PAVBRICS

BRICS POLICY CENTER

PAPER:

V BRICS Summit Durban

March 26-27 2013

April, 2013.

Author: Diego Santos Vieira de Jesus

The contents of the publication do

not necessarily represent the views

of the BRICS Policy Center

BRICS POLICY CENTER – PAPER

V BRICS Summit — Durban, March 26 -27 2013

1

Author: Diego Santos Vieira de Jesus

V BRICS Summit — Durban, March 26 — 27 2013

1. Executive Summary

The fifth annual BRICS Summit took place in Durban, South Africa, in March 26- 27th, 2013,

and brought rather expressive outcomes in comparison to previous summits of the group.

The Summit in Durban was the first time that China´s new President Xi Jinping attended a

big multilateral event and it was also the first time Russia was represented by its President

Vladimir Putin, since that on previous BRICS Summits the State had been represented by

President Dmitry Medvedev. Along with the participation of African partners, South African

leader, Jacob Zuma, also welcomed India´s Prime Minister Manmohan Singh and Brazilian

President Dilma Roussef in the South African city. The Summit´s debates- which had

“BRICS and Africa: A partnership for Development, Integration and Industrialization” as a

theme, were mainly focused on the promotion of development and on the reform of global

governance institutions. The negotiations around the creation of a new development bank

led by the five States that would have a focus in financing infrastructure and industrialization

projects were initiated. The discussions around the creation of a common fund that would

have as an objective to ‘rescue’ governments in the case their external accounts are

threatened, received great attention. The group leaders also met with regional African

leaderships in a dialogue around the theme “Unleashing the African Potential: the BRICS-

Africa Cooperation in Infrastructure”1, opening a new channel for the dialogue between the

group and other developing States, as well as other regional organizations.

The Durban Summit also represented a step forward in key points that had already been

present on the group´s agenda on the past four summits and also brought to light priority

matters for South Africa, especially African infrastructure, regional integration and the formal

launch of negotiations around the creation of the BRICS Development Bank. The agenda

1 MINISTÉRIO DAS RELAÇÕES EXTERIORES. V Cúpula do BRICS Durban, 27 de março de 2013. Itamaraty website, 25 mar. 2013. Available at: <http://www.itamaraty.gov.br/sala-de-imprensa/notas-a-imprensa/v-cupula-do-brics-durban-27-de-marco-de-2013>. Acessed in 25 mar. 2013.



2

also included challenges such as economic growth, job creation, and topics related to

international security. The Summit has deepen the institutionalization process of the BRICS

and allowed the enlargement of the cooperation with African leaders and the interaction with

players outside of the member States leaderships through the creation of instruments such

as the BRICS Business Council and the BRICS Think Tank Council. Although NGOs

networks and other actors are articulating themselves in order to debate the possible social,

political and economic repercussions of the whole process, the lack of civil society

involvement in it is noticeable.

In the end of the meeting, BRICS leaders released the eThekwini Declaration, in which the

group indicated that the Durban Summit concluded the first cycle of BRICS Summits-

composed by five summits held in each of the member states and characterized by the

launching of the political and institutional roots of the cooperation between the group- and

reaffirmed their commitment to the promotion of international law, multilateralism and of a

central role for the United Nations. The discussions reflected the growing intra-BRICS

solidarity and the shared objective to positively contribute to global peace, stability,

development and cooperation. They also considered BRICS role in the international system

based in a solidarity and cooperation perspective regarding all the nations and peoples and

they celebrated the establishment, by their trade and development banks, of the Multilateral

Arrangement on Cooperation and Sustainable Development Co- financing, and the

Infrastructure Co-financing for Africa. The eThekwini´s Action Plan stipulates further

meetings and consultations, as well as new potential cooperation areas to be explored, such

as a public diplomacy forum, anticorruption cooperation, companies and state owned

entrepreneurships, drug regulation agencies, BRICS virtual Secretariat, dialogue on policies

for the youth, energy, sports and mega sports events2.

Additionally, the leaders issued a statement related to the establishment of the development

bank leaded by the BRICS. In March 2012, the five States’ leaders had asked their Finance

Ministers to evaluate the viability of a new development bank that would gather resources

towards infrastructure and sustainable development projects on BRICS and other emerging

economies in order to supplement other regional and multilateral financial institutions´

existing efforts. Following the ministers ‘report, the leaders considered the establishment of

the bank as possible and feasible and agreed to establish a new development bank. They

said in the statement that the initial contribution of capital to the bank should be substantial

and sufficient for the bank to be effective in infrastructure financing.

2 ETHEKWINI DECLARATION. Durban, South Adrica, 27 mar. 2013. BRICS5 website, 27 mar. 2013. Available at: <http://www.brics5.co.za/fifth-brics-summit-declaration-and-action-plan/>. Accessed in: 27 mar. 2013.



3

They also pointed out that, in June 2012, in their meeting in Los Cabos, the Finance

Ministers and the Presidents of the Central Banks were instructed to explore the creation of

a Contingency Reserves Arrangement between the States of the group. They shared the

opinion that an initial investment of 100 billion dollars was possible and desirable, and that

amount was subject to domestic legal structures and appropriated safeguards, and

instructed their Finance Ministers and Central Banks´ Presidents to keep working towards

such endeavor as well as towards the new development bank, negotiating and reaching

deals that would make them possible. The progress in both initiatives will be examined at the

next BRICS leaders meeting, in September 2013.3

The next section will explore the debates around the BRICS Bank, Contingency Reserves

Arrangement and the global governance reform in the Durban Summit context. Later, the

development and African integration mechanisms debated on the summit will be addressed.

In the following section, other cooperation tools developed in areas different than the ones

aforementioned will be discussed. Before drawing final considerations and recommending

actions based on the Summit´s outcomes, the positions of each one of the BRICS during the

summit will be explored.

2. BRICS Bank, Contingency Reserves Arrangement and the global governance reform

Even before the Durban Summit, there was already indication that the members´ agenda for

the meeting would be rather broad, but there was a greater expectation of more concrete

outcomes in comparison to the previous meetings. Besides advocating infrastructure co-

financing and sustainable developments agreements, there was also an expectation that

actual negotiations around the BRICS Bank would be launched. It was speculated that the

Brazilian government would seek to establish the goal of founding the bank in the group´s

meeting in Brazil in 2014, and that the initial investment for the financial institution would be

around 50 and 70 billion dollars, provided by the five States, with a quota payment of around

2 billion dollars in the bank´s inception. The summit was also expected to start the official

negotiations on the Contingency Reserves Arrangement, which, in fact, were already well

advanced. The Arrangement would be a financial mechanism that would combine part of

3 STATEMENT BY BRICS LEADERS ON THE ESTABLISHMENT OF THE BRICS-LED DEVELOPMENT BANK. Durban, South Africa, 27 mar. 2013. BRICS5 website, 27 mar. 2013. Available at: <http://www.brics5.co.za/statement-by-brics-leaders-on-the-establishment-of-the-brics-led-development-bank/>. Acessed in: 27 mar. 2013



