1、U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N TBRICS Investment Report 2023,United Nations This work is available through open access,by complying with the Creative Commons licence created for intergovernmental organizations,at:http:/creativecommons.org/license

2、s/by/3.0/igo/The designation employed and the presentation of material on any map in this work do not imply the expression of any opinion whatsoever on the part of the United Nations concerning the legal status of any country,territory,city or area or of its authorities,or concerning the delimitatio

3、n of its frontiers or boundaries.Photocopies and reproductions of excerpts are allowed with proper credits.This publication has not been formally edited.United Nations publication issued by the United Nations Conference on Trade and DevelopmenteISBN:978-92-1-002582-9 UNCTAD/DIAE/2023/1 3 Acknowledge

4、ments The BRICS Investment Report was prepared by a team led by James X.Zhan,Director of Investment and Enterprise,UNCTAD.The report was written by Joseph Clements,Jos Henrique Vieira Martins,Yongfu Ouyang and Astrit Sulstarova.Inputs were provided by Massimo Meloni and Diana Rosert on national inve

5、stment policies and international investment agreements respectively.This report was prepared at the request of the BRICS Trade and Investment Working Group under the China Presidency in 2022.It is meant for deliberation on BRICS collaboration in the area of investment for development.The report doe

6、s not represent the views of the member States of the BRICS.4 Contents 1.Introduction.4 2.FDI in the BRICs:overall trends.4 2.1.Overview of the BRICS economies.4 2.2.FDI inflows and stock in the BRICS.5 2.3.FDI outflows and stock from the BRICS.7 2.4.Top investors in the BRICS economies.8 2.5.Intra-

7、BRICS investment.9 2.6.Significance of FDI to the BRICS.11 3.FDI trends by mode of entry.11 3.1.Greenfield Projects.11 3.2.M&A Deals.13 3.3.Project Finance Deals.14 4.Developments in investment policies and regulatory frameworks in the BRICS.15 4.1.Recent developments in national investment policies

8、.15 4.2.International Investment Agreements(IIAs)reforms in the BRICS.19 5.Policy coordination and the way forward.22 Annex 1 Background on BRICS economic collaboration.25 Annex 2.BRICS national initiatives on PPPs and infrastructure investment.27 51.IntroductionBrazil,the Russian Federation,India,C

9、hina and South Africa(BRICS)now form one of the worlds most important economic blocs,representing more than one quarter of global GDP,1and 42 per cent of the worlds population.Significantly,the BRICS have seen their economic influence increase over the past decades,as drivers of global growth,trade

10、and investment.Since Jim ONeil created the acronym BRIC,in 2001,2the grouping has both expanded,and deepened its collaboration.In 2011,South Africa joined,to create the BRICS economies.Although the bloc is an informal arrangement,with no charter,it has nonetheless developed a more institutional char

11、acter,both through a high level of political interaction(e.g.annual summits)3and the creation of economic institutions such as the New Development Bank(NDB)and the Contingent Reserve Arrangement(CRA).4Foreign investment has played an important role in the growth of BRICS economies since 2001,with an

12、nual FDI inflows to the bloc more than quadrupling from 2001 to 2021 and contributing significantly to gross fixed capital formation.The growth in FDI inflows to the BRICS was very strong in the first decade,but has remained relatively flat since 2011,against a global backdrop of negative growth of

13、FDI flows over the decade.To deal with the challenging global investment environment,and also in response to the need to leverage foreign investment for sustainable development,the BRICS economies continued moving in the general direction of a more open and supportive investment policy environment.L

14、ooking ahead,the potential for intra-BRICS investment remains promising.However,more collaboration will be required to make investment a key driver of economic cooperation among the BRICS,and to bring more benefits for sustainable and inclusive economic development in the bloc.2.FDI in the BRICS:ove

15、rall trends2.1.Overview of the BRICS economiesThe changing absolute and relative economic weights of the BRICS economies over the past decade have transformed the shape of the global economy.According to the World Bank,the share of BRICS in global GDP grew from 18 per cent in 2010 to 26 per cent in

16、2021,with increases in all years during the period.5A significant reason for this upward trend is the growth of China,which accounted for over 70 per cent of BRICS GDP,in 2021.In per capita terms,the BRICS as a group had a nominal per capita GDP of$7,666 in 2021,against global per capita GDP of$12,2

17、63 in the same year.However,inpurchasing power parity terms,the average per capita GDP(PPP)for BRICS economies is$17,990,much closer to the global average per capita GDP(PPP)of$18,721.61According to the most recent data from the World Bank:https:/data.worldbank.org/2Jim ONeill(2001).“Building Better

18、 Global Economic BRICs”.Goldman Sachs:Global Economics Paper No 66,2001:https:/ on the BRICS economic collaboration,with the main Summit outputs since 2011 can be found inAnnex 1.4BRICS New Development Bank and Contingent Reserve Arrangement:Presentation to Parliamentary Committees,2015:https:/stati

19、c.pmg.org.za/150428BRICS_Bank.pdf5GDP(nominal)data can be found here:https:/data.worldbank.org/6It is important to note that the population growth of BRICS economies has slowed relative to the global average in the last decade.At the same time,the BRICS share of global GDP has been growing.The resul

20、t of these two trends has been for BRICS per capita GDP to grow faster than global per capita GDP.6More recently,economic growth in the BRICS has been uneven,reflecting global trends since the onset of the pandemic.The latest data available,from July 2022,7shows that the economic rebound,in 2021,was

21、 followed by progressively gloomy headwinds in 2022.Global output contracted in the second quarter of 2022 and is forecast to slow from 6.1 per cent in 2021 to 3.2 per cent in 2022.Considering the BRICS bloc as a whole,the risks to output are tilted to the downside.The war in Ukraine is having a dis

22、ruptive impact on commodity markets in the short and potentially long term;inflation in all BRICS economies could be harder to bring down than anticipated;and tighter financial conditions could induce debt distress in some members of the group.With regard to trade,BRICS economies represent 18 per ce

23、nt of global exports.However,their share has been increasing,and the growth rate of intra-BRICS exports exceeds the global average.8The increase in intra-BRICS exports could support the argument that increasing economic cooperation is yielding tangible benefitsand hasbeen an importantdriverof the gr

24、owth of intra-bloc investment(albeit at a moderate rate)(see section 2.5).2.2.FDI inflows and stock in the BRICS UNCTAD FDI data show that the BRICS,as a grouping,have seen a more than fourfold increase in their annual FDI inflows,from$84 billion in 2001 to$355 billion in 2021(figure 1).Their share

25、in global FDI inflows also doubled from 11 per cent in 2001 to 22 per cent in 2021.Figure 1.FDI inflows to the BRICS,2001-2021,and compound annual growth rate(billions of dollars and per cent)Source:UNCTAD,FDI/MNE database(www.unctad.org/fdistatistics).Note:South Africa is included in the 2001 figur

26、e although it joined the BRICS in 2011.7International Monetary Fund(2002).World Economic Outlook Update,July 2022.https:/www.imf.org/en/Publications/WEO/Issues/2022/07/26/world-economic-outlook-update-july-20228Yang Xun,Bai Yang(2022).BRICS cooperation leads the way to new era of global development.

