA wascreated attherightmo- It isinthislightthattheleaders While the21stCenturyraises

9 Ministry of External Relations 10

Ministry of External Relations aware oftheuntapped potentialfor the politicallevel,was “strongly ognizing theimportance ofIBSAat his organization,inaddition torec- of businessinSouthAfrica, saidthat and assuchthemain representative unisectoral employers' organizations, tions, corporateassociations and and industry, professional associa- grouping ofchamberscommerce South Africa(BUSA),anumbrella CEOofBusinessUnity Vilakazi, “Brazil aBrandofExcellence”Jerry nations. between thethree majordeveloping about theprospects forcooperation executives whoare betterinformed of businessorganizationsandthose growing enthusiasmamongleaders tially ageopoliticalinitiative-there is of theallianceperceived itasessen- while mostofthosewhohadheard businessmen were unaware ofIBSA, fairs suggestasmany80%of Af- African InstituteofInternational researcher Lyal WhiteoftheSouth eral -somerecent surveysquotedby known amongbusinessmeningen- between developingnations. blaze newtrailsinreal cooperation unique institutionthatcouldhelp major steptowards creating a ness Council,theywillbetakinga er inBrasíliaforthe1stIBSABusi- Brazil andSouthAfricacometogeth- railway engineering, health care and pharmaceuticals -justsomeofthevastpotential and pharmaceuticals railway engineering,healthcare Responding toquestionsfrom Although IBSAisnotyetwidely When businessleadersofIndia, that business leaders are nowstarting toseewithinIBSA-andtheBusinessCouncil that businessleadersare Automobiles, autoparts, aerospace, alternative energy, portsandhighways, energy, alternative Automobiles, autoparts,aerospace, Building businesslinksfor South-South development and familiarity ofthebusiness cul- flow from anincreasing exposure to deals. Three-way tie-ups wouldlikely emphasis wouldbe onbilateral lakazi saiditwaslikely thattheinitial nesses inthethree countries,V tial fortrilateraldeals betweenbusi- citement aboutthelong-term poten- closer ties. was avitalsteptowards forging tual understanding,somethingthat opportunity todevelopabettermu- from themember organizationsthe event wouldgiverepresentatives saidtheBrasilia Summit, Vilakazi benefits.” businesses are already reaping the to continue:“Ontheground some low base,andheexpectedthetrend ready growing sharply, albeitfrom a between thethree countriesare al- tion.” having great potentialforcollabora- dustry hasalready beenidentifiedas theaerospaceBrazil isconcerned, in- vehicles require attention.Asfaras ment andcompetitivelypricedmotor medicine, heavyindustrialequip- India inareas suchasaffordable specifically thestrong positionof said. “Moretractive,” Vilakazi kets ofBrazilandIndiaare veryat- tween thethree countries.” growing tradeandinvestmentbe- While there isnaturally muchex- Looking tothe1stIBSABusiness He saidthattradeandinvestment “For SouthAfrica,thevastmar- is being created tohelp is beingcreated B USINESS i- business ties,”Bhuyan said. to BrazilandSouthAfrica forgreater shows thatIndianbusiness islooking 1st IBSABusinessSummit inBrasilia delegation isexpected togothe tach toIBSA. showed theimportancetheyallat- Commerce &Industry(FICCI) Federation ofIndianChambers Industry ofIndia(Assocham)andthe ated ChambersofCommerce and ment ofhisorganization,theAssoci- saidthejointinvolve- ternational, an Industry(CII)andheadofCIIIn- general oftheConfederationIndi- India: pickingthewinners developing worldasawhole. all three, andbyextensionalsothe the three countriestothebenefitof tal toexploringthesynergiesamong trade andinvestmentare fundamen- that detertradeandinvestment. and particularlynon-tariff barriers would betheneedtoreduce tariffs issue requiring priorityattention require timetoexplore. Onemajor interesting challenges”thatwould saiditprovidedIBSA, Vilakazi “some levelwithin cussion atagovernment something thatisunderactivedis- of atrilateralFree Trade Agreement, tures ofallthree countries,hesaid. Asked to pick Indianbusiness “The veryfactthata 60-member Jayant Bhuyan,deputydirector BUSA, henoted,believesthat Looking forward tothepossibility can invest infarmland,exporting energysources.in alternative South AfricanandBrazilian expertise ation. Otherpromising areas: good prospects fortrilateral cooper- and ineducation,wher Bhuyan highlightedITforservices most from closerties underIBSA, sectors thatcouldstandtogain Automobile production -Onepotentialsectorforbusiness cooperationunderIBSA. • Agriculture -Indian companies • Energy-Indiacanbenefit from e hesaw this edition). one example(seestory onethanolin both sugarandethanolcouldbe India. Sugarcane plantationsfor raw orprocessed materialsbackto vestments inroads and ports. from BrazilianandSouth Africanin- if airlinescan startscheduledservices potential forcivilaviation, especially • Infrastructure -Indiacangain • Transportation -there ishuge the political willinallthree countries to happenfast,and we hopethat will certainlylookatpushing forthis of businessmen.“Indian business would dependinpart ontheefforts because ofatrilateral agreement.” auto componentsmay facepressure nized that“sectorslikecoaland negotiations. However, herecog- was already engagedinseveralFTA protection, andnotedthecountry industry didnotinprincipleseek ucts, amongothers.HesaidIndian tr ceuticals, apparel, chemicals,elec- spire, couldbenefitIndianpharma- South Africa.AnFTA, shouldittran closely withindustryinBraziland comes anymovetoworkmore Bhuyan saidIndianbusinesswel- Trilateral Free Trade Agreement, make investmentprocedures easier. in othermembercountries,andto reaucracy forsettingupbusinesses was alsonecessarytostreamline bu- of goodsandservices,hesaid.It promote free andeasyentryexit ize itscustomsregime andseekto business”. Eachcountrymustliberal- must trytomovetowards “seamless Bhuyan saidthethree countries potentialintoreality.how toturn medication. pharmaceuticals, inparticularAIDS with concrete sleepers. extensive experienceofworking nearly 7,000kmoftrack.Ircon has for a2005rehabilitation studyof tro-Atlantica) andCVRD,thelatter services toBrazil’s FCA(Ferrovia Cen- company, hassuppliedengineering Ircon, anIndianrailwayengineering there are insufficient flights. Africa isthepreferred route, but via SouthAfricaorEurope. South between IndiaandBrazil,flightsgo sent there are nodirect connections linking thethree countries.Atpre- onic equipmentandmetalprod- How fastmightithappen? That Looking aheadtotheproposed The great question,asalways,is • Healthcare technologyand • Indianrailways-Forexample -

