Brics summit: Haddad advocates for global industrial diversification
“The challenges arising from heightened protectionism in developed nations can potentially act as a catalyst for global industrial diversification," remarked Brazilian Finance Minister Fernando Haddad on Tuesday (Aug. 22), during his address at the inauguration of the Brics business forum. This event is occurring concurrently with the 15th Brics Summit in Johannesburg, South Africa.
The minister emphasized that developing nations have a unique opportunity in the current era of globalization to attract industries that create skilled jobs.
"The world is currently undergoing a setback in terms of globalization; however, this setback can be seen as a shift towards diversification and the dispersion of industrial facilities. This shift holds the potential to provide our people with more equitable access to decent and skilled employment, offering improved salaries and job opportunities," expressed Haddad. The minister went on to highlight that developing economies should focus on decentralizing production, rather than concentrating it in just a few nations. He added, "I believe that Africa and South America can serve as pivotal platforms for the diversification of global industrial activities."
Haddad emphasized that Brazil plays a crucial role in this context, particularly in its commitment to investing in environmentally conscious industries. Examples include the production of green hydrogen (hydrogen generated without the use of fossil fuels) and the expansion of ethanol utilization. He underscored that the nation stands as a champion in clean energy endeavors.
He explained that the country contributes not only through grain cultivation but also by generating clean energy sources such as biomass and biofuels. He conveyed that Brazil’s agriculture is currently a source of clean energy and that the country's vision is to become a provider of such energy, not only to meet domestic industrialization and developmental needs but also as a global exporter of this energy and eco-friendly products.
Multilateralism
Regarding the Brics, which comprises Brazil, Russia, India, China, and South Africa, the minister stressed that member nations should not limit their focus to domestic concerns but rather collaborate to advance multilateralism and foster a fairer distribution of opportunities. He emphasized, "We, as Brazilians, firmly believe that international organizations must adapt to this evolving global landscape, where emerging powers, evolving countries, and shifting economic, social, and political dynamics are reshaping our planet."
Throughout this week, Haddad is scheduled to engage in bilateral meetings aimed at exploring economic agreements and fostering financial cooperation between Brazil and African nations. As per the Ministry of Finance, Brazil is committed to enhancing its economic ties with fellow Brics members. Furthermore, discussions will revolve around the potential expansion of the Brics New Development Bank (NDB), which is presently under the leadership of Brazil's former president, Dilma Rousseff.
