Hon Speaker, hon Ministers and Deputy Ministers, hon members of the House, diplomats, colleagues, friends and comrades, in his state of the nation address a few weeks ago, His Excellency President Jacob Zuma said:
Our vision of a better Africa in a better world will receive great impetus when we host the 5th Brics summit next month in Durban.
That meant 26 and 27 March 2013.
Today we are here, hon Speaker, in this House to do a follow-up and to share with you our thinking on Brics - the Brazil, Russia, India, China and South Africa group - and its forthcoming 5th summit, whose theme reads: Brics and Africa: Partnership for Development, Integration and Industrialisation. This will be the first time a Brics summit is held on African soil, providing an opportune moment for the Brics countries to further their engagement and co-operation with developing countries, as envisioned in the Sanya Declaration adopted at the 3rd Brics summit in 2010, which was our first encounter with Brics or where we were received as a new member of Brics.
We envisage the core outcomes of this summit from 26 to 27 March 2013 here in South Africa as being the following: the launch of concrete measures towards the establishment of the Brics-led development bank; the establishment of the Brics business council and the Brics think-tank council; and a historic retreat with African leaders and their Brics counterparts.
The success of Brics will, first of all, depend on the effective implementation of our decisions and co-operation programmes. In this regard, we have already achieved considerable success in terms of strengthening our economic co-operation agenda. Let me also hasten to say to the hon members of the House that South Africa will remain the chair of this Brics forum for the year 2013 until the year when we hand over to Brazil. That would also mean that in the whole 12 months, South Africans should prepare to make a contribution to the action plan led by South Africa as we continue to interact with Brics member countries at political, economic and social levels.
Through intra-Brics mechanisms for economic co-operation, such as the meetings of our Foreign or International Relations, Finance and Trade Ministers, Brics countries are striving to intensify intra-Brics trade. There is significant potential for future expansion.
Our Brics Interbank Co-operation Mechanism, to which the Development Bank of Southern Africa, DBSA, is a party, has concluded various co-operation agreements, notably to promote trade in our local currencies. Key deliverables projected at the summit include the report that Finance Ministers will submit to the Brics leaders to conclude their study on the feasibility and viability of the Brics-led development bank. We look forward to a very positive announcement in this regard.
The Brics think-tank council that will be launched in Durban and supported by the Brics Academic Forum, will mobilise collectively the energy of our intelligentsia to help bring about plurality of ideas and knowledge generation in the world, and to also see the world through our own eyes and not through those of others. Through our public diplomacy, and with the Brics Cabinet Ministers who are in the interministerial committee, we are crisscrossing the country, talking to different constituencies about Brics and its significance for our country. It is the Department of International Relations and Co-operation's hope that our provinces will establish Brics desks and that institutions of higher learning will form Brics units and encourage postgraduate studies and research on Brics and individual Brics member states.
Logistical arrangements for hosting this summit are in full swing, thanks to our experience in hosting mega international meetings of this stature. I will therefore focus my attention on the strategic and policy issues. It is important to emphasise at the outset that Brics is not intended to compete with other multilateral groupings; instead, the body will seek co-operation and collaboration, as stated in the Delhi Declaration, and I quote:
We envision a future marked by global peace, economic and social progress and enlightened scientific temper. We stand ready to work with others, developed and developing countries together, on the basis of universally recognised norms of international law and multilateral decision-making, to deal with the challenges and the opportunities before the world today. Strengthened representation of emerging markets and developing countries in the institutions of global governance will enhance their effectiveness in achieving this objective.
Hon Speaker and members, South Africa is in Brics as a function of our international relations strategy that is informed by our national interests that have their pillars in, among other things, our domestic priorities, our commitment to the renewal of Africa, the promotion of South-South co- operation, and our determination to work for a better and transformed global system. We also see our relationships with strategic formations of the North as well as other bilateral political and economic relationships with like-minded partners as complementary regarding this strategy. The Brics group is a mechanism for South-South co-operation. It is one of the mini-lateralists and part of the so-called club diplomacy, which South Africa utilises globally, while upholding the centrality of the United Nations in accordance with the principle of multilateralism.
Global scenarios for the next 20 to 50 years all suggest that the traditional North-South divide will give way to a new international order, in terms of which some of the developing countries of today will be in the top five economies of the world. An HSBC Global Research study entitled "The World in 2050", from the top 30 to the top 100, has concluded that by 2050, 19 of the top 30 economies will be what we today consider as emerging. The geopolitical character of this new system that is emerging is being defined as we speak. The question is, however: Where will South Africa be in this emerging new world order and what must be our role in its definition and the determination of the international balance of forces?
