BRICS Contributors include Tejendra Khanna Sudhir Vyas Sergey Lavrov NEW D Nursultan Nazarbayev Michel Sidibé Vadim Lukov Jim O’Neill Yoginder Alagh Maxim Medvedkov E LHI SUMMIT 2012 Yu Yongding João Pontes Nogueira Francis Kornegay Prabeer Basu Nitin Desai Alexander Bedritsky NEW dElhi SUMMiT 2012 Stability, security and prosperity BRICS cover_FINAL.indd 1 8/3/12 20:36:37 HSBC.indd 2 1/3/12 10:31:43 HSBC.indd 3 1/3/12 10:31:44 NEW dElhi SUMMiT 2012 Editors Marina Larionova, John Kirton Deputy editors Madeline Koch, Mark Rakhmangulov Guest editor Yoginder Alagh Researcher Andrey Shelepov Editor-in-chief Colette Doyle Managing editor Barry Davies Sub-editors Clare Cronin, Erica Moss Art editors Jean-Philippe Stanway, James White Designer Kylie Alder Production and distribution manager Malcolm Green Sales director Martin Cousens Managing director Andrew Howard Chief executive Alan Spence Chairman Paul Duffen Pictures: Getty, Press Association, Reuters ISBN: 978-1-906940-51-5 Printed by Buxton Press Published by Newsdesk Communications Ltd 130 City Road, London EC1V 2NW, UK Tel: +44 (0) 20 7650 1600 Fax: +44 (0) 20 7650 1609 Newsdesk Media Inc 700 12th Street NW, Washington DC 20005, US Tel: +1 (202) 904 2423 Fax: +1 (202) 904 2424 In cooperation with the BRICS Research Group Higher School of Economics and University of Toronto, www.newsdeskmedia.com 1 Devonshire Place, Room 209N, Toronto ON M5S 3K7 Newsdesk Media Group publishes a wide range of business and Canada customer publications. For further information please contact Tel: +1 (416) 946 8953 Alan Spence, chief executive, or Paul Duffen, chairman. www.brics.utoronto.ca © 2012. The entire contents of this publication are protected by copyright. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means: electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. The views and opinions expressed by independent authors and contributors in this publication are provided in the writers’ personal capacities and are their sole responsibility. Their publication does not imply that they represent the views or opinions of Newsdesk Communications ltd or the BRiCS Research Group and must neither be regarded as constituting advice on any matter whatsoever, nor be interpreted as such. The reproduction of advertisements in this publication does not in any way imply endorsement by Newsdesk Communications ltd or the BRiCS Research Group of products or services referred to therein. 4 | BRICS NEW dElhi 2012 Masthead.indd 4 8/3/12 21:27:58 CONTENTS Contents EDITors’ forewORD 16 The BRICS New Delhi Summit 2012 Sudhir Vyas, secretary (economic relations), 8 From reform to crisis response: Ministry of External Affairs, Government of addressing the key global issues India, and Indian sherpa for the BRICS summit Marina Larionova and John Kirton 18 BRICS on the global frontier: creating space for growth Leaders’ perspectives Yoginder K Alagh, chair, Institute of Rural Management Anand; guest editor, 10 BRICS: a view from the top BRICS New Delhi Summit 2012 Recent reflections from the five leaders of the BRICS countries on the key issues affecting their developing economies SPECIAL PERSPECTIVE 20 Kazakhstan as the great connector INTRODUCTIONS Nursultan Nazarbayev, president of Kazakhstan 12 BRICS: a new-generation forum with a global reach Sergey Lavrov, minister of foreign affairs, BUILDING THE BRICS INSTITUTIONS Russian Federation 24 Building BRICS: from conceptual 14 Welcome to Delhi: a crossroads category to rising reality for global exchanges of ideas Jim O’Neill, Goldman Sachs Tejendra Khanna, lieutenant governor and administrator of national capital 26 What interests do the BRICS territory of Delhi countries share? Nitin Desai, former under-secretary-general, United Nations 28 Time for BRICS to develop an external relations strategy Vadim Lukov, ambassador-at-large, Russian Ministry of Foreign Affairs; Russia’s BRICS sous-sherpa 30 Advancing accountability in BRICS governance Ella Kokotsis, BRICS Research Group PARTICIPATING POWERS 32 Russia as an export opportunity: looking into the future Maxim Medvedkov, director, Department of Trade Negotiations, Russian Ministry of Economic Development BRICS new delhi 2012 | 5 Contents.indd 5 8/3/12 21:43:42 CONTENTS 34 China as a global economic power Yu Yongding, Chinese Academy of Social Sciences 36 The knock-on effect of China’s changing role in world trade Tu Xinquan, China Institute for WTO Studies of the University of International Business and Economics 38 The global influence of BRICS: a Brazilian perspective Joao P Nogueira, International Relations Institute, Pontifical Catholic University of Rio de Janeiro, and general coordinator, BRICS Policy Center 40 Brazil as a