27、Qiushi Journal.June 2022.http:/ AfricaRussian Federa8onBRICS13.5%1.7%355299847The first decade of the 21stcentury was characterized by a strong growth rate in FDI inflows to the BRICS,which increased annually by 13.5 per cent.Whilst this was typical during a period of expansion in foreign investment

28、,9the rate was almost double the global average of 7.6 per cent.From 2011 to 2021,FDI inflows to the BRICS slowed dramatically,growing by an annual rate of 1.7 per cent.This reflected the stagnating global environment for investment where the average annual growth rate for FDI inflows for the decade

29、 turned slightly negative.At the individual economy level,performance was varied.Chinas FDI inflows grew annually by over 10 per cent from 2001-2011,before falling back to 4 per cent from 2011-2021.The Russian Federation and India saw exceptionally strong annual growth rates for FDI inflows of about

30、 30 per cent and over 20 per cent respectively,from 2001 to 2011,but have since deteriorated to just over zero per cent and 2 per cent,respectively,in the last ten years.After strong performance in the first decade of the 21stcentury,Brazils annual growth in FDI inflows turned negative in the second

31、 decade,although with a recovery since 2015.The trend in South Africa,which had a negative annual growth rate in FDI inflowsfrom 2001-2011,ran counter to the general trend observed in the BRICS and posted an annual growth rate of over 25 per cent from 2011 to 2021.Despite slowing and fluctuating gro

32、wth from 2011 to 2021,the grouping performed better than the world average and its share in global FDI flows posted an increase over the decade(figure 2).Figure 2.FDI inflows to the BRICS and share in world inflows,2011-2021(billions of dollars and per cent)Source:UNCTAD,FDI/MNE database(www.unctad.

33、org/fdistatistics).A decade of fluctuating but nevertheless resilient FDI inflows contributed to a steadily rising inward FDI stock for the grouping,which rose by more than 80 per cent,from$2.1 trillion in 2011 to$3.9 trillion in 2021(table 1).However,in contrast to FDI flows,FDI stock in the BRICS

34、declined as a share of global stock,falling from over 10 per cent in 2011 to 8.5 per cent in 2021.9UNCTAD World Investment Report 2020:International Production Beyond the Pandemic.United Nations:New York and Geneva.https:/unctad.org/system/files/official-document/wir2020_en.pdf2992622732622432712712

35、592942553550510152025300 50 100 150 200 250 300 350 40020112012201320142015201620172018201920202021$billionsFDI inflows(left axes)Share in world(right axes)%8Table 1.BRICS inward FDI stock(millions of dollars)2.3.FDI outflows and stock from the BRICS At the turn of the century,emerging markets such

36、as the BRICS(excluding South Africa)started to show the potential to become important sources of FDI,including flows to developing countries and among each other supporting so-called South-South cooperation.From 2001 to 2010,FDI outflows from the BRICS grew from one per cent of global flows to over

37、10 per cent.During this period,the annual growth rate of outflows,at 33 per cent,was more than three times larger than the global average.By 2020,the share of BRICS outflows had reached 20 per cent of global flows.Despite having since fallen back,as a share of global outflows,the absolute value of B

38、RICS outflows reached a historic high,in 2021,at almost$250 billion(figure 3).And,even though the annual growth rate of outflows slowed markedly in the decade 2011-2021,reflecting the global environment for FDI,the annual growth rate of BRICS outflows remained more than 10 times larger than the glob

39、al average.Figure 3.FDI outflows from the BRICS and share in world outflows,2011-2021(billions of dollars and per cent).Source:UNCTAD,FDI/MNE database(www.unctad.org/fdistatistics).BRICS outward FDI stock mushroomed from$1.1 trillion in 2011 to$3.7 trillion in 2021,an increase of 235 per cent.In con

40、trast to inward FDI stock held by investors in the BRICS,the level of outward FDI stock held by BRICS investors abroad increased consistently in every year of the decade(table 2).However,the BRICS as a group accounted for less than 1%of the worlds total outward FDI stock in 2021,which suggests their

41、 potential as foreign investors can be further explored.14711918620417422723017819415724705101520250 50 100 150 200 250 30020112012201320142015201620172018201920202021$billionsFDI outflows(left axes)Share in world(right axes)%9Table 2.BRICS outward FDI stock(millions of dollars)2.4.Top investors in

42、the BRICS economies The 10 main investor economies,by FDI stock,in the BRICS countries remained relatively unchangedover the past years.In 2020,the United States was the largest ultimate investor in the bloc in terms of FDI stock.The United Kingdom was the second largest ultimate investor to the BRI

43、CS,while China was third,with a growing participation over the decade.Other major ultimate investment sources to the BRICS are Japan,Hong Kong(China),Germany,the Netherlands,France,Switzerland and Spain.It is worth noting that international financial hubs play an important role in channeling investm

44、ent into the BRICS,and a number of them,such as Cyprus and Singapore,are among the largest sources of FDI to the bloc in terms of immediate investor.Figure 4.Top 10 economies as ultimate investors in the BRICS,by FDI stock,2020(billions of dollars)Source:UNCTAD,FDI/MNE database(www.unctad.org/fdista

45、tistics).2.5.Intra-BRICS investment Intra-BRICS investment grew steadily in the 2010s,both in absolute and relative terms.According to UNCTAD data,total inward FDI stock between BRICS countries increased from$27 billion in 2010 to$167 billion in 2020(table 3),representing a share of 1.3%and 4.7%perc

46、ent of their total FDI stock as a group respectively.This growth was mainly driven by China,which was by far the largest investor and recipient in intra-BRICS investment.Brazil and India also witnessed strong growth in investment from other BRICS countries,while the Russian Federation experienced te

47、pid growth,and intra-group investment stock in South Africa dropped slightly.It is worth noting that intra-BRICS investment numbers need to be treated with caution,since a significant portion of their outward and inward investment flows are channeled through offshore financial centers,and the invest

48、ment between the BRICS could be underestimated.Table 3.Intra-BRICS inward FDI stock(millions of dollars)Country201020152020Brazil7912 2991 935China14 51264 430151 439India6221 2181 795Russian Federation4 1873 4404 819South Africa7 2813 9786 999Total27 39375 365166 987Source:UNCTAD FDI databaseNote:T

49、he numbers for China are based on the value reported by the source countries.The 2020 figure for China was adjusted to reflect the value of FDI stock with other BRICS countries as the ultimate source of investment.There have been several large-scale investment projects among the BRICS in recent year

50、s,covering sectors from natural resources to manufacturing and services(table 4),and largely reflecting differences in economic structure and resource endowment among the countries.Most notably,manufacturing attracted a large share of intra-regional investment,in particular in the automobile and ele

51、ctronics industries.This shows the increasing attractiveness of the BRICS countries for market seeking investors(targeting both domestic and regional markets).Despite the growth in intra-BRICS investment in recent years,the potential for further investment within the group remains to be tapped,in pa

52、rticular in view of the larger weight of intra-regional trade.Strengthened investment cooperation can play an instrumental role in expanding economic collaboration within the group,with the potential to drive sustainable and inclusive domestic economic development,through increased capital formation

53、,technology spillovers and job creation.In particular,intra-group investment in manufacturing could be further encouraged,especially in processing activities to increase value added in the host country,and along the value chains of certain manufacturing sectors showing strong complementarities among

54、 the BRICS countries.For example,investment opportunities in the renewable energy sector,including solar and wind,could be further explored.Research has shown that a number of BRICS countries have developed capacities in certain segments of the sectors value chain and show promising potential for in

55、tra-bloc investment.1010C.Prinsloo(2022).Tangible Economic Cooperation for South Africa and the BRICS:Taking Stock and Looking Forward.Chapter 9,The Political Economy of Intra-BRICS Cooperation.Palgrave Macmillan.1011However,intra-regional investment in the sector is currently relatively small,despi

56、te the larger flows of international investment to the sector coming from outside the BRICS economies.Infrastructure is another important area for intra-regional investment that is also critical for long-term development.This has been recognized by the BRICS countries,as highlighted by the work of t