This is where the significance of Brics comes in. The Brics countries are among the key drivers shaping this emerging new world order. The 2013 Human Development Report, prepared by the United Nations Development Programme, UNDP, concludes that, and I quote:
... by 2020, the combined economic output of the three leading developing countries alone - Brazil, China and India - will surpass the aggregate production of Canada, France, Germany, Italy, the United Kingdom and the United States.
There was some celebration after the end of the Cold War that the hegemony of the traditional order was comfortably entrenched and irreversible. Some policy ideologues even spoke of what they called "the end of history". The 2008 global economic crisis has further weakened and proven that the North as the centre, because of its impact on the Eurozone and the US economies, has dropped, as opposed to key emerging economies which have not only weathered the storm, but are also driving the recovery. Our Brics membership strategy must address the triple challenges of poverty, inequality and unemployment.
The value Brics contributes to South Africa's interests includes already existing bilateral bases, comprising strategic and strong relations. South Africa's membership has enhanced the political component of Brics deliberations, notably regarding developments in Africa and support for the African agenda. Accordingly, our membership is aimed at the following: strengthening South Africa's political and economic relations; promoting regional integration of our neighbourhood; enhancing the African agenda; and sustainable global development.
Order! Order, please! No, continue, Minister. I am just asking the House to please maintain order. The noise level is very high now. We can't hear the Minister.
The membership is also aimed at global reforms, such as UN reforms, including the expansion of the United Nations Security Council, and in particular the reforms of the international financial institutions.
In this regard, by being in Brics, we are taking an important step towards the implementation of Outcome 11, as well as the New Growth Path and our Industrial Policy Action Plan. We also recognise in the National Development Plan that South Africa has to construct a strong partnership with other African nations and continue to champion the African Agenda. Brics offers possible alternative development models, and the new multilateralism, in the form of diplomatic groupings like Brics and the G20, is crucial for influencing the decision-making processes of the UN, and therefore South Africa's activities in both require strong alignment.
Brics countries still face challenges of poverty and inequality. These challenges can be met through concerted efforts to strengthen second and third-tier government co-operation amongst Brics member states.
The importance of Brics for South Africa is also reflected in bilateral trade relations. International trade centre data shows that despite the continued importance of the Organisation for Economic Co-operation and Development, OECD, to South Africa in terms of investment and development, South Africa's export trade with Brics has grown from 6,2% in 2005 to 16,8% in 2011, whereas its imports from Brics represented 13% of total imports in 2005 and have now grown to 20% in 2011. This growing importance presents opportunities for South Africa's domestic, continental and global objectives. In 2012, South Africa's total trade with the Brics countries stood at almost R300 billion, which represents an annual increase of over 11% compared to the previous year. The New Growth Path emphasises the importance of market development for South Africa's reindustrialisation drive, specifically in the identification of opportunities in the fast- growing economies of the Brics group.
South Africa's development finance institutions, state-owned companies, and the private financial sector, have all been mobilised behind Brics through concrete collaborative projects and mechanisms, such as the Brics business council that will be launched in Durban. The business council will constitute a platform to strengthen economic ties, as well as trade and investment between the business communities of the Brics member states. This will provide technical support, consultative advice and facilitate the implementation of multilateral business projects. The promotion of technology exchanges is also our strategy for Brics engagement.
Our mother continent, Africa, is an important component of our Brics strategy. South Africa has championed an integration and development agenda on our continent. Our President is working together with Nepad through the Presidential Infrastructure Champion Initiative, the PICI. This will further be enhanced by President Zuma hosting the Brics Leaders Africa Dialogue Forum Retreat immediately in the afternoon of the same day of the Brics summit, with the theme, "Unlocking Africa's Potential: Brics and Africa Co-operation on Infrastructure". This is the first time ever that leaders of the continent have been given this opportunity to interact directly with their peers. Leading this delegation will be the heads of state who are part of the Nepad heads of state committee, the chairs of the regional economic co-operations and members of the PICI.
Through such engagements, African leaders are given an opportunity to make sure that we intensify not just integration of our infrastructure, but also integration of our economies - so that all roads don't lead to raw materials leaving the continent, but that we use our raw materials to beneficiate and to industrialise in our own country. South Africans should be positive and optimistic about Brics. Let me now quote what Oxford University Press says about our membership of Brics. It says:
South Africa has a long record of responsible macroeconomic management, which has helped to promote the development of a deep and liquid bond market and reduced external vulnerability. South Africa has strong institutions and a highly developed, well-regulated banking sector that escaped the worst effects of the financial crisis. With the most developed industrial and financial capabilities on the African continent, South Africa's role in the integration of policies, markets, finance, and infrastructure is vital to Africa's economic development and realisation of the continent's potential as a growth pole in the global economy. Outwardly oriented South African companies are among the largest sources of foreign direct investment in Africa, and the country's development financing institutions are playing an increasing role in the funding of regional infrastructure investment.