11 Ministry of External Relations Business Council would be: Who sells what to whom • To develop a Strategy and Ac- Building the IBSA Business Council tion Plan for the promotion of trade From India From Brazil From South Africa and economic cooperation amongst Five organizations have worked to create the IBSA Business Council. They are all To India Total: US$602 million Total: US$1.16 billion the three countries; leading representatives of business in their countries: 1. Petroleum (crude) 1. Aircraft • To proactively facilitate and en- 2. Soy oil 2. Phosphoric acids 3. Sugar cane 3. Coal courage trilateral business contacts 4. Ethanol 4. Gold and networking including a focus on THE NATIONAL CONFEDERATION including SMEs and MNCs. Indirectly, and indirectly for over 2,500,000 5. Petrochemicals 5. Wood pulp OF INDUSTRY (CNI) over 98,000 companies are members small, medium and large business Top 5 = 67% of total Top 5 = 63% of total small and medium enterprises (SMEs) and small, medium and micro The National via 342 national and regional sectoral units employing some 20 million To Brazil Total: US$521 million Total: US$235 million enterprises (SMMEs); Confederation of associations. It has 56 offices in India people. It also has direct 1. Petroleum (refined) 1. Alloys Industry (CNI) is and eight overseas in Australia, membership of about 2,000 2. Chemicals 2. Iron products • To facilitate the participation of Brazil’s principal organization Austria, China, France, Japan, companies from private, public and 3. Pharmaceuticals 3. Coal the businesses of the three countries 4. Synthetic fibers 4. Chemicals representing industry. Founded Singapore, the UK and the USA. The multinational sectors. FICCI seeks to in the several sectoral initiatives 5. Machinery 5. Autoparts 1938, the CNI coordinates a system CII coordinates IBSA activities for the be a proactive body that discusses Top 5 = 82% of total Top 5 = 63% of total under the IBSA Dialogue Forum; of affiliated industry federations in other two participating Indian bodies. issues in a multi-disciplinary forum • To actively facilitate the forma- To South Africa Total: US$1.11 billion Total: US$885 million all 26 states and the Federal District, Site - http://www.ciionline.org. consisting of business, academia, 1. Light oils 1. Autoparts tion of IBSA sectoral forums in spe- totaling over 1,000 employers’ policy-makers and foreign experts. 2. Vehicles 2. Frozen chicken cific industries and services, which unions. The CNI is active in the ASSOCIATED CHAMBERS OF Site - http://www.ficci.com. 3. Rice 3. Tobacco 4. Medicines 4. Vehicles offer viable and sustainable advan- areas of economic and industrial COMMERCE AND INDUSTRY OF 5. Chassis + engine 5. Tractors tages for trilateral business ventures; policy, labor relations, legislative INDIA BUSINESS UNITY SOUTH AFRICA Top 5 = 32% of total Top 5 = 40% of total • To act as a catalyst in formulat- action, quality assurance, ing strategies and building better productivity, technology, A B Sources: A - Funcex/Secex 2003/04 average. linkages for cooperation at multilat- infrastructure and the environment. A A B - South Africa, Department of Trade and Industry 2005. It speaks for Brazilian manufacturers The Associated Chambers of Conversion: US$1.00 = R6.36 (2005 average). eral forums including the WTO to in Mercosul and at the WTO, and in Commerce and Industry of India Business Unity South Africa B A promote the achievement of a fairer Brazil’s international trade (Assocham) was created 1920 to (BUSA) was created October 2003 world trade regime; and negotiations, for example talks for a promote Indian industry. Over the years through the merger of the Black • To enable the private sector of possible FTA of the Americas, or a it has helped promote a better Business Council and Business South also exists for the agreement.” Confederation of Indian Industry all three countries to play a dynamic possible agreement between environment for trade, commerce and Africa. It began operating in January For his part José Frederico Álvares, (CII), the Associated Chambers of role in carrying out an effective dia- Mercosul and the . industry. Today it defines its mission as 2004. The merger created the first executive manager of the Foreign Commerce and Industry of India (AS- logue process with the governments The CNI seeks to influence Brazilian being “to impact the policy and truly representative and unified Trade Unit at Brazil’s National Con- SOCHAM), the Federation of Indian on all sides with special reference to trade policy to promote industrial legislative environment so as to foster business organization in South federation of Industry (CNI) noted Chambers of Commerce & Industry the suggestion of guidelines and exports. Site - http://www.cni.org.br. balanced economic, industrial and Africa. BUSA is a confederation of that the three countries were not tra- (FICCI), and Business Unity South policies relating to trade and invest- social development” and stresses the chambers of commerce and ditional trading partners, and al- Africa (BUSA). ment amongst the three countries. CONFEDERATION OF INDIAN importance of education, health and industry, professional associations, though commerce had been growing The five organizations came to- The five organizations also INDUSTRY the environment as critical success corporate associations and in recent years it was still quite mod- gether in March of 2005 in Cape agreed that the Business Council will The Confederation factors. Site - unisectoral employers' of Indian Industry (CII) http://www.assocham.org. organizations. It represents South est in comparison to the potential of Town, South Africa and signed an hold annual summits, rotating be- is a not-for-profit, African business on macro- the three countries. The IBSA Busi- Agreement to form the IBSA Busi- tween the three countries, with host industry-led and FEDERATION OF INDIAN economic and high-level issues that ness Council, he said, should help ness Council. In this agreement, the country chairing the council in the industry-managed NGO that seeks a CHAMBERS OF COMMERCE & affect it at the national and create new and profitable opportuni- organizations confirmed the need preceding year and providing secre- proactive role in the country’s INDUSTRY (FICCI) international levels. BUSA seeks to ties for business in all countries. for organized business