57、he BRICS Task Force on Public-Private Partnerships(PPPs)and Infrastructure.With increasing demand for infrastructure,on the one hand,and increasing fiscal constraints on the other,governments have been encouraging the participation of private investment,including FDI,in the sector.The regulatory fra

58、mework for PPPs is improving in all members of the bloc(see annex 3).Intra-regional investment in infrastructure,including through PPPs,can be encouraged,for example by leveraging the financial power of the New Development Bank and national development banks,and enhancing coordination on investment

59、promotion and facilitation.Table 4.The 20 largest intra-BRICS greenfield investments between 2017 and 2021YearInvestorSource countryDestination countryInvestment($million)SectorBusiness activity2019Sirius HoldingChinaRussia11100Natural,liquefied and compressed gasManufacturing2017China Chengtong Hol

60、dingChinaRussia1500Pulp,paper,&paperboardManufacturing2019Great Wall Motors(GWM)ChinaIndia975Light trucks&utility vehiclesManufacturing2018Tsingshan HoldingChinaIndia926Iron&steel mills&ferroalloyManufacturing2019RosneftRussiaIndia850Other petroleum&coal productsManufacturing2019Huawei TechnologiesC

61、hinaBrazil800Communications equipmentManufacturing2021JinganChinaRussia769Other petroleum&coal productsManufacturing2017Zhongding Dairy FarmingChinaRussia750Animal productionManufacturing2018GazpromRussiaChina740Fossil fuel electric powerElectricity2018SberbankRussiaChina730Commercial&institutional

62、building constructionConstruction2018Tata GroupIndiaChina700AutomobilesManufacturing2019Great Wall Motors(GWM)ChinaRussia656AutomobilesManufacturing2018MarcopoloBrazilChina615Heavy duty trucksManufacturing2018Haier GroupChinaIndia427Household appliancesManufacturing2019Shanghai Automotive Industry C

63、orporation(SAIC)ChinaIndia418Motor vehicle&parts dealers(Automotive OEM)Maintenance&Servicing2021Aditya BirlaIndiaChina375Alumina&aluminum production and processingManufacturing2019China Communications Construction CompanyChinaBrazil371Iron&steel mills&ferroalloyManufacturing2019TsaishenChinaRussia3

64、57Wood productsManufacturing2020LiweiChinaRussia335Crop productionManufacturing2019Xiaomi(Beijing Xiaomi Technology)ChinaIndia332Communications equipmentManufacturingSource:UNCTAD FDI database.122.6.Significance of FDI to the BRICS As described above,BRICS economies are among the main recipients of

65、global FDI inflows,and some of them are also important sources of FDI,making the BRICS economies both significant as investment host countries and as home countries.For the BRICS as a bloc,the average(inward)FDI stock,as a share of GDP,rose from 20 per cent in 2011 to 27 per cent in 2021.At an indiv

66、idual economy level,the FDI stock to GDP ratio varies considerably among the BRICS,ranging from 12 per cent in China and 16 per cent in India to 37 per cent in Brazil and 41 per cent in South Africa.Russias inward FDI stock/GDP ratio,at 29 per cent,is closest to the BRICS average.Despite the differe

67、nces within the bloc,it is clear that FDI plays a major and increasing role in economic growth in all of the BRICS,as evidenced by the contribution of FDI to Gross Fixed Capital Formation(GFCF).Brazil traditionally has the highest share of FDI inflows to GFCF(above 10 per cent since the creation of

68、the group and reaching more than 22 per cent in 2019).In the past year,South Africa had a FDI to GFCF ratio of almost 75 per cent,where usually it does not exceed 10 per cent.In India,the share of FDI inflows to GFCF over the past 3 years was 6.7 per cent,slightly higher than the world average of 5.

69、7 per cent.The only BRICS country where the ratio of FDI inflows to GFCF has been consistently below the world average is China.This does not necessarily mean that FDI plays a less important role in Chinas economy,but rather that domestic investment is relatively more significant.In 2021,for example

70、,Chinas total GFCF amounted to$7.2 trillion,while in the United States(with the worlds second highest GFCF)it totaled$4.9 trillion.As a group,it is clear that FDI in the BRICS plays a very meaningful role not only in GFCF,but also in the GDP growth of the bloc.3.FDI trends by mode of entry3.1.Greenf

71、ield ProjectsGreenfield investment in the BRICS witnessed big fluctuations during the period 20112021.Greenfield investment began the decade at a high level,as a result of the strong recovery of greenfield investment in the bloc after the global financial crisis,before dropping significantly from 20

72、19 to 2021,due to the impact of the COVID pandemic.Despite a 24 per cent drop in the value of global greenfield projects during the decade,the decline in the BRICS was deeper,in particular in the last three years(table 5).However,the decline in greenfield investment was offset by other sources of FD

73、I inflows,such as increased reinvested earnings and intra-company loans,which helped keep overall FDI inflowsto the bloc at a relatively stable level(see section 2).Table 5.Announced greenfield FDI projects in the BRICS,20112021(millions of dollars)13Nevertheless,looking at the value of announced gr

74、eenfield projects by country during the past three years(since the beginning of the COVID crisis),Brazil,the Russian Federation and South Africa did saw a recovery from the pandemic in 2021,with increase of 35 per cent,85 per cent and 15 per cent respectively(table 6).Table 6.BRICS announced greenfi

75、eld projects,2019-2021(billions of dollars and number)With regard to FDI by sector,greenfield investment in manufacturing was hit hard during the pandemic,dropping by more than 50 per cent from$94 billion in 2019 to$42 billion in 2021,due to increased uncertainties associated with lockdowns and supp

76、ly chain disruptions.Meanwhile,the services sectorperformed relatively well in terms of greenfield investment during the pandemic,and as a result overtook manufacturing as the largest sector for greenfield investment.This also points to the growing importance of the services sector in the BRICS econ

77、omies,and the relative resilience of business activities in the sector despite supply chain shocks.Among the top 10 greenfield investment industries,energy and gas,electronics and electrical equipment,information and communication,and automobiles attracted by far the largest flows of greenfield inve

78、stment(table 7).Table 7.BRICS:announced greenfield projects,by sector and selected industries,2019-2021(billions of dollars and number)143.2.M&A Deals Cross-border M&A deals have traditionally been less significant to the BRICS than to developed economies.From 2011 to 2021,the value and number of de

79、als of BRICS cross-border M&A salesdeclined,despite a significant increase in global M&A sales(tables 8and 9).In 2021,the value of cross-border M&A sales in the BRICS was$15 billion,a sharp decline from$44 billion in 2019 before the outbreak of the COVID pandemic.Table 8.BRICS:net cross-border M&A s

80、ales,2011-2021(millions of dollars)Table 9.BRICS:net cross-border M&A sales,2011-2021(number of deals)Despite a significant drop in M&A sales in the BRICS in the last three years,a number of large deals were announced,in each of the five economies.The five biggest deals involved:Naspers Ltd.(South A

81、frica)as ultimate target,an intrafirm operation which resulted in a large increase in South African FDI inflows in 2021(from$5 billion to$41 billion);Petroleo Brasileiro S.A.(accounting for most of the value of M&As in Brazil);ROSNEFTEGAZ AO(Russia);Hanergy Thin Film Power(China);and Essar Steel Ind

82、ia Ltd.(India).With respect to sectors,services witnessed a decrease of more than 60per centin net cross-border M&A sales,falling from$32 billion in 2019 to$10 billion in 2021(table 10).Such a decrease was mainly due to falling M&A activities in utilities(down from$11 billion to$4 billion),transport

