Roland Smith, CEO of the FES,
The Moderator,
Distinguished participants,

We are meeting in the context of developments in the world - affecting both the world economy and the global security situation - that require political leadership to spur decisive action.

Globalisation and interdependence imply that no individual country or international organisation can effectively confront these challenges alone.

Necessarily therefore, the nature of the challenges we confront require joint action.

In this light, this FES-SWP Dialogue has posed the question of, "How can the G8 and the emerging economic powers of Brazil, China, India, Mexico and South Africa work together in the area of global security governance using the current Heiligendamm Dialogue Process (HDP) as a platform for future cooperation".

One needs to approach this question with a consideration of our understanding of the evolution of G8.

This includes its current positioning in today's world order; South Africa's interaction with the G8 overall and the HDP in particular in terms of what we think is possible; and our role as the emerging powers working with the G8 in the area of global security governance.

The G8, as we all know, was established as a Leader's forum dealing with economic matters, hence, it was known as the World Economic Summit that traditionally dealt with economic issues as they affected the industrialized countries.

In recent years however, the spectrum of issues under discussion covers global issues, ranging from foreign to security policy and development.

The global character of this latter set of issues necessitated that the G8 consider drawing in other major players as part of joint solution seeking. If anything, much work has yet to be done to match the global character of the issues with a more representative character in the deliberations.

The changing geo-political dynamics have seen developing countries playing a greater role in shaping the new world order. Much of this takes place in the context of South-South cooperation where China, India and Brazil are forging closer links with Africa and are assuming greater responsibilities as economic locomotives for their respective regions.

Emerging powers are also asserting themselves more actively across a wide range of negotiating processes such as the Doha Development Round negotiations, the World Intellectual Property Organisation and indeed in many other areas of global economic governance.

The lessons we learn from challenges in progressing on these fronts, suggest an imperative to dialogue on issues before embarking on ambitious but unrealistic negotiating agendas.

Initial dialogue promotes better understanding of the issues at stake and focuses the minds on what is possible.

More significantly however, we have all learnt that the G8 alone cannot solve the many pressing global problems without the involvement of the emerging powers.

South Africa has interacted with the G8 for several years now, starting from 2001, seeking to promote a better understanding of the challenges confronting Africa and to help find effective solutions thereto.

We have also engaged the G8 through the Outreach 5 post-Summit discussions in Gleneagles (2005), St Petersburg (2006) and Heiligendamm (2007) to promote the evolution of a balanced global economic governance system.

The Heiligendamm Summit in 2007 catalysed this evolving relationship between the G8 and the major emerging powers of Brazil, China, India, Mexico and South Africa into a more structured dialogue around the four issues of development, investment, energy and innovation.

The establishment of the HDP therefore, was a significant development in the evolution of the G8/G5 relations, primarily as recognition of the phenomenal shifts in global balances of power in recent years.

It became clear that it is no longer possible for the G8 to deliberate and make progress on issues affecting the world without involving the major powers from the South.

This is the one thing that Chancellor Merkel, along with some other Leaders in the G8, managed to grasp effectively.

It is however, important to make the point, up-front, that there seems to be great excitement about the Heiligendamm Dialogue Process. There are also great expectations on what the process can do.

We must all accept that the HDP is limited in mandate and time. It has been established for two years only - ending June 2009 with the Summit in Italy - to dialogue on four issues of development, investment, energy and innovation.

Necessarily therefore, the HDP is framed around a selection of economic policy questions of global interest, selected from a range of other economic and development questions which the G8 and the G5 have discussed over time.

It is an important dialogue process that should help us demonstrate our ability to work together on global issues of mutual interest in a more focussed and sustained way.

Success in these processes can only result from an honest dialogue based on mutuality of interest in the subject matter, respect, partnership and most importantly, equality.

As I see it, beyond the Heiligendamm Process, there remains the all important question of the broader relationship between the G8 and the five emerging powers. This is to say that the HDP is a limited form of engagement between our countries, established by the German G8 Presidency.

Therefore it cannot replace the imperative of a wider relationship that reflects the interests and concerns of all parties. The HDP is therefore one element in fostering closer cooperation amongst our countries.

The reality is that, emerging powers are continuing to engage with the G8 through the usual post-Summit Outreach Sessions, whilst we remain convinced that the current format places artificial limits to a potentially powerful and real partnership amongst our countries.

This partnership will be founded on our conviction that our voices are being heard in both the preparatory meetings and at the main Summit itself. As one will say, this will promote "ownership" of the dialogue.

The issue of a possible role for the G8 in Global Security Governance needs thorough debate, and we have our own strong views as the ANC and South Africa.

As I mentioned above, we have been engaged with the G8 for while now on economic governance and development, particularly in Africa. The relationship around these issues is evolving and we have to work hard to build the requisite level of trust and mutual confidence for us to venture into more complex areas of cooperation. This is an important fact to highlight, recognize and accept.

Having said this however, there is no denying that the G8 has, of its own, played an important role in addressing some of the global security challenges of our time. These range from terrorism, nuclear proliferation, possession of weapons of mass destruction and others. I cannot judge whether the G8 has succeeded on all accounts.

The necessary question to ask is whether the G8 has the inclination and capacity to deal with the threats as experienced and perceived by the developing world.

South Africa's foreign policy recognises that in order to achieve a better life for all, development and security are best addressed through adequate attention to all global threats facing humanity. I believe that no organization other than the UN has proven its ability to play this role effectively.

As a South African, it is therefore inconceivable to discuss the subject of international security without a consideration of the indispensable role of the United Nations, including the UN Security Council - despite our long-held conviction that the UNSC requires serious reform.

A key tenet of our foreign policy is the belief that the resolution of international conflicts should be peaceful and in accordance with the centrality of the UN Charter and principle of international law.

In an era of increasing unilateralism and the tensions resulting there-from, we believe that multilateralism provides the best guarantee for success and sustainability of solutions. I am well aware of the debates in academic circles of whether the G8 can or should take over the role of the UNSC.

I think we need to look to strengthening the UNSC, through appropriate reforms, and identify those areas where the G8 - in whatever form - can effectively complement its efforts.

I should note that as Chair of the Security Council in March 2007 and April 2008, South Africa convened the Special Session and High Level Open Debate respectively, on the theme of enhancing cooperation between the United Nations and the regional economic organizations, particularly the Africa Union.

This is aimed at ensuring better cooperation between the African Union Peace and Security Council and the UN Security Council for a better, future result-oriented relationship.

I conclude therefore that, cooperation between the G8 and emerging powers on questions of global security governance can only be successful once we have established the requisite level of trust and mutual confidence.

This can be attained through our continued dialogue on the current issues of economic development and governance.

The HDP process is an opportunity to demonstrate our ability to work together. However, it is still too early to say how far the Process will go with its limited agenda and mandate.

Most significant however, is the need to urgently address the question of "ownership" of the process through genuine consultation on agenda setting for the Summits and participation in the Summit proceedings.

I thank you.