4

each of the States´ international monetary reserves, adding up to 120 billion dollars, with the

objective to protect the group´s members from speculative financial attacks and from

problems on their trade balance, besides enlarging these States´ autonomy regarding the

International Monetary Fund in the necessity of foreign currencies. China would be the main

contributor, while Brazil, India and Russia would have similar contributions smaller than

China´s, and South Africa would contribute the least but would be able to take a larger

share. The disbursement would not necessarily be immediate, but there would be the

commitment of contributing with the sum upon request.4

The idea to create the BRICS bank was first proposed by India´s Prime Minister Manmohan

Singh, at the G20 Summit in Seoul in November 2010, and received the support of many

economists such as Nicholas Stern and Joseph Stiglitz. As host of the BRICS Summit 2013,

South Africa showed its commitment to the proposed bank, and put it as one of the main

topics for a successful summit and signaling the direct effect of such institution in the

infrastructure financing, which both South Africa and India deeply need. Brazil also sought

new sources of investment for infrastructure, while Russia - whose wealth in oil and gas

enables an increasingly decisive international insertion - and China - whose economy

continues to grow- identified political and economic advantages of putting their own financial

resources into the operation of the bank and into the assistance of partners through an

instrument of the group they created and sought to lead.5

The Action Plan established at the New Delhi Summit in 2012 promoted the constitution of a

development bank that would seek to promote trade and economic development progress

between the group members, besides the extension of credit mechanisms in local currencies

under a cooperation mechanism inter BRICS banks. The development bank´s ambition is to

mobilize resources for infrastructure and sustainable development inside the BRICS or other

emerging and/or underdeveloped economies, and supplement the efforts of existing

multilateral and regional financial institutions towards global growth development. It would

seek to finance projects related to development aspects of intra-BRICS and to the interests

of its members, such as jobs creation and promoting urbanization. However, there are

contentious issues such as the location of the bank´s headquarters, the types of project that

the bank would finance and its source of funding. In Durban, it was expected that the

structural and operational details of the bank would be discussed, although there was no

expectation that all details would be agreed upon already at the Summit. The bank could

4 VALOR ONLINE. Países dos Brics firmam acordos para atuar na África. DefesaNet, 22 mar. 2013. Disponível em: <http://www.defesanet.com.br/geopolitica/noticia/10157/Paises-dos-Brics-firmam-acordos-para-atuar-na-Africa>. Acesso em: 24 mar. 2013. 5 KIRTON, John; BRACHT, Caroline. Prospects for the 2013 BRICS Durban Summit. University of Toronto website, 22 mar. 2013. Available at: <http://www.brics.utoronto.ca/commentary/130322-kirton-bracht-prospects.html>. Accessed in: 27 mar. 2013.



5

also offer support for project preparation and would not act as a counterweight to the

multilateral development banks - notably the World Bank - but as an auxiliary financing

institution. It is worth noting that although the proposed 50 billion dollars for the bank was

small if compared to the infrastructure demands of developing States, it was bigger than the

29.1 billion dollars that the World Bank offered in 2010 for the development of infrastructure

in developing States. States like China made large investments in infrastructure, but poorest

states in South Asia and Africa struggled to get new infrastructure projects financed.

Until shortly before the Summit, it was still uncertain if non-member states of the BRICS

could also contribute, following the model of regional development banks. Apparently, the

investment bank would be destined for the BRICS members only, but non-members could

benefit as recipients at a later time. In terms of political debate, issues such as the location

of the bank's headquarters and the origin of the executive director also emerged. Moreover,

it was expected that the BRICS bank would dispense many details related to environmental

protection, local participation, transparency and accountability - that were essential for

institutions such as the World Bank - and would specialize in infrastructure projects of high

cost and risk while the World Bank would continue to engage in safer and cheaper social

investments, such as those related to education and health. The World Bank issued a

statement congratulating the BRICS when the technical work put in the creation of the

institution was officially launched in Durban. Nonetheless, there was still the fear - also

shared by analysts - that the Bank of BRICS could rival the institution and would point to a

substantial change in the conduct of policy and projects in the international financial system.6

In Durban, Brazil´s Finance Minister, Guido Mantega, said at the Ministers of Finances´ and

Central Banks Presidents meeting break that the Brazilian proposal was that the

development bank was to be formed in 2014 and that details were still being discussed,

since there was consensus on the need for investment in infrastructure to stimulate the

growth of such states. None of the five members of BRICS proved to be against the creation

of the bank, however the initial capital had not yet been set. The governance of the new

institution would be up to the five states, however, new members could be accepted. The

Brazilian Minister of Development, Industry and Foreign Trade, Fernando Pimentel,

confirmed that discussions for the creation of the group´s development bank had advanced.

However, other sources indicated that, until very shortly before the opening of the Summit,

the negotiations over the launching of the development bank of the BRICS faced resistance

from Russia. During the meeting of the Finance Ministers held before the meeting of the

leaders of the BRICS, effort was made to break the potential Russian obstacle, but forecasts

6 COHEN, Mike; ARKHIPOV, Ilya. BRICS nations plan new bank to bypass World Bank, IMF. Bloomberg, 25 mar. 2013. Available at: <http://www.bloomberg.com/news/2013-03-25/brics-nations-plan-new-bank-to-bypass-world-bank-imf.html>. Accessed in: 5 abr. 2013.



6

showed that the institution should not begin its operation before 2016. There was indication

that Russia did not want to set the specific amount that each emerging State should

contribute with to capitalize the bank in the Durban Summit, seeing few advantages brought

by the new institution. In the weeks before the summit, negotiations were based on an initial

investment of 50 billion dollars, equally divided among the five states. However, as indicated

above, some details were still open, such as the State that would host the bank, its form of

governance and when the operation would begin.

On March 26, 2013, representatives of the BRICS member states approved the creation of

the joint development bank. The South African Finance Minister, Pravin Gordhan,

announced the outcomes of the discussions between the five States at the ministerial level

before the annual summit, and the details were to be announced by the heads of state and

government of the five members. Nonetheless, Indian diplomats indicated that it was only

the beginning of the agreement, since the technical issues would be pending. The bank

should really have an initial capital of 50 billion dollars, or 10 billion per State. Although it

would have difficulty in gathering such a sum, corresponding to 2.5% of its GDP, South

Africa has made this issue a priority and hoped to find ways to finance both its infrastructure

program and projects in neighboring states. However, the Ministers of Finances of the group

failed to reach agreements on key issues related to the creation of the Development Bank of

the group. Russian officials have placed some specific issues such as the fact that volume

and amount of capital contributions from each member had not been agreed, and other

management related issues – such as if the contributions will be proportional to the volume

or if they will be equally distributed- and the bank´s future headquarters location. According

to these authorities, the most important task now is to find funding for the project. The

Russian Finance Minister Anton Siluanov said it will be difficult to discuss the matter in

Parliament, not only for Russia but also for other states.7

BRICS members would still seek ways to establish a ‘pool’ of foreign currency reserves and

a currency swap agreement with the objective of insulate their economies in regard to the

challenges faced by developed economies with the crisis that began in 2007/2008. Shortly

before the summit, government officials said the leaders would, in addition to the material

produced by India and South Africa on the creation of the bank, discuss reports prepared by

working groups led by Brazil over the proposed ‘pool’ of reserves. While the differences

among the members existed, there was a strong belief that the BRICS would give the ‘green

light’ to both projects, considering the frustration and lack of confidence among emerging

economies in the World Bank and the IMF, that still seemed to reflect U.S. and other

7 DIÁRIO DA RÚSSIA. BRICS não chegam a acordo sobre criação do Banco de Desenvolvimento. Diário da Rússia, 26 mar. 2013. Available at: <http://www.diariodarussia.com.br/economia/noticias/2013/03/26/brics-nao-chegam-a-acordo-sobre-criacao-do-banco-de-desenvolvimento/>. Accessed in: 26 mar. 2013.



