D
DRAFT
MINISTRY OF ECONOMIC DEVELOPMENT
OF THE RUSSIAN FEDERATION
RUSSIAN FOREIGN TRADE ACADEMY
November, 2013
DRAFT
BRICS Economic Cooperation Strategy
Table of Contents:
I.
Executive Summary ______________________________________________________ 3
I.1. Goals and Objectives of the Strategy: ___________________ 4
I.2. Main principles: ____________________________________________ 5
II. Priority areas of cooperation __________________________________________ 6
II.1. Trade and investment ___________________________________ 6
II.2. Manufacturing and mining ____________________________ 10
II.3. Energy _____________________________________________________ 11
II.4. Transport and logistics _________________________________ 12
II.5. Agricultural production ________________________________ 13
II.6. Innovation and technological exchange _____________ 14
III. Interaction with international and regional economic
associations and organizations __________________________________________ 15
III.1. BRICS and WTO _________________________________________ 15
III.2. BRICS and G20 __________________________________________ 15
III.3. BRICS and regional economic cooperation
organizations __________________________________________________ 16
III.4. BRICS and the UN economic organizations ________ 16
IV. Annex _____________________________________________________________________ 16
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BRICS Economic Cooperation Strategy
I. Executive Summary
BRICS is a platform for dialogue and cooperation among the countries
with 43% of the global population. The goal of this platform is to
promote peace, security and development in the multipolar,
interconnected and complex globalized world. The BRICS countries
represent Asia, Africa, Europe and Latin America, thus making their
cooperation transcontinental and especially valuable and significant.
The BRICS countries are committed to building a harmonious world
order, based on lasting peace and common prosperity. They believe
that the 21st century should be a century of peace, security,
development and cooperation. It is a strong joint commitment to peace,
security, development and cooperation that brought together the
BRICS countries.
The BRICS countries are prepared – on the basis of universally
recognized norms of international law and multilateral approach to
decision-making – to cooperate with other countries, both developed
and developing, to address the problems facing the world today and
seize new opportunities.
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BRICS Economic Cooperation Strategy
I.1. Goals and Objectives of the Strategy:
 to elaborate new models and approaches in order to ensure a more
equitable development and inclusive global growth with the focus on
the complementarity and strengths of the BRICS economies;
 to consolidate BRICS; to form and develop its institutions and
mechanisms in order to combine all the efforts of the partners in
overcoming economic crises; to coordinate efforts in response to
global economic challenges and threats;
 to contribute to the economic security and global competitiveness of
the partners; to maximize complementarity of the economies and
synergies of the participating states for the respective development;
 to develop and elaborate mechanisms of trade and investment
cooperation among the BRICS countries;
 to promote social and economic transformation, higher living
standards and eradication of poverty in each BRICS country;
 to join efforts in order to develop innovative economies targeted at
a new quality of growth and transition to sustainable economy of the
21st century;
 to share best practices and expertise on implementation of national
development strategies, and to share experience of stimulating trade,
investment and human capital development;
 to enhance interaction and cooperation with the states beyond
BRICS and regional economic associations;
 to ensure gradual development of BRICS and its transformation into
 a full-scale mechanism for the current and long-term coordination
on a wide range of key issues of the global economy and politics.
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BRICS Economic Cooperation Strategy
I.2. Main principles:
 commitment of the member states to international law and
recognition of the United Nations role as the main multilateral forum,
which is responsible for making hopes come true, promoting peace,
order and sustainable development in the world;
 commitment of the member states to the rules of the existing
international trading system with the WTO in its core;
 full respect for the sovereignty of the member states and their
equality;
 recognition of the polycentric nature of the global economic and
political systems;
 account for national interests, priorities and economic development
strategies of all the members states;
 transparency and consensus in decision-making;
 commitment to supporting common basics of sustainable
development, in particular inclusive economic growth and
development, social progress and environmental protection;
 constructive partnership in developing economic cooperation;
 open nature of cooperation among the BRICS countries not
orientated at establishing a closed economic block.

The implementation of the BRICS Economic Cooperation
Strategy will assert BRICS as a new point of economic growth, a free
and responsible partnership of a new type based on mutually
beneficial and equitable economic relations and consensus in decisionmaking.
