T. L. DEITCH

Candidate of Historical Sciences

E. N. KORENDYASOV

Candidate of Economic Sciences

Institute of Africa, Russian Academy of Sciences

BRICS Keywords:, Africa, cooperation, trade, investment, raw materials

China is most active in Africa, as it seeks to use the potential of the BRICS to increase its influence as one of the leading global players. China has strongly supported South Africa's desire to become a member of BRICS ¹.

CHINA AND SOUTH AFRICA: MODEL OF BILATERAL COOPERATION

Considering South Africa as a gateway not only to the countries of Southern Africa, but also to Africa as a whole, Beijing has been cooperating with it for a long time and quite successfully. In 2009, China surpassed the United States as the largest market for South African exports, including iron ore, copper, chromium, and tin, worth $6.57 billion. In 2009, despite the crisis, the volume of bilateral trade amounted to $16 billion ², and in 9 months of 2010 - $17.3 billion ³.

Chinese investment in South Africa totaled $7 billion in 2010. In 2008, the world's largest Industrial and Commercial Bank in terms of capitalization acquired a 20% stake in South Africa's Standard Bank. The Chinese have set out to create a $250 million Disneyland theme park in Johannesburg. China is the second country besides the United States to build such parks abroad.⁴

During a visit to Beijing in August 2010, South African President Jacob Zuma was accompanied by a delegation of 400 businessmen and 11 ministers. Agreements were signed on the participation of Chinese companies in the extraction of titanium in South Africa, the construction of railways and power plants, and the exchange of technologies in the field of pig iron production and nuclear power.⁵ And in November 2010, China promised to provide the South African Government with a credit line for nuclear power development. ⁶ South Africa has the largest number of Chinese tourists and the largest number of South African students.

Thus, China-South Africa bilateral relations can be seen as a beacon of cooperation between BRICS member countries, as well as between BRICS and Africa.

CHINA IS THE MAIN INVESTOR IN AFRICA...

China is the largest BRICS investor in Africa. Currently, more than 2 thousand Chinese companies have invested in the countries of the continent. The 2010 annual report of the Ministry of Commerce of the People's Republic of China states that the number of Chinese companies will grow and the areas of the African economy they are developing will expand.⁷ According to the Ministry's statistics, Chinese FDI in Africa increased from $74.8 million in 2003 to $5.49 billion in 2008 and to $9.33 billion. In ^2009.8 However, according to experts, the real investment figures are much higher than ⁹. In 2010, Chinese investment in only one country - Nigeria - exceeded $7 billion.¹⁰

Special attention is paid to oil-producing countries-Angola, Nigeria, and Sudan. Thus, in 2006, China received a contract to restore the main railway line of Angola-Benguela, linking the copper belt of Zambia and deposits in the DRC with the Angolan port of Dobito, and the largest Chinese telecommunications company

Ending. For the beginning, see: Asia and Africa Today, 2012, No. 4.

From the editorial office. In the first part of the article by these authors (N 4, 2012), Table 1 (p.25) contains typos. In the subsection "Average annual growth rate of" growth" should read: "2000 - 2008 - 4,1% and 2,9%", "2021 - 2030 - 7,8% and 2%."

ZTE has invested $400 million in the development of television and telephone networks in the country. In Nigeria, China has taken over the repair of the Lagos - Kano railway system, which should link 36 states and ¹¹ major cities in the country. The main direction of investment is mineral deposits in the Niger Delta, steel production, and agriculture.

China National Petroleum Corporation (CNPC) is the largest investor in the oil industry in Sudan. Together with Sudan's Great Niall Petroleum Operating Company, CNPC has invested in a number of projects in the oil industry, including a 1,500-kilometer pipeline and a terminal near the port of Sudan. Chinese investment in Algeria, where 50 Chinese companies operate and 6 major oil projects are being implemented, amounted to $1 billion by ^the end of 2010.12

Countries with mineral reserves also receive generous investments. China is the world's largest consumer of copper, which Zambia is rich in. Chinese FDI in Zambia exceeded $1 billion in 2010, creating 15,000 new jobs. According to the Vice-president of the country G. Kunda, in the coming years the country will receive another $5 billion ¹³.