83、ation and storage(from$5 billion to$1 billion),real state(from$4 billion to$1 billion)and administrative and support services(from$3 billion to$1 billion).However,the services sector remains the largest sector for M&As in the BRICS.Both the value and number of cross-border M&A sales in manufacturing

84、 also dropped significantly during the COVID pandemic,while the primary sector experiencing the largest decline.15Table 10.BRICS:net cross-border M&A sales,by sector and selected industries,2019-2021(billions of dollars and number)3.3.Project Finance Deals Project finance is an important source of i

85、nternational capital for the BRICS as a group.Despite significant fluctuations in terms of both value and the number of deals,the value of project finance has been consistently larger than M&As in the bloc during the last decade(table 11).When the COVID-19 crisis erupted,project finance deals in the

86、 groupdeclinedin value in 2020,followed by a strong rebound in 2021.International project finance reached$108 billion in 2021,the highest level since 2012.Russia was the only BRICS country to undergo a decrease in announced international project finance deals from 2020 to 2021 both in terms of numbe

87、r of deals and total value.Table 11.BRICS:announced international project finance deals,by value and number of projects,2011-2021(billions of dollars and number)Source:UNCTAD.In terms of sectors,renewable energy,industrial real estate and petrochemicals received the largest flows of project financin

88、g in the last three years.Most notably,the renewable energy and the industrial 16real estate sectors saw significant increases both in the value and in the number of announced international project finance deals(table 12).Table 12.BRICS:announced international project finance deals,selected industri

89、es,2019-2020(billions of dollars and number)4.Developments in investment policies and regulatory frameworks inthe BRICSTo cope with the recent challenges arising from the changing international investment landscape and the restructuring of global value chains,and also in response to the need for mor

90、e sustainable investment,BRICS countries have taken measures to improve their investment environment and reform their international investment agreements(IIAs).Many of these measures focus on leveraging the potential of FDI to finance sustainable development,while safeguarding necessary policy space

91、 to mitigate any negative effects of foreign investment(for example for national security and the protection of strategic industries and resources).4.1.Recent developments in national investment policiesThe overall investment environment in the BRICS points to continued improvement in recent years,w

92、ith most of the policymaking and regulatory activities in these countries helping to facilitate investor entry and provide clarity on establishment and other aspects relevant to business operations.The vast majority of measures introduced by BRICS economies were favorable to investment,and the balan

93、ce of measures between those that are more favorable or less favorable to FDI has remained almost unchanged over the last decade,but tended towards more favourable over the last five years(figure 5).17Figure 5.Changes in national investment policies,2011-2021,BRICS and the world(per cent)Source:UNCT

94、AD.These trends contrast with the global trend,which has been moving in a less favorable direction in terms of measures affecting FDI.The global trend towards tighter regulation of investment continuedin 2021,and the ratio of measures less favourable to investment over those more favourable was the

95、highest on record,11rising from 41 per cent in 2020 to 42 per cent in 2021.In the BRICS,the Russian Federation and South Africa adopted a more balanced approach,introducing policy measures to promote and facilitate investment while strengthening regulations at the same time(table 13).Table 13.BRICS:

96、Cumulative number of national investment measures,2011-2021More favourableLess favourableNeutral/indeterminateBrazil2344China611017India69109Russia24227South Africa752TOTAL1845139Source:UNCTAD.4.1.1.Investment entry and establishment measuresSeveral BRICS countries,especially Brazil,China and India,

97、adopted policies to further expand market access to foreign investors in the last five years.Brazil Brazil introduced measures to expand market access to foreign investors in industries such asairport operations and electricity.In 2018,the country approved a bill allowing 100 per cent of foreign cap

98、ital in airlines,and in2019,opened the domestic air transport services market to foreign-owned operators.11UNCTAD World Investment Report 2022:International tax reforms and sustainable investment.United Nations:New York and Geneva.https:/unctad.org/system/files/official-document/wir2022_en.pdf201980

99、817558254202040608010020112012201320142015201620172018201920202021BRICS more favourableBRICS less favourableWORLD more favourableWORLD less favourable18 In 2022,the country introduced liberalizing measures on the exploitation of offshore wind energyproduction.China In 2018,China revised its foreign

100、investment negative list for 11 pilot free trade zones,relaxing orremoving restrictions on foreign investment in several industries.In 2019,China amended its national negative list and its negative list for free trade zones,liftingseveral restrictions on FDI in industries such as financial services,

101、manufacturing,agriculture,radioactive mineral smelting and the pharmaceutical industry.Furthermore,China released theSpecial Administrative Measures for the Access of Foreign Investment in the Hainan Free TradePort,enumerating industries and sectors that are restricted or prohibited for foreign inve

102、stment inHainan.In 2021,China further reduced the number of sectors restricted or prohibited for foreign investorsfrom 33 to 31.China also abolished the restrictions on foreign shareholding in joint-venture lifeinsurance companies and encouraged foreign investors to establish regional headquarters i

103、n Chinafor fund management,procurement and sales.Comprehensive pilot programmes were approvedon the opening of 12 services sectors to FDI in the Tianjin,Shanghai and Chongqing municipalitiesand in Hainan Province.India In January 2018,India liberalized rules on inward investment in several industrie

104、s including single-brand retail trading,airlines and power exchanges.In January 2019,India abolished the approval procedure used for foreign companies in defense,telecommunication and private security,among other industries,wishing to open branch officesunder certain conditions.In 2020,India liberal

105、ized the digital news media industry and the defense sector:foreign ownershipwas allowed up to 26 per cent through the government approval route in the former industry andup to 74 per cent under the automatic route in the latter.India also amended its FDI policy on civilaviation,permitting non-resid

106、ent Indian nationals to own up to 100 per cent(up from 49 per centpreviously)of the stakes of Air India under the automatic route.In 2021,India increased the FDI ceiling on insurance companies from 49 per cent to up to 74 percent.The country also shifted to allow 100 per cent foreign participation i

107、n the telecommunicationservices industry,including all services and infrastructure providers,through the automatic route.Thus,non-resident investors or Indian companies do not require any approval from theGovernment of India for the investment.4.1.2.Investment promotion and facilitation All BRICS co

108、untries introduced new measures to promote and facilitate foreign investment,including through simplification of registration and licensing procedures and strengthened investor protection.Brazil In 2019,the Central Bank of Brazil simplified procedures for foreign investors in the financialsector.19

109、In 2020,Brazil simplified the entry procedures for foreign financial institutions and foreigninvestors and abolished the different treatment of foreign and domestic investors in the licensingprocess.In December 2021,Brazil enacted a new Law for the Foreign Exchange Market and InternationalCapital(FX

110、 Law),regarding the elimination of unnecessary barriers to international capital andFDI flows.This law will come into force in December 2022.China In 2019,China passed a new Foreign Investment Law,which entered into force on 1 January 2020,with an aim to improve the transparency of FDI policies and

111、investment protection.In January 2020,China introduced regulations on the implementation of the new ForeignInvestment Law,which emphasized equal treatment of domestic and foreign enterprises.In 2020 and 2021,China published a set of trial measures to promote foreign investment in theYangtze River De

112、lta area.India In 2020,India eased the administrative regulations for foreign investors in certain industries byabolishing the requirement for approval from the Reserve Bank of India under certain conditions.The country also eliminated the approval procedure for foreign companies in defense,telecomm

113、unication and private security,among other industries,that wish to open branch offices.In 2021,India launched a national single window system to improve ease of doing business.Russian Federation In 2020,the Russian Federation introduced agreements on the protection and promotion ofinvestment as a ne

114、w investment policy instrument.These agreements,to be concluded betweenpublic entities and private investors,were to provide stabilization clauses relating to importcustoms duties,measures of state support and rules regulating land use and ecological andutilization fees and taxes.Eligible investment