7

industrialized nations interests. It was hoped before the Summit that the agreement on

reserves would initially have between 90 and 120 billion dollars and that the pool of reserves

would be similar to that of the Chiang Mai´s initiative of the Association of Southeast Asian

Nations (ASEAN) members, China and Japan, which sought to protect themselves against

external shocks. China emphasized that the size of the contingency fund should be large

enough to make an impression on financial markets. According to the evaluation of the

Brazilian government, the fund could be approved and put into practice before the bank,

since the money would be only utilized in case of emergency to states. This common fund

should be endowed with US$ 100 billion, according to the president of the Central Bank of

Brazil, Alexandre Tombini.8

The Finance Ministers of the group members approved the contingency agreement of

common reserves at a 100 billion dollars sum, creating a reserve fund intended to help the

group of states in the event of a liquidity crisis. The agreement was signed by the ministers

and was then sent to the evaluation of leaders. With foreign exchange reserves of about 3.3

trillion dollars, China should contribute the greatest: $ 41 billion. Russia and India have

committed to the same amount as Brazil ($ 18 billion), and South Africa, with $ 5 billion,

adds to the $ 100 billion total. In Brazil´s case, the government should submit an amendment

or a bill to approve the reserve fund in its Chamber9.

It should be noted that the aforementioned initiatives represent an important step regarding

cooperation for development, since BRICS members are not part of initiatives such as the

Development Assistance Committee (DAC) of the Organization for Economic Cooperation

and Development (OECD). However, as the DAC points out, the institution is open to states

beyond their members who are making increasing contributions towards cooperation for

development. In 2011, Chinese representatives attended the meeting of the DAC donors for

the first time, as well as Brazilians, Indians and South Africans, with whom the committee

intends to engage in a "dialogue of mutual learning"10.

Finally, in the eThekwini Declaration, BRICS leaders instructed their Finance Ministers and

governors of central banks to continue working towards the establishment of the reserves

contingency arrangement, as well as the new development bank, negotiating and concluding

agreements that would establish them. Progress in these two initiatives would be discussed

at the next BRICS leaders meeting, in September 2013. In the same statement, they called

8 FARAH, Tatiana. Países emergentes terão fundo de US$ 100 bi contra turbulências. O Globo Online, 25 mar. 2013. Available at: <http://oglobo.globo.com/economia/paises-emergentes-terao-fundo-de-us-100-bi-contra-turbulencias-7943227#ixzz2Oe6jRTze>. Accessed in 26 mar. 2013. 9 FARAH, Tatiana. Brasil deve injetar US$ 18 bi em fundo dos Brics contra crises. O Globo Online, 26 mar. 2013. Available at: <http://oglobo.globo.com/economia/brasil-deve-injetar-us-18-bi-em-fundo-dos-brics-contra-crises-7946536#ixzz2OjbmjsFw>. Accessed in: 27 mar. 2013. 10 DAC. DAC website, s.d. Available at: <http://www.oecd.org/dac/>. Accessed in: 5 abr. 2013.



8

for the reform of international financial institutions so that they would become more

representative and reflect the growing relevance of the BRICS and other developing States

and demonstrated its concern with the slow pace of the IMF´s reform, seeing the need to

implement the governance reform and the IMF quota system as it was agreed before in

2010. They emphasized the importance of ensuring access to adequate and predictable

long-term financing projects for developing States from a variety of resources and said they

would like to see a global effort towards funding and infrastructure investment through the

tools available from regional and multilateral development banks that have adequate

resources11.

African states congratulated BRICS leaders search for ways to finance infrastructure

projects in the developing world and their containment of the effects brought by the

international crises. Authorities in the U.S. and the European Union have also shown to be in

favor of the formal beginning of work on the establishment of the bank and the fund, but

expressed concerns that the bank could represent the start of new initiatives that would

challenge international institutions in which they occupied dominant positions. More critical

positions also came from NGOs. Oxfam International, for example, indicated that the

proposed bank of the BRICS left many details open. While acknowledging that the leaders of

the group were right to take action to reform the international financial architecture, the NGO

pointed out that combating poverty and inequality should be at the center of the new

institution, since half of the world's poorest people lived in BRICS members and all

members, except Brazil, have growing rates of inequality.12

Prior to the meeting of the BRICS leaders, Trade Ministers of the group met in Durban on

March 26, 2013 and held discussions on some priority issues. The ministers expressed

concern over the weakening of global growth in 2012 and pointed out that the recession, low

growth and deflationary conditions in some advanced economies were the roots of the

decrease of global economic growth. However, they celebrated the fact that the growth of

trade and investment intra-BRICS continued despite such adverse circumstances and also

reiterated the need to resist protectionist tendencies, as they did in previous Summits. They

reaffirmed the World Trade Organization (WTO) as the center for an inclusive and

transparent multilateral trading system, particularly with regard to preserving the centrality of

the development mandate of Doha and the principle of single undertaking, and its

11 OXFAM INTERNATIONAL. BRICS Bank must put poverty and inequality reduction at heart of its mission. Oxfam International website, 27 mar. 2013. Available at: <http://www.oxfam.org/en/eu/pressroom/reactions/brics-bank-must-put-poverty-and-inequality-reduction-heart-its-mission>. Accessed in: 5 abr. 2013. 12 OXFAM INTERNATIONAL. BRICS Bank must put poverty and inequality reduction at heart of its mission. Oxfam International website, 27 mar. 2013. Available at: <http://www.oxfam.org/en/eu/pressroom/reactions/brics-bank-must-put-poverty-and-inequality-reduction-heart-its-mission>. Accessed in: 5 abr. 2013.



9

commitment to cooperation in other multilateral forums such as the G20 and UNCTAD,

among others. As for the intra-BRICS cooperation, they emphasized the need to work

together to identify complementarities in key sectors and to cooperate in building their

economies´ industrial capacities. They endorsed the work of the Contact Group for

Economic and Commercial Issues and celebrated the launch of the Business Council of the

BRICS, which will be further developed below. Regarding the partnership to support the

development agenda of Africa, they pledged to strengthen cooperation in the pursuit of

synergies for investment in infrastructure, industry and agriculture in Africa13. The BRICS

leaders reaffirmed, in the eThekwini Declaration, its support for an open, transparent and

rules- based multilateral trading system, and indicated that they would continue with the

efforts towards the successful conclusion of the Doha Round, and reiterated that the WTO

needed a new leader who demonstrated a commitment to multilateralism and that came

from a developing State14.

In the same declaration, the BRICS leaders reinforced the commitment of maintaining the

UN as the main multilateral forum for the promotion of peace, order and sustainable

development in the world and reaffirmed the necessity of a reform of the organization,

including its Security Council, in order to make it even more representative, effective and

efficient. Thus, China and Russia stressed the importance that Brazil, India and South Africa

have in international issues and supported their aspiration for a more expressive role in the

UN. However, despite of the fact that Russia and China declared their support to the other

three members, there is no concrete and unified position from the group regarding a broader

reform of the UN and its institutions. Besides that the emphasis given by each of the States´

individual declarations on the matter remain different. The leaders indicated the importance

of strengthening the cooperation between the Security Council and the African Union and

they expressed their concern with the instability in Northern Africa and in the Gulf of Guinea

and also with the deterioration of the humanitarian conditions in some States, such as Syria-

in which they have reaffirmed their opposition in regard of any additional militarization of the

conflict.

BRICS leaders also celebrated Palestine´s status change to an observer State at the UN,

believed in a negotiated solution on the Iranian nuclear issue and supported the efforts

undertaken by regional African organizations towards the establishment of Mali´s

sovereignty and territorial integrity. They also manifested their concern with the deterioration

13 THIRD MEETING OF THE BRICS TRADE MINISTERS. Joint Communique. BRICS5 website, 26 mar. 2013. Available at:<http://www.brics5.co.za/assets/BRICS-Trade-Ministers-Communique-25-March-2013.pdf>. Accesed in 26 mar. 2013. 14 ETHEKWINI DECLARATION. Durban, África do Sul, 27 mar. 2013. BRICS5 website, 27 mar. 2013. Available at: <http://www.brics5.co.za/fifth-brics-summit-declaration-and-action-plan/>. Accessed in: 27 mar. 2013.



10

of the ongoing situation of the Central Republic of Africa and the instability in the Democratic

Republic of Congo and once again condemned all forms and manifestations of terrorism. 15

3. Partnership for Africa´s development and integration

BRICS States competed for investments and projects in Africa, and it was speculated before

the summit, that the meeting in Durban could create the bases for joint action, particularly on

the support of local governments: projects of investment and financing that before were

discussed individually between the group´s members and African States could be jointly

discussed from the meeting on.16 The BRICS- Africa Dialogue Forum gathered leaders from

the group with representatives from the African States, the African Union and from regional

integration processes and represented an initiative of the BRICS to extent the dialogue to

other actors and to develop joint initiatives. Under the overarching theme of “Unleashing the

African Potential: the BRICS- Africa Cooperation in Infrastructure”, the forum reflected the

interest of the BRICS and African States on their search of equality and inclusion to reach

common development. China´s President even declared that the global governance system

would lose vitality without Africa´s participation. According to Xi Jinping, BRICS States

should see the building of Africa´s infrastructure as a priority for international cooperation, as

well as promoting financial cooperation with Africa and following the sustainable

development concept should also be. Other leaders from the group have also given similar

statements. Xi announced that the Chinese government was interested in creating

transnational and trans regional infrastructure partnerships and was also willing to aid

African States with the promotion of networking, which included consulting, planning, viability

analysis and project making.17

Although being the smallest of the BRICS economies, South Africa has extensive mineral

reserves and was known for being the gateway to Africa. Furthermore, the success of the

Durban Summit would represent to South Africa a platform to showcase its relevance and its

strategic capacity in global politics. For government authorities, the potential establishment

of BRICS led bank would aim at mobilizing the domestic savings and the infrastructure

15 ETHEKWINI DECLARATION. Durban, South Africa, 27 mar. 2013. BRICS5 website, 27 mar. 2013. Available at: <http://www.brics5.co.za/fifth-brics-summit-declaration-and-action-plan/>. Accessed in: 27 mar. 2013. 16 VALOR ONLINE. Países dos Brics firmam acordos para atuar na África. DefesaNet, 22 mar. 2013. Available at: <http://www.defesanet.com.br/geopolitica/noticia/10157/Paises-dos-Brics-firmam-acordos-para-atuar-na-Africa>. Accessed in: 24 mar. 2013. 17 XINHUA. Chinese president participates in BRICS Leaders-Africa Dialogue Forum. People’s Daily Online, 27 mar. 2013. Available at: <http://english.peopledaily.com.cn/90883/8185440.html>. Accessed in: 27 mar. 2013



11

financing of developing regions, as well as vital projects in green technology, bio fuel, and

nuclear and hydroelectric energy.18 Thus, South Africa tried to utilize their BRICS

membership to benefit the entire continent, especially through the growth in trade and

strategic negotiations between the BRICS. The State insisted that the Durban Summit

promoted an integration agenda in Africa instead of the simple access to the continent´s

resources. Compatible with those objectives was the invitation for the African Union and

some integration processes, such as the Common Market for Eastern and Southern Africa

(COMESA) and the Southern African Development Community (SADC) to take part in the

event. Egypt´s President Mohamed Mursi was invited for the Summit and, soon before the

meeting of the BRICS leaders, there was some speculation that Egypt could be added to the

group sometime in the future19, since some efforts were made by the State to regain the

investors trust after the Arab Spring and they were, according to its President, on the path

towards a new era in development.20

BRICS Finance Ministers and the Presidents of the Central Banks gathered to discuss the

final points of the summit´s declaration, and at least two points of the agenda have been

defined so far: the national banks for development have signed two deals, one for the

infrastructure co-financing of Africa and the other in cooperation and co- financing in

sustainable development.21 With the eThekwini Declaration, the leaders from the group have

shown that they are open to increase the participation and cooperation with non- BRICS

member States, in special emerging markets and underdeveloped States, as well as

international and regional organizations, as it was stipulated by the Sanya Declaration. The

debate with African States that preceded the BRICS leaders´ meeting was seen as an

opportunity to discuss how to strengthen the cooperation between the parties. BRICS

members recognized in the declaration the importance of regional integration for Africa´s

sustainable development, the development and eradication of poverty and they supported

the integration processes of the continent, as well as the industrialization process of the

African States through the stimulation of direct foreign investment, knowledge exchange,

capacity building and the diversification of imports inside of the New Partnerships for Africa´s

Development (NEPAD) framework. BRICS leaders stated that the group would seek to

18 PANDA, Jagannath. BRICS Development Bank: Figuring out the Durban Bid. IDSA website, 8 mar. 2013. Avaiable at: <http://www.idsa.in/idsacomments/BRICSDevelopmentBank_jppanda_080313>. Accessed in: 19 mar. 2013. 19 UNI. Egypt President invited to attend Durban BRICS summit. WebIndia 123, 17 mar. 2013. Available at: <http://news.webindia123.com/news/Articles/India/20130317/2174067.html>. Accessed in: 20 mar. 2013. 20 FRANCE PRESS. Egito diz que deseja integrar grupo dos Brics. G1, 20 mar. 2013. Available at: <http://g1.globo.com/economia/noticia/2013/03/egito-diz-que-deseja-integrar-grupo-dos-brics.html>. Accessed in em: 23 mar. 2013. 21 MOYSÉS, Adriana. Banco do Brics não deve entrar em funcionamento até 2016. RFI, 26 mar. 2013. Available: <http://www.portugues.rfi.fr/geral/20130326-brasil-e-china-anunciam-acordo-cambial-em-durban>. Accessed in: 26 mar. 2013.



