Analysis, viability and prospects of 'IBSA'

Abstract

The financial crisis and slowdown of the world economy in 2008 hurt output and growth in many countries. The speed with which emerging economies like India, China, Brazil, South Africa came out unscathed from the slowdown and were able to dole out impressive growth rates is noteworthy. In this context, we thought it would be worthwhile to analyze alliances, dialogue forums, treaties and other ways through which these countries interact – particularly IBSA (India, Brazil, South Africa Dialogue Forum). IBSA is a trilateral, developmental initiative between India, Brazil and South Africa to promote South-South cooperation and exchange, formed by the adoption of Brasilia Declaration in June 2003. Through our Contemporary Concerns Study, we wish to - analyze the benefits derived by the 3 countries from this dialogue forum - IBSA, look at avenues for trade and investment in each of the countries that will foster mutual growth, uncover opportunities for knowledge sharing and learning and also measure the leverage gained by these countries in World Forums. Developing economies need to streamline production in every sector, be it agriculture, manufacturing or services. In agriculture, there is always need for research and capacity building, rural development and poverty alleviation. Energy sector could benefit through studies that will ensure low cost fuel alternatives (thus reducing costs). Trade between the developing economies can improve. Much can be achieved through reforms in health, transport and tourism too. IBSA could ensure co-operation in each of these sectors to promote mutual benefits. Given the significant synergies between the three countries, trilateral trade can be strengthened as they have developed substantial capabilities in different sectors over many years. Further, co-operation in development of science and technology could help speed up growth and provide a level playing field alongside the developed countries. Cooperation could lead to favorable improvements in agriculture and tourism as well. Also, what most developing economies lack is decision making influence in the international arena - UN, World Bank, IMF etc. Bringing together three large democracies and emerging economies from three vast continents to form a dialogue forum like IBSA could greatly increase these countries influence in the international platform. It could add strength to the call for more representation of developing nations in the UNSC. A larger voice can help push for better macro-economic reforms in forums like G20 for improving financial stability so as to drive capital flows and investments into the developing economies. Co-operation in WTO multi-lateral trade negotiations will help materialize the Doha Development agenda that would reduce trade barriers and improve global trade; much needed for developing economies. Also, a grouping of democracies that spread across the globe could have some strategic significance as against BRICS(which also includes these countries) in which China is a dominant force.