While in Namibia in 2009, Chinese President Hu Jintao announced a new program to help develop the Namibian economy and develop the country's rich mineral resources (diamonds, uranium, zinc, and cobalt). In return, they promised interest-free loans and grants for the construction of schools.

In total, China implements infrastructure projects in ³⁵ African countries14, including those that do not have rich resources. So, the Chinese Eximbank invested $30.7 million. in the construction of roads in the capital of Rwanda-Kigali ¹⁵. At the same time, Chinese firms implement projects 25% cheaper than Western firms.

With the help of China, more than 1 thousand projects were implemented in Africa. Telecommunications giant Huawei has 2.5 thousand employees in 40 African countries and a staff of 300 people in Lagos alone. The company provides mobile communications to Kenya, Zimbabwe, Nigeria and other countries. ZTE has invested $400 million to upgrade its television and telephone networks in several African countries. Companies such as Huawei and ZTE are replacing American and European telecommunications equipment companies across the continent. ¹⁶ A large-scale project recently completed by China is the African Union Conference Center in Addis Ababa, covering an area of 50,000 square meters and costing $200 million.

... AND A DONOR OF THE CONTINENT'S COUNTRIES

China provides substantial assistance to African countries. An important role is played by the China-Africa Ministerial Cooperation Forum (FOCAC), which was established in 2000.At every meeting of the Forum, China made promises to African countries that were to be fulfilled over the next three years. Beijing's readiness to continue providing assistance to African countries even in times of crisis was demonstrated by the 4th summit of the Forum held in Sharm el-Sheikh (Egypt) in November 2009, at which Chinese Premier Wen Jiabao announced 8 new measures to develop partnership with African countries: in agriculture, debt cancellation, and expanding access to the Internet. markets, climate change, health, education, environmental protection, and investment promotion. He said that in the next three years, China will provide $10 billion to African countries. in the form of low-interest loans (twice as much as was promised at the previous summit in 2006), $1 billion. as loans for small and medium-sized businesses and write off debts to the least developed countries of the continent. Special attention was paid to agriculture in Africa. It was promised to send 50 teams of specialists to its countries, to train 2 thousand people. develop cooperation in the creation of agricultural infrastructure, grain production, and technology transfer 17. The Forum also announced China's plans to eliminate tariffs on 95% of imports from Africa's least developed countries by 2012.

The priority area of China-Africa cooperation is assistance in the development of agriculture in Africa. 10 thousand rubles. Chinese agricultural specialists have assisted 40 countries in implementing 200 projects. The object of Chinese aid is also the healthcare sector. As of 2008, 37 teams of 1,100 Chinese medical specialists were working in the countries of the continent. Assistance in prevention and treatment was provided

tropical diseases, as well as HIV/AIDS.

An important role in the development of China's economic cooperation with African countries is to be played by the project to create free economic zones (FEZs) in its countries. More than 10 African States have expressed interest in the zones. A group of experts selected 6 countries in Africa where FEZs were supposed to be created: Algeria, Egypt, Ethiopia, Mauritius, Nigeria, and Zambia. By mid-2010, 6 zones were being created in Africa. The Zambia-China Trade and Economic Cooperation Zone was the first such project implemented by China in Africa, and was inaugurated in February 2009 by Chinese Minister of Commerce Chen Deming18.

The business models of African zones vary: some developers rely on natural resources (the Chambishi zone in Zambia), while others hope to use coastal zones to enter new markets. The Chinese government provides assistance to companies that have won official tenders. Each zone can count on grants of $29-44 million and long-term loans of up to $294 million. Developers are provided with subsidies that can cover up to 30% of the costs of creating the zone, and Chinese enterprises moving to the zone are compensated for half of the relocation costs. " ¹⁹

China pays great attention to the training of African specialists. In 2009, the 3-year plan "Strategic partnership in science, Technology and higher Education" was adopted. 20 Chinese universities and colleges will establish cooperation with universities and colleges in African countries. Every year, 4,000 scholarships were awarded to African students. In 2012, the number of scholarships will grow to 5.5 thousand. A total of 15.3 thousand Africans received scholarships to study at universities in China ²⁰.