Cooperation within BRICS does not substitute the development
of bilateral relations; it is rather a step forward. The implementation of
the BRICS Economic Cooperation Strategy will provide a better
environment for improving competitiveness of the BRICS national
economies in the global economy.
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II.
BRICS Economic Cooperation Strategy
Priority areas of cooperation
II.1. Trade and investment
To achieve a sustainable, comprehensive and dynamic growth in the
conditions of growing population, the BRICS countries should take
advantage of the opportunities provided by international economic
cooperation, including deepening of trade and investment relations,
both within BRICS and with the rest of the world. More intense trade
and investment ties within BRICS will create a synergetic effect of
growth and make it possible to use the opportunities brought in by
complementarity of the BRICS economies. It will strengthen the
positions of these countries in the global economy and contribute to
resolving domestic economic and social problems.
Trade and investment links between the BRICS countries should reflect
the scale and capabilities of the participating countries and contribute
to growth and sustainable development of all the BRICS economies.
Trade and investment links in the BRICS countries are maintained in
the framework of the existing international trading system, and they
do not contradict it. Such cooperation will contribute to further
development of the international economic relations. Promotion of
cooperation within BRICS will help formulate new approaches to
emerging challenges in trade and investment.
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BRICS Economic Cooperation Strategy
The expansion of trade and investment links requires the following:
 to create favorable conditions for the development of mutual trade
in the BRICS countries and direct foreign investments growth, that help
diversify the economic structure and export, in order to raise the share
of high value-added products in GDP and exports of the BRICS
countries and to weaken their dependence on fluctuations in the world
commodity markets;
 to use extensively the capabilities of the technical assistance
mechanism to raise the production and export potential of the
countries;
 the investment cooperation should contribute to establishment and
development of hi-tech industries responding to trends and needs of
the 21st century economy;
 to develop cooperation on the competition policy;
 to develop investment cooperation in order to raise the volume,
diversify the patterns of investment and to elaborate and apply the
investment principles aimed at creating a favorable investment climate
and ensure investors’ confidence. The following investment principles
could be applied: maintaining transparency, predictability and stability
of the state investment policy; guarantees of investment protection;
raising the efficiency of investment procedures; using new
technologies to facilitate investment etc.
 to provide conditions for extending the practice of settling disputes,
differences and any conflicts among trade and investment partners in
the BRICS countries through consultations before going to court; future
convergence and unification of arbitration procedures in order to
enhance the ease of doing business;
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BRICS Economic Cooperation Strategy
- to strengthen cooperation among the organizations that facilitate
investment;
 to help eliminate barriers to trade and investment; the state policy
and practice should contribute to ensuring the maximum efficiency of
foreign investment at all stages of the investment cycle;
 to strengthen customs cooperation, the exchange of information on
changes in customs rules and procedures; the exchange of existing best
practices, convergence of customs requirements and practices;
development of e-commerce;
 to develop information exchange on trade and economic
opportunities and the movement of goods, services and capital
between the BRICS countries, including such cooperation among
statistical and other agencies; the governments should seek to ensure
that the investment information is promptly published, clear and
available to business community; efforts will be made and information
infrastructure will be created to distribute information on investment
opportunities in certain industries of the member states; statistical
agencies will strive to ensure the comparability of national statistics;
 to develop cooperation in the field of statistics in order to enhance
the exchange of statistical data and experience in implementing the
international statistical standards, and to arrange joint statistical
publications;
 to elaborate a co-financing mechanism for projects in traditional
industries and in the fields of sustainable development, including
resources accumulation for development of infrastructure in the
African countries;
 to develop public-private partnerships as a tool to attract additional
resources; combining the capabilities of the state and private
businesses from different BRICS countries to implement
technologically advanced and financially expensive projects, including
infrastructure projects;
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BRICS Economic Cooperation Strategy
 to develop interaction on cooperation among small and medium
sized enterprises; to arrange exchange of information and expertise on
regulation policy and SMEs’ support and to help develop the dialogue
among the relevant ministries and agencies; orientation at raising the
productivity in small and medium sized enterprises; engaging SMEs in
international projects; expanding the practice of facilitating SMEs'
access to public services and financing;
 to actively support mechanisms of promoting business cooperation,
including the BRICS Business Council, annual business forums, the
Exchanges Alliance, the Bank Forum, and to establish permanent
information channels to promote initiatives and search for partners,
including specialized web-portals;
 to arrange regular exhibitions, business missions of entrepreneurs
with the view of establishing partnerships and initiating projects; to
organize trade fairs, industry conferences, round tables in order to
inform businessmen from BRICS countries about available business
opportunities.
The BRICS investment cooperation is developing on the basis of the
following:
 the member states apply the national treatment to foreign
investment except the cases by the national legislation, foreign
investors should enjoy the same treatment as domestic investors;
 conditions should be provided for free repatriation of profits and
other payments arising as a result of foreign investment except the
cases envisaged in national law;
 to promote sustainable development it is necessary to ensure that
easing of health, safety and environment requirements are not used as
an incentive to attract investment.
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BRICS Economic Cooperation Strategy
II.2. Manufacturing and mining
The industrial development is the key to accelerated economic
development. Manufacturing provides jobs and makes it possible to
change the structure of the economy and labor force rapidly, to raise
the living standards, to increase production and export of products
with high added value, to engage in the international division of labor
with the greatest benefit and gain managerial experience at the
national market, which is necessary for effective realization of the
national economic potential in the global world.
Interaction in the interests of technological renewal and industrial
development of the BRICS countries implies:
 cooperation in raising the technological level of traditional
industries;
 cooperation in creating and developing new hi-tech industries;
 providing conditions in the BRICS countries for enhancing mutual
supplies of modern equipment and transfer of technologies
contributing to hi-tech industrial development;
 cooperation in the field of production and use of mineral resources;
attracting investments of the BRICS member states in order to
modernize and develop the mining industry;
 enhancing industrial cooperation; establishing and strengthening
international production chains in the BRICS countries;
 joint elaboration and adoption of green industrial technologies;
 cooperation in construction and running of industrial facilities;
 exchange of experience and assistance to companies in the BRICS
countries in organization of production in the member states;
 broad cooperation in the field of training, including programs for the
exchange of experiences on high-tech industrial development.
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BRICS Economic Cooperation Strategy
II.3. Energy
Expansion of production and sustainable consumption of energy is
crucial for dynamic growth and economic development. To ensure
energy security in the BRICS economies given the limited amount of
conventional energy resources, the member states will develop
cooperation, aimed, inter alia, at creating the conditions for meeting
the needs of the BRICS countries in the sustainable energy supply.
Given the growing demand for renewable energy sources, as well as for
energy-efficient and green technologies, and the existing
complementary advantages of the BRICS countries in these areas, the
BRICS countries will exchange information and experience in various
areas related to the fuel and energy complex, and promote the
development of a legal framework for international energy
cooperation.
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BRICS Economic Cooperation Strategy
II.4. Transport and logistics
Transport and communication are essential components of the
production infrastructure, and their development is one of the priority
economic goals of any state.
A dynamic, stable and balanced national transportation system is
essential for the economic growth. Development and modernization of
the transportation sector stimulate socio-economic development and
improve living standards. Efficient and safe operation of transport is
crucial for development of international trade and formation of global
production chains. Communication infrastructure, information and
telecommunication technologies have become an instrument
contributing to the accelerated growth and economic development,
lower production and transaction costs.
The cooperation within BRICS will be aimed at establishing and
developing the transportation and communication systems,
contributing to the growth of national economies, development of
international trade and meeting the modern security and
environmental requirements. The BRICS cooperation will include joint
projects, exchange of experience and joint research in the field of
transport, communication, information and communication
technologies, and cooperation in the field of design, construction,
modernization, operation of transport and communications
infrastructure; establishment of logistics complexes and hubs, the use
of transit capacities of the BRICS countries etc; training for the
construction and operation of infrastructure.
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BRICS Economic Cooperation Strategy
II.5. Agricultural production
Food security and access to food are essential for sustainable growth.
The growing population, increasing burden on the environment,
destabilization and deregulation of the global food market affect the
food security. The BRICS countries as the largest agricultural powers
that have certain potential for raising the agricultural production could
play an important role in the near future on the global agricultural
market as a driving force of growth in agricultural production.
The main areas of BRICS cooperation in the field of agriculture could
be the following:
 contributing to the international and national food security;
 expanding mutual trade in agricultural products;
 coordinating positions on international trade in agricultural
products;
 joint elaboration and adoption of new agricultural equipment and
advanced agricultural technologies, including biotechnology;
 promoting investment in agricultural production;
 ensuring safety of food products;
 exchanging experience on accreditation of organic products;
 raising the agricultural productivity and sustainability;
 exchanging information on national policy and practices in specific
agricultural industries;
 organizing training in the field of agricultural production etc.
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BRICS Economic Cooperation Strategy
II.6. Innovation and technological exchange
The main areas of BRICS cooperation in this field could be the
following:
 exchanging of information on scientific and technological policy and
programs, and formulating on this basis joint long-term problemoriented cooperation programs;
 arranging interaction among the governmental agencies, business
circles and academia in order to create and promote new technologies;
 coordinating positions on technology transfer;
 arranging scientific, technological and innovation cooperation
within BRICS, including establishment of high-tech areas (science
parks) and incubators; creating common "technology platforms";
encouraging joint investment in the development of advanced
technologies, BRICS research and innovation centers;
 expanding cooperation in the field of education, training of research
personnel and joint research programs;
 cooperating on intellectual property rights (exchange of experience;
cooperation of national agencies, capacity building, etc.)
 promoting research in areas of common priority for the BRICS
members, such as aeronautics, space technology, high-speed vehicles,
microelectronics and information technology, nanotechnology, food
security and sustainable agriculture, biotechnology and health,
medicine, fundamental research, search and mineral exploration,
remote sensing, climate change, water resources and water treatment
technology etc.;
The BRICS scientific and technical cooperation is open and, in case of
mutual interest, involves the development of cooperation with
partners beyond BRICS.
The BRICS industrial, scientific and technical cooperation is carried out
in strict compliance with international obligations.
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BRICS Economic Cooperation Strategy
III. Interaction with international and regional
economic associations and organizations
Development of the BRICS cooperation in the frames of international
organizations is necessary for promoting common interests in the field
of international trade, investment and scientific and technical
cooperation. The coordination of positions of the BRICS members in
international and regional organizations, associations and forums will
help strengthen the influence of BRICS in the world community.
Cooperation in a multilateral format will complement the bilateral
economic relations of the BRICS countries.
III.1. BRICS and WTO
The BRICS cooperation is carried out in accordance with the
international trade rules agreed in the WTO and is aimed at creating
the conditions for expansion and diversification of the BRICS
participation in global trade.
III.2. BRICS and G20
Using the BRICS capacities to strengthen G20 as the main economic
cooperation forum for the participating countries. Active participation
in the work of G20 with the view of further democratization of the
global governance.
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BRICS Economic Cooperation Strategy
III.3. BRICS and regional economic cooperation organizations
The BRICS countries are natural regional leaders. Their active
participation in regional organizations will contribute to
strengthening the role and authority of the member states in their
regions
III.4. BRICS and the UN economic organizations
The BRICS countries are actively developing economic cooperation
with the UN system, while respecting the fundamental principles of
the UN Charter and supporting the reform of the existing
international organizations in order to adapt them to the changing
global economy and the emerging challenges. They also actively
participate in multilateral cooperation for achieving sustainable
development of the global and national economies.
The BRICS Economic Cooperation Strategy will be carried out until
2020, and its implementation will include several stages. The
Strategy is adopted by Heads of States and Governments. The
ministers of economy of the BRICS member states will control its
implementation. The BRICS Contact Group on Economic and Trade
Issues will handle the ongoing work on monitoring and controlling
the implementation of the Strategy.
IV. Annex
IV.1.
Road
Map
of
BRICS
Investment
Cooperation
(should be prepared on the basis of proposals submitted by all
partners).
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BRICS Economic Cooperation Strategy
Contact information:
Evgeny POPOV
Director
Asia and Africa Department
Ministry of Economic Development
of the Russian Federation
Tel: +7 (495) 651-75-11
E-mail: [email protected]
Natalia STRIGUNOVA
Deputy Director
Asia and Africa Department
Ministry of Economic Development
of the Russian Federation
Tel: +7 (495) 651-74-09
E-mail: [email protected]
Ilya LOBOV
Chief Expert
Asia and Africa Department
Ministry of Economic Development
of the Russian Federation
Tel: +7 (495) 651-75-88
E-mail: [email protected]
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