BRICS AT SEVEN: Finding and Funding the Nexus Between Peace, Security and Development in Africa DR BUNTU SIWISA

BRICS AT SEVEN: Finding and Funding the Nexus Between Peace, Security and Development in Africa DR BUNTU SIWISA

Contents / Outline Areas 1. What is BRICS at Seven? 2. Facing Reality: Advising BRICS on Peace and Security Challenges 3. BRICS, South Africa and Peacebuilding in Africa 4.BRICS New Development Bank: Funding the Nexus between Peace, Security and Development 5. Typology of BRICS Countries Development Agencies 6. Brazil 7. Russia 8. India 9. China 10. South Africa 11. Examples of Collaboration Among BRICS Development Agencies on Peace, Security and Development in Africa 12. Conclusion

1. What is BRICS at Seven? Discourse on BRICS shifted from focus on its legitimacy and credibility in the international system, to the consolidation and practical functionality of its development vehicles. BRICS countries coalesce on one common, shared goal: development. BRICS is reformist, recognising the need to work within the political and financial world system; and the centrality of the United Nations (as reflected in the Ekaterinburg; Sanya; New Delhi; ethekwini and Fortaleza declarations). BRICS urges for pro-global South institutional reforms in the World Bank, IMF, particularly in the implementation of the 2010 tabled IMF reforms.

2. BRICS: Tracking the Mandate on Peace, Security and Development Peace, security and development are inextricably linked - reflected in the Ekaterinburg; Sanya; New Delhi; ethekwini and Fortaleza declarations. Humanity will not enjoy security without development, it will not development without security, and will not enjoy either without respect for human rights. (UN Report, In Larger Freedom). However, this has remained conceptual, and needs implementation in practical ways, hence the need to establish a nexus / link between peace, security and development. BRICS reach consensus on working on the following peace and security challenges: Drugs and narcotics; terrorism; multilateral diplomacy through the UN; post-2015 MDGs; transnational organised crime; piracy / peacebuilding in piracy- affected communities; ICT and cybercrime; poverty eradication in post-conflict communities; and corruption.

3. Facing Reality: Advising BRICS on Peace and Security Challenges Need to discern what to advise BRICS countries on peace and security challenges. Hard peace and security challenges are prerogatives of BRICS national and foreign policy interests, and regional economic communities. BRICS Academic Form has no reach no stake on this. * Need then to identify soft peace and security challenges that could be translated into development opportunities and fundable by BRICS New Development Bank.

Facing Reality: Advising BRICS on Peace and Security (continued) Peacebuilding defined as medium to long-term process of rebuilding war-affected communities through identifying and supporting structures which will tend to strengthen and solidify peace in order to avoid relapse into conflict. Africa s attention to peacebuilding reflects the continent s recognition that peace is the foundation of prosperity. Jean Ping, former Chairperson of the AU Commission Some of the peacebuilding focus areas: - Rebuilding of infrastructure CHINA; BRAZIL (health and agriculture); RUSSIA - Protection of human rights SOUTH AFRICA; INDIA; BRAZIL - Reconstitution of individual identities SOUTH AFRICA; INDIA - Reforging of individual and community relationships SOUTH AFRICA; INDIA; BRAZIL

4. BRICS, South Africa and Peacebuilding in Africa South Africa links BRICS interests on peace and security in Africa through its foreign policy ethos on internationalism; pan-africanism; South-South Cooperation; its position as a gateway to Africa; African Agenda; and experience and interests on peacemaking and peacebuilding in Africa. South Africa has extensive reach in the AU; SADC; other African regional economic communities; UN Ad Hoc Working Group on Conflict Resolution in Africa. Considering it s past experience with peacekeeping and PCRD activities, the matter of maintaining coherence, strategic planning and sustainability will probably be the most vital aspect in ensuring success while working with IBSA or, perhaps in future, BRICS. (Chen, D. (2014) Reasons the BRICS New Development Bank Matters

5. BRICS New Development Bank: Funding the Nexus between Peace, Security and Development New Development Bank(NDB) mandate: mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. Need for NBD to fund link between peace, security and development has been elevated as the volume of South-South trade in the world has increased by US$2.2 trillion. The space for the NDB becomes more obvious, as the World Bank estimates that US$1 trillion is required in funding the infrastructure development gap in developing countries, and existing multilateral development banks are able to fill approximately 40 per cent of this infrastructure development gap. NDB loans could potentially dwarf World Bank loans, as in CAF, which now funds more development projects in Latin America than the World Bank and the Inter-American Development Bank combined However, NDB enters into a donor / development world characterised by private sector involvement; cross-sectoral involvement; US military drivedown (increased civil-military relations, as US military gets more involved in peacebuilding activities); and EU s call for strategic partnership with BRICS.