In 2009, China pledged to prepare 3 thousand training courses for African countries. doctors and nurses, to implement 100 joint research projects in 3 years ²¹. In Africa, Beijing has funded 19 "Confucius institutes"where Chinese language and culture are taught. ²²

INDIA "CATCHING UP" WITH CHINA

India, a long - standing partner of the continent's countries, is also expanding its presence in Africa. At a meeting with African trade ministers in May 2011, India's Minister of Trade and Industry, A. Sharma, described India's economic cooperation with Africa as a "cornerstone" of the new century partnership. 23 In 2010, India-Africa trade exceeded $46 billion, and is expected to reach $70 billion by 2015.24 Indian-African trade is expected to reach $ 70 billion by 2015. Investment in Africa exceeded $²⁵ billion in 201025. Indian partners are making persistent efforts to implement their technologies in the field of agricultural modernization, software products, computer systems, and the establishment of drug production in African markets. Areas of investment - telecommunications, automotive industry, high technologies, pharmaceuticals, agriculture.

In 2010, Indian telecommunications service provider Bharti Airtel acquired Zein shares for $10.7 billion. The company is based in Kuwait, but has African assets, so as a result, India has acquired businesses in 15 African countries. According to Kwame Owino, a professor at the Kenyan Institute of Economics, Indian investment in telecommunications has led to a sharp decline in prices. Many Kenyans could only dream of this ²⁶.

Following China's example, India organized the India-Africa Forum, the first summit of which was held in New Delhi in 2008. During the second summit in 2011 in Addis Ababa, attended by the heads of 15 African countries, the Addis Ababa Declaration and the Plan of Action jointly developed by India and the African Union were signed. Prime Minister M Singh said at the summit that India will provide Africa with a $5.7 billion credit line over the next three years. The financial aid promised to Delhi is planned to be used for rural development projects, the creation of food industry enterprises, and educational programs.

For its part, Africa, as the President of Equatorial Guinea, T. O. Nguema Mbasogo, said at a press conference following the summit, will support India's candidacy for a permanent seat on the UN Security Council: "Africa does not only expect something from India,

But I am also ready to help it in such areas as UN reform. " ²⁷ The support of the African Union, if the member states vote in solidarity, will be a significant help for India, which has been striving to become a permanent member of the UN Security Council in recent years.

22,000 places are reserved for African students at the universities of Bangalore, Delhi and Mumbai. As part of the special project" Indian-African Virtual University", another 10 thousand students will study. $700 million will be allocated for training programs in Africa itself.

BRAZIL IN AFRICA

Although Brazil's economic influence in Africa is second only to that of China and India, it has grown markedly in recent years. Brazil's investment in Africa exceeded $¹⁰ billion in 2009.28 They are mainly concentrated in the Portuguese-speaking countries of Angola and Mozambique, where multinational companies such as the mining company Vail and the national oil giant Petrobras operate. At the same time, the objects of investment activity of Brazilian companies are the Congo, Zambia, Namibia, South Africa, Sudan, Guinea, Liberia, and Nigeria. Capital is allocated to the production of biofuels, infrastructure (Oderbrecht company), and the banking sector. Brazil provides assistance in the development of cotton production to Benin, Burkina Faso, Chad, and Mali.

A few years ago, Brazil received aid from the IMF, and now it has provided loans of $10 billion to the IMF itself. to provide assistance to other countries. Together with the African Development Bank, Brazil has established a Trust Fund to finance the transfer of agricultural technology and environmental knowledge through South-South cooperation.²⁹

Brazil has a strong industrial potential. Its machine-technical products are adapted to work in climatic conditions similar to those in Africa, and correspond to the technological structures of the industrial and post-industrial stages. Africa and Brazil also share a cultural affinity. The size of the African diaspora in Brazil is several million people.

Brazilian businesses are less fearful of the commercial and other risks that businesses in Africa face. Brazilian partners are in high demand on the continent, and we can expect quite high rates of development of Brazilian-African cooperation.

WHAT IS RUSSIA DOING IN AFRICA?

Given the growing role of the African factor in international affairs, Russia is very interested in expanding cooperation with the continent's countries on the world stage. In addition, Russia's activities within the BRICS contribute to increasing its prestige in Africa.

