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BRIC
“An Economic Miracle”
Vartika Sahu
Amrit Varsha
BRIC Nations
45% world
population
28% global GDP
Brazil
china
India
Russia
South
Africa
An Introduction
• The term was coined by Jim O’ Neil of Goldman
Sachs in 2001 in his paper titled “The World Needs
Better ...
Is God Brazilian?
• Brazil is the top exporter of every commodity that
has seen dizzying price surges- iron ore,
soybeans,...
“Momento magico” over??
• Brazil will "remain a drag on the rest of the world for
the next few years.“
• "The economy rema...
Russia:“There’s Room Only at the Top”
• Oil and Gas account for 50% of Russian Exports and
30% of the federal revenue
• Oi...
Has Russia lost the thread?
• Growth in Russia has fallen for six
consecutive quarters.
• Stage 5 –declining population.
•...
“The Trajectory of Chinese growth”
• The emerging market mania began with China
• In 1998 China began an unbroken run of
g...
The fountain of youth is going to dry!!
• Back in 2008 Premier Wen Jiabao described Chinese
growth as unbalanced, uncoordi...
From BRIC to BRICS!!
• In the Investment Outlook Summit the prospects
of South African success was dismissed
• Jim O'Neil ...
India on a Tiger Road!!
• India’s GDP has grown from 5.83% to 9.7 %
from 2000 to 2010 (at constant market prices)
• India ...
The Great Indian Hope Trick!!
• India, Bloomberg noted , faces "a crisis of
credibility."
• The process of economic reform...
The Global Indian Statistics
Criteria Worldwide
Ranking
Population 2
Human Development Index 136
Public debt 29
GDP per ca...
Country Population
GDP
(nominal)
Government
spending
Exports Imports
GDP per
capita
(PPP)
Literacy
rate
Life
expecta
ncy
(...
Projected GDP growth (in billion $)
Projected growth in the GDP of G7 and
BRIC (in bill $)
Groups 2050 2045 2040 2035 2030 2025 2020 2015 2010
BRIC 128,32
4
9...
BRICS and G7 GDP comparisons
(in US bill $)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
YE 2010 YE 2015 YE 2020 ...
Factors Behind The Growth Of BRIC
• Demographic dividend.
• Rise of the middle class.
• Science and technology in the BRIC...
• The demographic outlook for the
BRICs varies greatly. The differences
in the projected change in the
working-age populat...
DEMOGRAPHIC DIVEDEND
The rise of the middle class
• Rapid economic growth of china and India
will lead to a large middle class
• Consumption of...
Science and technology
• Since 2002, global spending on science
R&D has increased by 45 percent to more
than $1,000 billio...
Research and development
• China’s development planning has targeted a
number of scientific fields and related
industries,...
Next 11 Emerging Markets
• Goldman Sachs identified another group of
economically dynamic and promising
developing countri...
Growth Environment Score
• The Growth Environment Score (GES) was
introduced by Goldman Sachs in the same
paper that ident...
categories of economic growth
determinants:
• Macroeconomic stability – inflation, government
deficit and external debt
• ...
GES SCORE
bric
• CHINA -53
• RUSSIA-81
• BRAZIL-95
• INDIA- 97
N-11 COUNTRIES
•SOUTH KOREA- 17
•MEXICO -59
•VIETNAM-63
•So...
Proposals
• The officials of BRICS nations have agreed to
set up a bank with a bank capital of $50 billion
which is equall...
Criticisms
• The coverage by the mainstream media in the
BRICS summit seems to have regarded the BRIC’s
Summit as more of ...
Conclusions
• While we come across criticisms against BRICS
nations we tend to forget that the concept is
only 5 years old...
BRIC NATIONS
BRIC NATIONS
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BRIC NATIONS

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BRIC nations, how they joined, their terms of agreements and poilicies

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  • DOWNLOAD THIS BOOKS INTO AVAILABLE FORMAT (2019 Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download Full EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download Full doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THIS can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THIS is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THIS Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THIS the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THIS Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
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BRIC NATIONS

  1. 1. BRIC “An Economic Miracle” Vartika Sahu Amrit Varsha
  2. 2. BRIC Nations 45% world population 28% global GDP Brazil china India Russia South Africa
  3. 3. An Introduction • The term was coined by Jim O’ Neil of Goldman Sachs in 2001 in his paper titled “The World Needs Better Economic BRICs.” • BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa. • The grouping was originally known as "BRIC" before the inclusion of South Africa in 2010.