in the three tariat facilities. They also decided to development process. It describes ensure that business plays a countries to play a “significant role” carry out research into the IBSA mar- this role as helping create and constructive role in the country’s How the IBSA Business Council at the macro policy level in their re- kets, in particular using a study sustain an environment conducive economic growth, development and was born spective countries, and expressed called “South-South Trade and In- to the growth of industry, working The Federation of Indian Chambers transformation and to create an The IBSA Business Council will be their conviction about the need to vestment Cooperation: Exploring the with industry and government alike of Commerce & Industry (FICCI) was environment in which businesses of an autonomous entity, run by 15 “explore the synergies among the IBSA Initiative” then under way with through advisory and consultative established in 1927, at the urging of all sizes and in all sectors can thrive, business leaders - five from each three countries at the macro policy the participation of three institutes - processes. Founded 1895, it is Mahatma Gandhi, to garner support expand and be competitive. Site - Ministry of External Relations Ministry of External Relations Ministry of IBSA country - to be chosen shortly. level with particular emphasis on the Centre for International Trade, India’s leading business association for India’s independence and to further http://www.busa.org.za. with over 6,000 direct members the interests of the Indian business Five leading business organizations trade policy, including at the multi- Economics and Environment (CITEE) from the private and public sectors, community. With a current in the three countries joined forces lateral level, and on trade and invest- in India, the Institute for Internation- membership of over 500 chambers of to get the Council off the ground. ment among the three countries.” al Trade Negotiations (Icone) in commerce, trade associations and They are the National Confedera- The organizations decided that Brazil, and the South African Insti- industry bodies, FICCI speaks directly 12 tion of Industry (CNI) from Brazil, the the objectives and role of the IBSA tute of International Affairs (SAIIA). 13 14

Ministry of External Relations Affairs of theSouthAfricanInstitute ofInternational Trade andInvestmentProjectunder theauspices *Dr. Sokowaspreviouslymanager oftheIBSA huge anddiversified market. Given exporters are attractedtoBrazilbyits nesses. SouthAfrican investorsand portunities forSouth Africanbusi- promise significantcommercial op- litical anddiplomaticties. but alsotowards bettertrilateralpo- velopment andpovertyreduction, can contributenotonlytowards de- expanded commercial and tradelinks Moreover, there isarealization that tion alliances,inorder tosucceed. marketing, technologyandproduc- ment, firmsneedtodevelopglobal and competitivetradingenviron- countries thatinanincreasingly open There isrecognition amongtheIBSA increased tradeandinvestment. South businesspartnershipsthrough moting mutuallybeneficialSouth- tives canbeaccomplishedisbypro- nomic developmentobjectives. can advancetheirsocialandeco- through whichthethree countries nership represents amechanism emerging powers.Thetrilateralpart- cooperation betweenthethree lined abroad agendaforeconomic India, BrazilandSouthAfrica.Itout- stone intrilateralcooperationamong Forum in2003markedacrucialmile- The IndianandBrazilianmarkets One wayinwhichtheseobjec- The adventoftheIBSADialogue Closer commercialtiescould bea School of Business, predicts IBSA could give South Africa new markets for iron and IBSAcould giveSouthAfricanewmarketsforiron School ofBusiness,predicts boost forSouthAfricanbusiness steel, chemicals, aluminum and furniture, withintegrationpotentialinsectors steel, chemicals,aluminumandfurniture, Dr. attheUniversityofCapeTownGraduate MillsSoko*,aseniorlecturer economies. investing intheIndian andBrazilian tial benefitsthatcanbe derivedfrom vides aclearindication ofthepoten- firms inemergingmarkets, thispro- growing middleclass.Itisalsoseen ing capacity, andlargerapidly ment andlabor, cheapmanufactur- sectors, lowprices,goodmanage- huge economiesofscaleinseveral in itsimmensedomesticmarket, Uruguay, ChileandColombia. such asArgentina,Paraguay, for enteringneighboringmarkets, Brazil isalsoviewedasaspringboard America’s largestregional market, growing source ofimports.AsLatin for SouthAfricanexports,anda Brazil isseenasapotentialmarket tected) tradeandinvestmentregime, its relatively liberal(thoughstillpro- growing interest ofSouth African that ofItalyby2025. Giventhe Brazil’s economyislikelytoovertake growth overthenext30years,while potential torecord thefastest in theworldeconomy. India hasthe China) couldbecomeamajorforce India (togetherwithRussiaand over thenext50yearsBraziland study byGoldmanSachsfoundthat positive future growth prospects. A markets, IndiaandBrazilhavevery and Maldives. such Bangladesh,Nepal,SriLanka as agatewaytootherAsianmarkets such as aircraft production. such asaircraft V Besides theirmassiveinternal India’s commercial attractionlies IEW FROMSOUTHAFRICA steel and non-ferrous metals, tex- India includegold,silver, coal,iron, spices. SouthAfrican exportsto products, finishedleather, and pharmaceuticals, rice, vegetable to SouthAfricaare cottonproducts, 2002. Currently, India’s key exports vious decadetoUS$700 millionin India grew by1,334%overthepre- eral tradebetweenSouthAfricaand years, albeitfrom alowbase.Bilat- grown appreciably overthepastfew among theIBSAcountrieshave Already, economicrelations Aerospace from -The three IBSAcountrieshavecomplementaryexperienceandcanlearn eachother. market. Theconclusionofabilateral added foodproducts intotheIndian S also ahugescopeforgrowth of and furnitureontheother. There is iron andsteel,chemicals,aluminum, the onehand,andnewmarketsfor and heavyindustrialequipmenton competitively pricedmotorvehicles, with accesstoaffordable medicines, India couldprovide SouthAfrica lubricants. tiles, sugar, andmineralfuels mote investment. and servicesbeingtraded,pro- al trade,widenthevarietyofgoods the twonationscouldexpandmutu- rently undernegotiation)between preferential tradeagreement (cur- ican andBHP-Billiton haveled the mining groups suchasAngloAmer- chemicals andbase metals. Major Brazil consistofmineral products, quarters ofSouthAfrican exportsto million in2002.Presently, three- 