115、s need to fulfil certain minimum capital requirements,depending on the sector.South Africa In 2018,South Africa launched the“InvestSA One-Stop Shop Initiative”as a focal point of theGovernment,coordinating and facilitating registration and licensing procedures for all investors.In 2019,the Protectio

116、n of Investment Act entered into force in South Africa,as an importantmeasure to strengthen investment protection,in particular following the termination by thatcountry of a series of investment treaties.During the COVID pandemic,investment promotion agencies in BRICS initiated various tools and pro

117、grammes to support the operation of foreign investors.APEX-Brasil,the national trade and investment promotion agency of Brazil,developed a comprehensive online platform to provide exporters and investors with market intelligence on economic and trade information.China took steps to alleviate the adm

118、inistrative burden for firms and to reduce bureaucratic obstacles,including faster approvals for health care and medical equipment businesses,and the reduction of investment application fees.Invest India launched the Business Immunity Platform,as a comprehensive portal devoted to pandemic-related ne

119、ws and tools targeted at the investment community.20 4.1.3.National security-related and other investment restriction measures Several BRICS countries adopted new measures to address national security and related concerns and introduced restrictions on foreign investment in certain sectors that are

120、deemed important for the economy.China In 2019,China put in place national security review procedures for the acquisition by foreigninvestors of domestic enterprises and for the outbound transfer of intellectual property in thecontext of exporting technologies.In 2021,Chinas new Regulation on the Un

121、reliable Entity Listestablishes a framework of restrictions or penalties on foreign entities deemed to endanger Chinasnational sovereignty,security or development interests.Furthermore,the country strengthened itsnational security review of foreign investment by mandating pre-closing filings and aut

122、horizingthe Government to review foreign investments in various sectors,including military,agriculture,energy,transportation and information technology.India In 2020,India introduced several restrictive changes in its FDI policy for e-commerce.The newrules are reported to aim at safeguarding the int

123、erests of domestic offline retailers.In 2020,thecountry introduced a requirement that all investment originating from countries that share landborders with India must obtain prior governmental approval,to curb opportunistic takeovers oracquisitions of Indian companies during the pandemic.Russian Fed

124、eration In 2018,The Russian Federation introduced certain prohibitions for inward investment by offshorecompanies.It now also requires prior Government approval for foreign investment in certaintransactions involving assets of strategic importance for national defense and state security.Russiais amo

125、ng the countries which have started reporting official data on FDI screening.South Africa In 2021,South Africa introduced a screening mechanism for foreign investments in 2020,with theestablishment of a special committee responsible for assessing whether a merger involving aforeign acquiring firm ma

126、y have an adverse effect on national security.4.2.International Investment Agreements(IIAs)reforms in the BRICS 4.2.1.Overview of IIAs concluded by BRICS The BRICS countries have collectively concluded a total of 460 international investment agreements(IIAs),including bilateral investment treaties(B

127、ITs)and treaties with investment provisions(TIPs)(Figure 6).Out of the 460 IIAs,350 are signed or in force(table 14),and 110 have been effectively terminated.China has the largest IIA network among the BRICS,with a total of 150 IIAs(128 of which are in force),and the Russian Federation,the second hi

128、ghest number of IIAs with 85 signed(of which 69 are in force).India has the lowest number of IIAs,with only 25 signed(of which 17 are in force,21after termination of a large number of old-generation IIAs).Brazil and South Africa have signed 46 and 49 IIAs,respectively,but only 17 and 19 of which,res

129、pectively,are in force.BRICS economies have signed four BITs among them,including:the Brazil-India BIT(singed but not yet in force),the China-Russian Federation BIT(in force),the Russian Federation-South Africa BIT(in force),and the China-South Africa BIT(in force).Figure 6.Number of IIAs concluded

130、by BRICS,19802021Source:UNCTAD,IIA Navigator.12Note:The annual numbers include all 460 IIAs(signed,in force or terminated).Table 14.BRICS:350 IIAs(BITs and TIPs)signed or in forceEconomyTotal BITs(signed or in force)Total TIPs(signed or in force)Total IIAs(signed or in force)BRICs275(185 in force)75

131、(61 in force)350(246 in force)Brazil27(2 in force)19(15 in force)46(17 in force)China125(106 in force)25(22 in force)150(128 in force)India10(6 in force)15(11 in force)25(17 in force)Russian Federation79(63 in force)6(6 in force)85(69 in force)South Africa38(11 in force)11(8 in force)49(19 in force)

132、Source:UNCTAD,IIA Navigator.13Note:These numbers do not include IIAs that have been effectively terminated.12UNCTAD Investment Policy Hub.International Investment Agreements Navigator.https:/investmentpolicy.unctad.org/international-investment-agreements/by-economy13UNCTAD Investment Policy Hub.Inte

133、rnational Investment Agreements Navigator.https:/investmentpolicy.unctad.org/international-investment-agreements/by-economy224.2.2.IIA reforms in the BRICSThe stock of IIAs(signed or in force)of the BRICS mostly consists of old-generation agreements that are in urgent need of reform.In particular,ab

134、out 80 per cent of the IIAs(286 out of 350)were concluded before 2010,with 50 per cent of them dating back to the 1980s and 1990s(169 out of 350).These IIAs signed before 2010 typically feature broad provisions and include few exceptions or safeguards,and lack the sustainable development dimension t

135、hat are usually featured in modern IIAs.The BRICS countries,in particular Brazil,India and South Africa,have been making systematic efforts to reform their IIA regimes by terminating or renegotiating old-generation agreements and moving towards a new generation of IIAs.IIA Reform in BrazilBrazil dev

136、eloped a new BIT model,the Cooperation and Facilitation Investment Agreements(CFIAs)model,focusing on investment promotion and facilitation.The CFIAs include innovative articles dedicated to improving institutional governance,in particular through the establishment of Focal Points and Joint Committe

137、es to prevent and address disputes and advise on improvements in the business environment.It also features investment facilitation measures,for example through cooperation onbusiness visas and transparency of procedures.In addition,the model includes substantive provisions dealing with expropriation

138、,national treatment and most-favoured-nation(MFN)treatment,compensation for losses,and transparency.Brazil operationalized a dispute prevention and State-State dispute settlement mechanism in its recent treaties,in line with the main pillars of its CFIAs model.Since 2015,Brazil concluded 13 BITs(mos

139、t recently with India,Ecuador,Morocco,United Arab Emirates)and 3 TIPs.Brazils CFIA model omits ISDS and was developed in the context of constitutional requirements that impeded the ratification of BITs signed by the country in the 1990s.IIA reform in IndiaFollowing the adoption of the new Indian mod

140、el BIT in 2015,14India initiated the termination of its existing BITs with a view to replace them with agreements aligned with its new model BIT.So far,over 70 treaty terminations have entered into effect.India has since signed 5 IIAs using its new model.Indias new model BIT includes a chapter on in

141、vestor obligations,requiring investors to comply with host State legislation and voluntarily adhere to internationally recognized standards of corporate social responsibility(CSR).In addition,it includes an ISDS mechanism that provides,amongst others,for exhaustion of local remedies prior to commenc

142、ing arbitration and strict timeframes for the submission of a dispute to arbitration.IIA Reform in South AfricaSouth Africa initiated a review of its international investment policy in 2008.Consultations involving a wide range of stakeholders took place over a three-year period.The review identified

143、 a range of concerns associated with BITs,notably the broadly drafted standards of protection and the risk of investment disputes.The review led to a decision by the South African government in 2010 to develop 14UNCTAD.Model Text for the Indian Bilateral Investment Treaty.https:/investmentpolicy.unc