  4. 4. Is God Brazilian? • Brazil is the top exporter of every commodity that has seen dizzying price surges- iron ore, soybeans, sugar • Brazilian stocks and bonds climbed heavenward, $5 billion in early 2007 to $50 billion in 2011 • According to Brazilian president it is Brazils “momento magico”
  5. 5. “Momento magico” over?? • Brazil will "remain a drag on the rest of the world for the next few years.“ • "The economy remains reliant on consumption, mainly fuelled by credit, both of which are showing signs of exhaustion. • Industry remains stagnant • Unemployment has crept up from historical lows. • The hefty investments needed to overhaul Brazil's ramshackle infrastructure aren't coming through
  6. 6. Russia:“There’s Room Only at the Top” • Oil and Gas account for 50% of Russian Exports and 30% of the federal revenue • Oil Profits are saved on a rainy day account called the stabilization fund. In 2007 the fund held more than $225 billion • Since the late 1990’s the average Russian income has risen from $1,500 to $13,000, more than twice as China’s
  7. 7. Has Russia lost the thread? • Growth in Russia has fallen for six consecutive quarters. • Stage 5 –declining population. • In other words, Russia may be feeling the effects of a region wide slowdown.
  8. 8. “The Trajectory of Chinese growth” • The emerging market mania began with China • In 1998 China began an unbroken run of growth at 8% or more each year till date • Over the past decade China’s exports have grown at an average yearly pace of 20%
  9. 9. The fountain of youth is going to dry!! • Back in 2008 Premier Wen Jiabao described Chinese growth as unbalanced, uncoordinated and unsustainable!! • Total debt as a share of GDP is rising fast • Advantage of cheap labor, a key to Chinese boom is quickly disappearing • The declining workforce is leading China towards a “wage driven inflation”
  10. 10. From BRIC to BRICS!! • In the Investment Outlook Summit the prospects of South African success was dismissed • Jim O'Neil told the summit that South Africa, at a population of under 50 million people, was just too small an economy to join the BRIC ranks. • The BRIC countries formed a political organization among themselves, and expanded to include South Africa
  11. 11. India on a Tiger Road!! • India’s GDP has grown from 5.83% to 9.7 % from 2000 to 2010 (at constant market prices) • India is the highest exporter of textile, gems and jewellery • India is witnessing its period of large labor boom
  12. 12. The Great Indian Hope Trick!! • India, Bloomberg noted , faces "a crisis of credibility." • The process of economic reform that began in the 1990s, it said, "has ground to a halt." • Corruption, red tape and subsidies are only one part of the problem. • India faces serious : As Mark Mobius of the investment firm Franklin Templeton told : "The surprising thing is the government doesn't seem to be acting with any degree of urgency."
