Ibsa, which was launched almost two years ago in Brazil, is hoped to be the first successful South-South trade initiative and result in tangible change and trade where other like-minded initiatives have stopped short at rhetoric.
Together, the three regional powers constituting Ibsa represent over 1,2-billion people with a combined GDP of some $1,1-trillion. All three countries are currently vying for permanent seats on the United Nations (UN) Security Council.
A broad agenda or action plan for Ibsa was laid down at a session in March 2004. However, representatives from nongovernmental political institutions have recognised the need to push through the Ibsa initiative in order for it not to become just a 'talk-shop'.
The project has thus been launched to encourage all stakeholders in the process to actively work on achieving the goals of the action plan.
It aims to enhance the Ibsa forum on the political, social and economic fronts through research and consultation with all nongovernmental actors, business and other stakeholders, as well as feed policymakers what is needed to make Ibsa take off.
Three papers will be prepared during the research. The first will be a general document looking at the current trade and investment patterns, government policies and prospects and obstacles to Ibsa.
The second and third papers will examine various business sectors and look at how to align the industries so they can be complementary to each other.
A report in this regard, from the national level, should be released for scrutiny by July or August.
Saiia and the Cuts Centre for International Trade, Economics and Environment of India, will be conducting the research.
It is expected, however, that there will be much opposition to the development of Ibsa from the various stakeholders, despite the fact that the forum was instrumental in placing developing nations' issues on the World Trade Organisation's (WTO) agenda after the collapse of the Ministerial Conference in Cancun, Mexico, during September 2003.
It is envisaged that Ibsa will eventually expand its membership to include other developing nations, most notably China, which has consistently expressed interest in the various principles that Ibsa is striving towards, most notably United Nations and WTO reform.
Russia has also expressed interest in Ibsa although it has not given a clear indication as yet whether the country would seek Ibsa membership.
Speaking at the project launch yesterday, Saiia's head of research for the Asia Pacific and Latin America regions, Lyal White, said that if successful, Ibsa could be a catalyst or perform a galvanising role for the creation of free trade agreements between countries in the developing world, not just with themselves.
He said that if China were to join Ibsa, it would push developing countries' trade issues to the forefront of the global agenda.
However, White added that it is going to take much work to develop Ibsa to the levels required to be a real South-South trade initiative.
“We must move away from just lofty ideals to action if we are to change Ibsa from a fuzzy 'feel-good' project to a concrete initiative,” he said.
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