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Cooperation for Development, Brazilian Regional Leadership and Global Protagonism

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Global and Regional Leadership of BRICS Countries

Part of the book series: United Nations University Series on Regionalism ((UNSR,volume 11))

Abstract

This chapter aims to analyse Brazil’s regional policy towards South America during Luiz Inácio ‘Lula’ da Silva’s government by discussing what kind of leadership role the country was able to play in the region during this period. The authors examine the role played by the policy of International Cooperation for Development on such regional leadership. The central argument is that although Brazil has performed the role of a regional leader, there is a need for distinguishing leadership for regional matters – inward regional leadership – from leadership for global issues – outward regional leadership. They argue that inward regional leadership was in fact successfully performed by Brazil in South America, mainly due to its role as a Development Regional Leader. On the other hand, they also find that such leadership for regional matters did not always allow Brazil to act on behalf of the entire region at the global arena. Nevertheless, they argue that Brazilian diplomacy left behind the belief that, in order to exude traits of global protagonism, the country should use South America as a regional launching platform. Instead, Brazil has been making use of global coalitions such as IBSA and BRICS to boost its global role that has been declining since the Rousseff administration started in 2011.

The authors would like to thank Diana Aguiar, Eduardo Plastino, Janina Onuki, Julimar Bichara, Luciano, Barbosa de Lima, Maria Regina Soares de Lima, Monica Hirst, Monica Salomón, Pedro Archer, Tatiana Oliveira, Tiago Martins, Tim Power, and Yuri Tonani, who have helped with the research, suggestions and/or comments to improve their argument. We also thank the editors of this book for their insightful comments and suggestions. Possible mistakes and omissions are the sole responsibility of the authors.

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Notes

  1. 1.

    Available at: http://www.bbc.co.uk/portuguese/reporterbbc/story/2008/03/080303_ams_abre1_diplomacia.shtml. Accessed: 4th May, 2012.

  2. 2.

    ‘Brasil já exercia liderança, diz ex-chanceler de FHC’. Folha.com, 19/01/2003. Available at: http://www1.folha.uol.com.br/folha/mundo/ult94u50530.shtml. Accessed: 4th May, 2012.

  3. 3.

    When we say region we are referring only to the South American states.

  4. 4.

    It is important to underline that we are talking about public financing for foreign governments to purchase goods and services from Brazilian construction and engineering companies related to infrastructure projects that South American countries consider being relevant to their development. We are not interested in discussing the broader phenomenon of the expansion of Brazilian capital, a strategy that, though may also benefit from public finance support, does not necessarily aim to generate regional public goods such as infrastructure. For a discussion of the latter and its effects on national development see Masiero and Caseiro 2012; for the international expansion of Brazilian capital, see Actis 2012 and 2013.

  5. 5.

    From the outset, it is important to note that, although Brazil participates in other political coalitions with emerging countries and middle powers, such as the BRICS – Brazil, Russia, India, China and South Africa – and is even currently investing more politically in the latter than in IBSA, the option to examine the place of the latter coalition in Brazil’s foreign policy and its relation to the issue of its alleged regional leadership agenda (instead of the BRICS) was due to the fact that the chapter examines in particular the period of President Luis Inácio Lula da Silva’s government (2002–2010), while the BRICS group was only formalized in the first presidential summit in 2009.

  6. 6.

    ‘El desafío de definir el rol como potencia global’ by Juan Gabriel Tokatlian. La Nación, 6th November, 2010. Available at: http://www.lanacion.com.ar/1321624-el-desafio-de-definir-el-rol-como-potencia-global. Accessed: 2nd May, 2012.

  7. 7.

    In saying so, we are implicitly denying Kindleberger’s (1981) definition and distinction between the concepts of dominance and leadership. Whilst for him ‘one country… dominated another when the other had to take into account what the first entity did, but the first could equally ignore the second’ (Kindleberger 1981, p. 243); and leadership is a situation when a country persuades ‘others to follow a given course of action which might not be in the follower’s short-run interest if it were truly independent’ (Ibidem); for us, such definitions of dominance and leadership do not take into account a certain level of complementarity of interests and freewill between leaders and supporters.

  8. 8.

    In his own words, ‘The dominant group will go to the extent of making minor or tangential sacrifices, even in the economic realm, in order to co-opt the subordinate, creating a system of political economy which subtly, yet indelibly, commits the subaltern to preserving the hegemony for what at first glance may appear self-interested reasons’ (Burges 2008, p. 71).

  9. 9.