Moreover, South Africa's foreign policy is not under any influence of any country except our own national interests. As a result, we take an independent and principled stance on foreign policy questions. Besides, we have resources and a fiscal base, as well as a sufficiently diversified economy to fulfil the obligations of our Brics membership. The involvement of emerging countries in Africa, displacing traditional relations which have colonial origins, is what we are about. This is positive for Africa as it brings diversity to our foreign relations and gives countries more leverage in the international arena. This also gives us an opportunity to advance the African agenda, which must not be left out of the equation, because it is Africans themselves who must make good strategic use of the spaces that are being opened up by international systems to renegotiate better terms of their integration into the system for more positive benefits that we all need. South Africa's and Africa's south axis is in line with the objectives of our South-South co-operation.
We joined Brics fully conscious of its strategic value to our long-standing development and interests. We are fully aware that we will have to continue with the collaboration, competition and co-operation. We all have to stand ready to be counted. We believe that the 5th Brics summit will be another major step towards the development of a Brics architecture that covers a wide range of issues from the terrain of ideas and the private sector to trade, development finance, and diplomatic co-operation.
We continue to engage with these Brics member countries also at a bilateral level through different mechanisms. The Department of International Relations and Co-operation will always explore new frontiers of co- operation to strengthen bilateral relations, promote our exports, attract investments, promote the transfer of technology or technology exchanges, enhance people-to-people interaction, and expand the geographic origin of tourists visiting our shores. We are expecting more than 5 000 visitors this coming week, who will be converging on our country for the Brics summit. In all that we do in the world, our vision of a better South Africa in a better Africa and world must inform our actions.
In closing, in 1993 the journal on Foreign Affairs published an article authored by the one and only father of our nation, Nelson Mandela, wherein he stated:
As the 1980s drew to a close, I could not see much of the world from my prison cell, but I knew it was changing. There was little doubt in my mind that this would have a profound impact on my country, on the Southern African region and the continent of which I am proud to be a citizen. Although this process of global change is far from complete, it is clear that all nations will have boldly to recast their nets if they are to reap any benefit from international affairs in the post-Cold War era.
Chair, recasting our net is what this administration under President Jacob Zuma has been doing and continues to do. I take this opportunity to thank you, and again, Chair, I thought it was important that we should share with you this information that all South Africans have been joined together in pursuing a case: working together with all our communities to bring Prof Karabus back home safely from the United Arab Emirates. [Applause.]
I now can share with the House that, through our diplomatic efforts, the medical review committee finally met last night, and we hope for a conclusion by the end of this week that will be positive, which will bring Prof Karabus home safely. I thank you. [Applause.]
Mr Chairman, let me immediately express from our side of the House our pleasure at the fact that Prof Karabus may well be returning to our shores sooner than expected.
The DA endorses much of what the Minister has said to this House and believes that we should accept it in the spirit in which she came to this House.
The aim of Brics to achieve peace, security, development and co-operation is laudable, and its aim to contribute significantly to the development of humanity and establish a more equitable and fair world order deserves the support of this House.
The Brics group is a product of today's global power shifts. The constituent countries represent more than a quarter of the earth's land mass, are home to 45% of the world's population, constitute around 30% of the world's GDP and have half of all foreign exchange and gold reserves.
The potential therefore for it to be a growing force in global, economic and political affairs cannot be underestimated; likewise its potential to evolve into a major instrument in shaping the architecture of global governance.
Brics, more importantly, has the potential to be a major development tool for South Africa, as well as the African continent. In this context, we welcome the Minister's announcement of an imminent Brics development bank. This is indeed a positive outcome. Multilateral development banks and the credit lines they provide are important conduits of investment, growth and development. As Lyal White of the Gordon Institute of Business noted, they provide the glue behind economic integration and reassurance for companies seeking deeper commercial engagement in developing regions. They also encourage policy co-ordination that includes a developmental dimension with commercial actors involved.
But if Brics is to realise its full potential as a political and economic international actor, it has to find a common identity. It has to find a unifying set of values to underpin and drive its strategic agenda. Given that the Brics countries have very different political systems, economic systems and national goals, this is difficult.
Kuseni Dlamini of the SA Institute of International Affairs makes the point that Brics' soft power as an organisation would be immeasurably enhanced if its set of values had universal appeal and embraced concepts such as democracy, human rights, transparency, accountability, equality, the rule of law, etc.