268% andwasvalued atUS$660 South AfricaandBrazil increased by outh Africanexportsofvalue- Enhanced traderelations with Since 1994,tradebetween tors suchasaircraft production, as ufacturers intostrong Braziliansec- f South Africahasanadvantage, from exploitingnichesinwhich nents andchemicals. machinery, vehicles,vehiclecompo- African importsfrom Brazilinclude erals, niobiumandcoal.South copper, gold,nickel,industrialmin- lio ofminingoperationsincluding investing heavilyinadiverseportfo- investment driveinLatinAmerica, growth oftwo-waytrade. trade dealin2004laid thebasisfor of theSACU-Mercosul preferential craft andcomponents. Thesigning equipment, andinthe fieldofair- logical capabilitiesinmachineryand the developmentofbettertechno- tween SouthAfricaandBrazilon be derivedfrom cooperation be- production. Possiblegainscouldalso ization insectorssuchasautomobile well asfrom intra-industryspecial- have identified three potential areas andthe private sector government rom integratingSouthAfricanman- Crucial benefitscouldbegained Furthermore, theSouth African nomic cooperation. emplary modelofSouth-South eco- IBSA initiativecouldserve asanex- awareness. Adeptly managed,the tion, andtoimprove mutualpublic mutual understanding andcoopera- the three IBSAcountries todeepen ited. Thisunderscores theneedfor nesses tothesemarketsremains lim- the exposure ofSouthAfricanbusi- dian andBrazilianmarkets.However, among SouthAfricanfirmsintheIn- sures. cessive useofanti-dumpingmea- lectual property rights,andtheex- tion, insufficient protection ofintel- ments, frequent portdelays,corrup- ments, restrictions onimportpay- transparent certificationrequire- cedures, hightransactioncosts,non- ing, onerous andcostlycustomspro- importlicens- corruption, restrictive These includehightariffs, red tape, tion betweenthethree countries. per tradeandinvestmentcoopera- tariff barriersthatcontinuetoham- ments toreduce thetariff and non- cil mustworkcloselywithgovern- processes. vices duringtradenegotiation experiences, andoffer supportser- knowledge, cultivatethesharingof lic partnerships,expandmutual es, fosterthecreation ofprivate-pub- facilitate interactionamongbusiness- strategic partnerships.Itcouldalso lishment ofjointventures andother changes, largelythrough theestab- enterprise-to-enterprise dealsandex- A and investmentbetweenIndia,South ness linkagesandpromoting trade critical role toplayinforgingbusi- satellites. laboration around smallandmicro of strategicdefenseneeds;andcol- tion onaerospace systemsinsupport aerospace supplychains;collabora- dustry: namelytheexpansionof of cooperationintheaerospace in- frica andBrazil.Itcouldstimulate There isaburgeoninginterest But inorder tosucceed,thecoun- The IBSABusinessCouncilhasa

15 Ministry of External Relations 16

Ministry of External Relations lateral and eventrilateralbusiness represents asector that isripeforbi- the umbrella ofIBSA.Energyalso and exchangingexperience under very promising area for cooperating energy asagreatsee alternative and India haveconsiderable know-how. area where bothSouthAfricaand gradually introduce biodiesel,an has launchedanationalprogram to world’s largestconsumer. AndBrazil largest producer ofsugar, andisthe behind Brazilastheworld’s second scale, eventhoughIndiastandsjust South Africaalsodobutonasmaller something thatbothIndiaand substitute petroleum derivatives, world leaderintheuseofethanolto obviously standtobenefit.Brazilis where allthree sun-blessed countries pertise insolarenergy-anarea into liquidfuels,whileIndiahasex- is biginthetransformationofcoal that Brazilimports,andSouthAfrica world producers ofcoal,amineral rank 4thand5threspectively among tive sources. IndiaandSouthAfrica are interested indevelopingalterna- from ultra-deepoffshore wells,soall finding andproducing petroleum spent pioneeringtechnologiesfor ficiency in2006aftermanyyears oil, althoughBrazilachievedself-suf- None ofthethree countriesisrichin dedicated specificallytothesector. logue Forum,withaWorking Group of theIndia-Brazil-SouthAfricaDia- involvement. The three countrieshave significantcommonalities,particularlyinbiofuels, involvement. Thethree The three countries, therefore, Energy isoneofthegreat themes Ethanol andbiodieseloffer great Energy is the focus of an IBSA Working Group, and is a key area forbusiness isthefocusofanIBSAWorking andisakeyarea Energy Group, potential forcooperation and investments are already startingtoflow. already and investmentsare and theyagreed thatmore emphasis energy andthebiofuelsvaluechain, change ofinformationonrenewable was already beingmadeontheex- global importance.” ment, takingintoconsiderationtheir promote socio-economic develop- friendly andsustainablefuelswhich use ofbiofuelsasenvironmentally ther promote theproduction and phasized theircommitmentto“fur- Commission, thethree countriesem- March 2006meetingoftheTrilateral sued inRiodeJaneiro afterthe the 1stBusinessSummit. selected forasessiondiscussionat deals. Assuchitisoneofthetopics stream December2006. Rio GrandedoSul,coming on stateof 150 MWinthesouthern America, withafinalcapacity of generation parkinSouth what isbilledasthelargest wind biodiesel. Includedwas moneyfor wind generation,and15%to and biomassprojects, 52%to splitting 33%tocogeneration energyprojects,to alternative million -roughly US$380million- reported itwaslendingR$842 Bank (BNDES)inMayofthisyear The ministersnotedthatprogress In theMinisterialCommuniquéis- A The BrazilianDevelopment LTERNATIVE ENERGY Financing for alternatives early as1931, andduringthe Sec- ports. A5%mixwas compulsoryas duce theneedforpetroleum im- been blendedintogasoline tore- popularly calledinBrazil, haslong ethanol. 