IV. BRICS PARTNERSHIP FOR GLOBAL ECONOMIC RECOVERY, REFORM OF FINANCIAL AND ECONOMIC GLOBAL GOVERNANCE INSTITUTIONS, AND THE FOURTH INDUSTRIAL REVOLUTION

54. We welcome that the global economy has continued to improve, while noting that growth has been less synchronised and that downside risks still remain. This is reflected in a variety of challenges including rising trade conflicts, geopolitical risks, commodity price volatility, high private and public indebtedness, inequality and not sufficiently inclusive growth. We understand the critical importance of ensuring that the benefits from growth are shared in a more inclusive manner. We further stress the importance of a favourable external environment for sustained growth of global trade.

55. BRICS economies continue to support global economic expansion and outlook. We advocate continued use of fiscal, monetary and structural policies in concert, to forge strong, sustainable, balanced and inclusive growth. We express concern at the spill-over effects of macro-economic policy measures in some major advanced economies that may cause economic and financial volatility in emerging economies and impact their growth prospects adversely. We call on major advanced and emerging market economies to continue policy dialogue and coordination in the context of the G20, FSB and other fora to address these potential risks.

56. Recalling the Johannesburg Summit's focus on the 4th Industrial Revolution and the outcomes of the BRICS Meetings of Science and Technology and Industry Ministers, we commend the establishment of the BRICS Partnership on New Industrial Revolution (PartNIR). To commence the full operationalisation of PartNIR, an Advisory Group will be set up, comprising of respective representatives of BRICS Ministries of Industry, in consultation with appropriate Ministries, to develop, as a first step, the Terms of Reference and a Work Plan aligned with the 4th Industrial Revolution priorities, to be submitted to the BRICS Chair. The PartNIR aims at deepening BRICS cooperation in digitalisation, industrialisation, innovation, inclusiveness and investment, to maximise the opportunities and address the challenges arising from the 4th Industrial Revolution. It should enhance comparative advantages, boost economic growth, promote economic transformation of BRICS countries, strengthen sustainable industrial production capacity, create networks of science parks and technology business incubators, and support small and medium-sized enterprises in technology intensive areas. We believe that the initiative to establish the BRICS Networks of Science Parks, Technology Business Incubators and Small and Medium-sized Enterprises is a promising step in that direction.

57. We recognise the critical and positive role the internet plays globally in promoting economic, social and cultural development. In this regard, we commit to continue to work together through the existing mechanisms to contribute to the secure, open, peaceful, cooperative and orderly use of ICTs on the basis of participation by all states on an equal footing in the evolution and functioning of the internet and its governance, bearing in mind the need to involve the relevant stakeholders in their respective roles and responsibilities.

58. We recognise the importance of BRICS scientific, technical, innovation and entrepreneurship cooperation for sustainable development and to enhance inclusive growth. We welcome the dynamic development of BRICS cooperation in science, technology and innovation and attach special importance to the advancement of our joint work in this area. We affirm the value of implementing coordinated BRICS scientific projects aimed at promoting BRICS science, technology and innovation potential as a contribution to our combined efforts in addressing the challenges of the Fourth Industrial Revolution.

59. We commend the progress of ongoing BRICS IPR cooperation. We recognise the importance of the development and transfer of technologies, including to developing countries, contributing to long-term sustainable and balanced global growth, and in this regard stress the importance of strengthening cooperation in intellectual property rights which contributes to innovation and the advent of new technologies to the benefit of society as a whole.

60. We are convinced that trade and technology are vital sources of inclusive growth, including through economic integration and consolidation of global value chains in sustainable and equitable ways. Technological progress will have wide ranging implications for production of goods and services as well as incomes of people. Appropriate policies and measures need to be taken to ensure that the developing countries benefit from the advantages of technological progress and do not suffer from lack of its early adoption. It is essential to develop effective policies to bridge the digital divides, including through supporting people to learn and by adopting new technologies and ensure effective mechanisms for transfer of relevant technologies.

61. We strongly acknowledge that skills development is critical to addressing the emerging mismatch between the new skills demanded by an increasingly technology-and knowledge-driven global economy and the older skill set of many workers. The pace, scale and scope of present-day economic change make it that more challenging. In this regard, we support measures including policy recommendations proposed in the G20 Initiative to Promote Quality Apprenticeship and the BRICS Action Plan for Poverty Alleviation and Reduction through Skills, to further facilitate vocational training, lifelong learning and the training that is relevant to the fast-changing demand of growing economies and world of work.

62. We reaffirm the centrality of the rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system, as embodied in the World Trade Organisation (WTO), that promotes a predictable trade environment and the centrality of the WTO, and recognise the importance of the development dimension, and will make all efforts to strengthen the multilateral trading system.

