BRICS

(Brazil, Russia, India, China and South Africa)

Presented by : Rini

CONTENT
THE BRICs Dreaming with BRICs path to 2050. Painting BRIC by numbers. INDIA: A rising growth potential. RUSSIA: A smooth political transition. CHINA: Unleashing the Caged Tiger. The B in BRICs: Unlocking Brazils growth potential. Share Challenges & opportunities. BRICS & International Politics. Influence The BRIC summit Criticism Conclusion

The BRIC
The BRIC A grouping acronym referring to the countries of Brazil, Russia, India, and China. Term was first prominently used in a Goldman Sachs report from 2003. These countries arent a political alliance - but they have the potential to form a powerful economic bloc These four countries are among the biggest and fastest growing emerging markets Already BRIC accounts for:
40 per cent of the world's population, 25.9 per cent of its total geographic area, 40 per cent of global GDP

Dreaming with BRICs: The Path to 2050

BRICs currencies could appreciate by 300%, providing a big tailwind for investors in BRIC assets. By 2050, BRIC countries expected to account for over 40% of the worlds population, and 60% of global GDP. Taken together, the BRICs could be larger than the United States and the developed economies of Europe within 40 years.

Painting BRIC by numbers

CATEGORIES
AREA POPULATION LABOUR FORCE GDP ( PPP) FOREIGN EXCHANGE RESERVES ACTIVE TROOPS

BRAZIL RUSSI A
5 5 5 9 7 14 1 9 6 7 3 5

INDIA

CHINA

7 2 2 4 5 3

3 1 1 2 1 1

INDIA: A Wise Elephant

Globalization Forces of globalization set the stage for rapid rise of Indian economy Confluence of internal changes and external forces of globalization allowed India to leverage the power of English speaking technical talent to produce powerful software for the global market Key Advantages 1.15 billion people 2nd largest labour force: 516.3m people Approximately 2.5 million college graduate per year Those with graduate degrees and above have risen from 20.5 million in 1991 to 48.7 million in 2004

INDIA: A Wise Elephant

Trends
Number of people in absolute poverty has declined sharply Export hav boomed Foreign exchange reserve are ample for the first time in history Newfound economics dynamism has shifted the balance of leaders priorities from geopolitical goal to mutual economic interest.

Challenges for the Future

Improving governance Improving basis educational achievement Improving infrastructure and electrical capacity in cities Expanding technology industry

RUSSIA: A Smooth Political Transition

An easy case for globalization
Undue emphasis on economics over politics Disregard of cultural values Russia can still benefit from a globalized world without undertaking painful reform.

Challenges for the Future

Labor shortages and poorly developed infrastructure WTO membership and long-term growth of the manufacturing sector Reconciling ambitions as a major power with reality of current situation

THE B IN BRIC: Unlocking Brazils Growth POTENTIAL

The uneasy emergence of an economic leader in Latin America
One of the fastest growing economies in the last century But over-reliance on agricultural commodity exports resulted in a development marked by boom and bust Focus on equitable development has resulted in significant poverty reduction Brazilian economy becoming less dependent on exports A global leader in renewable fuels.

Challenges for the Future

Overburdened and ineffective judicial system

CHINA: Unleashing The Caged Tiger

How did China do it?
Chinas successes are associated with liberalization and globalization. China focused not only on opening economy, but also on institutionalizing globalization Assimilation of best practices from across the globe

A Painful Transition
State enterprise employment declined from 110 million in 1995 to 66 million in 2005 Urban-rural income gap is getting wider Environmental cost of industrialization.

CHINA: Unleashing The Caged Tiger

Key Advantages
Broad expansion of educational achievement Rapid economic growth Resilience to global economic downturn

Challenges for the Future

Recognition as a global power requires adherence to international norms Continued reform of state-run enterprises. Demographic shifts threaten sustained growth. Navigating a complex relationship with US and world.

Challenges

Shared Challenges & Opportunities

The face of poverty in 20th century was rural children. The face of poverty in the 21st century will be the urban elderly. Making the global system more accommodating to diverse cultures and values

Opportunities
Inclusive growth critical for sustained globalization (politically) in developing countries, because potential lies in bringing up all

BRIC and International politics

Influence on New world order.
U.S troops has been deployed in Afghanistan for more than 8 years without any substantive outcome. Afghanistan is close to China, India and Russia. The controversial question of Iran. Russia, China and India could secure more proximity to the region.

BRIC cooperation is not solely an anti-U.S., or antiwestern phenomenon, but is based on deeper common interests. Improve Bargaining Position with Western Countries. Stabilize International Environment and Prevent Encirclement

INFLUENCE
Account for 15% of the global economy and 42% of global currency reserves. Between 2000 and 2005, the BRICs contributed roughly 28% of global growth in US dollar terms and 55% in purchasing power parity (PPP) terms. Their share of global trade continues to climb at a rapid rate. At close to 15% currently, it is now double its level in 2001. The BRICs share of oil demand is moving steadily higher, with an estimated 18% share in the current year

BRIC Summit Aftermath

BRIC Summit Aftermath The BRIC countries met for their first official summit on 16 June 2009, in Yekaterinburg, Russia. Discussed the current global financial crisis, global development, and further strengthening of the BRIC group. Attacked the role of dollar as the primary international currency & suggested new global reserve currency that is 'diversified, stable and predictable'. Issued a joint statement on global food security, calling for action by all governments and the relevant international agencies

Criticism
Understatement of GDP growth in China which predicts growth falling far below normal development. The BRICs dream isnt green. Nothing more than a neat acronym for the four largest emerging market economies. BRICs doesnt have a concrete and constructive agenda for change or vision for a future world order. It is not clear what BRIC would do even if they were given the opportunity to remake the international order.

Conclusion
The Importance of the U.S. The BRICs have come together in a political grouping in a way that has far exceeded most expectations. Although BRIC cooperation has been significant, intra-BRIC competition and rivalry are important limits on how much further BRIC cooperation can go