BRAND SOUTH AFRICA FEATURE “BRICS BANK” Inspiring new ways The new face <strong>of</strong> a new world. He is young. He thinks he is small and insignificant. But he is not. He is growing bigger and stronger, everyday. Soon he will be a leader at the forefront <strong>of</strong> economic policy, business and politics. His decisions will change lives, industries, communities, Africa and the world. And he will not be alone. He will have an entire continent with him. A continent with the resources, minerals, political stability, human potential, technology and backing <strong>of</strong> BRICS – the 5 fastest growing economies in the world. And with all this to help this young man and his ambitious generation grow, we think maybe it’s time you change the way you see Africa. Because Africa and its people, are the future. South Africa. Your African growth story starts here. A far-reaching decision to establish a new international development bank, taken at the most recent meeting <strong>of</strong> Brazil, Russia, India, China, South Africa (BRICS) during March 2012 in New Delhi, has not attracted the attention it deserves. It has the potential to be a game-changer when it comes to trade and investment. Brazil, Russia, India, China and South Africa intend setting up another “World Bank”, not as an alternative to the existing one, but one that will meet the growing demand for access to development capital <strong>of</strong> developing countries. Looking at the growing power that BRICS already represents, it is clear that a potential revolution in global finance might very well have started: this set <strong>of</strong>f emerging economies accounts for 50% <strong>of</strong> international growth, 25% <strong>of</strong> global output and 40% <strong>of</strong> world population. The effect <strong>of</strong> such a “BRICS Bank” will not be felt immediately but it is certain to further enhance the global shift – east and southward – which is already well underway. The way to look at the BRICS initiative is to understand that this set <strong>of</strong> major emerging countries is not an alternate to existing international organisations, nor is it opposed to the rich North, but it is a corrective working toward giving due weight to the rapidly growing emerging world. BRICS came into being as a multisectoral diplomatic force but in the last 18 months there have been more structures put in place to act on decisions taken at the annual summit meetings and to ensure implementation. However, while multilateralism is at the heart <strong>of</strong> the BRICS approach, it is also a fact that a great deal <strong>of</strong> bilateral cooperation between BRICS members and individual African countries will continue. Of significance here is that South Africa does not represent the African continent in BRICS, or even pretend to, but its membership COULD BE A GAME-CHANGER By Miller Matola CEO: Brand South Africa does mean that Africa’s voice will be heard, not only in the “BRICS Bank” but at BRICS meetings and across all international bodies in which the BRICS as separate countries are presented. These include the United Nations Security Council, and a host <strong>of</strong> international trade and investment bodies. Apart from this broader advantage the continent as such gets from the strengths <strong>of</strong> BRICS, South Africa is leveraging opportunities to grow its own economy to be better able to respond to its own huge challenges in the fields <strong>of</strong> unemployment, poverty and underdevelopment. The country’s step as a co-founder <strong>of</strong> this new development bank is further affirmation – if it was necessary – <strong>of</strong> its widely recognised status as an important emerging market in its own right. It will further catapult the country to the frontline as an investment destination and will open huge new trade opportunities. But lest one forgets, BRICS is not only about trade and investment in general terms. Infrastructure development, mineral beneficiation, and scientific and agricultural cooperation are top <strong>of</strong> the list too and are already leading to closer cooperation between BRICS members. Important to note here is that when the southern and eastern Africa free trade area gets underway in three years’ time, South Africa will be an important bridge between this huge new market and BRICS – it is the only country with membership in both. And the market will be huge – 26 countries, 600 million people with a market close to US$1 trillion. That is truly a BRICS-sized market and right up there with the biggest in the world. With and through South Africa there already present massive opportunities in infrastructural development within and between these countries. When the new “BRICS Bank” gets into gear, this might very well be the first area where it may want to throw in its weight, expertise and capital. Feature 38 <strong>UBUNTU</strong> diplomacy in action <strong>Issue</strong> 1 www.dirco.gov.za DIRCOza @theDIRCOza www.dirco.gov.za DIRCOza @theDIRCOza thedircoza <strong>Issue</strong> 1 diplomacy in action <strong>UBUNTU</strong> 39
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