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From the Editor’s Desk The formation of the India, Brazil and South Africa dialogue forum comes at a crucial time of economic liberalization and globalization and significantly the forum has emerged as a potential platform for South–South co-operation. Due to the ineffectiveness of the Cancun conference of the World Trade Organization in 2003, the necessity to strengthen, co-operate and adopt a co-ordinated approach for trade, investment and economic diplomacy was felt by the countries of the South. Finally, the Brasilia Declaration was adopted during the launching of the IBSA on June 6, 2003. Most of the contributors in this issue of World Focus agree that IBSA seems as a voice of the South as it is a trilateral initiative of three large multi-cultural, multi-racial and developing democratic countries representating three different countries of the South for trilateral co-operation and development. The leaders of IBSA countries viewed the South-South co-operation not as a substitute to, but a complement to North-South co-operation. But, nonetheless, the IBSA works as small and compact organization functionally, but in its global approach, it represents the views of the developing countries. A vital aspect of role of IBSA countries towards South-South co-operation is to broaden the scope of its activities for larger benefits and development of undeveloped countries of the South and involve other regional groups in the process of making efforts on such co-operation. One writer points out in his article how the IBSA faces the gravest challenges to the issue of South-South co-operation in bringing the poor countries of the South within the ambit of such relationship. As IBSA is more integrated with the South, the challenges before IBSA countries are much more than ever before and these countries should balance the contradictory interests of the rich and poor economies of the world. In this issue of WF, another expert on IBSA while delving deep on strategic dimensions says that security issues are quickly finding a prominent place in this trilateral arrangement and given that the IBSA members are maritime nations, the imperative to build on maritime co-operation was discernible. The endorsement for a need to formulate a system of regional co-operation in the Indian Ocean Rim to combat threats emanating from non-state actors, particularly those related to terrorism, armed robbery and piracy issues were amply highlighted by both the Chiefs of South African and Indian Navies during their interactions in 2007 and thereafter, the historic trilateral IBSAMAR-I naval exercise took birth from May 5-16, 2008. Hence, the evolving maritime co-operation bears the potentiality to immensely strengthen the IBSA countries in future. New Delhi G. Kishore Babu October 2009 Editor

India’s Imperatives in IBSA Forum

Abdul Nafey

BRIC is not IBSA plus 2. IBSA is the first grouping to link three continents in the post-Cold War world. It is a nucleus of a new Afro-Asian and Latin American solidarity that is grounded in the multiethnic democratic character of the three countries. When IBSA Forum was being deliberated upon, it was the democratic character of the rainbow countries that had appealed to India. Perhaps that had also become the reason not to invite China to the Forum. IBSA and BRIC would complement each other but the unique geographical and political complementarity within IBSA means that the trajectory of its developments would be quite distinct.

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IBSA Navies:

Exploring Maritime Multilateralism

Dr. Vijay Sakhuja

It is an acknowledged fact that a secure environment can never be achieved by the efforts of a single country. It requires mutual understanding and cooperation of all the countries and for that, it is necessary to share the common values on the benefits of cooperation to be enjoyed by the whole maritime community. In that context, during their interaction in early 2007, Vice Admiral J Mudimu and Admiral Sureesh Mehta , Chiefs of the South African and Indian Navy endorsed the need to ‘formulate a system of regional cooperation in the Indian Ocean Region to combat threats emanating from non-state actors, particularly those related to terrorism, armed robbery and piracy’. The outcome was the trilateral IBSAMAR-I naval exercise held from May 5 – 16, 2008.

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IBSA Free Trade Agreement-

Opportunities and Challenges
S C Pradhan

The idea of IBSA is without precedent. IBSA was an agreement of three stable democracies belonging to three different continents with complementary comparative advantages. These are growing economies with combined population of 1.4 billion, a combined GDP of over USD 3.2 trillion and account for 3-4 % of global economic output. The trilateral trade amongst IBSA countries reached US10 billion in 2008-09 and they are quite optimistic to make its at US 25 billion by 2015.