South Africa, in summit deliberations, needs to encourage Brics to evolve in that direction. After all, these are the values enshrined in our Constitution - the very values that gave us a great deal of moral authority in the past and enhanced our soft power in multilateral organisations.
For Brazil, Russia, India and South Africa, the Brics grouping serves as a forum to underscore their and our rising political clout and showcases their and our emergence as global actors. China needs no such recognition. It is a global power with a global reach, a reach soon to be enhanced by the Brics development bank over which it will, no doubt, have full control.
Lending and trading in China's currency, the Renminbi, is likely to boost China's international standing further and expand its currency's international role; this at a time when it is under pressure for manipulating the value of the Renminbi to maintain export competitiveness.
China's undervalued currency and hidden export subsidies have been systematically undermining manufacturing in other Brics countries, especially India and Brazil, as well as our own. We in South Africa are painfully aware of this as more recently witnessed in the textile industry, the glass industry and the agricultural processed products industry.
South Africa needs to use its position in Brics to motivate China to reform its position in this regard. And I sincerely hope that at the Africa Leadership Retreat, African leaders will actually raise this as a critical point in respect of China.
Lamido Sanusi, the Governor of Nigeria's Central Bank, has no illusions about China's role in Africa. In an article in the Financial Times of London last week, he reflected on Africa's anaemic industrial sector, which he said was being battered by cheap Chinese imports. African manufacturing, he noted, had declined from 12,8% to 10,5% of regional GNP.
He had tough words to say, stating that China was a major contributor to the deindustrialisation of Africa and thus African development. China, he said, takes from us primary goods and sells us manufactured goods. This, he said, by the way, was also the essence of colonialism.
President Zuma, two weeks ago, told Western companies to stop warning against the embrace of China. China, he said, is doing business in a particular way and we think we can benefit from that. However, he did add, citing Africa's experience of colonialism, that we must be very, very careful. We endorse this sentiment. Indeed, we need to be very, very careful.
We are hopeful that Brics can serve as a catalyst for global institutional reform. Existing international arrangements have remained virtually static, not responding to the changing distribution of global power. China once again needs to be enticed into a common position. While it is happy to endorse change in respect of the global financial architecture, it remains steadfastly opposed to the enlargement of the UN Security Council's permanent membership. It wishes to be Asia's sole country with a permanent seat, thwarting India's ambitions.
These are tough issues, but if Brics is to achieve its full potential, I believe that South Africa needs to be in the vanguard of putting these issues on the table in a constructive way. It is only then that Brics will fulfil its real potential as a developmental mechanism, defy its naysayers, and become a real force in international, economic and political affairs. I thank you. [Applause.]
Chairperson, Cope would like to thank you, Minister, ever so much for your efforts regarding the return of Prof Karabus. Again, we are highly appreciative of the agenda and what you have alluded to regarding this summit, especially the theme that you have referred to, which is: Brics and Africa: Partnership for Development, Integration and Industrialisation. This will go a long way in ensuring that we put at the centre of that summit the African agenda.
Cope would also like to express appreciation for the creative measure that the summit has put on its agenda - the adoption of the Brazil, Russia, India, China and South Africa think-tank and its business council. It is indeed a very creative measure that brings on board all relevant stakeholders, in order to ensure that we bring all efforts into the scrum in trying to change the low living standards of the continent of Africa in particular, and those of various other developing countries.
Minister, the Brics group accounts for 40% of the world's population, which is very important, because that is a majority grouping of the world's population. It was very strategic and important, not only for the country but also for the continent, for South Africa to have been aligned with and to have joined this august body on 24 December 2010.
However, the realisation by Brics that it doesn't have a development agency or bank is very important, because whatever objectives it has, it has to have the muscle to put into practice its vision as stated in its objectives. These objectives are ensuring growth in countries' economies, and increasing production, science and modernisation within the member states; stabilising finances and economies, including pricing and employment; and bringing about social responsibility and fair competition to financial institutions within the member states.
These are very noble objectives, Minister. However, with regard to the development agency or the bank, the key question that all of us should interrogate is how we are going to capitalise the bank. That is the critical question. Minister, you have referred to the role of the Development Bank of Southern Africa in your speech. My worry, as I stand here, is the capacity of the DBSA to play that role for our country and for the Southern African Development Community, SADC. Does the DBSA have that muscle? I am sure all of us in this House have to interrogate that, because this carries the integrity and the branding of our country to be able to deliver.
The other issue that we have to look at with regard to Brics is the capacity to implement a spatial development programme so that the challenges that all of us are faced with, especially in South Africa with regard to the urban and rural divide, can be addressed through the efforts of Brics.