144、tad.org/international-investment-agreements/treaty-files/3560/download23 a new investment bill to codify investment protection provisions into domestic law,to terminate BITs and offer partners the possibility of renegotiating their IIAs and,to refrain from entering into BITs in the future,unless the

145、re are compelling economic and political reasons for doing so.The Promotion and Protection of Investment Bill was published in 2013 for public comment and was passed by the National Assembly in 2015.The new law includes important investment protection commitments while preserving the right of South

146、Africa to pursue legitimate public policy objectives.The AfCFTA Protocol on Investment,currently under negotiation,aims at promoting,facilitating and protecting intra-African investment that fosters sustainable development while safeguarding the State Parties right to regulate.The Negotiating Princi

147、ples for the Protocol recognize UNCTADs work on IIA reform and refer to its Investment Policy Framework for Sustainable Development and its IIA Reform Accelerator.UNCTAD continues to provide technical support to the African Union and the AfCFTA Secretariat in the process leading to the conclusion of

148、 the Protocol.China and the RCEP In addition to its efforts to reform its national investment regime,China proactively participated in the conclusion of regional IIAs,in view of the rising importance of these IIAs in the global investment governance.Most notably,China is a member of the Regional Com

149、prehensive Economic Partnership(RCEP)and negotiated the China-EU Investment Agreement.The RCEP agreement contains a chapter on investment that features reform-oriented provisions such as the inclusion of a refined definition of investment,specifying in a non-exhaustive manner the characteristics tha

150、t a covered investment should have(such as commitment of capital or other resources,expectation of gain or profit,and the assumption of risk)and the forms that an investment may take.Provisions on investment promotion and facilitation are included,which include simplification of procedures for inves

151、tment approvals and the establishment of one-stop investment facilitation centers.5.Policy coordination and the way forwardThe BRICS have seen both their FDI flows and their share in global flows substantially increase over the past 20 years.This is true for all BRICS economies even accounting for t

152、he weight of China and to a lesser extent India as global destinations for investment.While FDI to the BRICS was negatively impacted by the COVID-19 pandemic,the grouping showed more resilience than other economies.The BRICS recovered well,in 2021,achieving record highs both for FDI inflows and outf

153、lows.The overall trend of favorable investment policy measures over the past 10 years has played an important role in attracting international investment to the bloc.It is important to note that,in addition to the coordination of policies at the international level,the BRICS countries have adopted a

154、 number of important initiatives to strengthen cooperation on promoting intra-group investment in recent years,in particular in view of the impact of the pandemic and increasing uncertainties in the world economy and associated challenges faced by the group.These initiatives cover a number of key po

155、licy areas,in particular in investment facilitation,climate change and investing in sustainable development.These initiatives,among others,include:the Outlines for BRICS Investment Facilitation(2017),the BRICS MoU Trade and Investment Promotion(2019),the Strategy for BRICS Economic Partnership 2025(

156、2020),Intra-BRICS Cooperation for Continuity,Consolidation and Consensus(2021),and the Initiative on Trade and Investment for Sustainable Development(2022)(see annex 1).24 Since the outbreak of the COVID-19 pandemic,the BRICS trade and investment workstream also made efforts to improve the functioni

157、ng of global and regional supply chains and the promotion of investments in key sectors such as manufacturing and transportation.Recognizing the importance of improving resilience of the BRICS as favoured destinations for investment in spite of the COVID-19 pandemic,the BRICS Contact Group on Econom

158、ic and Trade Issues(CGETI)also encouraged further efforts to promote a favorable environment for investments for sustainable development,in particular in enhancing transparency and streamlining national administrative procedures and requirements.Looking ahead,it is expected that the group will conti

159、nue building on the commitments and recommendations from previous years and strengthening investment cooperation in areas such as investment facilitation and financing,the digital economy,and improving the resilience and stability of global and regional supply chains.A challenge is how to operationa

160、lize existing initiatives agreed by the BRICS and generate visible benefits for sustainable and inclusive development in all its members through capital formation,job creation and more balanced trade among the BRICS.Meanwhile,it would be important that the work being developed under the Trade and In

161、vestment Ministers track is coordinated with the work being undertaken by the Finance Ministers and Central Bank Governors track related to investment.The BRICS Task Force on PPPs and Infrastructure,under the finance track has produced positive results,such as the Technical Report on“Social Infrastr

162、ucture:Financing and Use of Digital Technologies”.Such joint efforts by the BRICS,aligned with development policy recommendations from organizations such as UNCTAD,can create the conditions for sustainable economic recovery,growth and investment.Towards this end,UNCTAD provides a set of recommendati

163、ons that can positively impact the investment climate and contribute to win-win outcomes for BRICS economies in terms of raising the level of investment and improving its contribution to sustainable development.15 The recommendations broadly fall into four categories:i)investment promotion and facil

164、itation;ii)sustainable financial products and projects;iii)infrastructure investment;and iv)investment in a new generation of manufacturing.The emphasis is on practical measures that can accelerate implementation.i.Further institutionalize collaboration on investment promotion and facilitation.Since

165、 it maybe premature to formalize investment cooperation through an IIA agreement at the group level,cooperation on investment issues could be better served by focussing on investment promotionand facilitation.This is already happening at the multilateral level,for example in thenegotiations on inves

166、tment facilitation at the WTO,but as concrete efforts to implementBRICS existing initiatives on investment facilitation,the group could already move ahead withthe establishment of a cooperation mechanism at the group level,complemented by bilateralarrangements.Key to the success of cooperation is a

167、clear mandate for such a mechanism.TheBRICS Investment Facilitation Action Plan can serve as guidelines.Existing bilateralcooperation,for example,between APEX and the China Council for International InvestmentPromotion(CCIIP),the national IPAs of Brazil and China,as well as between Brazil and India,

168、through their recently signed Investment Cooperation and Facilitation Treaty(2020),can befurther strengthened and serve as a model.Practical activities and measures could include theexchange of information and market intelligence,promotion of investment in prioritizedsectors,joint facilitation of ke

169、y projects,and dispute prevention and settlement.ii.Leverage sustainable finance for investment in green projects.BRICS economies are nowimportant financial markets,both globally and especially in the developing world.Moreover,15 The recommendations are in light of the outcomes and policy proposals

170、of previous BRICS Summits and the work of the BRICS Trade and Investment Working Group.25sustainable finance has been growing rapidly in BRICS economies.16China has become a leading issuer of green bonds.The green bond market is also developing rapidly in some other BRICS countries and can be levera

171、ged to encourage investment in sustainable infrastructureand in green projects.Sustainable financial products could be further jointly developed and distributed by BRICS financial institutions.Cooperation of this kind should also focus on the harmonization and mutual certification of green project s

172、tandards,as well as disclosurestandards and requirements(at project and product levels).The development of mutually certified green financial products can be an important tool to mobilize investment by BRICS as well as attract investment from international financial institutions and other investors.