12

stimulate infrastructure investments on the base of mutual benefits for the support of

industrial development, poverty eradication, job creation, food security and sustainable

development in Africa. Additionally, they celebrated the conclusion, by their trade banks of

the Multilateral Arrangement on Cooperation and Co-financing for the Sustainable

Development and the Multilateral Agreement on Co-financing and Infrastructure for Africa. 22

4. Partnership for Africa´s development and integration

The support of the BRICS in relation to multilateral diplomacy and international law in areas

related to development and social policy was continued in the Durban Summit. In the health

sector, the health ministers of the group had already met in January 2013 and paid special

attention to the global threat of non-communicable diseases- NCDs- and recognized the

need for more research on socioeconomic determinants that lead to such diseases in the

BRICS members. The ministers also renewed their efforts to face the ongoing challenge

brought by HIV, particularly the search for innovative ways to achieve success with the

prevention, diagnosis and exchange of information on new treatments. They reiterated their

commitment to ensure that bilateral and regional trade agreements do not undermine the

flexibility of the TRIPS in order to ensure the availability of generic medicines in developing

States, reinforced their support for the ongoing discussions on the reform of the World

Health Organization (WHO ) and emphasized the importance and necessity of technology

transfer as a way to strengthen developing States. They stressed, in this context, the role of

generic medicines in the rights to health and renewed their commitment to strengthen

international cooperation in the health sector, especially the South-South cooperation23. In

Durban, the leaders recognized the importance of the meetings of the Ministers of Health

and already foresaw the creation of a new meeting in the eThekwini Action Plan as well as

the meetings of Ministers of Agriculture and Agrarian Development, Science and

Technology, security area officials and authorities from the competition area as well as local

governments and cooperatives.24

At the BRICS Business Forum in Durban in 2013, representatives of the business

communities of the group agreed that the cooperation between members of the BRICS and

Africa should be strengthened and that a greater economic cooperation among the members

22 ETHEKWINI DECLARATION. Durban, África do Sul, 27 mar. 2013. BRICS5 website, 27 mar. 2013. Disponível em: <http://www.brics5.co.za/fifth-brics-summit-declaration-and-action-plan/>. Acesso em: 27 mar. 2013. 23 BRICS HEALTH MINISTERS’ COMMUNIQUÉ. University of Toronto website, 11 jan. 2013. Available at: <http://www.brics.utoronto.ca/docs/130111-health.html>. Accessed in: 22 mar. 2013. 24 ETHEKWINI DECLARATION. Durban, África do Sul, 27 mar. 2013. BRICS5 website, 27 mar. 2013. Available at: <http://www.brics5.co.za/fifth-brics-summit-declaration-and-action-plan/>. Accessed in: 27 mar. 2013.



13

of the group was required. They stated they fully support the efforts of their governments in

the negotiations at the G20 and showed their willingness to support them in the call for

governance reforms in multilateral institutions. Entrepreneurs also asked governments to

deepen the advisory engagement on economic policies and demonstrated agreement on

that the support for industrialization projects in Africa would contribute to the expansion of

trade and investment between the BRICS and Africa. They recognized that the need to

diversify the energy sources of BRICS members was important and asked their governments

to encourage renewable energy. 25

The Business Council of BRICS - created in the context of the group´s discussions in

Durban - will be a platform for strengthening economic ties between the business

communities of the members and will facilitate regular interaction between its members and

governments, as signaled South African authorities. The extension of economic space

through larger consumer markets gives developing states, such as South Africa, the

opportunity to develop economies of scale and increase competitiveness.26 The Business

Council will have five members from each of the BRICS States and will be supported by

experts in various fields. On the margins of the BRICS Summit, delegations of businessmen

from the member States can be found in the Business Forum, but the Council will be a

permanent and more structured mechanism. Networking, visas and promoting free trade

would be its priority areas.27 The council will give suggestions on how to improve trade and

economic cooperation between BRICS members. According to Brasilia, the Brazilian

representatives will be: Murilo Ferreira, from Vale; José Rubens de la Rosa, from Marcopolo;

Jorge Gerdau, from Gerdau; Aldemir Guendini, from the Bank of Brazil and Harry

Schmeizer, fromWeg. According to Brazilian President Dilma Rousseff, the growing

importance of the members of the BRICS as a destination for investments show the

importance of the Council as a way to broaden and accelerate the strategic integration of the

BRICS states. She mentioned that Brazil intends to invest $ 250 billion in infrastructure

projects and wants to attract partners for these projects, citing the case of the South African

Airport Company South Africa work on modernizing the Guarulhos airport in Sao Paulo.28

25 JOINT STATEMENT OF THE BRICS BUSINESS FORUM 2013. BRICS5 website, 26 mar. 2013. Available at: <http://www.brics5.co.za/assets/BRICS-BUSINESS-FORUM-JOINT-COMMUNIQUE-26-March-2013.pdf>. Accessed in: 26 mar. 2013. 26 IANS. BRICS Business Council to be set up during Durban summit. Daijiworld, 7 mar. 2013. Available at: <http://www.daijiworld.com/news/news_disp.asp?n_id=166488>. Accessed in: 22 mar. 2013. 27 GEORGE, Varghese K. BRICS Business Council to be unveiled today. Hindustan Times, 26 mar. 2013. Available at: <http://www.hindustantimes.com/world-news/Africa/BRICS-Business-Council-to-be-unveiled-today/Article1-1033239.aspx>. Accessed in: 26 mar. 2013. 28 COSTAS, Ruth. Brics terão ajuda de conselho formado por empresários. BBC Brasil, 27 mar. 2013. Available at: <http://www.bbc.co.uk/portuguese/noticias/2013/03/130327_brics_dilma_ji.shtml>. Accessed in: 27 mar. 2013.