global trading partner: does being in BRICS help? Fatima Berardinelli, Adriana de Queiroz, Leonardo Paz, Renata Dalacqua and Andressa Maxnuck, Brazilian Centre for International Relations 42 South Africa takes its place on the world stage among global powers Francis A Kornegay, Institute for Global Dialogue 54 Reserve currencies and the THE SUMMIT AGENDA international monetary system Sergei Guriev, rector, New Economic School, Moscow, Russia PROSPERITY 56 Plenty to gain from strengthening 44 Assessing the economic power financial links among BRICS and potential of BRICS Vladimir Dmitriev, chair, Vnesheconombank YV Reddy, former governor, Reserve Bank of India 58 Fuelling investment among BRICS countries 46 Potential to boost performance Leonid Grigoriev, deputy director general, as an engine of global growth Russian Energy Agency; head, chair of global Mikhail Titarenko, director, Institute of Far economy, Higher School of Economics, Russia; Eastern Studies, Russian Academy of Sciences and Alexandra Morozkina, chief specialist, division of analysis of investment and financial 48 The challenge of becoming dynamic problems, Russian Energy Agency hubs of knowledge and innovation Marcos Troyjo, co-founder and director, BRICLab, 60 Building a BRICS framework for Columbia University, US science, technology and innovation Leonid Gokhberg, Tatiana Kuznetsova and 50 International cooperation: Anna Zaytseva, National Research University a need for capacity building Higher School of Economics, Russia Georgy Toloraya, executive director, National Committee of BRICS Research, Russia; chair, Regional Projects Department, BRICS: A PRIVATE-SECTOR PERSPECTIVE Russkiy Mir Foundation 62 Generating global growth 52 Can a BRICS monetary arrangement in BRICS and beyond resist the G7 wall of money? An interview with Shanker Ramamurthy, Martin Gilman, former assistant director, policy president, Global Growth Organisation; department, International Monetary Fund member, executive board, Thomson Reuters 6 | BRICS new delhi 2012 Contents.indd 6 8/3/12 21:43:50 CONTENTS DEVELOPMENT, HEALTH PEACE AND SECURITY AND AGRICULTURE 84 Cementing BRICS as a coalition 66 Leveraging the response to AIDS to of the global South advance health and development Ramesh Thakur, Asia-Pacific College of Michel Sidibé, executive director, Diplomacy, Australian National University Joint United Nations Programme on HIV/AIDS (UNAIDS) 86 Summit must play a part in creating a safer global information space 68 The role of BRICS countries in food Vladislav P Sherstyuk, aide to the and agriculture development secretary of the Russian Federation Prabeer Kumar Basu, secretary, Security Council; director, Lomonosov Department of Agriculture and Cooperation, Moscow State University Institute of Government of India Information Security Issues 70 Contributing to development through trade and investment INDIA’S BUSINESS OPPORTUNITIES Peter Draper and Elizabeth Sidiropoulos, South African Institute of International Affairs 88 The Indian retail boom awaits business model innovations 72 How convergence on nutrition and R Gopalakrishnan, director, health benefits mothers and children Tata Sons Ltd Manoja K Das, Kiranmala Devi and Narendra K Arora, the INCLEN 91 India offers an investment (International Clinical Epidemiology opportunity in infrastructure Network) Trust International BK Chaturvedi, Planning Commission, Government of India 74 The BRICS contribution to the fight against disease Siphamandla Zondi, University of South Africa 94 Leaders’ profiles and Institute for Global Dialogue Biographies of the five BRICS leaders attending the New Delhi Summit 76 Meeting the challenges of African food security Jay Naidoo, Global Alliance for Improved Nutrition ENERGY, ENVIRONMENT AND SUSTAINABLE DEVELOPMENT 78 Climate change – from Cancun to Durban and beyond Alexander Bedritsky, advisor to the president of the Russian Federation and special envoy for climate; president emeritus of the World Meteorological Organization 80 How building links among BRICS could help to solve fuel problems Mikhail Komarov, director, Russian Institute of Economy and Mineral Resources Exploration; Evgeny Kozlovsky, vice-president, Russian Academy of Natural Sciences; and Rudolf Makrushin, Russian Institute of Economy and Mineral Resources Exploration 82 What factors are influencing China’s climate policy? Xu Ting, University of International Business and Economics, China BRICS new delhi 2012 | 7 Contents.indd 7 8/3/12 21:43:58 EDITORS’ fOREWORD From reform to crisis response: addressing the key global issues much else in 2012. They also offer attractive opportunities for investors and exporters everywhere. The new delhi Summit will address