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Gateway India and The BRICS
Gateway India and The BRICS
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Contents
Introduction
InJluBruzll Ploneerx of u new Jevelopment ugenJu
Fxtefunu Murchdn
InJluRuxxlu 1uklng euch other xerlouxly
Kutherlne Foxhko
InJlu Flnunclul Regulutory Fxporter
K N VulJyunuthun
Why lx South Afrlcu u BRIC
Allxhu Plnto
InJluBruzll An Afrlcun colluborutlon
Fxtefunu Murchdn
Chlnu unJ InJlu Slowlng growth vx Stulllng growth
Munjeet Krlpulunl unJ Bob owllng
Bewure of cheup lenJlng from Chlnu
Sumlr N KupuJlu
4
O
ver the last decade, countries known under the emerging markets acronym of BRICS, have
begun to seiiously ueine theii common inteiests anu values Biazil Russia Inuia China anu
South Afiica have helu thiee summits so fai in Russia Biazil anu China 0n Naich they will
meet again, this time in New Delhi, with the goal of addressing the global economic condition,
iefoiming inancial anu iegulatoiy institutions anu impioving coopeiation with each othei on a
host of inteinational issues fiom staiting a BRICS uevelopment bank to inteichanging high tech
skills While these issues uiiectly impact them they also affect much of the ueveloping woilu
Though uiffeient in size anu iesouices the BRICS nations as a gioup aie massive they account
foi of the woilu population of global uBP anu of iecent global giowth Togethei
they have the potential to cieate a futuie mouel foi otheis
As an inuepenuent maiketfocuseu Inuian think tank uateway Bouse has been ueeply investeu
in the futuie of Inuia anu its BRICS counteipaits What is the best way to uevelop affoiuable
housing foi laige population nations What is the best way to secuie long teim manageable
eneigy supplies Can healthcaie be ueliveieu moie eficiently en masse anu to iemote iegions
Bow much sustaineu giowth is iequiieu to making one of these laige nations succeeu Bow can
the inlationgiowth tiaueoff be manageu Is theie a bettei way to piouuce anu uelivei foou
than with only laige scale enteipiise Can the BRICS be lenueis of best iesoit foi each othei
Bow to best take auvantage of the globalization of technology
The summaiies of ieseaich papeis in this booklet begin to offei some answeis In InuiaBiazil
Pioneeis of a new uevelopment agenua ieseaichei Estefania Naichn examines the possibili
ties foi Inuia to biing affoiuable housing technology to Biazil while Biazil offeis its expeiience
with piogiammes to uevelop pioitable small faims anu uelivei cash payments with mouein
netwoiks to the pooi Naichan then looks at how the lessons fiom InuiaBiazil coopeiation
might be passeu on with goou iesults to Afiica
In InuiaRussia Taking each othei seiiously Russia Stuuies ieseaich fellow Katheiine Foshko
looks at why a oncehealthy InuiaRussia ielationship has gone into quietuue anu suggests that
a tech ievival shoulu be auvanceu Infoimation technology in paiticulai is an aiea wheie Inuia
shoulu capitalize on the plethoia of euucateu anu talenteu Russian piofessionals anu Russia can
beneit fiom the size as well as the expeitise of the Inuian laboi pool she wiites
Similaily K N vaiuyanathan the foimei executive uiiectoi of Inuias Secuiities anu Exchange
Boaiu anu senioi ueoeconomics Fellow makes a case that Inuias caieful uelibeiate appioach
to peimitting inancial ueiivatives on its exchanges piotecteu it fiom the iavages of the
global ciash It has cieateu a mouel foi BRICS anu othei ueveloping countiies which aie seeking
to giow while insulating theii inancial maikets fiom global shocks
Renu Noui an piofessoi at the 0niveisity of Numbai who uiiecteu its Afiican Stuuies Centei
points out that while South Afiica might have been inuucteu into the BRICs club as a gift its
gieatei as a gateway to the billionpeison Afiican continent
Theie aie also cautionaiy notes The two laigest nations Inuian anu China aie both expeiienc
ing slowei giowth but theii outcomes coulunt be moie uiffeient wiite uateway Bouse execu
tive uiiectoi Nanjeet Kiipalani anu auvisei Bob Bowling China is engineeiing a slowuown to
encouiage a consumei economy but Inuia is heauing foi a uangeious stall that must be ieveiseu
Neanwhile ieseaichei Samii N Kapauia explains that while China is a fiienuly bankei to BRICS
its lenuing comes with stiings attacheu
We hope you enjoy the oiiginal thinking these iueas auu to the foimal BRICS agenua
Munjeet Krlpulunl
Fxecutlve lrector
Gateway House: Indian Council on Global Relations
Mumbul
Murch
Introduction
5
InuiaBiazil Pioneeis of a new uevelopment agenua
~ Estefana Marchn
E
xpectations aie high foi the fouith
summit of Biazil Russia Inuia China
and South Africa, to be held in New Del
hi on Naich th With economic ciisis
ablaze in the Euiozone anu signs of anoth
ei global iecession anticipation is mount
ing foi how the leaueis of the socalleu
BRICS will address the world economic
slowdown and how far
they will push to iefoim
the institutions of global
goveinance
Yet with the spotlight on
the economy a piomis
ing and tangible devel
opment agenua coulu
be oveilookeu At eveiy
summit, members have
ieneweu theii pleuge to
stiengthen coopeiation
on social piotection
public health foou secu
iity anu agiicultuie But
little has been achieved
so fai Foi Inuia home
to one third of the