45% intosugarand 55%into age thecanecrop is transformed under construction.Onrecent aver- at 310mills,with41newplants tonnes ofcane,whichisprocessed produces nolessthan380million Paulo state,reports thatthecountry sugar andethanolproducers -inSão sectors -basicallycanegrowers and sents thesugarcaneagribusiness tralia. producer, followedbyIndiaandAus- today, Brazilistheworld’s largest 16th Centuryasanexportcrop and introduced toNortheastBrazilinthe tuguese andSpanishsailors.Itwas the newlandsdiscovered byPor- but proved exceptionallysuitableto came originallyfrom SoutheastAsia coastal areas oftheAmericas.Sugar Atlantic islands,theCaribbeanand early European colonizationofthe the drivingeconomicforces behind ethanol Brazil seeksworldmarketin gen-based energysystems. ciency andconservation,hydro- formation intheareas ofenergyeffi- would beplacedonexchangeofin- Sugar cane“alcohol”, asitis Unica, theassociationthatrepre- Sugar canewasofcourseone great potentialforincreased foreign US$115 million. liters (109million gallons)for largest customertaking 414million US$765 millionFOB. Indiawasthe thecountry world total-andearned billion gallons)-roughly halfthe 2005 reached 2.6billionliters(0.7 of bothitems.Ethanolexportsin naturally, theworld’s largestexporter 36.4% oftheworld’s ethanol.Itis, ers 18.5%oftheworld’s sugarand the world’s sugarcane,whichdeliv- year. produced in the2005/06harvest (4.2 billionUSgallons)ofethanol for over62%ofthe15.9millionm3 leading producing region responsible gasoline. gion, mixed40%ethanolintoits still thelargestcaneproducing re- ond World War theNortheast,then Ethanol production inBrazil-IBSAcountriesallwanttopromote biofuels,inparticularethanolandbiodiesel. alternative Brazilian ethanolcompanies see The countrypr São PauloisnowadaysBrazil’s oduces 33.9%of ing globaldemand. leum increasingly failtomeetgrow- gasoline asworldsuppliesofpetro- market andtograduallysubstitute ducers todevelopaglobalethanol strategy istoworkwithotherpro- ing countries.Rather, theBrazilian ers, betheyindevelopedordevelop- want tosqueezeoutotherproduc- sales. Butthisdoesnotmeanthey mon research projects and,above dards, technicalcooperation, com- common specifications andstan- ket. What’s needed,hesaid,are work togethertobuild aglobalmar- global ethanolproduction -should which togetheraccount for70%of Rather, he said,thetwocountries- their Foreign RelationsCommittee. in Juneofthisyear, testifying before Pereira deCarvalhotoldUSSenators USA,” UnicaPresident Eduardo domestic ethanolindustryinthe not haveanygoalsofdisplacingthe “The Brazilianprivatesectordoes the potential formuchmore ambi- ethanol, wouldnot only enhance tariffs andotherduties onimported in theUSA,reducing oreliminating freer tradepolicyregarding ethanol that figure. the worldaleadingreatly increasing gether, thetwocountriescould give sumption ofgasoline.Working to- less than2%ofthetotalworldcon- around 9billiongallons,substitutes duction oftheUSAandBrazil, displace oilimports,”Carvalhosaid. our goalistocomplementitand/or displace domestic(US)production - it wouldbeinourowninterest to spirit, Irepeat, wedonotthinkthat a globalmarketforethanol.Inthis enormous importancetoconsolidate ethanol industryintheUSAisof in third markets. all, jointefforts topromote ethanol Carvalho toldSenators thata Today, thecombinedethanolpro- “We realize thatathriving

17 Ministry of External Relations 18

Ministry of External Relations with otherdevelopingnations- tage incaneproduction compared 2002 enjoyedamassivecostadvan- search figures suggestingBrazilin the committee.Unicaquotesre- and SouthEastAsia,”Carvalhotold especially inLatinAmerica,Africa fiting hundreds ofmillionspeople, tropical regions oftheworld,bene- can bereplicated elsewhere inthe that theconditionscreated inBrazil ers. current orpotentialethanolproduc- and developingnations,whichare a vastnumberofunderdeveloped process ofeconomicdevelopmentin induce effective changesinthe and pressures. Additionally, it could smooth outpossiblefuelpricepeaks but alsowouldhelpprevent or tious goalstosubstitutegasoline, reduction ofsubsidies.However, of supplyirregularities anda favor through theninetiesbecause vehicle salesin1985,but felloutof boom, peakingat95% oftotallight on sale1979andenjoyed abrief Cars runningonlyonE-100 went and fortechnologydevelopment. expand plantationsanddistilleries, were publicloansandsubsidiesto to theworldpetroleum crisis.There response1975 asagovernment-led E-100. the UnitedStateswouldbecalled around 7%water)andwhichin (which isfacthydratedwith have pumpsselling“pure” ethanol country’ while thegreat majorityofthe States itwouldbecalledE-25- anhydrous ethanol-intheUnited “gasohol” containingupto25%of gasoline soldinBrazilisfact 22 millionlightvehicles.Allregular 40% ofthefuelforBrazil’s fleetof “There iseveryreason tobelieve Brazil’s ethanolprogram started Ethanol todayrepresents over s 33,000gasstationsalso consumption orevenavailability.” performance characteristics, fill-up, basedonprice, quality, ability tochoosethefuel typeateach company says,theadvantages are “the showrooms. Forconsumers,the the technologynowdominates the manufacturers havefollowedsuitand compact. Sincethenallothermajor with itsmarket-leading“Gol”sub- vehicle trend inBrazilMarch of2003 anything. time, withoutthedriverneedingtodo engine’s combustionparametersinreal electronic ignitionsystemtoadjustthe The sensorsworktogetherwiththe the fuelmixture comingfrom thetank. by usingelectronic sensors thatdetect light vehiclesales. now accountforover80%ofallnew These haveproved amajorsuccessand 100 ethanol,usingthesametank. combination ofE-25gasoholandE- “flex-fuel” engineswhichacceptany automakers haverecently introduced stems inpartfrom soil,climateand This enormousnaturaladvantage 60% oftheUSbeetreference price. ethanol fromatjustover UScorn comes inatjustover90%and while ethanolfrom European wheat price ofethanolmadefrom USbeet, cane costsjustunder40%ofthe ethanol madefrom Braziliansugar reported inFebruaryof2006that tional consultantsFOLichts,Unica ethanol. Usingdatafrom interna- est majorsources ofsugarand pollution Good forprice,good framework. cal cooperationwithintheIBSA indicating great potentialfortechni- South AfricaandIndia,forexample- around halftheaveragecostof Eco-friendly vehicles Volkswagen kickedoff theflex-fuel This majorrevolution wasachieved Brazil isoneoftheworld’s cheap- Reportthatit and energycompany, saidinits2005 waste from otherprocesses. materials -oftennon-food sources or and otherfueloilsfrom organic three countriestoproduce biodiesel demand forpetroleum diesel. want toexpanditsusereduce the three IBSAcountries,allofwhich great interest world-wide,notleastin number ofsources andisattracting 2008, risingto2.4billionliters/year. an estimated800millionliters/yearin 5% by2013.Thatmeansdemandfor diesel withbiodieselby2008,risingto program tosubstitute2%ofregular tomorrow? Biodiesel -theethanolof variation ofgasolineandethanol. enginerunningonany modern difference inpracticebetweena Most driverssaytheynoticelittle sugar cane,infactresearchers intro- might alllooklikemuchthesame disease. Althoughtothelaymanit plantations resistant topestsand in research thathelpskeepcane lons/ha in2004. hectare in1975toalmost1,700gal- doubling from 750gallonsper has beenevengreater, more