Over the past five years, the scope of the Russian-African economic partnership has been slowly expanding, but the pace of expansion is significantly lagging behind the existing opportunities. Russia's foreign trade turnover with African countries totaled $9 billion in 2010. Russian assets in Africa exceeded $5 billion in 2010. (in 2006 - 2.2 billion) ³⁰, and the investments announced by Russian companies reach, according to our estimates, $10 billion.

Russia and Africa account for a significant part of the world's natural resources, and in many types of mineral raw materials they largely complement each other. More than 20 major Russian companies are currently involved in the development of African natural resources. They are implementing more than 40 projects, the most significant of which are the development of oil fields in the Gulf of Guinea by LUKOIL, manganese and vanadium in South Africa by Renova and Evraz holdings, iron ore in Liberia (Severstal), diamonds in Angola (ALROSA), nickel in Botswana (Norilsk Nickel), uranium ores in Namibia (Rosatom).

Russia has significantly increased its contribution to international development programs. According to the schemes developed by the World Bank, the IMF and the Paris Club, Russia, in particular, wrote off, within the framework of the Group of Eight action Plan for Africa, the debt of African countries on the debts of the USSR in the amount of $20 billion. In 2009 It has almost quadrupled the amount of official development assistance (ODA) to $785 million from $220 million in 2008, " said Andrey Bokarev, Director of the Department of International Financial Relations of the Ministry of Finance of the Russian Federation, presenting a report on the results of Russia's contribution to international development assistance. In accordance with its commitments, Russia intends to provide assistance to low - income countries at the level of $400-500 million per year. Overall, the total amount of Russian aid classified as ODA from 2004 to 2009 was $1.5 billion.³¹

Within the framework of food security programs, Russian aid totaled $55.3 million in 2009. In 2010, food aid and assistance to agriculture totaled RUB 142.1 million, while in 2011 it was RUB 142.1 million. Russia intended to allocate $46.6 million for these programs. In 2010, it was planned to transfer $10 million. to the Global Village multi-stakeholder non-profit partnership, which provides access to energy resources for the world's poorest countries.³²

The total contribution of Russia to the implementation of the programs initiated by the G8 and the Global Fund to Fight HIV/AIDS, Malaria and Tuberculosis to combat polio, develop education and infrastructure amounted to about $100 million. Overall, from 2006 to 2009. Russia's contribution to the development of healthcare in the world amounted to $323.53 million (the total amount of obligations of the Russian Federation is $257 million).

In 2009-2012, the Group of 8 decision is expected to allocate $21 million for the fight against infectious diseases; some components of the program will be implemented in Ethiopia, Angola, and Tanzania. In 2007-2009, Russia allocated $20 million to finance and provide technical support for the fight against malaria in Africa.³³ Assistance is provided through bilateral channels to overcome the consequences of natural disasters and prevent famine. Such assistance was provided to Ethiopia, Eritrea, and Kenya. 750 student scholarships are awarded annually to African countries.

Russia considers the development of relations with Africa as one of the priorities of its foreign policy strategy, has long-term interests on the continent and intends to continue making efforts to expand multifaceted ties with Africa.

WHAT CAN AFRICA EXPECT FROM COOPERATION WITH BRICS?

Thus, at the level of bilateral relations between the BRICS and African countries, a fairly extensive and large-scale cooperation based on long-term mutual interests has been formed. BRICS is becoming a key factor on the African continent, a real alternative to traditional partners of African countries.

Africans claim that they have accepted Western aid and followed Western development models for many years, but have not managed to end their backwardness. Considering that China, India, Brazil, Russia and the new BRICS member South Africa can bring something new to the sphere of economic cooperation, they perceive these countries as donors and investors who are ready and able to help them solve development problems.

Attention to the needs and problems of Africans, growing economic assistance without political or other conditions, a trade and investment boom, and the vigorous promotion of Africa's interests in international organizations have made BRICS an attractive alternative for Africans to the West.

BRICS opens up opportunities for the African continent to access new sources of financial and investment resources and the latest technologies. The partnership relations between BRICS and Africa give an important impetus to the process of transition to a new world order based on the principles of polycentricity, equality, balanced and sustainable development of the world economy.