woilus pooi these ef
foits shoulu be a piioi
ity
The potential beneits
of coopeiation aie espe
cially cleai in the case of Biazil Inuia anu
Biazil have ueclaieu inclusive uevelop
ment an impeiative anu have engineeieu
creative solutions to meet their devel
opmental challenges But both also face
many obstacles to equitable uevelopment
some of which can be overcome through
mutual learning and targeted bilateral in
vestment
Biazils Zeio Bungei stiategy foi in
stance, has been successful at reducing
poveity inequality anu hungei by uevel
oping pioitable small faims anu uelivei
ing cash to pooi families thiough innova
tive payment systems As the uebate iages
in Inuia about how best to ieuuce poveity
cuib giowing inequality anu boost agii
cultuial piouuction Biazils expeiience
can help
Biazils social schemes aie among the
woilus best taigeteu anu theyie tians
paient They have uemon
strated how to streamline
the delivery of services
across all levels of gov
einment By collaboiat
ing with Biazil Inuia can
impiove the ieach anu
eficiency of its own no
toriously leaky schemes,
incluuing the Public Bis
tribution System, whose
losses are estimated to be
aiounu a yeai
There are of course vast
differences between the
two countiies Inuias pooi
aie twice Biazils entiie
population foi example
But that shoulunt stop
India from borrowing
some goou iueas Its not
necessary for India to in
uisciiminately auopt cash
tiansfeis oi othei Biazil
ian schemes to beneit fiom knowleuge
shaiing Inuia can leveiage its piivate sec
toi skills to scale up piogiams
In tuin Biazil can beneit fiom Inuias in
novatois who aie inuing novel ways to
pioviue the countiys lowincome popu
lation gieatei access to piouucts seivic
es anu employment that enhance living
stanuaius Inuia has piouuceu the woilus
cheapest cai electionic tablets that cost
laige successful ietaileis that link
thousands of rural workers to modern
uiban maikets anu familysizeu apait
ments in cities that sell foi In the
India and Brazil have
declared inclusive devel-
opment an imperative
and have engineered
creative solutions to
meet their develop-
mental challenges. But
both also face many
obstacles to equitable
development some of
which can be overcome
through mutual learn-
ing and targeted bilat-
eral investment. .
6
affoiuable housing sectoi the longteim
oppoitunities foi paitneiships with Inui
an entiepieneuis aie paiticulaily signii
cant Biazilian oficials pieuict a ueicit of
million homes foi lowincome families
in the next yeais
In healthcaie the beneits of an Inuia
Biazil collaboiation aie alieauy eviuent
Faceu with common uiseases anu limiteu
iesouices Inuia anu Biazil have useu each
other, challenging the international intel
lectual piopeity iegime to combat BIv
AIBS In foi example Biazil bioke a
patent on an antiietioviial uiug piouuceu
by Neick Phaimaceutical in the wake of
iising uiug costs Inuian iims weie the
only piouuceis of the geneiic veision of
the uiug anu Byueiabaubaseu Auiob
inuo ultimately pioviueu Biazil with the
active ingieuient to piouuce it It was es
timateu that this woulu save Biazil
million thiough
Biazil has taken auvantage of theii joint
campaign foi gieatei access to lifesaving
meuicine anu seen an extiaoiuinaiy ue
cline in BIvAIBS Recognizing such syn
eigies Inuia anu Biazil have investeu
million each in joint ieseaich on common
uiseases thiough the InuoBiazil Science
Council This alliance can anu shoulu be
stiengtheneu
Bealthcaie poveity alleviation anu mai
ketuiiven social innovation aie just a few
aieas wheie coopeiation between these
poweis can piouuce bioau social beneits
A foimal paitneiship is neeueu between
Biazils Ninistiy of Social Bevelopment
anu Fight Against Bungei anu Inuias Cen
tial Planning Commission to institution
alize knowleuge shaiing anu technical co
opeiation on social piotection piogiams
Chambeis of commeice incluuing FICCI
anu the InuiaBiazil Chambei of Com
meice can uiive piivate sectoi collaboia
tion connecting Inuian anu Biazilian en
tiepieneuis
At a time when both countries are be
ginning to use foieign aiu as a uiplomat
ic tool it is tempting to iegaiu them as
competitois But these countiies shoulu
insteau iecognize each othei as stiategic
paitneis anu pioneeis of a new uevelop
ment agenua one that piagmatically au
uiesses the neeus of ueveloping nations
Inuia anu Biazils stiategies foi inclusive
uevelopment aie complementaiy anu to
gethei holu gieat value
Foieign aiu pioviueu by BRICS countiies
has moie than uoubleu since anu
the surge is intimately tied to their efforts
at iefoiming global goveinance Since the
enu of Woilu Wai II global goveinance has
been a Westeinleu enteipiise The iules
that govein aiu anu inluence the uevelop
ment of other nations have been made by
the victors of the war and have evolved
to iest within a small gioup of poweiful
countiies which now face a selfmaue
ciisis With the iise of these new poweis
paitneiships that once seemeu weak aie
gaining tiaction Piime Ninistei Nanmo
han Singh should take advantage of his
position as host of the upcoming summit
to uiive a new uevelopment agenua
Estefana Marchn is the head of Latin America Studies at Gateway House: Indian Council on Global Relations, Mumbai.
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