BRICS ECONOMIC STRATEGY STUDY GROUP

The report details a study group session held in March 2012 to evaluate South Africa's engagement with the BRICS nations. Key discussions focused on the potential for a BRICS Development Bank, the tension between competition and cooperation in trade, and the need for a more coherent strategy to bridge the gap between government policy and private sector participation. Panelists highlighted structural trade imbalances, such as South Africa's export of low-value products, and the risk of neglecting other emerging economies and regional SADC trade in favor of BRICS. The session also addressed the critical need for inclusive growth to combat rising inequality within BRICS nations.

• There is significant disagreement and a lack of consensus among BRICS members regarding the establishment of a BRICS Bank or Investment Fund. Some delegates viewed it as a way to 'line the pockets of fat cats' or questioned its necessity given China's economic power and the existence of the African Development Bank and Asian Development Bank.
• South Africa faces structural trade imbalances with BRICS countries, characterized by a trade deficit and a pattern where South Africa exports low-value added products while importing finished goods.
• A disconnect exists between the South African government and the private sector, resulting in missed business opportunities. The lack of a clearly stated strategy for BRICS engagement has hampered coordinated participation.
• South Africa risks undermining its regional advantage and relationship with the rest of Africa by overemphasizing its role as a 'gateway' to BRICS, noting that it maintains a trade surplus with SADC but a deficit with BRICS.
• BRICS nations are among the most unequal in the world, and the report argues that inequality is an obstacle to growth that leads to social and political instability. Brazil is noted as the only BRICS country to have succeeded in fighting inequality.
• South Africa is pursuing specific trade and investment initiatives with BRICS, including a Memorandum of Understanding with China for 10 value-added products and the Interbank Cooperation Mechanism to facilitate trade using local currencies.

APA

South African Institute of International Affairs (2012). BRICS ECONOMIC STRATEGY STUDY GROUP. https://saiia.org.za/wp-content/uploads/2012/05/rep_brics_study_group_12_mar_2012.pdf

Chicago

South African Institute of International Affairs. BRICS ECONOMIC STRATEGY STUDY GROUP. 2012. https://saiia.org.za/wp-content/uploads/2012/05/rep_brics_study_group_12_mar_2012.pdf.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=BRICS ECONOMIC STRATEGY STUDY GROUP |date=12 March 2012 |url=https://saiia.org.za/wp-content/uploads/2012/05/rep_brics_study_group_12_mar_2012.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2012brics, author = {{South African Institute of International Affairs}}, title = {{BRICS ECONOMIC STRATEGY STUDY GROUP}}, institution = {South African Institute of International Affairs}, year = {2012}, month = mar, url = {https://saiia.org.za/wp-content/uploads/2012/05/rep_brics_study_group_12_mar_2012.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }