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What you need to know about the BRICS 7-point action plan

A few weeks ago, industry ministers from the BRICS countries (Brazil, Russia, India, China and South Africa) met in Hangzhou, China. The meeting resulted in the establishment of a seven-point action plan being put in place.  Read more.

Why was the plan put in place?
The 7-point BRICS action plan was developed to “deepen industrial co-operation among the BRICS nations, particularly in the manufacturing industry”. According to South Africa’s Minister of Trade and Industry Rob Davies, the action plan also aims to facilitate and put into motion the agreements reached at the very first gathering of the BRICS industry ministers (that took place in Moscow two years ago). The outcome of this meeting involved the expansion of industrial co-operation in key areas and joint actions, making it beneficial for all of the BRICS nations.

How does the plan benefit South Africa and its relations with the other BRICS nations?
Amidst the global financial crisis, sectors like the industrial, manufacturing and service sectors have been noted as sustainable, hence the motive to take aggressive action in these areas. Jointly, the BRICS nations would take full advantage of rich natural and human resources, broad domestic markets and vigorously carry out co-ordination and matchmaking in the fields of industrial capacity and policies, and co-operation in such fields , i.e developing new industrial infrastructure, making technological changes, as well as innovation within small and medium-sized enterprises.

How this enhances South Africa’s relations with its fellow BRICS partners is that SA is already
rich in natural and human resources and further co-operation can help strengthen different sectors, which in turn benefits the economy and leads to further job creation.

Why is this plan necessary?
One cannot ignore the emergence of the new industrial revolution (digitalisation, networking and intellectualisation) which affects the traditional production flows and business models and makes way for newer, more modern ways of industrialisation.

What does the 7-point action plan entail?
– Strengthening industrial capacity co-operation.
– Strengthening the co-ordination and matchmaking in the field of industrial policies.
– Promoting the co-operation in the development of new industrial infrastructure.
– Expanding co-operation in technological development and innovation.
– Deepening co-operation in the field of SMEs.
– Strengthening co-operation in standard area.
– Facilitate all-round co-operation with the UN Industrial Development Organisation.

– Additional source: IOL