Experts study effects of the rise of Brazil, India, China and South Africa

The impact of the emergence of Brazil, India, China and South Africa on developing countries was top of the agenda at a meeting of researchers and government technocrats in India this month.

The group of four, known as BICS, at a meeting organised by the Commonwealth Secretariat and the Research and Information System for Developing Countries (RIS) of India, discussed the implications of the economic emergence of BICS to the developing economies.

Dr Marios Obwona from the Economic Policy Research Centre in Uganda who attended the meeting said: “It was an excellent opportunity to meet and learn from the BICS researchers themselves.

“The meeting highlighted the potential benefits (as opposed to threats) that BICS will bring to the developing economies -- mainly through channels like trade, foreign direct investment flows, aid and globalised production value chains of BICS multinational companies.”

Ivan Mbirimi, an Adviser in the Secretariat’s Economic Affairs Division, stated that understanding the factors behind the growth of these four countries is key for developing countries in embracing the dramatic changes currently affecting the world trading system.

He emphasised it is important for developing countries to look at the technologies China and India are using and see “if they can be replicated back home”.

“Basically the meeting laid bare the facts about the growth of these countries so that developing countries can make informed decisions while dealing with them,” Mr Mbirimi added.

He said that for example during trade negotiations at the World Trade Organization (WTO), developing countries should not only be looking at traditional markets but also emerging ones.

Mr Mbirimi also said that developing countries need to develop beneficial relationships with BICS with a view to increasing opportunities for trade, investment and technology transfer.

The Commonwealth assists its developing member countries to improve their understanding of international trade rules and regulations, helping them strengthen their effectiveness and participation in WTO negotiations.

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