BRICSSai Kumar SwamyPGPM, IIM Bangalore

Agenda

Origin of Term Other Terms Facts about BRICs Country-wise analysis of

Economy Political Environment Social Indicators

Issues faced by BRICs BRICs - Future

Origin of Term – GS report 2001 The aggregate size of the BRICs was about 23.3%

(PPP) of world GDP at the end of 2000 Higher than Euroland and Japan

Size of BRICs currently is 8% (as per GDP) Some are larger than G7 nations – China > Italy &

Canada Analysis projected 4 possible scenarios of the future

BRICs rise from 8% to 12% - A BRICs rise from 8% to 27% - D BRICs should be part of Global Economic Policy

Predictions for 2010-11 China to be bigger than Germany Brazil and India closing in on Italy Brazil will experience the weakest growth China will become a better trading nation than the #3

rank it has

BRICs – Some key Facts

Population – 40% Land – 25% GDP – $13-14Tn Mfcg Goods – China Services – India Raw materials – Russia & Brazil 2050

USA – 38 India – 37 China – 70 Brazil – 11 Russia – 8

Mega-Diverse Countries Resource Rich

Other Terms

BRIMCBRIMCKBRICKBRICSCEMENT

Brazil – Key facts

Portuguese colony 5th largest country in the world

8.5Mn sq. Kms 3 time zones

Rich in natural resources World’s largest river – Amazon Population – 192 Mn

5th largest Density of Population – 22 per Sq. Km

Forest Cover – 57% 2nd largest forest area in the world Amazon Heat Sink

Brazil – Economy

GDP $2.5Tn Rank – 6th PCI – $10,455 Growth rate – 3% Agriculture – 6%; Industry – 27%; Services – 67%

Inflation – 6.5% Labor Force – 100Mn Exports

$200Bn Aircraft, Automobiles, Sugar, Ethanol, Textiles, Iron Ore,

Orange Juice, Beef Imports

$180Bn

Forex Reserves - $350Bn Oil Importer – From 2006 its been self sufficient

in Oil

Brazil – Social Indicators & Political Environment

Democratic Federal Republic Presidential System

Dilma Roussef Workers Party

Political Environment Stable History of Army rule

HDI 0.813 - HIGH Rank – 75

Poverty – 26% Crime – 23.8 Infant Mortality – 34 Literacy – 88%

Russia – Key facts Largest country in the world

17Mn sq. Kms 11 time zones

Rich in natural resources Largest Natural Gas reserves 2nd largest Coal reserves Highest Oil producer 4th highest Nuclear Energy

10% of World’s arable land Water resources – 2nd in the world Population – 142 Mn

9th largest Density of Population – 8 per Sq. Km

Forest Cover –26% Largest forest area in the world

Russia – Economy

Commodity driven economy GDP

$1.4Tn Rank – 10th PCI – $10,521 Growth rate – 4.9% Agriculture – 4%; Industry – 37%; Services – 59%

Inflation – 6.1% Labor Force – 75Mn Exports

$376Bn Oil, Natural Gas, Minerals, Timber, Arms, IT Services

Imports $237Bn

Forex Reserves - $502Bn Economic crisis – 1990s

Russia – Social Indicators & Political Environment

Federation Semi-Presidential System

President – Head of State Vladimir Putin Dimitry Medvedev

Political Environment Stable

HDI 0.817 - HIGH Rank – 71

Poverty – 14% Crime – 30 Infant Mortality – 69 Literacy –99.4%

China – Key facts

3rd/4th Largest country in the world 9.6 Mn sq. Kms 1 time zone

Rich in natural resources 10% of World’s arable land World’s largest exporter

2nd largest importer Largest standing army Population – 1338 Mn

Largest Density of Population – 139 per Sq. Km

Forest Cover –20%

China – Economy GDP

7.3Tn Rank – 2nd PCI – $5184 Growth rate – 9.5%

Distribution of growth Agriculture – 9%; Industry – 47%; Services – 44%

Inflation – 5% Labor Force – 780Mn Exports

$1600Bn Office machinery, telecom equipment, Apparel

Imports $1300Bn

Forex Reserves - $3200Bn Economic reforms – 1978 Energy & Transportation bottlenecks

China – Social Indicators & Political Environment

People’s Democratic Dictatorship Single Party system Presidential System

Hu Jintao Political Environment

Un-Stable Democratic Movements suppressed

HDI 0.772 - MEDIUM Rank – 91

Poverty – 10% Crime – 30 Infant Mortality – 69 Literacy –99.4%

ANNEXURES

BRICs

Brazil - Map

Brazil - Resources

Brazil - Deforestation

Brazil - Deforestation

Brazil – GDP Growth Rates

Brazil – GNI

Brazil - Exports

Russia - Map

Russia - GDP

Russia – GDP Growth Rates

Russia - GNI per Capita

Russia - Exports

Russian Oil & Gas Pipelines

China - GDP

China – GDP Growth Rates

China – GDP Growth Rates

China - Distribution of growth

China – Natural Resources

China – Exports

China - GNI per Capita

Mega-diverse Countries

Gini

HDI