63. We recognise that the multilateral trading system is facing unprecedented challenges. We underscore the importance of an open world economy, enabling all countries and peoples to share the benefits of globalisation, which should be inclusive and support sustainable development and prosperity of all countries. We call on all WTO members to abide by WTO rules and honour their commitments in the multilateral trading system.

64. We recall that the WTO Dispute Settlement System is a cornerstone of the multilateral trading system and is designed to enhance security and predictability in international trade. We note with concern the impasse in the selection process for new Appellate Body Members that can paralyse the dispute settlement system and undermine the rights and obligations of all Members. We, therefore, urge all Members to engage constructively to address this challenge as a matter of priority.

65. We acknowledge the need to upkeep WTO's negotiating function. We, therefore, agree to constructively engage in further developing the current legal framework of the multilateral trading system within the WTO, taking into consideration the concerns and interests of all WTO members, including in particular the developing members.

66. We acknowledge the importance of infrastructure development and connectivity in Africa and recognise the strides made by the African Union to identify and address the continent's infrastructure challenges, inter alia, through the New Partnership for Africa's Development (NEPAD) and the Programme for Infrastructure Development in Africa (PIDA). We support the importance of stimulating infrastructure investment on the basis of mutual benefit to support industrial development, job-creation, skills development, food and nutrition security and poverty eradication and sustainable development in Africa. We therefore reaffirm our support for sustainable infrastructure development in Africa, including addressing the infrastructure financing deficit.

67. Keenly aware of the need for Africa's industrialisation and the realisation of the African Union's Agenda 2063, we commend African countries and the African Union on the signing of the African Continental Free Trade Area (AfCFTA). The AfCFTA is an important step to economic integration on the continent and the unlocking of the tremendous potential of intra-African trade and in addressing its socio-economic challenges. In this regard, we reiterate our support for Agenda 2063 and efforts to promote continental integration and development.

68. We advocate for a strong Global Financial Safety Net with an adequately resourced, quota-based International Monetary Fund (IMF) at its centre. To this effect, we reaffirm our commitment to conclude the IMF's 15th General Review of Quotas, including a new quota formula while protecting the voice of the poorest countries by the 2019 Spring Meetings and no later than the 2019 Annual Meetings. Governance reform of the IMF should strengthen the voice and representation of the poorest members of the IMF, including Sub-Saharan Africa.

69. We welcome and congratulate Governor Lesetja Kganyago of the South African Reserve Bank on his appointment as the Chair of the International Monetary and Financial Committee.

70. We note the steps undertaken on strengthening and ensuring the operational readiness of the BRICS Contingent Reserve Arrangement (CRA) and welcome the completion of a successful test run of the de-linked portion of the CRA mechanism. We encourage cooperation between the CRA and the IMF.

71. We note with satisfaction the progress achieved on establishing the BRICS Local Currency Bond Fund, and look forward to starting its operation.

72. We agree to further strengthen cooperation on convergence of accounting standards and auditing oversight of BRICS countries in the area of bond issuance, and to further cooperation in these areas.

73. We welcome the signing of the Memorandum of Understanding on Collaborative Research on Distributed Ledger and Blockchain Technology in the Context of the Development of the Digital Economy. We believe that this work will contribute to our cooperation in adapting to the evolving internet economy.

74. Infrastructure, investment and international development assistance projects are the bedrock for sustainable economic development and growth; boosting productivity and enhancing integration. We stress the significance of infrastructure development and integration to foster closer economic ties.

75. We underscore the role that Multilateral Development Banks (MDBs), in particular, the New Development Bank (NDB), are playing in catalysing private sector financing for public infrastructure and investment.

76. We draw satisfaction from the progress made by the NDB in providing resources to contribute to the social, economic and environmental prospects of our countries and expect the Project Preparation Fund to be put into operation soon. We welcome the upcoming establishment of the Americas Regional Office in Sao Paulo, Brazil, which, alongside the Africa Regional Centre, will help the NDB consolidate its presence in those continents. We note the NDB's Board of Governors' discussions on Innovative Approaches for Development Finance at its 3rd Annual Meeting on 28-29 May in Shanghai, China, that deliberated on the NDB's future development in the changing global environment.

77. We stress the importance of enhancing BRICS financial cooperation to better serve the real economy and meet the development needs of BRICS countries. In the regard, we reaffirm our commitment to facilitate financial market integration through promoting the network of financial institutions and the coverage of financial services within BRICS countries, subject to each country's existing regulatory framework and WTO GATS obligations, and to ensure greater communication and cooperation between financial sector regulators. We will continue to enhance currency cooperation, consistent with each central bank's legal mandate, and to explore more modalities of the cooperation. We will also further expand green financing, so as to promote sustainable development in BRICS countries.

