BRICS and the Caribbean
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The slide presentation is about the BRICS influence in the Caribbean economies, specially in the CARICOM countries
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BRICS and the Caribbean
- 1. INTERNATIONAL RELATIONS OF THE CARIBBEAN BRICS emergence and presence in the Caribbean Dr. Jacqueline LAGUARDIA MARTINEZ
- 2. BRICS: New International Actors • BRIC configuration started on economic projections • Middle powers • Regional leaders • Fastest-growing countries • Engines of the global recovery process • International roles • Diplomatic activism • Opportunity: Global vacuum
- 3. Fuente: Sachs, Goldman, Global Economic Papers No. 99, 2003
- 5. BRICS countries (2010) • More than 40% of the global population (work force) • Nearly 30% of the land mass • 25% of the world GDP in PPP terms • 43% forex reserves • Major destinations for FDI • Large economies • Increasingly important role in meeting global demands for capital Suresh P. Singh in BRICS and the World Order: A Beginner’s Guide
- 6. Suresh P. Singh in BRICS and the World Order: A Beginner’s Guide
- 7. BRICS % GDP increase (2008-2013) Source: CEPAL, en Jonathan Quirós Santos
- 8. Suresh P. Singh in BRICS and the World Order: A Beginner’s Guide
- 9. A long-term vision for BRICS: Submission to the BRICS Academic Forum, 2013
- 10. BRICS within Suresh P. Singh in BRICS and the World Order: A Beginner’s Guide
- 11. Suresh P. Singh in BRICS and the World Order: A Beginner’s Guide
- 12. Source: UNCTAD, The rise of BRICS FDI and Africa, 25 March 2013
- 13. Suresh P. Singh in BRICS and the World Order: A Beginner’s Guide
- 14. FDI trends • BRICS have emerged as major recipients of FDI and important outward investors • Overseas investment is mainly in search of markets in developed countries or in the context of regional value chains • Some 43% of BRICS outward FDI stock is in respective neighbouring countries in Latin America and the Caribbean, East Asia, South Asia and transition economies (40% in the case of Brazil) • Economic linkages through FDI between BRICS countries themselves are still limited, although intra-BRICS FDI has grown faster than flows to non-BRICS over the past decade
- 15. Intra-BRICS FDI Source: UNCTAD, The rise of BRICS FDI and Africa, 25 March 2013
- 16. A long-term vision for BRICS: Submission to the BRICS Academic Forum, 2013
- 17. A long-term vision for BRICS: Submission to the BRICS Academic Forum, 2013
- 18. Suresh P. Singh in BRICS and the World Order: A Beginner’s Guide
- 19. Natural resources (2005) Source: Wealth of Nations in Lucas Ferraz Vasconcelos, Cambio estructural en Brasil: Una experiencia latinoamericana
- 20. International projection BRICS have been able to transform their economic power into international political influence •Members of major international and multilateral institutions, such as the WTO, the UN, the G-20 and the UN Framework Convention on Climate Change, and are very active participants therein. •Involvement in Global Issues: Reform of the UN Security Council (UNSC), reform of international financial institutions, namely the IMF and the World Bank, Doha Round, Climate Change (BASIC countries) •Create a Developing Bank Suresh P. Singh in BRICS and the World Order: A Beginner’s Guide
- 21. BRICS Summits I. Russia (June 2009) II. Brazil (April 2010) III.China (April 2011) IV.India (March 2012) V. South Africa (March 2013) VI.Brazil (2014)
- 22. Origins and evolution 2001: BRIC denomination (Goldman Sachs) 2006: The Dow Jones introduces the BRIC 50 Index, a basket of the 50-biggest companies listed on the stock exchanges of Brazil, Russia, India and China 2006: Formalization with the First Meeting of the BRIC foreign ministers as a side event to the 61st UN General Assembly in New York 2008: BRIC Heads of State/Government meeting 2009: First summit in Yekaterinburg, Russia 2011: South Africa incorporation Suresh P. Singh in BRICS and the World Order: A Beginner’s Guide
- 23. Common principles of the group • Mutual respect and non-interference in each other's internal affairs; • Non-confrontation; • Opposition to the use or threat of force in international relations; • Centrality of multilateralism on global issues; • Mutual respect for each other's choice of development path; • Openness; • Pragmatism; • Solidarity; • Non-bloc nature; •
- 24. But… • Increasing military budgets • Nuclear powers (Russia, China and India)
- 25. Problems within 1. The group is not a natural fit: heterogeneous nature and lack of cohesive identity 2. Differences on values, economics, political structures and geopolitical interests 3. Inadequate infrastructure: energy; telecommunication; transport (particularly road and rail); and access to improved water and sanitation 4. Infrastructure challenge is also about regional infrastructure development 5. Fragile nature of trade and investment linkages 6. Lack of skilled workforce