than overall productivity gainforethanol improvements inrefineries andthe 8 tonnes perhectare in1975toover Paulo, caneyieldrose from 50 South region, dominatedbySão US$40 millionayear. IntheCenter- cane andethanolaveragingaround years thankstoR&Dinvestmentsfor huge productivity gainsinrecent been important.Brazilhasseen labor costs,buttechnologyhasalso 0 tonnes/hain2004.Factorthe Sasol, theSouthAfrican petroleum Investments are underwayinall Biodiesel canbemadefrom a Brazil hasafederally-mandated Brazil’s productivity isalsorooted feasibility studiesare reported under year ofsoybeans. consuming halfamillion tonnesper tonnes peryearproduction facility, was evaluatingapossible 100,000 available sources. chemicals fromlocally- alternative, aimed atproducing fuelsand company hasalonghistoryofR&D source suchassoybeans.”The performance dieselfrom arenewable process forproducing ahigh- technically andeconomicallyfeasible production, “aimed atestablishinga feasibility studyforbiodiesel was proceeding toafull-scale Brazilian flex-fuelcar-Theengineacceptsanymixture ofgasoline,E-25andE-100fuels. with anygasolineobtainedfrom sugar caneethanoliscompetitive um. UnicaestimatesthatBrazilian peak intheworldpriceofpetrole- with gasolineevenbefore therecent wide. single strainwere plantednation- vulnerability thatcouldariseifone to localconditionsandreduces the This diversityhelpsmatchcanetype just 12.6%oftotalplantationarea. most commonvarietynowoccupies decade through 2006,sothatthe duced over50newstrainsinthe In Indiaseveralpilotplants and Reports thisyearsaidthe company Brazilian ethanolwascompetitive year, usinginputs asvariedsoyoil, 25,000 to200,000output tonnesper biodiesel plantdesigns ranging from Brazil’s Dedinicompanyhasannounced with ItaliancompanyDesmet Ballestra, goods market.Working inpartnership given anewimpetusto thecapital processing plant. acres (2-4ha)ofJatropha, andamini with justasingleplantationof5-10 and lightingoil,substitutingkerosene, could becomeself-sufficient incooking suggestions thattheaveragevillage requirements, butthere are also substituting partofthediesel seeds asfeedstock.Themaininterest is way mainlyusingJatropha andrubber stages ofthechain. the farming,processing orretail out anyformofsubsidy, betheyat crude atUS$40abarrel. That’s with- South-East andCenter-South re- and production takesplaceinthe Moreover, thevastbulkofplanting Brazilian landsuitableforfarming. country, andlessthan1%oftotal hectares. That’s about0.5%ofthe plantations occupyjust4.5million t ment-friendly. Evenastheworld’s Brazilian ethanolisthatitenviron- op producer, Brazil’s sugarcane In BraziltheadventofBiodiesel has Another great factorinfavorof ate carbonintotheatmosphere,in when usedinavehicleengine,liber- ing. Bothgasolineandethanol, world’s fightagainstglobalwarm- offers averyimportantgainforthe isting underutilizedfarmland. east, through theconversionofex- cent yearshascomeintheSouth- crease inethanolproduction inre- p prevent forest beingfelledforsugar haslawsinplaceto the government age oftotalnationalproduction and the region, butitisasmallpercent- Mato Grosso intheSouth-West of dering theAmazon,particularly planting inrecent yearsinstatesbor- forest. There hasbeensomecane ecologically sensitiveAmazonrain- That meansitisfarawayfrom the gions, centeringonSãoPaulostate. food tofuel. based biodiesel,thisdoes notdivert yields aseedhighinoil. Unlikesoy- because itgrows onpoorsoiland Bean. Thisisofparticular interest of thesamefamilyas Castor Physic NutinEnglish),a smalltree Brazil andtheBarbados Nutor India, thePinhãoMansoinpartsof Jatropha curcas (calledRatanjyotin research. Top ofthelistcouldbe and couldoffer potentialforjoint common totwoorallthree nations, various sources. Someoftheseare experimenting withbiodieselfrom enjoys inethanol. the linesofpositionitalready world leadershipinbiodieselalong predicted Brazilwas headingfor sugar andethanolsector, Dedini major supplierofequipmenttothe tonnes/year ofthefuel.Already a producing atotalof360,000 five completebiodieselplants it hasalready contractedtosupply from beefcattle.Thecompanysaid Barbados Nutandevenresidual fat sunflowerseeds, peanuts, corn, lanting. Infact,thegreatest in- Substituting ethanolforgasoline The three IBSAcountriesare

19 Ministry of External Relations 20

Ministry of External Relations cane, ascurrently produced inBrazil, production. Butethanol from sugar 50% oftheirenergy outputduring little better, consumingjustover Ethanol fromand beetcanbea corn the environment may beverysmall. conventional sources, thenetgainto cessing millsoftenuse energyfrom itintofuel.Given that thepro-turn required toprocess thewheatto ethanol, anadditional83%willbe given amountofenergyinwheat- from wheatistheworst.Forany tive fuels,whileethanolproduced energy balanceofthemajoralterna- ian sugar-cane ethanolhasthebest they willliberatewhenused.Brazil- much energyintheirproduction as fuelsconsumealmostas ternative of thegeneralpublicisthatmanyal- ethanol. Afactlittleknowntomuch process therawmaterialinto and originoftheenergyusedto we mustalsofactorintheamount or smaller-muchbecause of ethanol,thegaincanbegreater place ofgasoline. every gallonofethanolconsumed,in kilos ofcarbondioxideoutputfor the worldcanbespared upto0.8 perts citedbyUnicacalculatethat 1.2 barrels ofpetroleum, andex- cane hastheenergyequivalentof new canecrop absorbscarbon. almost neutral,asyearafterthe ethanol ontheatmosphere canbe warming, whilethenetimpactof and contributesgreatly toglobal mosphere fortheforeseeable future, t pe- thesis. Thismeansthatburning the yearbefore through photosyn- that sugarcanesuckedoutoftheair with. Ethanolreleases thecarbon “free” carbontheplanetmustcope increasing thetotalamountof the ground formillionsofyears,so which hasbeenlockedawayunder petroleum derivativesrelease carbon bon monoxide.Thedifference isthat the formofcarbondioxideandcar- roleum derivativesimpactstheat- However, dependingonthetype Every tonneoftop-qualitysugar and harvestingtechniques. bicides andpesticides. with highersucrose content. al), andevermore resistant topests, ting process (mechanizedormanu- suited tothesoils,climateandcut- of sugarcanethatare increasingly improve yieldsthrough: five yearsorso,producers expectto technologies. bagasse, andimproved fermentation and otherresidue, gasificationof the hydrolysis ofsugarcanebagasse efficient useofsugarcane,including dict research willleadtomuchmore next coupleofdecades,expertspre- What comesnext mous. to theworld’s