The question of the role of South Africa with regard to its needs and its development interests is crucial. It means that we must not compromise our own needs as South Africa and compromise our own development priorities, as we participate in Brics. We have to ensure that the relationship that we build with these countries is complementary, especially with regard to investment.
A point was raised by the last speaker regarding the role China plays. Although we salute the role China plays in terms of investment and the role they play in creating jobs on the continent, the reality is that when they invest, they bring across lots of people from China. This means that the jobs that were supposed to be created by their own investment are actually taken by their own citizens. We are by no means blocking Chinese people from coming to work in South Africa, other SADC countries, or the continent, but we have to be mindful of the big questions that are being asked continually. In a nonpartisan and impartial manner, we must be wary of any efforts by any member state within Brics to recolonise Africa.
There is also the question of SADC and the rest of Africa. South Africa must regard itself as carrying the weight of SADC and the weight of Africa as a whole. Therefore, we must be a kind of beachhead as we participate within this important body in that we carry SADC and we carry Africa. Therefore, we must carry with us the competitive advantages that exist within SADC and Africa.
My last point is that the alternative currency that can come from this ...
Lunga elihloniphekile isikhathi siphelile. [Hon member, your time is up.]
Ndiyabulela Sihlalo, siyayixhasa Mama. [Thank you, Chairperson, we support it, Ma'am.]
Hon Chairman, firstly, thank you very much, hon Minister, for the good news on the imminent return of Prof Karabus. Thank you to you and your Deputy Ministers, as well as the department, for a job well done in that regard.
When we speak about bricks, we always think of something solid, and we just hope that this partnership of Brics - the countries - is built on a very solid foundation, not like the foundations some of the houses are built on - the kind of bricks the housing department has used. Having said that, Minister, we just want to congratulate you for the role you are playing in leading the summit. I think it is great that South Africa, and Durban in particular, being a Durban boy myself - a Durban tsotsi - is going to be the host. It is good for the economy of Durban and KwaZulu-Natal.
When I read some parts of last year's Delhi Declaration, I read that there is a desire to strengthen partnership for common development and take co- operation forward on a basis of openness, solidarity, mutual understanding and trust. I do hope that these elements permeate in the discussions you have. In my view, Brics is not only about trade and economy; it is also about people. Approximately 43% of the world's population reside in these countries, and although I note South Africa's GDP is only 2,5% of the GDP of all the countries put together, it is important that the people on the ground appreciate what Brics is all about. People on the ground have particular problems, such as unfair competition in the labour sector. An hon colleague spoke about the textile sector, and we know how many people have been put out of jobs. Right here in Cape Town, at the moment, there is a big trade fair. The Indians are here for big trade fair. This impacts on our textile industry here in South Africa.
Then you have the reported human rights abuses in China. Now, we know that South Africa's Constitution is based on sound principles of human rights. I trust that these fora that you participate in, and we know that South Africa can be a very strong participant, discuss issues like these where ordinary people feel that Brics is not only about somebody getting rich with some entrepreneur in India, China or Brazil, but that it is about how we, as ordinary people, can benefit.
When one comes to the bank, I think it is a good idea that this development bank be set up. Once again, I think that Brics needs to use its influence on the way the World Bank, the International Monetary Fund, IMF, and other development institutions operate. Our influence must be felt so strongly there that they appreciate that there are developing countries, that there is poverty in developing countries, and that they have to give back what they took away from Africa and the rest of the world during the era of colonisation. That is something, I think, we also need to focus on.
On the whole question of SADC and the rest of Africa, I don't think that South Africa must be seen, as some countries in Africa see us, as a cabal - a cabal operating within Brics and trying to do things for ourselves. We must always be wary that other countries in Africa, like Nigeria, are becoming powerhouses, and we do not want to see our role in Brics being usurped by countries like Nigeria. This means that we need to really focus on the development of our economy and growth.
When it comes to banks, I think best practice can suggest to the Brics countries, except for South Africa, that South Africa has the best banking system in the world. Similarly, we might find some of the other countries in the Brics group have best practices that we can emulate. I think this whole forum should not only be about how we can learn from them, but also how we can teach them. At the end of the day, how do the 50 million ordinary people in South Africa benefit from this arrangement that we have in terms of Brics? Thank you very much, and I wish you well for the conference. [Applause.]
Hon Chairperson, firstly, on behalf of the FF Plus I would like to start by thanking the hon Minister for making the statement in Parliament today about the fifth Brics summit. Also, it emphasises the important role that Parliament plays in terms of our international relations. I think that is very important. The Minister correctly pointed out that this specific summit - the fifth summit - will be the first to be held on African soil. I think we should all be very proud about that.