78. We reaffirm our commitment to support international cooperation in combating illicit financial flows, including cooperation within Financial Actions Task Force (FATF) and World Customs Organisation. In this regard, we underscore the importance of increasing mutual exchanges and data sharing. We emphasise the importance of upholding and supporting the objectives of FATF and to intensify our cooperation to implement and improve its Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation in FATF.

79. Corruption remains a global challenge with long-lasting impact, including the undermining of legal systems of states. It also presents a threat to economic growth by discouraging the necessary local and foreign investment in a country. We reaffirm our commitment to international cooperation as envisaged in Chapter IV of the United Nations Convention against Corruption. In that context, we commit to strengthening international cooperation within the context of the BRICS Working Group on Anticorruption Cooperation. Subject to our domestic legal systems we will cooperate in anti-corruption law enforcement, extradition of fugitives, economic and corruption offenders and repatriation in matters relating to assets recovery and other related criminal and non-criminal matters involving corruption and call on the International community to deny safe haven to corrupt persons and proceeds of corruption. We regard experience sharing and exchange as key to increasing mutual understanding and enhancing BRICS anti-corruption cooperation and will continue our efforts in this aspect as we have done in previous years. We will further offer each other support in the implementation of the UNCAC by creating platforms for exchanging information and exploring convergences in multi-lateral platforms. We commend the African Union on choosing 2018 as the year of combating corruption.

80. In operationalising the Strategy for BRICS Economic Partnership, we welcome the positive outcomes of the 8th BRICS Trade Ministers Meeting as supported by the ongoing activities of the BRICS Contact Group on Economic and Trade Issues (CGETI). We also welcome the good progress made in the implementation of the BRICS Action Agenda on Economic and Trade Cooperation. We encourage measures that support greater participation, value addition and upward mobility in Global Value Chains for our firms, particularly in industry and agriculture, especially Micro, Small and Medium Enterprises (MSMEs), including through the preservation of policy space to promote industrial development. In recognising the importance of increased value-added trade amongst BRICS countries, we commend the Ministers of Trade for reconvening CGETI's Trade Promotion Working Group as well as the BRICS E-Commerce Working Group. We welcome the commissioning of the review of the BRICS Joint Trade Study on promoting intra-BRICS Value Added Trade. We welcome the positive outcomes of the 8th BRICS Trade Ministers Meeting on cooperation on the IPR, e-commerce, trade in service, and further enhancement of cooperation in E-commerce, on standards and technical regulations, MSMEs and model e-port.

81. We welcome the signing of the BRICS Memorandum of Understanding on Regional Aviation. We believe it is an important milestone in strengthening BRICS cooperation in the fields of connectivity and infrastructure.

82. We appreciate the outcomes of cooperation between BRICS Customs Administrations in implementing the Strategic Framework of BRICS Customs Cooperation, and welcome its long-term objectives, including the early conclusion and entry into force of the BRICS Customs Mutual Administrative Assistance Agreement so that the BRICS Authorised Economic Operator Programme is functional by the end of 2022, including mutual recognition of controls and economic operators. In this regard, we further welcome the BRICS Customs Action Plan, which identifies actions that will be taken collectively by the BRICS Customs Administrations in the short, medium and long term to achieve the stated goals and the establishment of BRICS Custom Training Centres. We recognise the potential of the BRICS Customs Cooperation Committee and call for enhanced intra-BRICS cooperation and at relevant multilateral fora, including in trade facilitation, law enforcement, use of advanced information technologies and capacity building.

83. We acknowledge the continued support provided by the BRICS Revenue Authorities for all the international initiatives towards reaching a globally fair and universally transparent tax system. We will continue our commitment to deal with the implications of the digital economy and, within that context, to ensure the fairness of the international tax system particularly towards the prevention of base erosion and shifting of profits, exchange of tax information, both on request and automatically, and needs-based capacity building for developing countries. We commit to deepen exchanges, sharing of experiences, best practices, mutual learning and exchanges of personnel in taxation matters. We welcome the establishment of the Capacity Building Mechanism between BRICS Revenue Authorities.

84. We acknowledge the contributions of the BRICS Business Council and its 5th Annual Report, as well as of the BRICS Business Forum, to enhancing trade and business cooperation in infrastructure, manufacturing, energy, agribusiness, financial services, regional aviation, alignment of technical standards and skills development. We welcome the establishment of Digital Economy Working Group within the framework of BRICS Business Council.

85. Recognizing tourism's great potential to contribute to sustainable economic and social development, we welcome the initiative to establish a BRICS Working Group on Tourism, to foster greater cooperation between the BRICS countries and increase economic development and people-to-people relations. The BRICS Tourism work stream will exchange knowledge, experience and best practices in the areas of travel trade, air connectivity, tourism infrastructure, culture and medical tourism, barriers to tourism marketing, tourism safety and support - financial, insurance and medical. We note with satisfaction that Intra-BRICS Tourism has grown despite the global economic downturn.