environment isenor- content foritsproduction. Thegain requires just12%ofitsfinalenergy retained byBHLwere intheprocess Brazil.” time, energyandlifeisfocusedon Brazil: “Ninety-eightpercent ofmy he hadan11-manadvanceteamin and expandmycapacity.” Bajajsaid reporters. “IcanownlandinBrazil Kushagra NayanBajajlatertold need tobeinBrazil,''companyCEO subsidiary inBrazil. initiated theprocess ofsettingupa Exchange inMaythatithad informed theMumbaiStock Brazil. Thecompanyformally to investupUS$500millionin producer, this yearannouncedplans major Indiansugarandethanol • Betterplanning andprocess • Bettertransportation, handling • Improvements infertilizers, her- • Theintroduction ofnewstrains More immediately, saythenext Looking tothefuture, saythe Reports saidmerchant bankers “If Ineedtogrow exponentiallyI Bajaj HindusthanLtd(BHL),a Indian sugarproducerannounces investment inBrazil ters of“alcoduct” pipelines. age facilitiesbyhundreds ofkilome- ducing regions, linked toportstor- special collectiondepots nearpro- of thisdecade.Investments include ports of4-5millionm3 bytheend ture tobeablehandle ethanolex- company ment. thanks toUS$10billionofinvest- ume ofexports.Thisgrowth willbe more thandoublethecurrent vol- should beavailableforexport.That’s billion liters(1.6gallons) of ethanolpercrop year. Ofthis6 in 31billionliters(8.2gallons) ble to673milliontonnes,resulting ian caneproduction toalmostdou- bagasse. tricity andsteamusingcane production ofsugarandethanol. cane juicewithreduced losses. control. m3 aday. capacity inIndiafrom 320to800 expanding itsethanol-making They saidthecompanywas onexportofsugar.government the curbsimposedbyIndian planted withsugarcane inIndiaand of theslowpaceincrease inarea BHL wasinvestinginBrazilbecause tonnes. production toaround twomillion increasing potentialannualsugar tonnes/day through 2007, rise through investmentto100,000 over 56,000tonnesperday, dueto cane crushingcapacityinIndiaat purchase. of identifyingasuitabletargetfor Petrobras, theBrazilianpetroleum By 2013/14,UnicaexpectsBrazil- • Improved cogenerationofelec- • Loweruseofchemicalsinthe • More efficient extractionof Reports quotedanalystssaying The companyputitscurrent , isboostingitsinfrastruc- jects and other efforts intarget maximize synergybetween IBSApro- and Palestine. Others are underevaluation forLaos Guinea-Bissau andHaiti respectively. project andisfinalizinga second,in Fund”, thisinitiativehas startedone country. million ayearfrom eachmember and pledgedinitialfundingofUS$1 to keepoutherbivores. raised plotstoavoidsalinityandfencing Guinea-Bissau withhand-drawnirrigation, Boosting farmproductivity -Tomatoes in Hunger Alleviation"inMayof2004 "IBSA FacilityforPovertyand poorest nations. cial questionsthataffect theworld’s tries butalsosomeofthegraveso- directly tothethree memberscoun- tackling notjustquestionsrelating that IBSAshouldsetanexampleby and SouthAfricawere determined improved living conditions in two of the world’s poorest countries. Othersocial,cultural livingconditionsintwooftheworld’spoorest improved To simplifyadministrationandto Known more simplyasthe“IBSA To thisendtheycreated the Right from thestart,India,Brazil First projects of the three-nation fund will promote sustainabledevelopmentand fundwillpromote ofthethree-nation First projects The IBSAFundisalandmark for South-South cooperation and environmental initiatives are planned initiativesare and environmental tive. ber country, plusaUNDPrepresenta- ed representatives from eachmem- Directors, whichcomprisesdesignat- lected bytheIBSAFund’s Board of of charge,oncetheyhavebeense- the implementationofprojects, free UNDP administersandcoordinates Programme. Thismeansthatthe of theUnitedNationsDevelopment cated trustfund”undertheauspices ed tocreate thefacilityasa“dedi- countries, thethree countriesdecid- tions.” NGOs, andphilanthropic founda- tions, includingbusinessesand individuals, civilsocietyorganiza- sources, such ascontributionsfrom 2004, called“non-traditional agreed inNewDelhiMarch of Commission, initsPlanofAction ing from whattheIBSATrilateral ments, butitisalsoopentofinanc- guaranteed bythethree govern- speed. Guinea-Bissau, started togather US$146,136 asthefirst project, in bursements through 2005were tion byprivatesector donors.Dis- including somesubstantial participa- tions totalingoverUS$2.8 million, IBSA Fundhadreceived contribu- that through theendof2005 South cooperation2005-2007”) operation frameworkforSouth- ed (“Implementationofthethird co- The Fundhasabasiccashflow In Juneof2006theUNDPreport- According totheTrilateral Com- S OCIAL play anactive role inhelping tobuild countries haverecently begunto tor involvementinthese endeavors. while encouragingactive private-sec- cation, sanitationand foodsecurity, projects inareas suchas health,edu- ated tosupportsocial development try-sponsored fundofitstype”, cre- Fund is“thefirstdeveloping-coun- Caribbean Perspective”),theIBSA opment Goals:ALatinAmericanand port in2005(“TheMilleniumDevel- sources.and non-governmental dividual projects from governmental sary, seekadditionalfunding forin- will, where appropriate andneces- the IBSAfounders,andUNDP those intheimmediateregions of in alldevelopingcountries,notjust . health, education,sanitationand the areas ofimproved accessto hunger. Thiswillincludeactionsin tices inthefightagainstpovertyand countries asexamplesofbestprac- seminated ininterested developing scaleable projects” thatcanbedis- plement “identifiedreplicable and Goals.” Thefundwillbeusedtoim- of theMillenniumDevelopment cluding towards theimplementation proved cooperation,in- international alleviation, inaframeworkofim- crete manner, topovertyandhunger Fund aimsat“contributing,inacon- mission’s PlanofAction,theIBSA The UNnotedthat developing According toaUnitedNationsre- The IBSAFundisopentoprojects

21 Ministry of External Relations 22