14

Continuing the process of cooperation between the academic communities of the group

members, the fifth BRICS Academic Forum occurred in Durban in the first half of March of

this year, with a program related to partnerships between BRICS and Africa for

development, integration and industrialization. Among the main discussed issues, it is worth

noting the rise of the BRICS and the concern about inclusive growth and development,

global governance institutions reform; cooperation with Africa; education, research and

development capabilities for building industrialized economies and the role of BRICS on

issues of international security.29 During the forum, a declaration of intent to create a Council

of the BRICS Think Tanks was signed. The statement indicates the common intention of the

academic communities of the BRICS to strengthen cooperation in research and knowledge

exchange, as well as policy recommendations, particularly in terms of the development

agenda, which will be presented to leaders for further consideration.30 The Council will

involve five research centers representing each member of the BRICS and will also have the

task of bringing together the Academic Forum of the grouping. 31 It is noteworthy that, with

the exception of the Observer Research Foundation, the other institutions that compose the

Council of Think Tanks are entities directly or indirectly linked to the governments of the

States: IPEA (Brazil), the National Committee for BRICS Research (Russia), the China

Centre for Contemporary World Studies, and the Human Sciences Research Council (South

Africa).

The 2013 Academic Forum generated varied recommendations. Regarding the global

economy, the Forum recommended the BRICS cooperation to facilitate trade, especially on

goods and services, aiming at strengthening partnerships for development and

industrialization. The experts also supported the creation of the Development Bank of the

BRICS and of mechanisms to deal with the volatility in global markets as well as a greater

democratization of global governance institutions with the creation of innovative partnerships

for sustainable and balanced development. The delegations also proposed the creation of a

parliamentary forum of the BRICS as a platform for the intensification of political interaction.

Regarding the cooperation with Africa, the Forum noted that the BRICS should seek further

cooperation with the African Union, taking into account African priorities such as integration.

As for education, research and development for the development of industrialized

29 FIFTH BRICS ACADEMIC FORUM. Inafran website, 10-13 mar. 2013. Available at: <http://www.inafran.ru/sites/default/files/news_file/brics_af_-_draft_programme_-_version_6_russia_6_march_2013.pdf>. Accessed in: 23 mar. 2013. 30 DECLARATION ON THE ESTABLISHMENT OF THE BRICS THINK TANKS COUNCIL. SAFPI website, 11 mar. 2013. Available at: <http://www.safpi.org/sites/default/files/publications/brics_think_tanks_council_declaration_201303.pdf>. Accessed in: 5 abr. 2013. 31 DURBAN UNIVERSITY OF TECHNOLOGY. BRICS Think Tanks Council established at DUT. DUT website, 13 mar. 2013. Available at: <http://www.dut.ac.za/node/2886>. Accessed in: 23 mar. 2013.



15

economies, the BRICS could intensify the collaboration between academics through a

variety of institutions, networks and educational programs and research and they could also

consider the creation of an independent evaluation agency for educational institutions and a

university of the group. As to international peace and security, scholars have pointed out that

the BRICS should continue to promote the centrality of the United Nations and the principles

of equality, mutual trust and cooperation, in addition to being more active in the peaceful

resolution of conflicts and in the treatment of subjects like international terrorism, non-

proliferation of weapons of mass destruction and drugs and people trafficking32.

The Department of Defense and Military Veterans has prepared a defense industry

exhibition and a conference on the sidelines of the summit to encourage business contacts

and expand partnerships in the areas of technology and innovation. The initiative has helped

to add a new dimension in BRICS: the analysis of the strengths of each member concerning

their military and defense capabilities, with the purpose of developing new business

relationships. For South Africa, for an instance, the importance was in the search of new

markets due to the smaller opening of the European market33.

5. The positions of the States in the Durban Summit

In the commercial area, the four other members of the BRICS states now account for a

larger percentage of exports and imports from South Africa. That helped to compensate the

reduced demand from traditional markets, which are experiencing low or negative growth34.

Being part of the group is a reality that is aligned with the goal of South Africa´s foreign

policy to strengthen relations with the Southern States, in a context where the cooperation

between Asians States, Africans and Latin Americans has been increasingly relevant. The

actual accession of South Africa to the BRICS was based on its global and regional role, as

well as its domestic achievements. By being part of BRICS, South Africa has sought to

advance its national interests, promote regional integration and continental infrastructure

programs related to a further alliance with central partners from the South on issues of global

governance and the need to reform the main international institutions. The accession of

32 5TH BRICS ACADEMIC FORUM. Recommendations to the 5th BRICS Summit, Durban, South Africa, 2013. SAFPI website, 2013. Available at: <http://www.safpi.org/sites/default/files/publications/5th_brics_academic_forum%20_recommendations_final.pdf>. Accessed in: 25 mar. 2013. 33 RADEBE, Hopewell. Defence plans show, talks at Brics summit. BDLive, 4 mar. 2013. Available at: <http://www.bdlive.co.za/national/2013/03/04/defence-plans-show-talks-at-brics-summit>. Accessed in 22 mar. 2013. 34 SOUTH AFRICAN GOVERNMENT NEWS AGENCY. All eyes turn to Durban on setting up of Brics bank. SA News, 14 mar. 2013. Available at: <http://www.sanews.gov.za/south-africa/all-eyes-turn-durban-setting-brics-bank>. Accessed in: 20 mar. 2013.



16

South Africa allowed BRICS to expand its geographic and intercontinental reach, including

their representativeness and global inclusion.35

Other member States of the group agreed on the importance of the new instruments

discussed in Durban. Russian officials, for example, wanted the development bank of the

BRICS to contribute to the foreign capital movement, the granting of credits and the opening

of financial organizations primarily in the BRICS states. However, Russia seemed the least

enthusiastic member of the BRICS with the idea of the bank. Russian officials pointed

obstacles in the creation of the bank, such as the distance between the capitals of the

States, which would make it difficult to choose a location for the head office36. Numerous

issues beyond the bank and the fund also figured on the Durban agenda, one of them was

the conflict in Syria, which, before the Summit, promised to be one of the main themes of the

meeting. Syrian President Bashar al-Assad, called BRICS members for help to put an end to

the violence, given that these States still believe in the possibility of a dialogue. According to

Russian authorities, support for the Syrian government was not questioned by Russia, and

both this State and China - permanent members of the UN Security Council - had common

views regarding the settlement of the crisis. However, both states vetoed a foreign military

operation in Syria37. In view of the further development of the discussions and activities of

the group around this and various other topics, Russia announced before the summit that it

would present in the meeting a proposal of a permanent coordinating body in the form of a

virtual secretariat. In Durban, a design of a computer system with a global optical cable

linking the transcontinental economic centers of the members of BRICS would be

presented38.

