BRICS WORKSHOP - 2006 Aalborg University, Aalborg, Denmark 12 – 15 February

1. BRICS WORKSHOP - 2006 Aalborg University, Aalborg, Denmark 12 – 15 February BRICS - Countries as Regional Dynamos for Development Angathevar Baskaran Middlesex University, London, UK Mammo Muchie Research Centre for Development and International Relations, Aalborg University, Denmark

2. Main Themes • Regional Pole in relation to the Wider Region or what we call Neighbourhood • Using Systems of Innovation perspective to conceptualise the regional pole and its neighbourhood ‘pole and the hood’ • Whether this relation hinders or promotes development

3. Pole & Hood: A Conceptual Framework

4. Regional Pole and the Neighbourhood: Analytical Framework • The opportunities Mutual trade benefits/ competence building / learning through institutional linkages and so on • The fears Perceived or real threat to local industry/ market and fear of over dependence • Dangers Fears of dependency by the neighbourhood could lead to missing opportunities to forge greater regional integration On the other hand, if the regional pole ignores its neighbourhood and regional integration, this could harm it in the long run (globalising economy) • Existing interactions / Weaknesses and strengths in these interactions Trade/ Investments/ Institutional linkages/ infrastructure linkages/ Higher education/ technological learning • Challenges and Prospects

5. South Africa: Problems of Integrating with the rest of Africa • Problems related to the bifurcation of South Africa’s own innovation system • Problems related to the weak and often non-existent innovation system in many other African states • General fragility of the S&T system • Problems related to the funding system • Path dependence problems

7. Destination of South African Exports Source: IMF Trade data

8. Origin of South African Imports Source: IMF Trade data

12. South African Investment • 94 of the 100 top corporations listed in the JHB Securities Exchange) involved in the rest of Africa • Food retailer (Shoprite Checkers) has more than 70 shops in 14 African states • MTN mobile provider is in Nigeria, Rwanda, Uganda, Cameroon and Swaziland

13. South African Investment • SABMiller, second-largest beer brewer in the world is market leader in 13 states • South African Transport runs Cameroon’s rail road • South Africa manages power plants in Mali and Zambia • SA controls banks and supermarkets in Tanzania, Mozambique and Kenya

14. Companies involved in different sectors include: • Mining: Anglo Gold-Ashanti, De Beers • Energy/utility: Sasol, Eskom enterprises, Umgeni Water • Telecommunications: MTN, Vodacom • Transport: Transnet, Unitrans

15. Companies involved in different sectors include: • Construction-Murray and Rob Retail and wholesale (market seeking)-Shoprite, Massmart Group • Financial Services: Stanbic, IDC • Tourism: Southern Sun, Protea • Manufacturing: SABMiller, Barlow, World, Nampakerts /Group5/Grinaker LTA

16. Sectors in which South African companies operate: • Transport • Construction • Financial services • Tourism • Mining and energy • Telecommunication • Retail • Hydropower: Mega-project e.g. Inga dam project in DRC

17. India as a Regional Pole and South Asia as Neighbourhood? • The opportunities • The fears • Dangers • Existing interactions/ Weaknesses and strengths in interactions • Challenges/ Prospects

19. Table1: India: Exports and Imports to Countries in South Asian Region 2004-05 (in Rs. billion) Source:<http://www.dgciskol.nic/pdfs/Emsft_2b.pdf>; and <http://www.dgciskol.nic/pdfs/Imsft_2a.pdf>

20. India’s Total Importsin 2004-05: Rs 4905.3b • Total Imports from SAARC countries: Rs. 41.96b • This amounts to just 0.86 % of the Total Imports

21. Table 2: India: Exports to and Imports from Bangladesh – 2001-2005 (in US$ m) Source: Ministry of Foreign Affairs, Government of India.

22. Major items of Exports from India: food grains, cotton yarn, fabrics, machinery, instruments, glass/glassware, ceramics and coal. • Major items of Imports by India: raw jute, inorganic chemicals, leather, jamdani saris, etc.

23. Indian Investment in Bangladesh: • 28 Indian joint ventures with equity participation equivalent to US$ 16.6m (by the end of 2000) • 7 wholly owned subsidiaries with total equity of US$ 0.61m • Areas covered include textile spinning, building industry, chemicals, software data processing, and automobile • Tata Group has signed an agreement to invest US$2b to set up a 1000MW power station, a steel mill, and a fertilizer unit.

24. Links in Education: • Over 50,000 students from Bangladesh pursue higher studies in India. India provides various scholarship schemes such as Indian Technical and economic Co-operation (ITEC) and Technical Co-operation Scheme (TCS) of the Colombo Plan.

25. Table 3: India – Bhutan Trade (2001-2003) Source: Ministry of Foreign Affairs, Government of India.

26. Table 4: India: Exports to and Imports from Maldives between 1999 and 2003 Source: Ministry of Foreign Affairs, Government of India.

27. Table 5: India: Exports to and Imports from Nepal – 2002-2004 (in US$ m) Source: Ministry of Foreign Affairs, Government of India.

28. Table 6: India: Exports to and Imports from Pakistan between 2001 and 2005 Source: Ministry of Foreign Affairs, Government of India.

29. Table 7: India: Exports to and Imports from Sri Lanka between 1999 and 2004 (in US$ m) Source: Ministry of Foreign Affairs, Government of India.

30. INDIA – SRI LANKA “Sri Lanka is probably India’s only neighbour that views increasing economic interdependence with India more as an opportunity than as a threat.” India accounts for about 15% of total Sri Lankan imports and it is also the fifth largest destination for Sri Lankan exports accounting for about 4% of Sri Lanka’s total exports. • Sri Lanka is relatively small market for India. It accounts for about 2% of total Indian exports and less than 1% of its imports.

31. SRI LANKA • Major items of Exports from India: Transport equipment, cotton yarn, fabrics, primary and semi finished iron and steel, sugar, man made yarn, machinery and instruments, drugs, pharmaceuticals, fine chemicals, wheat, glass and glassware, ceramics, cement, paper and wood products. • Major items of Imports by India: Non-ferrous metals (Copper), spices, electronic goods, electrical machinery, scrap metal, paper pulp and chemicals.

32. Indian Investment in Sri Lanka: • India is the fourth largest investor in Sri Lanka with US$400m in FDI (after Singapore, UK, and Australia) • India was the biggest investor in 2002 and 2003. • Indian Oil Corporation is a major player in the petroleum sector through its subsidiary Lanka IOC. • NTPC and BHEL are collaborating in setting up a 300MW power plant.

33. Links in Education/ Human Resource Development: • India provides training facilities in various professional courses under Indian Technical and economic Co-operation (ITEC) (70 places) and Technical Co-operation Scheme (TCS)of Colombo Plan (50 places), and BIMSTEC (30 places). • Major courses under these schemes are financial management, auditing and accounting, rural development, parliamentary studies, rural banking, insurance, plantation management, teacher training, textile, engineering and railway.

34. Summary • All BRICS countries are poles with their own neighbourhoods • Initiative for a research project on this aspect of BRICS as poles with their respective hoods focusing on the interaction of the research and innovation system • More cases and comprehensive data needed • Comparative frame, conceptualisation and communication using the IS to explain detailed empirical variations in the dynamics of pole-hood interactions • Map the particular trajectories, path dependencies and emergent properties • A book proposal is prepared to assist the development of the project and to move the Globelics initiative forward!! • Thank you!!!