Ministry of External Relations nations than theexperienceand of greater helptothe lessdeveloped vanced developingcountries maybe experience andknow-how ofad- South cooperation- very often,the the fundamentallogic ofSouth- to beapracticaldemonstration of ty. Inthisrespect, the projects seeks experience ofcombatingruralpover- Bissau, butallthree havevaluable tors thatare farsuperiortoGuinea- general economicandsocialindica- tion canread andwrite. and only36.3%oftheadultpopula- estimated 67%liveinruralareas water andjust10%toelectricity. An had adequateaccesstodrinking per day. Only54%ofthepopulation and almost21%onlessthanUS$1 tion survivedonlesstheUS$2aday 65% oftheGuinea-Bissaupopula- an HDIofjust0.348.In2002almost ment Index(using2003data),with in the2005globalHumanDevelop- - ranked172ndoutof177countries km2 -abitsmallerthanSwitzerland mer Portuguesecolonyof36,000 on thecoastofWest Africa,thefor- one oftheworld’s poorest nations. various kindsoffarminginwhatis mote sustainabledevelopmentin Guinea-Bissau project seekstopro- an initialbudgetofUS$475,000,the Growing more inGuinea-Bissau America, forUS$150million. other countries,mainlyinLatin granted debtrelief toanumberof n Brazil atotalofUS$993million.It Countries, whichinmid-2004owed debt relief forHeavilyIndebtedPoor Brazil’s supportfortheinitiative ample ofSouth-Southcooperation UN report highlightedasanotherex- lems ofhungerandpoverty. ber ofinitiativestoaddress theprob- world”, forexampletakinganum- “a more equal,lessasymmetrical oted thatBrazilhasadditionally All three IBSAcountrieshave Home tojust1.3millionpeople Launched December2004with In additiontotheIBSAFund, Improved marketgardening production Reduce thedeficitinrice Guinea-Bissau project: cial reality. within thecurrent economicandso- can yieldmore, butalwaysworking demonstration ofhowbasicfarming Fund directors istooffer apractical staples likerice.ThegoalofIBSA so thatthecountryhastoimport productive andinefficient, somuch port revenues. Butitisextremely un- almost halfofGDPand93%ex- the West Africannation,generating economically activepopulationin Guinea-Bissau. jects liketheoneunderwayin experience thatisrelevant forpro- tries haveaccumulatedconsiderable research bodiesinthethree coun- Embrapa andvariousuniversities come, low-educationcommunities. their research insituationsoflow-in- tomed toapplyingtheresults of but becausetheyare more accus- ple isaworldleaderinmanyareas - research agencyEmbrapaforexam- technology -Brazil’s federalfarming have lesssophisticatedagricultural not becauseIBSAnationsnecessarily t echnology ofrichnations.Thisis • Train farmersin conservation • Acquire anddistribute seeds. species. fruit andvegetable crops and • Identifythemost appropriate lies. areas, andworkwith localfami- • Identifyfourdemonstration marketing thecrop. • Helpimprove theprocess of to gainefficiency. • Helpfarmersplantheiractivities tion techniques. • Train farmersinimproved irriga- and seeds. • Acquire anddistributematerials lies. areas, andworkwithlocalfami- • Identifyfourdemonstration Among keyobjectivesofthe Farming employs83%ofthe ment forsolid wastesinthe Car- of 177withHDI0.475. ing theCaribbeannation 153rd out ment Indexin2003 of 0.471,plac- est countrieswithaHuman Develop- in Haiti,anotherofthe world’s poor- Helping inHaiti Institutional support small andmedium-sizedfarms Promote thedevelopmentof cycle animals Improve productionofshort-life- The IBSAproject focuses ontreat- The secondIBSAFund project is ment Service. • SupporttheBusinessDevelop- and distributioncosts. • Conductstudyofproduction formation sources. • Evaluateexistingdataandin- • Improve marketing systems. during andaftertheharvest. servation ofcashewnuts,both • Disseminatetechniquesforcon- various existingproducts. • Analyzeprocessing systemsfor bles. tion ofcashew, fruitandvegeta- • Improve valueaddedinproduc- strains. troduction ofnewcrops and • Carryoutfeasibilitystudyforin- • Identifyarea forpilotproject. tems. • Helporganizemarketingsys- quality. available breeding stockofbetter • Identifyandacquire locally locally-available materials. • Improve animalsheltersusing • Training forshepherds. paigns. • Conductvaccinationcam- conditions forcattle. • Improved healthandsanitary ducing nutrient-richfeedstock. • Disseminatemethodsforpro- marketing thecrop. • Helpimprove theprocess of techniques. • Train farmersinprocessing techniques. August of theprevious year. The cial Equity, heldinRiodeJaneiro in on EconomicDevelopment andSo- Seminar come oftheInternational Issues. Thiswasseen as alogicout- W ters decidedtoestablish anew March of2006,theFor eral CommissioninRiodeJaneiro, in low-up meetingswere scheduled. cooperation were discussed,andfol- ruary 2006inwhichbroad areas of inaugural meetinginBrasíliaFeb- Group gotoff theground withan the socialarea. TheHealthWorking tivity oftheIBSADialogueForumin . all theattendantconsequencesfor sions are extremely precarious, with water suppliesandsewageprovi- or under-employed people.Drinking of singlemothersandunemployed some 15,000,withahighnumber capital. Thetargetpopulationtotals lies justsouthofthePort-au-Prince refour Feuilleshantytown,which Planning abetterfutureRelationsMinisterCelsoAmorimspeakstoIndianbusinessmen inNewDelhiJanu -BrazilianExternal orking Group specificallyforSocial At the3rd MeetingoftheTrilat- The IBSAFundisnottheonlyac- eign Minis- year. Africa possiblyinNovemberofthis Social Issues,scheduledforSouth meeting oftheWorking Group on pert meetingsbefore thesecond would bemadetoconvenetheseex- Group determinedthatbestefforts digenous KnowledgeSystems.The Alleviation, Micro-financing andIn- with priorityareas definedasPoverty cided toconveneexpertmeetings, gural meetinginRioJuneandde- new Working Group heldaninau- August of2006: Meeting ofFocalPointsinBrasília, ing oftheGlobal Environment Facili- by SouthAfrica,and that themeet- a Work Planproposal being drafted IBSA countrieswould speedily review Participants agreed thatthethree climate change-related technology. positions inmultilateral forumsand covering twoareas: coordination of on theestablishmentofaWork Plan countries toreach anunderstanding reaffirmed theintentionofthree Other decisionsfr Climate Change : Themeeting om the7th of Action. tries woulddiscussa commonPlan representatives from the three coun- in Novemberofthis year, atwhich on culturalissuesin Rio deJaneiro, also proposed organizingameeting ty ofCulturalExpression. Thegroup tection andPromotion ofthe Diversi- the UNESCOConventiononPro- conclude theratificationprocess of tance thatthethree IBSAmembers in 2005,andemphasizedtheimpor- Group’s firstmeetinginCapeTown, the mandateestablishedat firmed members’commitmentto Group onArtsandCulture reaf- in September. casion oftheIBSASummitinBrasília creation ofsuchaGroup ontheoc- would bemadetoannouncethe Work Plan,andthatbestefforts created aftertheapproval ofthe Group onClimateChangeshouldbe They alsoreaffirmed thataWorking lent opportunitytomakeprogress. gust 2006,wouldprovide anexcel- ty, scheduledforCapeTown inAu- Arts andCulture : TheWorking ary 2004

23 Ministry of External Relations