- 26. Source: UNCTAD, The rise of BRICS FDI and Africa, 25 March 2013
- 27. Source: UNCTAD, The rise of BRICS FDI and Africa, 25 March 2013
- 28. Fallacy? Not only because an expected relative decline in growth rates, but: •Incapacity of performing an effective diplomacy (not able to fashion a coordinated response to various global challenges) •China and Russia have little incentive to seek a change in the global political institutional fabric •Corruption •South Africa? •Overhyped from the start •Structural disparity between China and the rest
- 29. Interesting for BRICS’ international ambitions CARICOM member states represent 7% of the UN General Assembly votes and 44% of OAS votes
- 30. New BRICS members? Indonesia is tagged to be the next BRICS It is the largest economy in South-East Asia with strong links to both China and India and the world’s fourth most populous nation
- 31. New acronyms • IBSA: Brazil, India and South Africa • RIC: Russia, India and China • BASIC: Brazil, South Africa, India and China • CIVETS: Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa • Next 11 or N-11: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea and Vietnam • MIST: Mexico, Indonesia, South Korea and Turkey
- 32. Process of confrontation, negotiation and co- operation • Bilateral trade tensions: In the WTO, the largest number of complaints against the Chinese have been initiated by Brazil, with India also seen as a threat to Brazilian producers in the steel and software sectors • Progress in the area of facilitating trade: Two agreements were signed at the 2012 BRICS summit: the Master Agreement on Extending Credit Facility in Local Currency and the Multilateral Letter of Credit Confirmation Facility Agreement • Other areas for co-operation: food security, R+D, culture exchange, tourism
- 33. Interesting facts • China emerged as Brazil’s largest trading partner: Is this economic relationship harmful for Brazil’s industry, with China mainly importing commodities and flooding the Brazilian market with cheap manufactured goods? • China has also become the largest trading partner for Russia and South Africa; and the second-largest partner for India • China and Brazil are competitors in South America • Sectoral level: China will dominate in manufactured goods, India will control services, and Russia and Brazil raw material supplies. South Africa could emerge as an important mineral supplier • China’s currency manipulation has being criticized by Brazil
- 34. Real green economies, conference at Wilton Park, UK, February, 2014 Make your comment
Editor's Notes
- “Capital natural” inclui colheita, pastagens, florestas,
- Reunión informal a propósito de la Cumbre del G-20 en San Petersburgo (Septiembre 2013)
- It all started with a November 2001 Goldman Sachs research paper titled ‘‘Building Better Global Economic BRICs,’’ written by Jim O’Neill. He predicted that ‘‘over the next 10 years, the weight of the BRICs and especially China in world GDP will grow,’’ and went on to suggest that ‘‘in line with these prospects, world policymaking forums should be reorganized’’ to give more power to BRICs. 2001 by Goldman Sachs in their Global Economics Paper No. 66, "The World Needs Better Economic BRICs".
- BASIC (Brazil, South Africa, India, and China), came together at the 2009 Copenhagen Summit on climate change to block measures for environmental protection advocated by the West.
- These agreements were signed by the export–import banks of the five BRICS countries, namely the Brazilian Development Bank, Russia’s State Corporation Bank for Development and Foreign Economic Affairs, India’s Exim Bank, the China Development Bank Corporation and the Development Bank of Southern Africa.29 These agreements will allow trade among the BRICS countries to be conducted in domestic currencies, thereby eliminating the use of the US dollar and reducing the risk of currency volatility, as well as promoting the internationalisation of BRICS currencies.
- As economic ties between China and Brazil have grown from $6.7 billion in 2003 to nearly 75 billion in 2012, frictions between the two have also risen. Brazil views China as an unfair competitor, accusing China of dumping diverted exports from Europe while charging Brazilian manufacturers steep non-/tariff barriers when they try to export to China.30 Brazil is worried about the influx of investment and cheap imports from China and has been very vocal in criticizing Beijing for undervaluing the Yuan. To protect its manufacturing industry, Brazil has started levying import tariffs on some industrial goods, mainly directed at Chinese imports. Brazil is also wary of China’s growing economic profile in South America, which Brazil considers its own sphere of influence. Thus, China is not only killing Brazilian industries but threatening Brazilian exports in third markets.