173、Such steps are also aligned with the BRICS objectives of transitioning to low carbon economies and can help meet the BRICS international commitments in this area.iii.Promote investment in infrastructure.With an enhanced policy framework on public-privatepartnerships(PPPs)at the national level in all

174、 BRICS countries(see annex 2),BRICS couldmore effectively collaborate on increasing investment in infrastructure.One avenue to exploreis how to leverage the role of the New Development Bank,and its relationship with nationaldevelopment banks.Once more experienceis gained in debt financing and blende

175、d finance withprivate partners,equity investment in infrastructure can also be explored,with the participationof financial institutions as long-term investors.In order to leverage institutional investment ininfrastructure,market access needs to be addressed at the national level.iv.Support investmen

176、t in new manufacturing.The BRICS economies can identify manufacturingsectors with high complementarities,such as renewable energy,where all the economies in theBRICS have already developed capacities along various links in the renewables value chain.The BRICS could ensure mutual market access in the

177、se industries to address trade barriers andencourage intra-BRICS investment in the sector.Priority industrial segments could includeprocessing activities(value chain upgrading in natural resource markets),and market seekinginvestments(producing near the end consumption market).The group should conti

178、nue to move forward with regards to investment cooperation,as well as wider south-south assistance to developing economies and LDCs,and UNCTAD stands ready to support future collaboration among the BRICS economies in that direction.UNCTAD can provide technical assistance to the BRICS regarding some

179、of the recommendations above,such as those related to the implementation of investment facilitation measures and sustainable finance.UNCTAD will alsocontinue to provide assistance in promoting investment in the SDGs,including through cooperation among BRICS countries and between the bloc and the res

180、t of the world.16UNCTAD World Investment Report 2022:International tax reforms and sustainable investment.United Nations:New York and Geneva.https:/unctad.org/system/files/official-document/wir2022_en.pdfhttps:/unctad.org/system/files/official-document/wir2022_ch04_en.pdf26 Annex 1 Background on BRI

181、CS economic collaboration A meaningful coordination mechanism supporting the progress regarding economic relations in the BRICS was the establishment of the mechanism of Trade Ministers Meeting in 2011 the same year in which South Africa joined the group.Since then,this mechanism has focused on addr

182、essing joint challenges and objectives,with the efforts of all members,helping to steadily improve BRICS economic cooperation and,specifically trade and investment cooperation.Some results from this collaboration can be seen in the outcomes achieved at the Summit level of the bloc since then:3rd Sum

183、mit Sanya,China(2011):South Africa officially enters(BRICS).The need to reformglobal governance in the area of economics and finance is reaffirmed;encouraging the use ofrenewable energies and the peaceful use of nuclear energy;commitment to the UN MillenniumDevelopment Goals(MDGs).4th Summit New Del

184、hi,India(2012):Start of discussions for the creation of the NewDevelopment Bank.Agreement for facilitating credit in local currency(promoting trade andinvestment between members)signed.5th Summit Durban,South Africa(2013):theme BRICS and Africa:Partnership forDevelopment,Integration and Industrializ

185、ation.It marked the beginning of the BRICS externaldialogue exercise,known as“outreach”,for greater cooperation with emerging economies,developing countries and IOs.On the Trade Ministers level,recognizing that investment andinvestment facilitation is an important area of cooperation in BRICS,they a

186、greed upon the BRICSTrade and Investment Cooperation Framework.6th Summit Fortaleza,Brazil(2014):theme“inclusive growth,sustainable solutions”.Creationof the New Development Bank(NDB),with the objective of mobilizing resources for the financingof infrastructure and sustainable development projects i

187、n developing countries,and of theContingent Reserve Arrangement(CRA),a reserve fund for mutual support/liquidity to the BRICSin possible scenarios of crisis in the Balance of Payments,providing more security for investmentsin the member economies.On the Trade Ministers level,there was agreement on t

188、he BRICS Tradeand Investment Facilitation Action Plan in 2014.7th Summit Ufa,Russia(2015):theme“BRICS Partnership A thriving factor in globaldevelopment”.The NDB and CRA agreements were signed,after ratification by the five countries.The“Strategy for the BRICS Economic Partnership”(for the diversifi

189、cation of trade andinvestment between members,also highlighting the importance of investment facilitation).Cooperation agreement was signed between the Development Banks of BRICS countries and theNBD.8th Summit Goa,India(2016):Theme Building Inclusive and Collective Solutions.Discussionon world econ

190、omic recovery was held,including:fiscal and social responsibility,NDBdevelopment,investment attraction and economic growth.9th Summit Xiamen,China(2017):Theme BRICS:Stronger Partnership for a Brighter Future.Action Plan for Cooperation in Innovation(2017-2020),BRICS Action Plan on Economic andTrade

191、Cooperation,BRICS Strategy for Customs Cooperation and MoU between the NDB and theBRICS Business Council were signed.On the Trade Ministers level,the economies endorsed theOutlines for BRICS Investment Facilitation.The Outlines compiled some existing good practicesof BRICS countries to enhance trans

192、parency,improve efficiency and promote cooperation.10th Summit Johannesburg,South Africa(2018):Theme“BRICS:Collaboration for InclusiveGrowth and Shared Prosperity in the 4th Industrial Revolution”.The Agreement on the Installationof the Headquarters of the NBD Americas Regional Office in Sao Paulo a

193、nd the MoU on the27Regional Aviation Partnership were signed.The BRICS Innovation Network,iBRICS,was created.11th Summit Brasilia,Brazil(2019):Theme“BRICS:economic growth for an innovativefuture”.Commitment to transparent,non-discriminatory,open,free and inclusive internationaltrade(with greater par

194、ticipation of developing countries in global value chains).Main outcomes:MoU between Trade and Investment Promotion Agencies,and formalization of the BRICSInnovation Network(iBRICS);New Architecture in Science,Technology and Innovation(ST&I),BRICS Womens Business Alliance;Terms of Reference of the B

195、RICS Energy ResearchCooperation Platform;BRICS Business Forum brought together around 500 businessmen.12th Summit Moscow,Russia(virtual,2020):Theme“BRICS Partnership for Global Stability,Shared Security and Innovative Growth”.Cooperation to address the COVID-19 crisis,recognizing the importance of c

196、oordinated action,apart of immunization.They welcomed effortsto support low-income countries such as the Debt Service Suspension Initiative(DSSI),approvedat the IMF with the blocs support,in addition to emergency credit measures from the IMF and theWorld Bank.Support for the NDB expansion process(ge

197、ographically balanced).At the 10thMeeting of the BRICS Trade Ministers,It was highlighted that the BRICS strengthened its positionin world economy despite the pandemic,maintaining their investment attractiveness,and the blocsigned the BRICS Understanding on Investment Facilitation.17There was also t

198、he approval ofGuidelines for Promoting Effective Participation of Micro,Small and Medium Enterprises(MSMEs)in International Trade and the adoption of the Joint Statement on Multilateral TradingSystem and the WTO Reform.13th Summit New Delhi,India(virtual,2021):Theme“BRICS 15:Intra-BRICS Cooperationf

199、or Continuity,Consolidation and Consensus”.Finalization of the Agreement on BRICSCooperation and Mutual Administrative Assistance in Customs Matters;adoption of the ActionPlan 2021-2024 for Agricultural Cooperation,Innovation Cooperation Action Plan 2021-2024 andthe BRICS Alliance for Green Tourism.

