A Changing World Order

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  2013 is an important year for South Africa. The country will host the Fifth BRICS Summit in March and it also celebrates the 15th anniversary of the establishment of diplomatic relations with China. On January 31, Bheki Langa, South African Ambassador to China, shared his thoughts on the upcoming BRICS Summit and relations between China and South Africa with Beijing Review. An edited transcript of his opinions follows:


  Beijing Review: What are your expectations for the Fifth BRICS Summit?
  Bheki Langa: BRICS and Africa—Partnership for Development, Integration and Industrialization will be the theme of the Fifth BRICS Summit taking place in Durban in March.
  South Africa’s accession to the BRICS grouping was in large part premised on the country’s role as a financial and logistical gateway to sub-Saharan Africa, as well as on the continent’s huge economic potential. Africa is the fastest growing power after Asia and offers the highest returns on investment of any region. The African continent is home to 60 percent of the world’s unused arable land. In 2010, six of the world’s fastest growing economies were located in Africa, and Africa’s output is expected to expand by 50 percent over the next four years. Economic growth is expected to expand by an average of 5.5 percent annually in the next five years.
  It was this potential, combined with the economic power of Brazil, Russia, India and China, that will enable the BRICS grouping to pave the way for “a new global pattern focusing on South-South relations ... overriding previous East-West and North-South constructs and divisions.”
  This was in line with the underlying principle for South Africa’s partnership with BRICS, that of advancing the role of emerging economies in international relations, to ultimately help fashion a more equitable global political and financial architecture. With South Africa’s unique history and independent foreign policy, we bring our own experience and perspective to the BRICS collaboration.
  BRICS members suggested establishing a BRICS development bank at their last summit. How do you feel about this suggestion and what role could this new bank play if it is established?
  To build a BRICS development bank is not a new idea. It was talked about at the G20 Summit in Seoul in 2010. With a total population account- ing for about 40 percent of the world’s total, the total GDP of BRICS nations accounts for nearly 20 percent of the world’s GDP and contributes half of the growth in the global economy. There is a huge amount of savings in the BRICS countries, which is not fully used. So the idea started there, it’s about how to use the huge amount of savings which are unused.   With its own development bank, the BRICS countries can work together to shape a new international monetary system.
  As export-led economies, the BRICS countries feel the impact sharply each time global financial crises hit. Drawing on our experience with successful reforms, it’s necessary for us to set up such a bank for our common development according to our own conditions.
  Some have suggested that because South Africa is the smallest of the BRICS nations in terms of population and GDP, it may not deserve a place in this club of leading developing nations. How do you respond to that? The rationale for South Africa’s consideration was a matter of crucial importance to BRICS Member States—namely the role of emerging economies in advancing the restructuring of the global political, economic and financial architecture into one that is more equitable, balanced and rests on multilateralism.
  Those who constantly refer to this particular issue completely miss the point, namely, that BRICS is not all about size and numbers, but rather about ideas and ideology. BRICS is a response to the current global political and financial architectures, which are dominated by certain players. South Africa has a proven record of contributing to the discourse of multilateralism and advocating for the rights of emerging economies.
  Among developing countries we are still the biggest investor on the African continent. This means that, although our economy is small in relation to other BRICS members, we have attri- butes that have positioned us well in the world and which will allow us to bring special insight to the work of BRICS.
  As a member of BRICS, how can South Africa promote its own and other African countries’ economic development and represent the interests of the African continent?
  Our country, as a member of the Brazil, Russia, India, China and South Africa bloc (BRICS), is playing an important role in the shifting and distribution of international power. This shift is expected to give rise to a multi-polar world order.
  Our interaction with fellow BRICS states is premised on three levels of engagement: firstly, national, where we advance our national interests. Secondly, regional, where we promote regional integration and interaction with specific emphasis on the African Union mandate to promote infrastructure development across the continent. And, thirdly, on a global level, where we advocate for a more inclusive global governance system.   What role do China and South Africa play in each other’s development plans? What steps are South Africa taking to scale up its relationship with China? The bilateral relationship between the two countries is grounded in the Comprehensive Strategic Partnership Agreement (CSPA) signed by our respective leaders in August 2010, which continues to guide interactions between South Africa and China. As partners, the two countries can learn from each other and develop the best possible models for addressing the issue of socio-economic development in our respective countries. In terms of bilateral trade, China has become South Africa’s largest trade partner. Both sides are looking at ways of encouraging further trade, but are also concentrating on the quality of trade rather than the quantity. We enjoy cooperation in numerous fields and, as a reflection of the growing ties between the two countries, in July 2012 our leaders proposed the establishment of a joint work group to coordinate the implementation of various bilateral projects.
  Xavier Carim, Deputy Director General at the SA Department of Trade and Industry, has said that South Africa wants to align its interests to support the integration agenda in Africa, rather than just focusing on access to resources. What does this mean to you? Trade between our countries is skewed in favor of China, and so South Africa is running a trade deficit with China. Through discussions with the Chinese Ministry of Commerce, South Africa and China have agreed to promote value-added exports from South Africa to China in order to lower the trade deficit and diversify trade away from primary commodities to include more manufactured goods.
  In this light, South Africa will certainly be measuring future successes in trade relations by evaluating the reduction in the trade deficit and the increases in value-added exports from South Africa to China. The Department of Trade and Industry of South Africa, in partnership with the Chinese Ministry of Commerce, also jointly host what are known as the South Africa Expos in China, the last of which was held last year in both Beijing and Shanghai. The purpose of the Expos is to expose Chinese buyers to a different range of South African exporters in various fields, including agro-processing, manufacturing, engineering, jewelry and many others. We are confident that as these Expos become widely known, the opportunities for sustainable partnerships between the business communities of the two countries will be expanded, thus leading to a more equal trading relationship.
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