BRICS BRICS stand for Brazil, Russia, India, China & South Africa. Came into existence in the year 2001 as BRICNATIONS. BRICS is international political organization of leading emerging economies its Five members are all developing industrialized countries. Biggest and fastest growing emerging economies Term BRIC was first prominently used in a Goldman Sachs report from 2003.
South Africa has been asked to join the BRIC group of major emerging markets. Officially admitted as a BRIC nation on December 24, 2010 South Africa stands at a unique position to influence African economic growth and investment
Cont… China is South Africa’s largest trading partner India wants to increase commercial ties with Africa South Africa brought into BRIC "not only South Africa but a larger African market of a billion people,"
Objectives of BRICS1-To achieve regional development2-To remove trade barriers.3-Economic development.4-Optimum use of resources.5-Builiding relationship.
BRICS Summit 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 BRICS group. Issued a joint statement on global food security, calling for "action by all governments and the relevant international agencies“
Cont… Attacked the role of dollar as the primary international currency & suggested new global reserve currency that is diversified, stable and predictable. 2nd BRIC summit held on April 16, 2010 Brazil 3rd BRICS summit held on April 14, 2011 china
The Fourth BRICS Summit was hosted in New Delhi on 29March 2012 under the theme of “BRICS Partnership forGlobal Stability, Security and Prosperity.” The Summit hasimparted further momentum to the BRICS process ofplanning a joint development bank.
Dreaming with BRICS:The Path to 2050 Already BRICS accounts for: 40 per cent of the worlds population, 25.9 per cent of its total geographic area, 40 per cent of global GDP By 2050, BRICS countries expected to accounts for over 40% of the world’s population and 60% of global GDP.
Cont… BRICS could be larger economies than the united states and the developed economies of Europe within 40 years . China and India will become world’s dominant suppliers manufactured goods and services Brazil and Russia will become dominant suppliers raw materials
BRAZIL KEYADVANTAGESOne of the fastest growing economies in the last centuryBrazilian economy becoming less dependent on exportsExtremely rich in resources such as coffee, sugarcane, iron , and crude oil etc
Cont…. Focus on equitable development has resulted in significant poverty reduction Challenges for the Future Overburdened and ineffective judicial systemIndustrial output is weak
RUSSIA KEY ADVANTAGES Russia has capability in high-technology sectors Accounts for around 20% of the world’s oil and gas reserves fall in the number of people living below the poverty line
Cont…Challenges for the FutureLabor shortages and poorly developed infrastructureCorruption
INDIAKey Advantages1.15 billion people2nd largest labor forceApproximately 2.5 million college graduates per year
Cont..Challenges for the FutureImproving basic educational achievementImproving infrastructure and electrical capacityExpanding technology industry
CHINAKey Advantages Broad expansion of educational achievement Rapid economic growth Third largest country in land size
Cont…Challenges for the Futuresupport to rural areas and less-developed regions. Bank of China sees inflation as a bigger risk . Need to improve the investment
South AfricaKEY ADVANTAGEThe South African economy is now the 23rd largest in the worldInflation is now below 5% and falling. 25% of goods produced in South Africa are for export
Cont…Challenges: The economy is growing but not fast enough Lack of skills, particularly in IT. 48% of the population is living below the poverty line
Recession & Brics The global financial meltdown of 2008 has not left the economies of Brazil, Russia, India, China & south Africa known as the BRICS club injured.Š As the developed world faces recession, BRICS growth is inevitably set to slow.Š Yet strong foreign exchange reserves and growing domestic demand has allowed BRICS to with stand the crisis and continue growing, strengthening their position as a major consumer market.
Financial contribution India has provided loans of more than $200million to the African countries since 2009.Š China has invested almost $4000 million as foreign direct investment.Š Russia too has contributed more than $3000million as FDIŠ Brazil has invested around $4000 million in Africa.
Strengths After a decade of growth, BRICS economies have built up strong consumer demand, which could take the lead as the prime engine for growth.Š All BRICS countries have accumulated high levels of foreign exchange reserves. foreign exchange reserves will allow governments to boost public spending in order to support the economy. This could take the form of social benefits to encourage consumers to spend more
Opportunities Inclusive growthBRICS economies could become a much larger force in the world economy. The BRICS real exchange rates could appreciate by up to 300% over the next 50 years BRICS maintain policies and develop institutions that are supportive of growth
BRICS NATIONS FUTURE BANKBRICS nations are going to develop a joint bank within the BRICS nations for assistant them self, And to meet the following reasons:
Cont…o Growing emerging markets.o Climate change, food and energy security,o International economic exchange.o Financial assistant.o Populations control
Market analysisThe concept of a joint development bank within BRICS nations whether its needed to establish….?YES its need full Thought.1-GDP growth rate in BRICS nations is higher2-Massive marketing opportunities.3-Service sector contribution.4-Human resources using.
SWOT AnalysisStrength of the BRICS nations1- To use resources.2-Market opportunities.3-Economic developments.Weakness of the BRICS nations1- Population problem.2- lack of Infrastructure.3- Decreasing GDP growth rate.
Cont…Opportunities of the BRICS nations1- To expand the market.2- Regional development.3-Monetry resources.Threats of the BRICS nations1-Financial crises.2- Threats from other unions.3-dollar role
Criticism The BRICS dream isn’t green. Nothing more than a neat acronym for the five largest emerging market economies. A criticism is that the BRICS projections are based on the assumptions that resources are limitless and endlessly available when needed
Cont….BRICS doesn’t have a concrete and constructive agenda for change or vision for a future world order. China is the muscle of the group and the Chinese know it. They have effective veto power over any BRICS initiatives
Conclusion The BRICS have come together in a political grouping in a way that has far exceeded most expectations. Although BRICS cooperation has been significant, intra- BRIC competition and rivalry are important limits on how much further BRICS cooperation can go.
cont….BRICS nations have the potential and the resources to form a powerful economy with greater opportunity than any other nationThe BRICS are becoming super powers. Whether they would surpass the expectations lying on them is something that we can only speculate on. But it is no doubt, that they have become more important today than before more rests on their growth rather than on the growth of the previously bigger powers of the world.