The world is experiencing a profound shift from the previous seat of economic, political and social power to a multiparty system with Brics countries playing a very important and more important role every day. If you look at the projections made everywhere internationally in terms of economic growth and development in the world and in terms of what is being proposed and predicted regarding what is happening and will happen until 2050 and beyond, it's quite clear that South Africa is very privileged to have joined such an important club - Brics - if I may put it that way. The other countries involved in Brics, except South Africa, are all very strong economically in terms of growth and prosperity and we will benefit in that regard.
However, South Africa's comparative advantage within Brics seems to be our considerable mineral wealth. A recent report by the USA-based Citigroup Bank ranked South Africa as the world's richest country in terms of its mineral reserves, which reserves are worth more than an estimated US$2,5 trillion. That is a very big advantage for South Africa, but we must make sure that we are not used by the other countries in the Brics group merely as the supplier of these kinds of raw materials and those kinds of things.
Dit is ook belangrik dat Suid-Afrika 'n rol speel in die res van die kontinent, en dat ons nie gesoleer word as die enigste land in Afrika wat by Brics betrokke is nie. Ons moet daardie geleentheid gebruik. Die agb Minister het verwys na ... (Translation of Afrikaans paragraph follows.)
[It is also important for South Africa to play a role in the rest of the continent, and that we should not be isolated as the only African country that is involved in Brics. We must use that opportunity. The hon Minister referred to ...]
... the retreat after Brics where the other African leaders will also be involved. I think it is very important that we play this role as the bridge between the Brics group and the rest of Africa.
Allow me to wish the Minister and the Department of International Relations and Co-operation everything of the best. We hope and believe that it will be a huge success. Thank you.
Thank you, Chair. Congratulations, hon Minister, on the excellent work done by you and your department to bring Prof Karabus safely back to South Africa. South Africa may be the small fish in the Brics pond compared to India or China, but Brics represents rising powers from the different regions of the world. We do hold our own in Africa, although commentators say that ultimately the "S" in Brics should stand for the Southern African Development Community, SADC.
If we were to align our region with our Brics membership, it would represent a regional market of 273 million people, I believe, giving greater credibility from a market size perspective and a far greater negotiating influence. With other nations being considered for membership, the acronym Brics is expected, they say, to give way to the letter "E" for emerging nations - becoming the E6 or the E8. If this became the case, South Africa could only benefit from its early participation in this grouping.
With South Africa hosting the Brics summit next week in Durban, local players are hoping to see mining on the agenda. South Africa is a mining hub and, curiously, this has not yet been prioritised, even though all Brics nations are heavily engaged in mining.
The ACDP would like to see Brics discussions focusing on trade and investment barriers that inhibit business among participants, focusing on the barriers that matter and that are relatively easy to deal with, such as visas and customs procedures, etc. Of course, Brics needs to focus strongly on the facilitation of trade and use its influence to cut trade and investment deals that benefit the people that they represent. We also think that there is a need for Brics partners to be raising awareness of opportunities in their respective business communities. South Africa's strength will depend on a team approach including government, the business community, think-tanks and civil society, which we agree is the only way for South Africa to maximise the potential of Brics. What we actually bring to the table as South Africa is, however, the bottom line. And if we do not bring finances and entrepreneurial skills, we will not realise the potential that there is for us in this Brics partnership.
Brics is still very young, and how it levers resources and opportunities will be watched closely. The proposed developmental bank, which would finance infrastructure and sustainable development projects across Brics nations and other developing countries, is an interesting example. The World Bank has welcomed the idea and is said to be looking for a strong working relationship. South African analysts caution that Brics must ensure that the bank is being established for the right reasons and not just to poke a finger in the World Bank's eye.
Private-sector representatives in the meantime are hoping that Brics might consider establishing a commercial bank, not only for development and infrastructure, but also for commercial projects through which participants will be able to trade.
Lastly, the proposal to pool the foreign exchange reserves of the five Brics member countries to support one another in times of balance of payments or currency crises looks interesting for South Africa. I thank you and wish you all the best. [Time expired.] [Applause.]
Chairperson and hon members, it is heartening that developing countries have teamed together to develop themselves and, obviously, their neighbours, though indirectly. Russia and China have become the economic partners of the Republic, unlike in the past when associating with them was taboo. This is a great departure from supporting the superpowers of this world.
When visitors come to our shores it means, no doubt, that we are good hosts, and it is a big plus and a positive note for South Africa. Although there were many doubting Thomases when South Africa became a member, it has now become clear that South Africa is not just a member for the sake of it but that she adds value to the group.