200、Commitment to implement the Strategy for BRICSEconomic Partnership 2021-25.Recognizing that we are entering the“Decade of Action”for theimplementation of the SDGs,the BRICS agreed to prioritize the effective and efficient use oftechnology and data for development.There was advancement of BRICS inves

201、tment cooperationthrough initiatives such as the BRICS Partnership on New Industrial Revolution(PartNIR)andcooperation for the establishment of the Center for Industrial Competences,as well as the BRICSPartNIR Innovation Centre in China and BRICS PartNIR Startup events from India.Additionally,Worksh

202、ops in Services Trade Statistics enabled sharing of best practices and learning from eachother to bridge the gap in services data compilation methodologies(which includes mode 3:FDI).The MSME Roundtable was held to promote best practices amongst BRICS countries.India hasalso organized a number of B2

203、B events through the BRICS Business Council and the BRICSWomens Business Alliance to advance business cooperation.The 12thMeeting of BRICS Trade Ministers,which recently happened in China,showed thecontinuation of such developments,which also demonstrate alignment of UNCTAD policyrecommendations on

204、the area of investments,such as the UNCTAD Global Action Menu forInvestment Facilitation,18the IPA Observer edition on Promoting Green FDI,19the recent17BRICS Understanding on Investment Facilitation,2020.https:/brics-russia2020.ru/images/53/21/532176.pdf18UNCTAD(2017).Global Action Menu for Investm

205、ent Facilitation.https:/investmentpolicy.unctad.org/uploaded-files/document/Action%20Menu%2023-05-2017_7pm_web.pdf19UNCTAD(2016).IPA Observer.Promoting Green FDI:Practices and Lessons from the Field,n.5.2016.https:/unctad.org/system/files/official-document/webdiaepcb2015d6_en.pdf28UNCTAD eWeek,20foc

206、using on data and digitalization for development,as well as the most recent Investment Trends Monitor(Issue 41),21on Digital MNEs and the need for global digital governance.Annex 2.BRICS national initiatives on PPPs and infrastructure investmentWhile clearly recognizing the importance of investment,

207、and more specifically FDI,the BRICS countries have recognized infrastructure investment as playing a central role in sustainable development,as highlighted by the work of the BRICS Task Force on PPP and Infrastructure.With the increasing demand and the expanding areas of infrastructure on the one ha

208、nd,and the increasing fiscal constraints on the other,governments encourage the participation of private sector investors,leveraging their capital,technology and management expertise.The PPP regulatory framework is under ongoing improvement in all the members of the bloc.BrazilIn 2020,Brazil governm

209、ent linked the Special Secretariat for Investment Partnerships(PPI)specific administrative structure focused on PPPs to the Ministry of the Economy(MoE),streamlining management related to it.PPP projects are given top priority in a wide range of infrastructure sectors,taking private investment as a

210、priority.PPI acts as a governmental facilitator of main infrastructure projects.The MoE also launched the Investment Monitor,which is a digital platform aiming at disseminating important information on investment and sustainability in key economic sectors and disclosing information of projects under

211、 development and at operational stages from several electronic platforms(including the PPI,the Ministry of Infrastructure,the BNDES Projects Hub and Regulatory Agencies).Furthermore,the Ministry of Infrastructures website now displays an interactive national map,in which users can seek out projects

212、under development through information filters,such as its sector and status.Brazilian National Congress had also issued Law No 13655 of 2018,which established guidelines for decision-making processes,promoting a more efficient environment for the creation and application of regulations and making it

213、 easier and safer for authorities to take technical-based investment decisions(as opposed to pure low-cost decisions).It also updated its procurement law,through Law 14.133/21(“New procurement Law”),improving and simplifying regulations related to procurement and positively impacting the PPP sector.

214、ChinaChina has established a comprehensive PPP regulatory framework in recent years,including policies,guidelines,laws,model contracts,standards and laws since 2014,when PPP policies began to be made,and mechanisms are being improved to regulate PPP project process,disclose information on projects,e

215、xperts and agencies,and fairly select private sector partners.Chinas 13th and 14th Five-year Plans(2016-2020 and 2021-2025)have vigorously focused on attracting investments and promoting the PPP model.The National Development and Reform Commission and the Ministry of Finance are both in charge of in

216、vestment policies with coordinated 20UNCTAD eCommerce Week 2022:Data and Digitalization for Development,2022.https:/unctad.org/eweek202221UNCTAD(2022).Global Investment Trends Monitor,n.41.https:/unctad.org/webflyer/global-investment-trends-monitor-no-4129 efforts.The country has also upgraded the N

217、ational PPP Integrated Information Platform under the Ministry of Finance with modern IT technologies such as artificial intelligence,blockchain,cloud computing and big data,comprehensively improving services and supervision.In recent years,the country has issued a series of policies to encourage fi

218、nancial institutions to adopt green finance,encouraged banks and other financial institutions to finance PPP projects,and boosted the supporting and guiding role of the China PPP Fund and provincial PPP funds.At the third quarter of 2022,the country also intends to launch a state infrastructure inve

219、stment fund worth 500 billion yuan($74.69 billion)to spur infrastructure spending.India India has a robust PPP ecosystem recently developed at the sub-national and national levels,with a Public Private Partnership Appraisal Committee to streamline evaluation of all PPP projects.In 2019,the Project M

220、onitoring Group(PMG)was merged with Invest India,linked to the Department for Promotion of Industry and Internal Trade(DPIIT)of the Ministry of Commerce,helping streamlining management and decision making related to PPP projects.Additionally,three National level programs launched in 2021 National Mo

221、netization Pipeline(NMP),National Infrastructure Pipeline(NIP),and PM Gati Shakti Master Plan for Multi-Modal Connectivity have strengthen the overall approach to infrastructure with an impetus to attract private investments to complement governmental initiative.In 2021,India has also set up a new D

222、evelopment Financial Institution(DFI),the National Bank for Financing Infrastructure and Development,to provide infrastructure financing for long-term infrastructure projects under National Infrastructure Pipeline,which can also stimulate FDI in the sector.India now also offers Viability Gap Funding

223、(VGF)as financial support in the form of grants to infrastructure projects undertaken through PPPs which are economically justified but commercially unviable.Furthermore,the Indian government has recently developed various platforms that provide information about the investment projects and opportun

224、ities,and allow to monitor the progress of projects,apart of improving and linking to the PPPinIndia Website.The platforms include National Infrastructure Pipeline Portal(2021),Unified Logistics Interface Platform(2021),Asset Monetization Portal(2021).Russia Federation Russias government has introdu

225、ced an“infrastructure menu”,which is a new measure to develop infrastructure,regulated by numerous legal acts.The“infrastructure menu”is tailored to solve issues related to the development of social and urban infrastructure,as well as the transportation,using tools such as infrastructure bonds and l

226、oans.Such measures can also be used to finance PPP projects implementation.Russia has developed the ROSINFRA digital platform,where regional PPP information is published,domestic PPP priorities are analyzed and research reports are complied.In 2021,a digital project office was launched on this platf

227、orm,allowing regional and municipal authorities,investors,consultants and financing organizations to jointly participate in investment projects preparation and implementation.In September 2021 the Russian Green Taxonomy was adopted,covering industry,transport,water supply,waste management,energy,con

228、struction,biodiversity and agriculture.Such taxonomy helps the issuance of green bonds,which are actively issued by several regions,including the city of Moscow,and state companies.30South AfricaSouth Africa has developed a detailed legislative framework for international and partnership investments

229、,which is currently undergoing update and review,with the support of the World Bank.In September,the National Treasury started this review,aiming at improving effectiveness and encouraging private sector participation.The National Treasury has presented the recommendations in a first round in March

230、2021.Such recommendations are currently under implementation.The Government also announced an Infrastructure Fund in 2018,which creates an opportunity for more partnerships between government and the private sector through the use of blended finance.It follows a pipeline of projects for PPP,which wa

231、s developed with the private sector.In South Africa,the majority of investment projects now use project finance structuring,and the departments with investment initiatives can apply for Project Development Facility to cover development costs for the project,strengthening the potential of the project

232、 to attract investors.The South African Economic Reconstruction and Recovery Plan22presented to Congress by President Cyril Ramaphosa in 2020 emphasizes green economy interventions,which shows a recent focus on the environmental sustainability of investments,including through PPP.22President Cyril Ramaphosa:South Africas Economic Reconstruction and Recovery Plan https:/www.gov.za/speeches/president-cyril-ramaphosa-south-africa%E2%80%99s-economic-reconstruction-and-recovery-plan-15-oct