Jul 15, 2014

On July 15, 2014, the presidents of the development banks in countries that comprise the BRICS – Brazil, Russia, India, China and South Africa – signed a cooperation agreement for innovation.

Formalized during the VI Brics Summit, in the city of Fortaleza (CE), the Brics Multilateral Cooperation Agreement on Innovation aims at providing support for projects and initiatives that foster investments in technological innovation, with an emphasis on infrastructure and sustainable energy, as well as innovation in processes and products throughout several areas of industry, services and agribusiness. It also seeks to expand cooperation between the development banks in the member countries, while increasing the trade of goods and services, besides investments between Brazil, Russia, India, China and South Africa.

The presidents that took part in a panel on the matter at the event include Mr. Luciano Coutinho, from the BNDES; Mr. Vladimir Dmitriev, from the Russian State Corporation Bank for Development and Foreign Economic Affairs, Vnesheconombank; Mr. Yaduvendra Mathur, from India’s Eximbank; Mr. Hu Huaibang, from the China Development Bank (CDB); and Mr. Jabulani Moleketi, president of the Development Bank of Southern Africa Limited (DBSA). 

The plenary session was held prior to the meeting of heads of state from the Brics countries, namely Ms. Dilma Rousseff (Brazil); Mr. Vladimir Putin (Russia); Mr. Narendra Modi (India), Mr. Xi Jinping (China); and Mr. Jacob Zuma (South Africa), who met at the closing ceremony on the second day of the VI Brics Summit, held in Fortaleza. 

During the plenary session, the presidents of the development banks highlighted the importance of sharing successful experiences in each country in areas such as innovation, a priority investment in emerging economies. The development banks, within this context, take on an important role in financing innovation projects, which, due to their high-risk, encounter difficulties in accessing credit lines for investments, especially in research and development. 

The agreement, valid for five years, also includes initiatives such as financing for innovation projects and emerging technologies; exchanges of experiences and expertise in financing for innovation; and the possibility of co-financing for technological development in areas of mutual interest. It also creates an across-the-board protocol that makes bilateral accords feasible between the institutions, leaving conditions to be defined at a later date. All analyses will be carried out on a case-by-case basis in accordance with policies and norms from each institution.