We are pleased that South Africa will contribute the 34 000-kilometre-long Brics undersea cable, which is said to be the third longest undersea telecommunications cable in the world. This is not only good for South Africa's infrastructural development, but it also adds value to Africa as a continent, and especially because it is said that it will give the original four Brics partners a two-way avenue via South Africa to 21 African countries. We hope that the timeframes accorded to this will be kept.
South Africa's membership and its hosting of the summit confirm the already popular notion that South Africa is a gateway to the African continent. We hope that the summit will be a success and that all members will display commitment, and not just to being member states of this organisation. I thank you.
Chairperson, the MF welcomes the Brics summit, and we would like to congratulate the Minister on her efforts. We consider it to have a very important potential. Whilst all economies are growing in the world, it gives us immense joy that the future potential economic giants of the world will be setting foot in the beautiful land of KwaZulu-Natal.
South Africa as a country must analyse opportunities in terms of business scoping, investment opportunities, and infrastructural investment and development in Africa as a whole. This is a new chapter for us and, indeed, as a country we must undoubtedly seize the opportunity to advance our economy.
We must be mindful and cautious about the terms of exchange. From the Brics point of view, decisions they take will be in their national interest. We must be vigilant about the advancement of our national interests. We must take note of the trade-off: what they bring in and what we give. This must not appear to be a one-way street. We must reap collective consensual benefits. We must emphasise the need for mutual understanding and ensure that we are getting the best deal to advance our growth. This must not be a case of us being the weakest partner at the Brics summit.
We must take note of the dumping of Brazilian chickens, something that is hurting our poultry industry. Our industry is quite well developed and we have the capacity to supply our own. The fact that they are dumping chickens below the cost of our production, and that their method of production is by some sort of injection of water or whatever to increase mass, compromises actual nutritional value. We must protect our industry and not be seen as killing our own jobs with those kinds of imports. We need to examine these issues and speak quite frankly about them.
Concerns are also directed, particularly, at our clothing industry. We must endeavour to save our own jobs and protect our own clothing industry against cheap Chinese imports. We need to build our economy so that our people enjoy great opportunities. Let us ensure that the Brics summit's outcome will translate into opportunities for the common man.
In order to achieve this, a vibrant advocacy awareness programme is important. It must not be a summit that is only going to attract the rich and the bourgeois. We support it.
House Chair, this is one of the few instances in which this House is unanimous in its support for a particular matter. That is commendable, as the support is from all parties. Hon members, indeed, as stated by the Minister, South Africa will be hosting the 5th Brics summit in Durban.
There is no doubt in my mind that, at least from a hosting perspective, it will be as successful as all other preceding international events hosted on South African soil, and that our distinguished guests will indeed speak highly of our country, about its fauna and flora, and particularly the warm hospitality received from our people.
For South Africa, the origins of Brics can be traced back to our historical ties of mutual support that the South African liberation movement enjoyed with the progressive governments of China, Russia - the then Union of Soviet Socialist Republics - and India. South Africa is now in the company of the world's fastest growing and potentially influential nations. This Brics formation may well come to serve as a model for future international relations and diplomacy, characterised by equal partnership and co- operation, rather than neocolonialism and domination; mutual benefit and collaboration, rather than superexploitation.
We are not and should not be oblivious to the hard and long road South Africa has had to travel to earn its place in global governance or multilateral forums, including Brics. South Africa almost always has had to justify her presence or participation in these forums, especially in Brics, when in fact all other global players were spared such indignity.
Public commentary on Brics by pundits, so-called analysts, economists, our own media and academics has more often than not centred on whether South Africa belongs in Brics or not, with little or no effort spared in ensuring that they understand the dynamic shifts in the global balance of power that have resulted in what could be seen as push-and-pull factors which developed organically, leading to the formation of a grouping such as Brics.
Most, if not all, of the commentary has been focused on the size of the South African economy, compared to the economies of the other Brics countries, which, according to their logic, automatically disqualified South Africa as it was seen to be punching above its weight. Some critics, like O'Neil, based their arguments on the fact that Brics countries have characteristics such as large populations, high GDP per capita, globally competitive companies and strong government-based business relations.
These views were unfortunately - and tragically, I may add - faithfully copied and pasted and adopted by some here at home. They were repeated ad nauseam as the gospel truth by some South African commentators, with South Africa's membership of Brics being parodied. My own view, however, is that this bleak picture only tells a small part of a much, much bigger picture, and I will illustrate this to you.
Contrary to what the prophets of doom and the naysayers say, South Africa did not campaign for Brics membership; we were invited. It would then be worthwhile for us to examine the reasons why Brazil, Russia, India and China saw South Africa meeting the criteria for membership of this formation. What they saw, amongst other things, was a stable democracy with strong institutions supporting that democracy, a governing party that is committed to the realisation of a truly national democratic state, and a people that will never allow the cause of freedom to be subverted.