6. Typology of BRICS Countries Development Agencies BRAZIL BRAZIL RUSSIA RUSSIA IN DIA INDIA CHIN A CHINA SOUTH AFRICA SOUTH AFRICA Agencia Brasileira de Cooperacao (ABC): *Strong institutional fragmentation and a plurality of actors *Constitution cooperation mainly pursued through bilateral excludes transfer cooperation, and of material, based on technical financial or other transfer of means to third expertise. countries *Does *Main not areas traditional of implement development projects, but acts cooperation are: at political steering energy; level. Line infrastructure ministries, development government agencies and other specialized institutions implementing are *Developing its agency towards RussAid. *Development *Development Administration Partnership (DAP) streamlines and complements the Indian Technical and Economic Cooperation (ITEC). *Package deals of loans, technical assistance and resource or other business agreements. *Main and traditional areas of cooperation in Africa are: Pan- African e-network; ICT programme (shared with the AU). *Upgrading organisational capacities from the MOFCOMhosted Department for Foreign Aid (DFA), to a fullfledged agency or even a ministry dedicated to international cooperation. *Package of loans, technical assistance and resources or other business agreements. South African Development Partnership Agency (SADPA). *Based on nine (9) programmes (i) Humanitarian assistance (ii) Peacekeeping (iii) Election support (iv) IBSA Poverty Alleviation Fund (v) Bilateral partnerships (vi) Trilateral partnerships (vii) Regional partnerships (viii) Decentralised partnerships (ix) Multilateral partnerships *Programme Budget Structure based on (i) Humanitarian Fund (ii) Good Governance Fund (iii) Post- Conflict and Reconstruction (PCRD) Fund (PCRD) (iv) Micro- Grant Fund (v) Technical Support Fund (vi) IBSA Poverty Alleviation Fund (vii) Multilateral Support *Types of Support: (i) Budgetary (ii) Programme (iii) Project (iv) Sector (v) SWAPs; and (vi) Basket or pooled funding * Financial Instruments: (i) Micro-Grants (ii) Grants (iii) Technical Assistance (iv) Loans (v) Joint Ventures; and Public-Private Partnerships (PPPs) through commercial partners

7. BRAZIL Brazil National Economic and Social Development Bank provides loans and export credits to Brazilian companies overseas. Also works with the Brazilian Trade and Investment Promotion Agency (Apex Brazil). 23% of US$1 trillion disbursed to Africa through the Brazilian Cooperation Agency (ABC) - a division of the Ministry of External Relations. Aid increased to US$65 million in 2010 12, disbursed to a range of projects covering 37 African countries. Main focus countries are Lusophone Africa though. Main focus areas of development are agriculture, health and tropical medicines, and transfer of knowledge from Brazil through technical assistance.

8. RUSSIA Of the US$500 million apportioned for external aid in 2011, only US$10 million was transferred to Africa as bilateral aid, mainly through UN agencies.

9. INDIA 2003 set up India Africa Fund of US$200 million in export credits to support economic integration in Africa. 2011 Africa India Summit pledged export credits for African projects worth US$5.4 billion until 2014. Indian Export Import Bank key instrument in facilitating the entry of Indian companies to development projects in Africa. May 2014: +- 60% (US$6 billion) of the bank s operational lines of credit went to Africa. Grant schemes increased from US$1 million in 2000 01 to US$67 million in 2003 14. Main project areas are: ICT; education (e.g. launch of several regional training institutions in Africa; and the pan-african e network to provide Indian educational and medical support via satellite technology to medical institutions. Vast lines of credit to go aid expansion towards West and Lusophone Africa.

10. CHINA Provides loans, export credits and development assistance. State-owned banks (1) Export Import (Exim) and (2) China Development Bank, and export credit insurance provider Sinosure. State-owned banks disbursed US$112 billion of foreign loans to Chinese companies conducting businesses overseas. China s loans to Africa through EXIM and CDB in 2012 amounted to US$ 30 to 40 billion At FOCAC (2012) China pledged another US$20 billion in loans by 2015, mainly through the CDB. Funding infrastructure: roads; railways; energy facilities; harbours; etc. + two-thirds of 2010 2012 development aid in Africa went to the construction of public facilities and economic infrastructure. 56% of Chinese loans is provided as concessional loans to infrastructure projects, and for industrial development, with economic and social benefits. 8% of interest-free loans, apportioned to construction of public facilities. Grants: 36% of Chinese aid for welfare projects: human resources development; agricultural development; technical cooperation; etc.

11. SOUTH AFRICA Development agencies: South African Development Partnership Agency (SADPA); Development Bank of Southern Africa (DBSA); Industrial Development Cooperation (IDC); Export Credit Insurance Cooperation of South Africa (an agency of the Department of Trade and Industry). Since 2001, has provided R20 billion (US$1.1 billion) in export credits and investment insurance cover. Southern Africa, mining and infrastructure development dominate the development assistance portfolio.

12. Examples of Collaboration Among BRICS Development Agencies on Peace, Security and Development in Africa Countries Identified Democratic Republic Congo (DRC) Grade: Conflict / Issues Identified BRICS Countries Affected / Post-Conflict Interested Grade 2: Post- - DDR in Eastern of Conflict, but DRC unstable, with -Resettlement of regional effects refugees in Stakeholders Affected / Eastern DRC production. - Education and development - South Africa advocacy on agencies of (Youth & Women land tenure Brazil and India, education and systems; land co-ordinating rights; mobilisation) targeted agricultural - India international production; and (Exploration of NGOs exploration of potential for agribusiness / bio-energy production in Eastern DRC. -Youth mobilisation entrepreneurship activities in - Brazil (South- South Cooperation on agricultural / bioenergy ICT development and employment creation potential, particularly or targeting youth) Interested - South African Development Partnership Agency (SADPA), working with the NDB Mechanisms to Timeframe be Used - Guarantees to - 5 years, SADPA renewable, with review and monitoring

13. CONCLUSION Need to relate with other stakeholders in the donor / development world. Need to co-ordinate the donor / developmental activities. Need to monitor and measure well the outputs.