These three economies are beginning to play an increasing role in world affairs. There are key factors for the success of IBSA that represents a radical shift from the way developing countries interacting with each other. For many years, developing countries have been quoted as the source of cheap labour and raw material. But IBSA has three developing countries together with a mega economic mission and this will define a new way for their partnership with the north.

The world economy in the future will be driven by the developing countries and regional groupings such as IBSA will be playing a pivotal role. IBSA counters are already leading in that direction with India’s GDP growing at 8%, Brazil 3%and South Africa 6%. It has unleashed the potential for more investment, more tourism, and more interaction between people to people and institution to institution.

The success of IBSA lay in the amalgamation of thoughts of three continents brought together by India, Brazil and South Africa. Main forums like G-8 also have recognized the importance of IBSA as that is the reason why IBSA nations are invited to their meetings.

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IBSA: A New Forum For South-South Cooperation

Dr. Arunoday Bajpai

IBSA as a forum of South-South Cooperation faces some challenges also. First, the nature of Cooperation between them is bilateral rather than trilateral in nature. Their efforts for deepening South-South Cooperation has been more in the form of declarations and pronouncements rather than concrete programme of action. Second, many times they have displayed diverse interests and perceptions on various issues. the trade data reveals that the IBSA members have more trade and business with rich countries than among themselves. They have opposite interests as for as trade related issues are concerned. During Doha Round of trade negotiations in July, 2008, India and Brazil ended on opposite sides. The safeguards demanded by India and other poor Countries to protect their Agriculture were not included in the Proposals supported by Brazil and rich countries. Brazil is interested to gain access to the US market for its agricultural products. Again, India is not ready to open its markets for agricultural imports, whereas two other members do not have any such reservation. They also have diverse regional interests. India is the only nuclear power in IBSA and faces the problem of terrorism and other two members may not go along her in this regard. Third, besides competition in trade, the Continent of Africa has become a theatre of competition among three countries to promote their interests and area of influence. The competition is acrimonious and tough as China has also a vigorous programme to increase her influence in Africa. Fourth, however, the biggest challenge before IBSA in deepening the South-South Cooperation is to bring the poor countries of the South within the ambit of such cooperation. At present, IBSA is more integrated with rich countries in global economy rather the with the poor countries of the South. The litmus test for IBSA is to balance the opposite interests of the most poor and the most rich in the globe.

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Chinese Influence on IBSA and India’s National Interests: Pretence of Ambivalence?

Akshay K. Singh

IBSA Forum is constituted as strategic alliance for the pursuit of common interests of developing countries of the South in global institutions as well as a platform for bi‐trilateral and interregional South‐South cooperation. Despite remarkable success of IBSA, and given the fact that IBSA was organised around a particular political identity and special objectives of meeting constituent states’ particular interests at various international fronts, the debate of inclusion and non-inclusion pose profound stress on the existing members to shed off ambivalence and realise their own untapped potential to make it a unique forum in the global South. This paper analyses the futility of the debate of inclusion of China on the basis of multiple competing interests and conflicting positions on various regional and global issues.

India, realising many inconvenient truths, needs to see its interests in mutuality; in the first place it can better be strengthened by sectoral working groups (SWGs). Apart from this, India along with other two states of IBSA needs to earnestly concentrate on the cooperation in the areas of particular countries’ core competency. The cooperation in the core competency areas of three IBSA states can be in the services areas, in energy sector, cooperation among MNCs of three member states, and most importantly, IBSA-FTA. IBSA FTA is to involve an FTA between two strong Regional Trade Agreements (RTA) and one country, which is MERCOSUR, SACU and India. Finally, India must mull over integrating the incongruent value chain if the fuller potential of this ingenious inter-regional group is to be realised. This certainly demands to shed off inertia and speeding up the activities within defined realm of approaches to accomplish the aim of the most distinctive grouping of the South.

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