They saw a strong, dedicated, committed, consistent and reliable global partner who takes her international commitments seriously and who pursues a progressive international agenda. They saw an African country pursuing an independent foreign policy, firmly anchored on its distinctly African character and committed to the creation of a better South Africa, a better Africa and a better world.
They saw South Africa playing a constructive role in global governance structures, a role appreciated globally, in particular by the global South and especially by Brics members. They saw a resilient economy that has survived the worst turbulence of the global financial crisis.
They saw a country with an exemplary Constitution for the world to emulate and that subscribes to the rule of law. They saw a country with policy certainty, stability and predictability, and possibly the only country in the world whose ruling party allows for broad civil-society participation in its own policy formulation processes.
They saw a country that subscribes to the principles of transparency and accountability. They saw sound banking and finance systems, and good practices in our banking sector. They saw a country that is strong in auditing and reporting standards, a fact reflected in the soundness of our banking sector and the efficacy of corporate boards. This, in fact, has been reported in World Bank reports.
They saw a safe investment destination, which does not require special investment protection protocols, as is the case with some countries. Of course, lastly, they recognised South Africa's huge untapped potential, a fact that is lost in the stale debate about whether South Africa belongs in Brics or not.
We are aware that among the highlights of the Brics summit are the modalities for the Brics bank. We recognise the importance of this mechanism in mobilising resources for infrastructure development and sustainable development projects in Brics and other developing countries, thus providing a complementary institution to the International Monetary Fund and the World Bank for financing development in poor countries. We indeed give our unreserved support for the establishment of the bank and wish you success in that regard.
The creation of Brics has proven the importance of collaboration between governments, academia and business, and we wish to congratulate you on your work done in this respect. The invitation of other African heads of state is a noble development worth applauding and reaffirms our commitment to the centrality of Africa in our foreign policy and international relations, Africa's development and future prosperity.
I want to draw your attention, hon members, to the following. Given the growing role and influence of Brics, it is crucial that a parliamentary dimension is added to this partnership to ensure effective monitoring of agreements and broader participation beyond the executive, business and academia. I wish to suggest that a process of consultation be undertaken with a view of bringing into existence such a forum.
There is clearly a need for greater understanding and knowledge by the majority of South Africans and the international community about South Africa's role in Brics. In this regard, I believe that Members of Parliament are best placed and well equipped to demystify Brics to our citizens and explain it to our constituencies in terms that ordinary people will understand. We acknowledge government's attempts to take the message to South Africans through their road shows in various provinces.
We depart from the premise that our foreign policy is an extension of our domestic and public policy and, as such, Brics is but one vehicle through which we must strive to deal with the challenges of poverty, unemployment and underdevelopment. We have no doubt, therefore, that South Africa took the right step by joining Brics. We are convinced that the Brics mechanism - as stated in its mission expressions, and I quote, "aims to achieve peace, security, development and co-operation" - is indeed consistent with our foreign policy objectives and presents our country with a unique opportunity to pursue its objectives within the ambit of, and supported by, a significant global forum whose stated aim is to contribute significantly to the development of humanity and establish a fair, equitable and just world. We remain convinced that South Africa's involvement will better serve South Africa's domestic priorities and Africa's development.
I heard a comment by one of the hon members over here. When I listed all the attributes that the other Brics countries saw in South Africa, he asked "Which South Africa?". Now, it is my considered view that that is unpatriotic. [Applause.] You cannot close your eyes to the realities that permeate South African society. South Africa is not the South Africa of 1976 or 1985. There has been measurable improvement, and to close your eyes to those facts is to live a lie.
Yes, indeed, the ANC has maintained and continues to maintain that while progress has been registered, a lot of work still needs to be done. This organisation - this party - is committed to dealing fatally with those contradictions that continue to define the South African landscape. But we will not be told that South Africa is worse off than it was under apartheid. There is absolutely no way we can agree with that. [Interjections.] Now, you see the kind of pessimism ... [Interjections] In fact, let me tell you this: people from other countries are more optimistic about South Africa than some South Africans themselves. [Applause.]
You will recall that during the Soccer World Cup it was the media in this country - including the opposition - that questioned our ability as a country to host the World Cup. [Interjections.] Now, other media in the world were positive and had no doubt about us. Currently, Brics partners are saying, "South Africa, you are right. We are with you." Again, it is some South Africans that question whether South Africa belongs in Brics or not. I think members must wake up from this slumber and smell the coffee. South Africa is a different place. [Applause.]
Debate concluded.