Management and professional development
South Africa will host the 10th iteration of the BRICS grouping reinforcing two main sub-themes – Africa and the youth
South Africa will host the 10th iteration of the Brazil, Russia, India, China and South Africa (BRICS) grouping in July with the theme “BRICS in Africa: Collaboration for Inclusive Growth and Shared Prosperity in the Fouth Industrial Revolution”. The host country is determined to reinforce two main sub-themes – Africa and the youth – during this latest round of meetings between Brazil, Russia, India, China and South Africa.
With the contemporary scramble for Africa on the go, this is timeous and comes after decades of post-colonial exploitation of Africa’s resources by global powers.The lack of beneficiation generally throughout the continent when it comes to its mineral riches is highly sensitive.
Different regions of Africa are jostling for foreign direct fixed investment which automatically leads to job creation, mineral beneficiation and ultimately, manufacturing, the cornerstone of economic growth.
The existing trade blocs such as the European Union and North American Free Trade Agreement are coming under political and demographic stress and afford BRICS a clear warning about the sensitivities involved when different nations work together. The latest summit is being touted as a real move away from a talk shop, with South Africa proposing a number of other focus points.
These include the:
• Establishment of a Working Group on Peacekeeping.
• Establishment of a Vaccine Research Centre for Collaboration with BRICS vaccine innovation and development partners – this is intended to be a physical research centre focused on research and development and vaccine innovation.
• Establishment of a BRICS Gender and Women’s Forum – intended as a dedicated track for gender and women’s issues, given the economic benefit to be derived from the socioeconomic empowerment of women, particularly in developing countries.
• Establishment of a BRICS Tourism Track of Cooperation.
Focus on the youth
The starting point for this development is the youth, linked directly to education and the relevance of their pedagogic strategy. Youth unemployment remains a direct threat to the stability of all nations, and in South Africa this has become the most pertinent developmental issue facing government. The Fourth Industrial Revolution implies a highly-skilled population taking advantage of digital opportunities.
There is also the demographic component which BRICS nations face, with Brazil, India and South Africa appearing similarly at least in the age breakdown.
Each country in BRICS has never had such a high share of young people in their demographic graph, which means there is an increase in the demand for jobs. This is being exacerbated by an increase in fertility rates and life expectancy, along with a decrease in the infant mortality rate.
Overall this is a positive trend for countries with older populations that need to find money to support the elderly and retirees. However, the complex nature of the BRICS countries means that Russia and China in particular are starting to experience an increase in the number of what is known as “dependent populations”.
And Brazil is not far behind, while South Africa will probably see the increase in a dependent population by around 2050.
Russia and Brazil will see a situation where the dependent population overtakes the working population by the 2050s. But for China that will happen around 2035.
This has concerned Beijing and it overturned its one-child policy launched in 1979 in early 2016.
Workplace productivity is also directly linked to gender rights which have helped buffer these countries when their workforces begin to age.The youth in BRICS represent around one-fifth of their working age populations according to World Bank figures and ignoring younger workers is not strategically wise.
Reducing income gaps remains a core driver in BRICS regions, with South Africa particularly affected as it recovers from apartheid and India from its period of colonialism.
Employment programmes
South Africa has instituted workplace programmes and so too has India.The launch of the Youth Employment Service (YES) programme is a case in point which offers on-the-job training.The country’s Expanded Public Works Programme was also launched in an attempt to deal with the unemployment rate. In India, the Mahatma Gandhi National Rural Employment Guaranteed Act is one of the largest of its kind in the world.
It has led to more jobs for the youth in India, as the programme aims to guarantee 100 days of unskilled labour per household and was ostensibly a plan to deal with using workers mainly in construction jobs aimed at improving infrastructure.
While South Africa boasts a National Youth Development Agency, China also has a tradition of programmes aimed at younger workers, dating back to the mid-1980s when the Yigong-daizhen or “offering job opportunities instead of relief payments” (as a rough translation) was lauched. It is estimated by the United Nations Development Programme that around
70 percent of jobs in this programme are allocated to the youth.
In Russia, the New Employment Programme, which was announced in 2013, aims to stimulate the employment of young people, persons with disabilities and residents of depressed regions.
One of the most interesting aspects of this programme is the promotion of inter-regional flows of youngsters from one part of Russia to another, where there are specific skills shortages. In Brazil, training programmes targeting the youth have also seen some success,
particularly the Programa Nacional de Acesso ao Ensino Técnico e Emprego which was planned to increase training programmes supplied by accredited schools.
SA’s BRICS membership
South Africa has invited regional African leaders to attend some of the upcoming BRICS summit events.The BRICS Tourism Track of Cooperation is vital when it comes to regional integration, following the development of SADC’s Transfrontier Park system which is a real success.
South Africa’s membership of the BRICS Forum has become a vital element of its global economic strategy and is viewed as a catalyst and enabling tool for the pursuit and achievement of South Africa’s foreign policy priorities, including the promotion of the African Agenda, sustainable development, global governance reform and South–South cooperation.
In advancing national interests to attain domestic objectives, South Africa’s engagement in all forums such as BRICS, among others, is underpinned by its national priorities, including reducing inequality, eradicating poverty and addressing unemployment driven by the national imperative of radical socio-economic transformation. Engagement is therefore grounded by the key targets of the National Development Plan (NDP), also giving due consideration to the Nine-Point Plan.
The South African government believes tourism is one of the main drivers of the NDP and remains one of the biggest employers in the country. Using the regional integration message and goodwill among states in southern Africa in particular is one of the strategies currently being developed. Hosting our colleagues from across the region will improve the communication of regional integration.
New Development Bank
The New Development Bank (NDB) is a vital component of the BRICS grouping and as investments grow in both the youth and tourism sectors, this financial vehicle is likely to lead directly to the growth of regional economies. South Africa’s Finance Minister Nhlanhla Nene was elected as the Chairman of the NDB Board of Governors.
The NDB commits to annual project cycles. In 2016, the NDB disbursed its first tranche of projects to all BRICS members – all in the renewable and green energy and transportation sectors, totalling over US$1.5 billion.
With youth motivating for a fresh angle on the use of energy in South Africa, for example, the NDB will provide a loan of US$180 million to Eskom in order to mobilise renewable energy.
This is to support renewable energy development and reduce the country’s reliance on fossil fuels and the grid connection infrastructure will be used for renewable energy projects and augmentation of the Eskom transmission network to the Soweto area in particular.
As South Africa focuses on the future, youth will be used in many aspects of the renewable power project, which will also integrate a total of 670 MW of renewable energy to the grid by Eskom.
This accounts for 10 percent of the national target for renewable energy capacity from 2020 to 2021. The transmission lines, once developed, will help meet the demand for electricity in the implementation regions and lay a foundation for future renewable energy development.
So with each BRICS nation determined to grow employment for its youth, and with South Africa’s unique position as a central country globally, the grouping will see more interest from African neighbours. x
The first BRIC Summit took place in 2009 in the Russian Federation and focused on issues such as reform of the global financial architecture. South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS. President Zuma subsequently attended the Third BRICS Summit in Sanya, China, in March 2011.