BRICS ECONOMIC STRATEGY STUDY GROUP

This report documents a study group session held on 12 March 2012, organized by the South African Institute of International Affairs and the International Development Law Unit at the University of Pretoria. The session focused on South Africa's strategic approach to its membership in the BRICS group, analyzing the value-add of the alliance to South Africa's economic priorities and discussing challenges related to global economic governance, trade imbalances, and internal inequality within the BRICS nations.

• There is significant disagreement and a lack of consensus among BRICS members regarding the establishment of a BRICS Bank or Development Fund. While some see it as a way to leverage combined economic power against shrinking World Bank resources, others argue it is unnecessary given the existence of the African Development Bank and Asian Development Bank, or fear it would benefit only a few wealthy individuals.
• South Africa faces structural trade imbalances within the BRICS group, characterized by a trade deficit with each BRIC country and a pattern of exporting low-value added products while importing finished goods. To remedy this, the Department of Trade and Industry (DTI) signed a Memorandum of Understanding with China to prioritize the import of 10 value-added products from South Africa.
• A disconnect exists between the South African government and the private sector, leading to missed business opportunities within the BRICS. Critics argue that South Africa's focus on its 'gateway' status to other BRICS nations may alienate other African countries, noting that South Africa maintains a trade surplus with SADC and would benefit more from regional trade than from BRICS trade.
• Investment flows between South Africa and India are highly asymmetrical. While Indian firms have invested up to US$6 billion in South Africa, South African companies have invested only US$500 million in India, a disparity attributed to barriers within the Indian economy rather than a lack of capacity.
• The BRICS nations are characterized by extreme internal inequality, which is viewed as an obstacle to growth and a source of social and political instability. In South Africa, 10% of the population controls 40% of the wealth, while the poorest 20% control only 5%. Brazil is noted as the only BRICS country to have successfully fought inequality, while it has increased in Russia.
• To reduce inequality, the report suggests five specific action points: redistributive cash transfers, investment in universal health systems, progressive taxation for individuals and companies, equal economic rights for women, and land redistribution with investment in small-scale farmers.

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} }