BRICS SUMMIT IN NEW DELHI

On March 29, 2012, the fourth BRICS Summit was held in New Delhi (India) with the designated topic of discussion - "BRICS Partnership for Global Stability, Security and Prosperity". The results of the summit convince us that BRICS has already become an established format in international relations. At the same time, there are growing tendencies to turn this forum into a strong, influential international organization, into a full-fledged mechanism for interaction between member countries in matters of the global economy and international politics.

Speaking at the summit, Russian President Dmitry Medvedev said that in the future the organization can become "one of the key elements of the global governance system." In his opinion, BRICS "should be positioned as a new model of relations that is built outside of established stereotypes, bridge or intermediary structures", since "such an approach to unification with a population of almost 3 billion people". a person deliberately restricts his ability to pursue an independent coordinated line in the international arena. " ³⁴

The Summit adopted the Delhi Declaration. From its text, it is clear that the BRICS countries, striving for coordinated actions within the framework of the association, do not plan to turn the latter into a closed grouping: "We are ready to cooperate with other countries, both developed and developing, on the basis of generally recognized norms of international law and a multilateral approach to decision-making, in order to solve the problems faced by the world, and taking advantage of the opportunities that open up before it " ³⁵.

Analyzing the results of the meeting, experts note that while at previous BRICS summits the main emphasis was placed on coordinating economic policy, now political issues, including the Iranian nuclear program, the situation in Afghanistan, the Middle East settlement, and the crisis in Syria, have attracted close attention. The discussion showed the desire of the BRICS member states to act as a united front in addressing pressing international issues.

The summit Declaration also highlighted the African issue: "We attach the utmost importance to economic growth, which contributes to development and stability in Africa, as many of the continent's countries have not fully realized their economic potential. We will promote cooperation to support their efforts to accelerate the diversification and modernization of their economies. This will be achieved through infrastructure development, knowledge sharing and support for enhanced access to technology, capacity-building and investment in human capital, including through the New Partnership for Africa's Development (NEPAD)^.36

Of undoubted significance is the recognition in the document of the exceptional importance of maintaining stability, peace and security in the Middle East and North Africa, both for the international community and for the Middle East and North African countries themselves.

Among the issues discussed that directly affect Africa's interests were:

issues of cooperation in the field of exploration and use of mineral resources, energy policy and energy security, food security and emergency humanitarian response in the event of natural disasters, conflict and crisis situations.

The issue raised at the summit on the need to accelerate the reform of the international financial structure in order to increase the representation of the poorest countries, in particular in the World Bank and the IMF, was also directly relevant to Africa. BRICS members expressed their "support for measures to protect the voices and representation of the poorest countries in the IMF" in the Declaration. There is also an urgent need to increase the flow of financial resources for the development of emerging market economies and developing countries. Proposals for the creation of BRICS financial institutions were put into practice at the summit. In particular, the intention was expressed to establish a Development Bank and a BRICS Investment Fund, which is of great interest to Africa.

Although the summit showed the BRICS member states ' desire for greater coordination of efforts in addressing economic and political issues, reaching agreed positions on a number of issues requires quite lengthy discussions. For example, the issue of UN Security Council reform discussed at the summit is important for Africa. As you know, three BRICS members are applying for permanent membership in the Security Council: India, Brazil and South Africa. The Declaration is limited in this matter to a fairly general statement. "China and Russia confirm the importance they attach to the status of Brazil, India and South Africa in international affairs and support their desire to play a more significant role in the UN." However, a consensus on this issue has not yet been reached.

There are also differences in the positions of the member states on the situation in Syria. While Russia and China vetoed a draft resolution calling for intervention in the Syrian conflict, India and South Africa supported it. "BRICS policy coordination is not an easy task, as the political interests of its members collide at different levels," writes Indian researcher Jagannah Panda, "but this group can be a catalyst for solving many global political problems, and the New Delhi summit is an important meeting in this context." ³⁷

^{Wooldridge M.} 1 Will BRICS strengthen South Africa's Economic Foundations? // BBC News, Johannesburg, 2011.

² China-South Africa partnership makes new progress // China Daily, November 14, 2011.

³ China.org/cn/ November 14, 2011.

⁴ ITAR-TASS. June 1, 2010

^{Hambides Zac.} 5 China-South Africa deals highlight great-power rivalry in Africa - http://wsws.org/articles/2010/sep.2010/Zuma-SIS.shtml

^{Rossow Mandy.} 6 China's sweet climate change deal // Mail and Guardian Online. November 19, 2010 - http://www.mg.co.za/article/2010-11-19-chinas-sweet-climate-change-deal

^{Mlachila M., Takebe M.} 7 FDI from BRICs to LICs: Emerging Growth Drivers. International Monetary Fund. IMF Working Paper. African Department. July 2011.

⁸ China says booming trade with Africa is transforming continent // Shanghai Daily com. 22 December, 2011.

^{Brautigam Debora, Tang Xiaoyang.} 9 African Shenzhen: China's Special Economic Zones in Africa // Modern African Studies. V. 49, N 1, March 2011. P. 28.

¹⁰ The Telegraph. L., February 24, 2011.

¹¹ Chinese involvement in Africa - http://Sichuan.dreab.com/p-chinese_involvement_in_Africa.

¹² The Telegraph. L. February 24, 2011.

¹³ China investment in Zambia tops $1 bn in 2010 // Mail and Guardian on line. January 10, 2011.

¹⁴ Economic Strategy. BRIC and Africa. Beyond the Diplomatic applause: threats and opportunities underlying South Africa's BRIC Invitation. Johannesburg. Standard Bank. 26.01.2011.

¹⁵ Global Post. June 27, 2010.

^{Shinn David H.} 16 China's Engagement in Africa. In CSIS Africa Program Report: Africa policy in the George W. Bush Years: Recommendations for the Obama Administration. Publication Draft. January 2009.

¹⁷ China floods Africa with cheap loans // Ekonomicheskie izvestiya, 10.11.2009 - http://eizvestia.com/world/full/4185179/print

¹⁸ China's eight-measure economic policy on Africa well implemented? Says Chinese minister. Window of China. 01.20.2009 - http://news.xinhuanet.com/english/2009-01/20/content10773853.htm

¹⁹ Ibid., p. 51.

^{Cooke J. G.} 20 China's Soft Power in Africa. 10 March 2009 - http://www.csis.org/csis/publ/090310.chinesesoftpower.chap3.pdf/

^{Sawahel Waddy.} 21 China-Africa. Three-year Partnership Plan Announced. 29 November 2009 // University World News. Africa Edition. 3 January 2010 - http://www.universityworldnews.com/topic.php.topic=Africa

²² Confucius Institute Online - http://www.confuciusinstitute.net

²³ Anand Sharma to lead Indian Side for India-Africa Trade Ministers' Meet. New Dehli, May 18, 2011 - http://commerce.ric.in/Pressrelease/pressrelease_detail.asp&id=2777

²⁴ Ibidem.

²⁵ Ibid.

²⁶ http://www.cybersecurity.ru/telecommunication/90454/html

^{South Africa promises to support India's candidacy for a permanent seat on the} renewed UN Security Council. 25.05.2011 - http://www.trilinguis.ru/ru-news/2011

²⁸ Brazil's Economic Engagement with Africa. The African Development Bank Group Chief Economist Complex // Africa Economic Brief. Vol. 2, Issue 5, 11 May, 2011.

^{Kingah St.} 29 Increasing influence of BRICs in Africa: How should the EU respond // Trade Negotiations Insides. Vol. 10, N 4, June 2011.

³⁰ Economic revival of Russia. Periodical Scientific publication, Moscow, 2008, No. 3, pp. 11-13.

³¹ Andrey Bokarev on the results of Russia's contribution to the promotion of international development / / Russia and International Development, Moscow, INTERFAX-AFib, 21.06.2011 - http://www.roicd.org

³² Ibid.

³³ Ibid.

³⁴ Russian President's speech at the BRICS Summit. March 29, 2012. New Delhi.

³⁵ Delhi Declaration. 30.03.2012.

³⁶ Ibid.

^{Panda Jagannath P.} 37 New Dehli BRICS Summit: New Prospects, but More Challenges? Institute for Defence Studies and Analyses. New Dehli. March 19, 2012.

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