SOUTH-SOUTH ECONOMIC COOPERATION: EXPLORING THE IBSA RELATIONSHIP

This briefing records a June 2006 discussion hosted by the South African Institute of International Affairs (SAIIA) regarding economic cooperation within the IBSA (India, Brazil, South Africa) initiative. The proceedings focus on the strategic objectives of South-South cooperation and a specific exploration of potential collaboration in the aerospace sector, highlighting the gap between political rhetoric and tangible business integration.

• The IBSA initiative aims to balance global power and reduce developing countries' dependence on developed markets. Strategic objectives include maintaining vibrant democracies, pursuing common agendas in multilateral institutions, and developing trilateral cooperation strategies. While trilateral trade has increased, with a target of $10bn by 2007, South Africa is noted as needing to do more to benefit from these increases to address domestic challenges.
• Significant barriers hinder economic interaction across IBSA countries, including customs duties, visa issues, differing business standards, and logistical constraints. A major challenge is the lack of awareness and market intelligence among economic actors. Additionally, there is low intra-IBSA foreign direct investment, with some Indian investment in Brazil and South Africa, but little South African investment in India and no real Brazilian investment in India.
• In the aerospace sector, IBSA countries are considered 'second tier nations' compared to the US and Europe. While there is currently very little collaboration, potential for growth exists in expanding cross-border supply chains, strategic defence issues, and small and micro satellites. The goal is not to compete with Boeing or EADS, but to integrate more effectively into existing global supply chains.
• The Brazilian aerospace industry, dominated by EMBRAER, is well-integrated globally, leading to skepticism about the benefits of IBSA cooperation in aeronautics. Survey results indicate that half of the contacted firms considered IBSA cooperation infeasible. However, there is specific interest in collaborating with India on satellite manufacture, launching technology, and sensors, and with South Africa on military aircraft parts.
• India's civil aviation manufacturing sector was valued at $150m in 2005, with an expected growth to $1bn within four years. India's strengths lie in space-related activities such as satellites and launch vehicles. Potential IBSA collaboration is identified in component manufacture, joint research, and maintenance, refurbishment, and overhaul (MRO) activities, though conflicts of interest may hinder collaboration on smaller airplanes.
• South Africa aims to develop its aerospace sector as a sustainable industry by 2014, focusing on airframes, engine components, avionic systems, and electronics. Constraints include insufficient investment in manufacturing facilities and financial resources. Potential threats to cooperation include corruption (citing a Denel-India case) and the impact of South Africa's Airbus deal, which may restrict collaboration scope through long-term supply contracts.

APA

South African Institute of International Affairs (2006). SOUTH-SOUTH ECONOMIC COOPERATION: EXPLORING THE IBSA RELATIONSHIP. https://saiia.org.za/wp-content/uploads/2008/04/IBSA-seminar-NOTES-final-28-June-2006.pdf

Chicago

South African Institute of International Affairs. SOUTH-SOUTH ECONOMIC COOPERATION: EXPLORING THE IBSA RELATIONSHIP. 2006. https://saiia.org.za/wp-content/uploads/2008/04/IBSA-seminar-NOTES-final-28-June-2006.pdf.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=SOUTH-SOUTH ECONOMIC COOPERATION: EXPLORING THE IBSA RELATIONSHIP |date=28 June 2006 |url=https://saiia.org.za/wp-content/uploads/2008/04/IBSA-seminar-NOTES-final-28-June-2006.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2006southsouth, author = {{South African Institute of International Affairs}}, title = {{SOUTH-SOUTH ECONOMIC COOPERATION: EXPLORING THE IBSA RELATIONSHIP}}, institution = {South African Institute of International Affairs}, year = {2006}, month = jun, url = {https://saiia.org.za/wp-content/uploads/2008/04/IBSA-seminar-NOTES-final-28-June-2006.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }