T S Vishwanath: More than just a group of equals

As all five nations seem ready for growth, it is time the BRICS Summit delivers something substantial other than a message of partnership

The Brazil, Russia, India China and South Africa (BRICS) Summit in Brazil holds promise. It comes at a time when developing countries are looking to create stronger linkages to build growth and influence global policy on issues that impact trade and investment flows.

BRICS is not exactly a group of equals if economic power is a criterion. But each of these countries has a place on the global high table on most issues and is seen as an important partner by countries in developed and developing world.

The plan to launch a development bank at the summit is important. Where the bank will be based will not be as important as compared to what it will accomplish in terms of pushing developmental projects in the emerging world. China is also planning an Asian Infrastructure Investment Bank and New Delhi has been invited to become a founder member of this bank as well by Beijing.

There are concerns on what the BRICS bank can accomplish. Importantly, it has to look beyond narrow national interests and must be seen as a joint effort of the countries to build greater South-South co-operation. This will be important if the bank and BRICS have to remain relevant.

For BRICS to remain relevant, the countries will have to focus on some key issues that have an impact for all five nations. First has to be greater and sharper focus on trade and investment flows. Second will be deeper co-operation at multilateral forums, especially in areas of concern for developing countries. Third, creating platforms for greater exchange of information between these countries in sectors that can help build inclusive growth. Fourth will be to co-opt other countries that can help deepen the developing-country partnership.

On trade and investment, the five countries have to realise that although they will continue to compete for a share in the global markets, there has to be greater flow of trade and investment between these countries and the creation of platforms to build on each other's expertise. These countries can help build value chains, which can help them compete with the best in the world.

Multilateral forums such as the World Trade Organisation or discussion on climate change require greater co-ordination between these countries to ensure that the agenda remains balanced and not tilted in favour of the richer countries. There is, therefore, a need for greater interaction between these countries before any major multilateral meeting to forge partnerships and common areas of interest.

From education to agriculture, there exist a host of sectors where these five countries can work together to forge partnerships. In agriculture, for instance, they can work together to share the best practices and build institutions for co-operation.

Finally, BRICS needs to grow larger. Countries may look at launching another group that includes strong developing countries, which can help forge greater South-South co-operation.

Trade and investment, without doubt, will remain critical elements that will keep the momentum going for these countries. On the trade and investment front, these countries must look at setting huge targets for trade in the next few years. The BRICS Bank should allocate some money for co-operation that will build investment across the five nations.

The bilateral meetings that happened before the summit have been promising for India. For instance, reports suggest the meeting between China and India helped build a strong rapport between Prime Minister Narendra Modi and Chinese President Xi Jin Ping. Interestingly, China has invited India to attend the Asia-Pacific Economic Co-operation summit as part of an effort to build partnership and engagement between the two countries.

BRICS summits are always promising but are yet to deliver something substantial other than a message of partnership. Given the need for inclusive economic growth for all these countries there is a need for building a strong and substantive agenda. And the timing is appropriate since all five economies seem to be getting ready for some action and growth.

The writer is Principal Adviser at APJ-SLG Law Offices