    It is worth remembering that this macroeconomic stability derives from the maintenance of many economic policies adopted during the previous government of Fernando Henrique Cardoso. However, during Lula’s administration, those policies were conjugated with a bigger role conferred to the State as a fundamental part of economic growth. The State is understood, in this sense, as “capable of regulating the market to ensure a macroeconomic stability broader than monetary stability and, simultaneously, strengthen the market as the main producer of wealth”. (Morais and Saad-Filho, 2011, p. 525, our translation).

  10. 10.

    Brazil is responsible for depositing 70 % out of the total, Argentina 27 %, Uruguay 2 %, and Paraguay 1 %. Inversely, Brazil and Argentina are allowed to withdraw just 10 % out of the fund, Uruguay 32 %, and Paraguay 48 %. To know more about FOCEM’s structure, see: Brazil’s Ministry of Planning, Budget and Management webpage, available at: http://www.planejamento.gov.br/secretaria.asp?cat=156&sub=279&sec=10. Accessed: 21st April, 2012.

  11. 11.

    The Agreement on Reciprocal Payments and Credits is an important example of such mechanisms.

  12. 12.

    It should, however, be noted that the internationalization of Brazilian companies was not initiated during Lula’s government, and that the expansion of Brazilian multinationals is not a product of a governmental planning. Nevertheless, it has highly benefited from public policies after 2003 (Actis 2013, p. 23).

  13. 13.

    Argentina has been one of the countries that most benefited from Brazilian infrastructure financing in South America (Koblitz 2010a). In the years 2009 and 2010, for instance, infrastructure projects in the country absorbed more than 50 % of BNDES’ loans to South America. The Brazilian bank possesses a financing portfolio especially for Argentina’s infrastructure projects, which is divided in three areas: gas pipelines, transport and sanitation (Koblitz 2010b).

  14. 14.

    Data released by the Ministry of Development, Industry and Foreign Trade of Brazil. For more information, see: http://aliceweb2.mdic.gov.br/.

  15. 15.

    For more information, see: the company’s website at http://www.oas.com/oas-com/home.htm.

  16. 16.

    In 2008, after blaming the Brazilian enterprise for malfunctioning in the San Francisco hydroelectric facility, President Rafael Correa decided to expel Odebrecht and took the case to an international arbitration court. Correa stated that the country was not planning to pay for the $243 US million provided by BNDES for the project. As a consequence, relations between Ecuador and Brazil got strained and BNDES no longer financed new infrastructure projects in the country. According to Actis (2012), such an episode constitutes an exception in Brazil’s posture concerning conflicts involving Brazilian private enterprises and South American governments, given Brazil’s choice to protect Odebrecht’s investments over preserving bilateral relations with Ecuador. In the beginning of 2009, Correa paid its full debt and bilateral relations eased. Brazil and Ecuadorian cooperation for infrastructure projects would resume.

  17. 17.

    For more information, see: Brasil vuelve a financiar obra local. El Universo, 13th November, 2012. Available at: http://www.eluniverso.com/2012/11/13/1/1355/brasil-vuelve-financiar-obra-local.html. Accessed: 14th November, 2012.

  18. 18.

    One of the most relevant amongst such governmental agencies is the Institute for Applied Economic Research (IPEA), which is associated to the Secretariat for Strategic Affairs of the Presidency. For more information, see: IPEA (2010a).

  19. 19.

    The following official figures about Brazil’s technical cooperation projects with South American countries were made available on our request by the Brazilian Cooperation Agency (Agência Brasileira de Cooperação/ABC), thanks to the endeavor of Luciano Barbosa de Lima from the ABC/South, Central America and Caribbean Division, in December 2012.

  20. 20.

    Available at: http://www.isags-unasul.org/interna.asp?idArea=37&lang=2&idPai=. Accessed: 6th December, 2012.

  21. 21.

    We have no doubts that Brazil is also being able to craft another kind of important leading role in the region – or inwards regional leadership, as we mentioned above – by means of attitudes towards political stability in the region, such as its role on the negotiations amongst Colombia, Ecuador and Venezuela over the killing of a FARC leader by the Colombian armed forces within the Ecuadorian territory (Vieira and Alden 2011:516); or on the Venezuelan crisis over the right of president Chavez taking office despite his illness. “Maduro: Dilma respalda decisão tomada por Judiciário”. O Globo, 10 Jan. 2013, Available at: http://oglobo.globo.com/mundo/maduro-dilma-respalda-decisao-tomada-por-judiciario-7246902. Accessed: 10 Jan. 2013. Nevertheless, in this chapter our aim is to highlight its role as a development leader in the region, in relation to which these actions cannot be taken as examples.

  22. 22.

