BRIClab Conference Examines the Quest for Global Economic Growth

At this year’s BRIClab conference, policy and business leaders discussed the challenges that Brazil, Russia, India, and China face as drivers of global economic growth. Each nation is trying to attract foreign investment and spur the economy, while incorporating the needs of their constituents and long-term health of the environment.

“The goal must be to find balance between innovation and sustainability,” said Marcelo Lyra, the vice president of Braskem, a petrochemical company based in São Paulo. This sentiment was echoed throughout the conference.

View this year's BRIClab Conference in its entirety.

Columbia University’s BRIClab — the SIPA-based forum on Brazil, Russia, India and China led by professors Christian Deseglise and Marcos Troyjo and housed within SIPA’s Center on Global Economic Governance (CGEG) — hosted the second annual conference at Low Library on November 27. The event provided an opportunity for current and future BRIC leaders to discuss topics important to their nations’ development. Braskem, the Financial Times, and the bank HSBC joined CGEG in sponsoring the conference.

Stephen King, chief economist at HSBC, remarked that the complexity of economic growth in the BRICs is often overlooked and that there is much we can learn from their policies. “China's growth is due to more than cheap labor,” he said. “Major investments have been made in infrastructure for trade and energy.”

Discussing the arduous road to global economic recovery, members of the day’s first panel agreed on the limitations of the current governance system and the flawed perceptions of emerging economies. Professor Arvind Panagariya of SIPA pointed to the clear imbalance of a global governance system in which small European countries have a larger say than India. Marco Maia, a senior Brazilian official, agreed: “Great disparities exist in international arena, but we nevertheless need to pursue a common agenda.”

As governments seek global growth, however, it may not make sense to view emerging markets as one bloc, because it overlooks the diversity that often drives innovation. As Jonathan Wheatley of the Financial Times said, “Brazil, Russia, India, and China are four growing and powerful countries, all expanding in their own way.”

A second panel addressed business opportunities in the BRICs. “There are a variety of barriers to entry into BRIC markets”, said Liam Casey, CEO of PCH International, an electronics manufacturer. “We need to have common international standards to push efficiency.”

Mark Zeffiro of the manufacturing corporation TriMas said businesses need to be flexible. “You have to be able to adapt to the specific situation and market,” he said. “Some countries are an easier fit for your own business model.”

From a policy perspective, there is a similar tradeoff between what is good for constituents and attractive for business. Russia specifically faces a daunting task, as it seeks to become a business-friendly economy after years of stagnation. Alessandro Teixera, Brazil’s deputy minister of development, industry, and trade, cited some lessons from his country, highlighting investments in infrastructure and innovation. “Brazil has been able to achieve substantial growth in its middle class”, Mr. Teixera stated, “Brazil offers opportunity.”

Professor Jan Svejnar, director of SIPA’s Center on Global Economic Governance, gave the closing keynote for the conference, and raised a question of how the international community should cope with the tension of integrating the BRICs into the existing institutional system. The world may rely on these nations to bolster global economic growth, but entrenched players sometimes push back. Professor Svejnar closed by cautioning, “Without international cooperation we cannot succeed.”

— Benjamin Martinez Newman

View the 2012 BRIClab Conference in its entirety on SIPA's YouTube channel.