Russian President Vladimir Putin said that Russia would seek, in the Durban Summit, to

coordinate the approaches with other members of the BRICS on the agenda of the G20

summit in St Petersburg, as well as raise the level of cooperation in combating trafficking

and production of drugs and terrorist, criminal and military threats in cyberspace. Before the

summit, Putin also signaled that the BRICS Business Council, officially launched in Durban,

should help launching new business projects with multilateral participation of the five States´

business circles. The Council idea was proposed by Russia at previous meetings of the

35 DEFENSEWEB. Local defence sector will be part of BRICS Summit. DefenseWeb, 19 mar. 2013. Available at: <http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=29902:local-defence-sector-will-be-part-of-brics-summit&catid=7:Industry&Itemid=116>. Accessed in: 23 mar. 2013. 36 VALOR ONLINE. Países dos Brics firmam acordos para atuar na África. DefesaNet, 22 mar. 2013. Available at: <http://www.defesanet.com.br/geopolitica/noticia/10157/Paises-dos-Brics-firmam-acordos-para-atuar-na-Africa>. Accessed in: 24 mar. 2013. 37 DENISOVA, Olga. Banco do BRICS poderá nascer em Durban. Rádio Voz da Rússia website, 22 mar. 2013. Available at: <http://portuguese.ruvr.ru/2013_03_22/Ryabkov-perspetivas-do-Banco-BRICS-serao-esclarecidas-em-Durban/>. Accessed in: 23 mar. 2013. 38 SOROKIN, Nikita. Apostando no BRICS. Rádio Voz da Rússia website, 21 mar. 2013. Disponível em: <http://portuguese.ruvr.ru/2013_03_21/Apostando-no-BRICS/>. Acesso em: 23 mar. 2013



17

BRICS. Putin claimed that members of the group were preparing a joint statement for the

Durban summit which would set the main views of the group on relevant issues on the

international agenda, such as the crisis in Syria and the problems of Afghanistan and Iran.

From a broader perspective, Russia hoped that the members of the BRICS could help the

global economy grow steadily and self-sustainingly, as well as reforming the economic and

financial international architecture. At the same time, Russia proposed to gradually transform

the BRICS from a forum for dialogue to a full strategic interaction mechanism. Putin also

called for the intensification of bilateral cooperation with China and South Africa39. During his

visit to Durban, Putin sought ways to expand bilateral relations and cooperation in the

nuclear energy sector with South African leader Jacob Zuma. Trade between Russia and

South Africa grew by 66.3% in 2012, reaching $ 964.3 million. Russian companies mainly

exported oil products, chemicals, machinery, equipment, food, agricultural raw materials and

wood for the African state40.

Nonetheless, Russian position regarding issues such as Syria promised to generate some

discomfort at the Summit. Brazil was being pressured by NGOs to advocate sending

humanitarian aid on a large scale to Syria, but Russia had indicated that it would seek to

impose their views on the Durban Summit's final declaration. It was believed before the

summit that Russia and China would criticize the decision of Western States of arming

Syrian rebels to hasten the fall of the Assad regime, in view of the violation of the principle of

non-interference in the internal affairs of other states. Brazil had stated its intention to seek a

common denominator for the case41. Furthermore, there was some indication before the

summit, that Brazil would, in Durban, sign an agreement with China to trade in national

currencies, whose negotiations were being finalized shortly before the meeting in Durban.

Since 2012, both States already had agreed on a Memorandum of Understanding for the

establishment of exchange mechanisms in national currency in order to protect the flow of

trade between the two BRICS members from fluctuations in foreign currencies42.

The terms of the swap agreement between Brazil and China began to be negotiated in 2012,

in the Rio+ 20 meeting, but the deal only became effective in 2013, with the Xi Jinping

39 PUTIN, Vladimir. Vladimir Putin dá entrevista à agência ITAR-TASS. Rádio Voz da Rússia, 22 mar. 2013. Available at: <http://portuguese.ruvr.ru/2013_03_22/Vladimir-Putin-da-entrevista-agencia-ITAR-TASS/>. Accessed in: 23 mar. 2013. 40 DIÁRIO DA RÚSSIA. Rússia e África do Sul discutem cooperação nuclear. Diário da Rússia, 26 mar. 2013. Available at: <http://www.diariodarussia.com.br/internacional/noticias/2013/03/26/russia-e-africa-do-sul-discutem-cooperacao-nuclear/>. Accessed in: 26 mar. 2013. 41 MOYSÉS, Adriana. Posição da Rússia sobre Síria pode gerar desconforto na reunião do Brics. RFI, 23 mar. 2013. Available at: <http://www.portugues.rfi.fr/geral/20130323-posicao-da-russia-sobre-siria-pode-gerar-desconforto-na-reuniao-do-brics>. Accessed in: 24 mar. 2013. 42 LUSA. BRICS/Durban: Brasil e China assinarão acordo para trocas em moeda nacional. Expresso, 21 mar. 2013. Available at: <http://expresso.sapo.pt/bricsdurban-brasil-e-china-assinarao-acordo-para-trocas-em-moeda-nacional=f795294#ixzz2ONI4s7eI>. Accessed in: 24 mar. 2013.



18

government. The reserve of about $ 30 billion - with funds in both of their currencies- could

be used by the central banks of Brazil and China in an emergency, in the same way as

agreement that the Brazilian government has made with the U.S Federal Reserve (FED)

after the 2008 crisis43. Finally, on March 26, 2013, Brazil and China, through their central

banks, signed the agreement of local currency swap amounting to 60 billion reais (190 billion

yuan), valid for three years with a renewal possibility. The line, according to the Central Bank

of Brazil, aimed at facilitating bilateral trade between the two states, and the agreement

signals a higher level of cooperation between the monetary authorities, reflecting the

strategic importance of bilateral trade between the two states. The Brazilian Central Bank

also announced that it will adopt the necessary regulatory and operational measures to

implement the agreement, abiding to the conditions set by the National Monetary Council

(CMN)44.

The agreement aims to protect both states regarding dollar fluctuations, so that $ 30 billion

could be used in situations of instability in the price of the U.S. dollar45. The amounts in real

(R$) received by the People's Bank of China will be credited to the special deposit account

opened in its name in the Central Bank of Brazil, without compensation or access to credit,

the use of which is restricted to transactions of resources linked to the performance of the

contract. The amount may be extended in accordance with the wishes of the parties, and,

therefore, the two states act to take almost half of their stock trading off the dollar zone,

adopting measures to bring real changes into the international trade flow currently

dominated by the U.S. and European Union. As stated by the Brazilian Central Bank

President Alexandre Tombini, after signing the agreement, the Brazilian interest was not to

establish new relations with China but expand relations to be used in case of financial

markets turbulence. Brazilian authorities hoped that the agreement would start its operation

in the second half of 201346.

President Dilma Rousseff had her first meeting with the China´s new president Xi Jinping,

who took office in March 2013, in a context in which China, Brazil's main trading partner,

cancelled imports from Vale and from of Brazil's soy due to problems in the port system that

43 FARAH, Tatiana. Países emergentes terão fundo de US$ 100 bi contra turbulências. O Globo Online, 25 mar. 2013. Available at: <http://oglobo.globo.com/economia/paises-emergentes-terao-fundo-de-us-100-bi-contra-turbulencias-7943227#ixzz2Oe6jRTze>. Accessed in 26 mar. 2013. 44 VALOR. Brasil e China assinam acordo de swap de moeda de US$ 30 bilhões. Valor Econômico, 26 mar. 2013. Available at: <http://www.valor.com.br/financas/3060458/brasil-e-china-assinam-acordo-de-swap-de-moeda-de-us-30-bilhoes#ixzz2OeByHq5w>. Accessed in: 26 mar. 2013. 45 BBC BRASIL. Brasil e China fazem acordo de R$ 60 bi para garantir comércio em crises. R7, 26 mar. 2013. Available at: <http://noticias.r7.com/economia/noticias/brasil-e-china-fazem-acordo-de-r-60-bi-para-garantir-comercio-em-crises-20130326.html>. Accessed in: 26 mar. 2013. 46 BBC BRASIL. Brasil e China fazem acordo de R$ 60 bi para garantir comércio em crises. R7, 26 mar. 2013. Available at: <http://noticias.r7.com/economia/noticias/brasil-e-china-fazem-acordo-de-r-60-bi-para-garantir-comercio-em-crises-20130326.html>. Accessed in: 26 mar. 2013.