    It is worth noting, that differently from the last contest for the position of director-general of the WTO (2009) when Uruguay presented its own candidate to run against the Brazilian one, in 2013 Brazil was the only South American country to run for the position. The Brazilian government and the WTO announced consensus over Brazil’s candidate, Roberto Azevedo. In this sense, there was an agreement amongst all WTO members, including Brazilian regional peers, on Azevedo’s candidacy. This could be seen as a signal that Brazil is succeeding to gain South American support and also as an indicator of the increasing international recognition of Brazil as a leading country on trade negotiations.

  23. 23.

    IBSA has a huge portfolio of agreements in very important issues such as international security, science and technology, health, education, agriculture, transport, etc., either as trilateral agreements or as collective proposals to be presented in the international fora for the reform of the present international regimes ruling these issues.

  24. 24.

    It is worth quoting former Brazilian Minister of Foreign Affairs, Celso Amorim, who said that ‘I can state with conviction that the G-20 would not exist without IBSA’ (Celso Amorim at ‘The India-Brazil-South Africa Dialogue Forum and World Trade’ in The India-Brazil-South Africa Dialogue Forum Brasilia: Ministry of External Relations, Republic of Brazil, 2006, p. 6. Apud Stephen 2012, p. 300).

  25. 25.

    IBSA Trilateral Forum, ‘Fourth Summit of Heads of State/Government Brasilia Declaration’, April 2010. Available at: www.ibsa-trilateral.org. Accessed: 4th December, 2012.

  26. 26.

    It is worth mentioning that Chile, Colombia, Peru, all members of the Pacific Alliance, have also signed contracts with BNDES for financing infrastructural projects. See: Brasil Econômico (redação@brasileconomico.com.br), 17th October, 2011; By Business News Americas staff reporter. Thursday, 27th October, 2005. Available at: http://www.valor.com.br/politica/2603590/megaprojeto-brasileiro-no-peru-sai-do-papel#ixzz2bZABo0zR; http://www.valor.com.br/empresas/2598548/odebrecht-assumira-100-de-gasoduto-no-peru#ixzz2bZBOd8Id

  27. 27.

    This lack of dependency between traditional regional leadership and global performance can be exemplified by the fact that, even after its defeat as candidate for WTO general-director in 2009, due to the lack of regional supporters, Brazil’s reputation and influence in WTO has not been damaged (Malamud 2011, p. 9). Besides, we could also mention other Southern coalitions for specific issues of which Brazil is a member, in which the country – and perhaps also its partners – also benefits from its condition of regional power, without having to be a regional leader in its traditional meaning, such as BASIC (Conference of the Parties (COP) of the Framework Convention on Climate Change, created in early 2010 this coalition brings together Brazil, South Africa, India and China for matters of Climate Change;. G-4 – India, Germany, Japan, and Brazil – the articulation for the reform of the Security Council of the United Nations (UNSC).

  28. 28.

    It is not out of the question that the support Brazil received from its regional peers – Argentina, Paraguay, Bolivia, and Venezuela, among others – for the Brazilian candidacy to WTO general-director is an example of that. ‘Azevedo Rode To WTO Victory Mainly Due To Developing World Support’. Available at: http://wtonewsstand.com/WTO-Daily-News/Daily-News/menu-id-446.html

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  1. Institute for Social and Political Studies, State University of Rio de Janeiro (IESP-UERJ), Rio de Janeiro, Brazil

    Leticia Pinheiro

  2. South American Political Observatory – OPSA, Institute for Social and Political Studies, State University of Rio de Janeiro, Rio de Janeiro, Brazil

    Gabrieli Gaio

  3. Centre of African Studies – CEAF, School of Social and Political Sciences, University of Lisbon, Lisbon, Portugal

    Gabrieli Gaio

Authors
  1. Leticia Pinheiro
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  2. Gabrieli Gaio
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Correspondence to Leticia Pinheiro .

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Editors and Affiliations

  1. Institute on Comparative Regional Integration Studies, United Nations University (UNU-CRIS), Bruges, Belgium

    Stephen Kingah

  2. Department of International Relations, FLACSO Argentina, Buenos Aires, Argentina

    Cintia Quiliconi

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© 2016 Springer International Publishing Switzerland

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Pinheiro, L., Gaio, G. (2016). Cooperation for Development, Brazilian Regional Leadership and Global Protagonism. In: Kingah, S., Quiliconi, C. (eds) Global and Regional Leadership of BRICS Countries. United Nations University Series on Regionalism, vol 11. Springer, Cham. https://doi.org/10.1007/978-3-319-22972-0_5

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