  13. 13. The Global Indian Statistics Criteria Worldwide Ranking Population 2 Human Development Index 136 Public debt 29 GDP per capita 126 Imports 10 Exports 20 Labor force 2
  14. 14. Country Population GDP (nominal) Government spending Exports Imports GDP per capita (PPP) Literacy rate Life expecta ncy (years, avg.) HDI Brazil 193,946,886 $2,395.9 bn $846.6 bn $256.0 bn $238.8 bn $11,875 88.6% 78 .730 (high) Russia 143,451,702 $2,021.9 bn $414.0 bn $542.5 bn $358.1 bn $17,708 99.6% 67.7 .788 (high) India 1,210,193,422 $1,824.8 bn $281.0 bn $309.1 bn $500.3 bn $3,829 74.04% 64.2 .554 (medium ) China 1,354,040,000 $8,227.0 bn $2,031.0 bn $2,021.0 bn $1,780.0 bn $9,161 92.2% 72.7 .699 (medium ) South Africa 51,770,560 $384.3 bn $95.27 bn $101.2 bn $106.8 bn $11,375 86.4% 51.2 .629 (medium )
  15. 15. Projected GDP growth (in billion $)
  16. 16. Projected growth in the GDP of G7 and BRIC (in bill $) Groups 2050 2045 2040 2035 2030 2025 2020 2015 2010 BRIC 128,32 4 98,757 74,483 55,090 40,278 28,925 20,226 13,653 8,640 G7 66,039 59,475 53,617 48,281 43,745 39,858 36,781 33,414 30,437
  17. 17. BRICS and G7 GDP comparisons (in US bill $) 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 YE 2010 YE 2015 YE 2020 YE 2025 YE 2030 YE 2035 YE 2040 YE 2045 YE 2050 BRIC G7
  18. 18. Factors Behind The Growth Of BRIC • Demographic dividend. • Rise of the middle class. • Science and technology in the BRICs • Next emerging 11 markets. • Growth environment score
  19. 19. • The demographic outlook for the BRICs varies greatly. The differences in the projected change in the working-age population are very significant in both absolute and relative terms. • This will impact not only economic growth prospects, but also savings and investment behaviour and potentially financial market growth prospects. • Brazil and India are demographically in a substantially more favourable position than China and Russia. • With the exception of India, demographic developments in the BRICs are becoming, or will soon become, a net negative in terms of per-capita growth. DEMOGRAPHIC DIVEDEND
  20. 20. DEMOGRAPHIC DIVEDEND
  21. 21. The rise of the middle class • Rapid economic growth of china and India will lead to a large middle class • Consumption of the middle class would help drive the BRIC’s economic development and expansion of the global economy.
  22. 22. Science and technology • Since 2002, global spending on science R&D has increased by 45 percent to more than $1,000 billion (one trillion) U.S. dollars. From 2002 to 2007, China, India and Brazil more than doubled their spending on science research, raising their collective share of global R&D spending from 17 to 24 percent.
  23. 23. Research and development • China’s development planning has targeted a number of scientific fields and related industries, including clean energy, green transportation and rare earths, among others. Since 1999, China’s spending on science R&D has grown 20 percent annually to more than $100 billion. By 2020, China plans to invest 2.5 percent of GDP in science research.
  24. 24. Next 11 Emerging Markets • Goldman Sachs identified another group of economically dynamic and promising developing countries creatively labelled the “Next 11” in its 2005 Economics Paper No. 134 “How Solid are the BRICs?” The Next 11 consists of a broader group of emerging markets with the potential to play significant roles in the global economy, including: Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey and Vietnam.
  25. 25. Growth Environment Score • The Growth Environment Score (GES) was introduced by Goldman Sachs in the same paper that identified the Next 11. The GES is an index developed to measure the extent to which structural conditions and policy settings in a country are conducive to transforming the economic potential of the BRICs, Next 11 and other countries into reality.
  26. 26. categories of economic growth determinants: • Macroeconomic stability – inflation, government deficit and external debt • Macroeconomic conditions – investment and openness • Technological capabilities – penetration of phones, PCs and internet • Human capital – average years of secondary education and life expectancy • Political conditions – political stability, rule of law and corruption
  27. 27. GES SCORE bric • CHINA -53 • RUSSIA-81 • BRAZIL-95 • INDIA- 97 N-11 COUNTRIES •SOUTH KOREA- 17 •MEXICO -59 •VIETNAM-63 •South Africa -80 • Iran -86 • Egypt -91 • Turkey -112 • Indonesia -114 • Pakistan -126 • Bangladesh -134 • Nigeria -147
  28. 28. Proposals • The officials of BRICS nations have agreed to set up a bank with a bank capital of $50 billion which is equally shared between all the member countries • Indonesia and Turkey have been mentioned as candidates for full membership • Egypt and Nigeria have expressed interest in joining.
  29. 29. Criticisms • The coverage by the mainstream media in the BRICS summit seems to have regarded the BRIC’s Summit as more of a failure than a success. • BRICS nations have not unified on the world stage • Brazil frequently raises the issue of China's monetary policy, meanwhile India and China have a history of fraught relations over Tibet. There also rising concerns in South Africa that the relationship with China is too unbalanced.
  30. 30. Conclusions • While we come across criticisms against BRICS nations we tend to forget that the concept is only 5 years old • When we talk about differences among different member countries overlook the fact that all these countries are economically,socially,politically and culturally so different.

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