19

have impeded the flow of Brazilian products. Before arriving in Durban, the Chinese

president visited Tanzania, signaling a desire for closer economic ties with Africa, a region

coveted by Brazil47. Brazilian authorities stated that the Summit would have a great

significance in deepening cooperation and coordination mechanism between BRICS

members, in expanding the dialogue with African States and in the discussion about the

possibility of the establishment of the Development Bank of the BRICS and in the discussion

around reserve currencies48. The bank would be one of the sources that Brazil was

considering to use to stimulate infrastructure investments in a context of economic

slowdown. If created in 2014, as the Brazilian government desired, the bank should begin its

actual operation by 2016, after the national congresses have approved the creation of the

new financial institution49.

The Brazil hoped for the expanding role of China in infrastructure investments in the State, a

desire expressed by the Brazilian Finance Minister, Guido Mantega, when reporting the

discussions between Brazilian and Chinese authorities on the margins of the BRICS

meeting. At the ministers meeting, substantial investments in infrastructure programs in the

member states of the BRICS were cited and invitations to other members of the group to

participate in these projects were also made. Mantega said that Brazil was open to the

Chinese participation in energy enterprises, especially oil and gas, since these sectors

represented a great level of synergy and complementarity50. The new Chinese president -

seen by experts as a reformist with pro-market visions and whose first multilateral meeting

was the meeting of the BRICS leaders in Durban - hoped the summit would bring progress

on the creation of the BRICS development bank and of the group´s foreign reserves fund.

Before the Summit, Xi indicated the extreme importance that China attaches to its relations

with neighboring and partner Russia. The new president also advocated a greater role for

the emerging states in the global economic system, which should, in his perception, reflect

the profound changes that have occurred in the global economy and increase the

representation of emerging and developing States51.

47 FARAH, Tatiana. Países emergentes terão fundo de US$ 100 bi contra turbulências. O Globo Online, 25 mar. 2013. Available at: <http://oglobo.globo.com/economia/paises-emergentes-terao-fundo-de-us-100-bi-contra-turbulencias-7943227#ixzz2Oe6jRTze>. Accessed in: 26 mar. 2013. 48 CRI. Brasil está na expectativa da 5ª Cúpula do BRICS. CRI, 25 mar. 2013. Available: <http://portuguese.cri.cn/561/2013/03/25/1s164392.htm>. Accessed in: 25 mar. 2013. 49 LEO, Sergio. Mantega defende investimento em infraestrutura nos Brics. Valor Econômico, 26 mar. 2013. Available at: <http://www.valor.com.br/brasil/3061178/mantega-defende-investimento-em-infraestrutura-nos-brics#ixzz2Og6I14MQ>. Accessed in: 26 mar. 2013. 50 LEO, Sergio. Mantega quer chineses investindo na infraestrutura brasileira. Valor Econômico, 26 mar. 2013. Available: <http://www.valor.com.br/brasil/3061480/mantega-quer-chineses-investindo-na-infraestrutura-brasileira#ixzz2Og98K16w>. Accessed in: 26 mar. 2013. 51 AFP. China expects headway on BRICS bank at Durban summit. AFP, 21 mar. 2013. Available at: <http://www.google.com/hostednews/afp/article/ALeqM5guplokqHa3t6Nw-rodzGip6hMp8g?docId=CNG.8f63f88a48ca70216e637d67ebdd1335.801>. Accessed in: 24 mar. 2013.



20

Shortly before the summit, it was pointed out that India´s Prime Minister Manmohan Singh

would talk with the leaders of other BRICS members on the margins of the meeting in

Durban. Singh led a high-ranking delegation to Durban - which included the Ministers of

Finance and Commerce of the State, the national security adviser and entrepreneurs - and

also met with State leaders from Africa. Besides the creation of the Business Council and

the BRICS Council of Think Tanks, the Indians were hoping to sign agreements for the joint

financing of projects for African infrastructure and for sustainable development52.

6. Conclusion and Recomendations

The Durban Summit brought advances in a number of areas for the BRICS. It showed a

major role in South Africa, which was able to produce a summit that brought more concrete

results than the previous ones. One of the central elements expected for the Summit would

be the creation of a development bank of the group, and, as expected, the event formally

launched work aimed at the development of this institution. The leaders agreed to enter into

formal negotiations to establish the new database based on their own infrastructure needs,

but also cooperating with other emerging markets and developing States in the future.

However, the leaders failed to produce a map of the process of creation of a bank in full

operation, as well as the core elements of its governance system. The promise of entry into

formal negotiations without a specified end suggests that the creation of the bank can be a

slow process in the face of some unresolved issues. The promise of an initial contribution

sufficient for the bank to be effective in the financing of infrastructure was imprecise because

of the need that the President of South Africa and other African states identified.

Regarding the Arrangement on Contingency Reserves, with an initial size of $ 100 billion,

there was an agreement in principle, but no timeline, central aspects or actual size were

defined or guaranteed. On the interbank cooperation mechanism of the group the following

agreements were signed: a multilateral agreement on the co-financing of infrastructure for

Africa and a multilateral agreement on sustainable development financing. These are

welcomed extensions to BRICS commitments of aid to Africa and their commitments

towards environmental protection and climate change control. Although these decisions are

discrete and still have details to be defined, they are promising agreements that may have a

real considerable impact53.

52 PTI. PM to hold talks with BRICS leaders in Durban next week. Live Mint, 18 mar. 2013. Available at: <http://www.livemint.com/Politics/lZg63wljgn3jP8w1LR17yH/PM-to-hold-talks-with-BRICS-leaders-in-Durban-next-week.html>. Accessed in: 24 mar. 2013. 53 KIRTON, John; BRACHT, Caroline; KULIK, Julia. A Productive and Promising Performance: the 2013 BRICS Durban Summit. University of Toronto website, 27 mar. 2013. Available at: <http://www.brics.utoronto.ca/analysis/durban-performance.html>. Accessed in: 27 mar. 2013.



21

It is important to encourage the performance of the Business and Think Tanks Councils and

develop ways to give greater visibility and participation to non-state actors in the formulation

of policies and decisions of the BRICS, as well as to promote the debates around the main

challenges with which BRICS members are faced, including in those discussions

organizations and think tanks that are independent from the States. Moreover, it is

necessary to have a constant engagement of all sectors in order to strengthen their

cooperation, taking into account the priorities of different actors.

Documents

PAVBRICS