Partnering for economic growth in developing nations

Partnering for economic growth in developing nations

Leaders of Brazil, Russia, India, China and South Africa met virtually for the 14th BRICS Leaders’ Summit, to strengthen international ties and discuss development plans following the global pandemic.

The BRICS countries are central to future global economic development, with rising economies and growing influence. The partnership aims to aid in economic growth, through trade partnerships and knowledge sharing. The five members make up more than 40% of the world’s population, 30% of the territory, and around a quarter of the global economy. The Summit was held virtually by Chinese President, Xi Jinping, on Thursday 23 June 2022, with the view of discussing issues such as global politics, economies, and food security, among others.

STRENGTHENING ECONOMIC AND POLITICAL TIES

President Cyril Ramaphosa said the summit offered a platform to further strengthen ties for South Africa’s growth and job creation, as well as the opportunity to discuss how all countries could fast track their recovery from the pandemic.

“Through the reform of the multilateral system, including the United Nations, and by refocusing the attention and resources of the global community on the sustainable development agenda, the BRICS group can support a sustained and equitable global recovery,” he said.

A key topic under discussion was food security, especially against the backdrop of a global food crisis and conflict between Russia and Ukraine. Russia is a key importer of agricultural products and strengthening agreements on the import of food products with China, Brazil, India and South Africa, could support economic growth in member countries.

South Africa already supplies a number of agricultural exports to BRICS partners, but the Summit has been the ideal platform to lobby for increased export deals, especially in China and India.

These two countries have significant agricultural import values, growing populations and expanding economies – making them ideal trade partners for South Africa.

Among other commodities, South Africa exports fruit, beverages, spirits, vinegar, cereals, oilseeds, rawhide, fish and meat to BRICS nations.

But agriculture is not the only sector that relies on exports to BRICS nations. Since joining BRICS in 2010, South Africa’s trade relations partner countries improved and trade increased from R268-billion in 2011 to R529 billion in 2019.

Last year, more than 17% of South Africa’s exports were destined for BRICS countries and over 29% of total imports came from them as well.

“These countries are, therefore, significant trading partners, and the value of this trade is continuing to grow. Total South African trade with other BRICS countries reached R702 billion in 2021, up from R487 billion in 2017,” said President Ramaphosa.

WORKING TOWARDS A NEW WORLD ORDER

During the Summit, President Ramaphosa said the pandemic had provided an opportunity for BRICS countries to work together. “We are here as the members of BRICS to affirm our shared desire for a world in which all people have a meaningful stake, in which all have equal opportunity, and from which all can benefit. The BRICS response to the COVID-19 pandemic demonstrated what can be achieved when we work together in the spirit of friendship, solidarity and responsibility,” said President Ramaphosa.

To assist in creating equal access to vaccines, the BRICS Vaccine Research and Development Centre was launched in March to strengthen international health and science cooperation to prepare for future crises.

“It is a cause for great concern that the rest of the global community has not sustained the principles of solidarity and cooperation when it comes to equitable access to vaccines. We call on developed economies, international agencies and philanthropists that procure vaccines to purchase from manufacturers in developing economies, including in Africa,” added President Ramaphosa.

President Ramaphosa also called on the international community to refocus its attention on pressing global issues.

“In line with our foreign policy principles, South Africa continues to call for dialogue and negotiation towards a peaceful resolution of conflicts around the world. We are concerned that the focus and resources of the international community have been diverted from other concerning conflicts and humanitarian crises,” President Ramaphosa said.

“Urgent global issues like climate change and sustainable development are not being effectively attended to.”

The president added that the Summit provides a valuable platform for South Africa to strengthen ties with partner countries. “More than that, the summit is our opportunity to contribute to a better world, in which all countries have a better chance to recover from this pandemic and to flourish,” he said. •

Sources: www.dirco.gov.za www.foodformzansi.co.za www.iol.co.za www.sabcnews.com www.sciencedirect.com www.thepresidency.gov.za