BRICS

BRICS NATION

Presented By :Manohara H MPALB 4090Dept. Of Agricultural Economics

ABOUT BRICS BRICS stands for Brazil, Russia, India, China and

South Africa

Came into existence in 2001 as BRIC nation

BRICS is the international political organization of leading emerging economies.

BRICS as a group, accounts for 40% of labour force

From ‘BRIC’ to ‘BRICS’

The BRIC became a mechanism through which the countries can exchange opinions, seek convergence, identify areas of cooperation and influence the international agenda.

Officially it was admitted as a BRIC nation on 24 December 2010

With the entrance of South Africa, at the 3rd BRIC Summit, in April 2011, the BRIC became BRICS.

4

BRICS: Characteristics

Vast Land Area

Developing Economies

Friendly Trade Relations

Challenges Related To Economic And Social Integration

Desire To Make The International Order More Representative

Possibility Of Cooperation In Many Areas

Need

To achieve regional development

To remove trade barriers

Economic development

Improve the professional development and education of

countries.

Making these countries getting closer to others to

obtain the comparative advantages of these countries.

Optimum use of resources

Building relationship

ABOUT THE BRICS NATION

razil Fastest growing economies in the last centuries Extremely rich in resources such as coffee, sugarcane,

crude oil and iron etc. Focus on equitable development has resulted in significant

poverty reduction. Textiles, chemicals , iron ore , steel and motor vehicles

industries. 31% of people in middle income group. Brazil today is the most popular of the BRICS

so far as foreign direct investment is concerned

USSIA

Russia has capability in high-technology sectors Accounts for around 20% of the world’s oil and gas

reserves Consumer market of over 140 million people 68% of people comes under middle income group Highly educated workforce Third largest exporter of steel and aluminium

NDIA

1.2 billion people 2nd largest labour force Holds second place followed by China in BRICS Democratic country

HINA

Fastest growing economy Third largest country in land size Biggest of all BRIC nations - GDP wise 13% of people comes under middle income group Holds more than $3 trillion forex reserves. Largest exporter/ importer for 32 and 34 countries

respectively. Cheap labour work force

outh Africa

The South African economy is now the 23rd largest in the world

Inflation is below 6.6% and falling. 25% of goods produced in South Africa are for export Richest in terms of its mineral reserves.

GDP over the years

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0

1000000000000

2000000000000

3000000000000

4000000000000

5000000000000

6000000000000

7000000000000

8000000000000

Brazil China India Russian Federation South Africa

GD

P a

t C

urr

ent

Pri

ces

Primary, Secondary and Tertiary Sector

World Brazil China India Russian Federation South Africa0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

2.815.30

10.10

17.74

4.04 2.48

26.3228.07

46.72 27.12

36.6830.83

70.87 66.63

43.19

55.14 59.2866.69

Agriculture (Value Added % of GDP) Industry (Value Added % of GDP) Services (Value Added % of GDP)

BRICS - Developments Brazil

Development of new oil fields and refineries in order to increase production capacity in Brazil.

Improved efficiency of agricultural output

Russia Treasury bonds Large sporting events.

India• Access to affordable drugs to global countries.

China Recent reforms by the China securities and regulatory

Commission (CSRC) has sought to bolster investor confidence.

600 million citizen have been lifted out of poverty in China. China’s state owned enterprise produced over 50% of its

goods and services and employed over half of the nation labour force.

South Africa Invested Rs.300 bn in expanding Its Railway, Ports and

fuel pipelines. 10% of the world’s oil reserves, 40 % of gold ore and 95%

of platinum

INTRA-BRICS TRADE

Trade between Brazil, Russia & Rest of BRICS

Trade between India, China & Rest of BRICS

Trade between S. Africa and Rest Of BRICS

Source based on UN COMTRADE and http://wits.worldbank.org/wits/

BRICS leaders at the 6th BRICS summit Putin, Modi, Rousseff, Xi and Zuma

EFFECTS ON TRADE RELATIONS

To support growth on the continent, notably during the financial crisis

South Africa’s financial market development and sophistication

The World Economic Forum’s 2011/12 Global Competitiveness Index displayed a high level of confidence in South Africa’s financial market development, ranking the country in fourth place globally on this measure.

New Development Bank

Headquarters : Shanghai, China President : K.V. Kamath The New Development Bank (NDB)  is

a multilateral development bank operated by the BRICS states as an alternative to the existing US-dominated World Bank and International Monetary Fund

The bank is set up to foster greater financial and development cooperation among the five emerging markets

The bank's primary focus is lending to infrastructure projects

ADVANTAGES

India is also expected to grow faster than China after 2020

Rising incomes in the BRICS nations will create a new middle consumer class

Featured as- “Roadmap For Contribution” Important drivers for growth in the global economy. Expansion of their consumer markets and the rise of

multinational companies

Future Prospect Sustainable solution for inclusive growth

Broadening multi-dimensional co-operation Mutual Trade and Investment

Contingent Reserve Arrangement

Export Credit & Guarantee Agencies

Significant Role in International Affairs

Trade in local currency

Dependency on oil

Corruption

Industrial output is weak

Inefficient Judicial System

Illiteracy

Lack of Infrastructure

High Inflation

Economic disparity

48% population below poverty line

Lack of skill sets, particularly in IT

Conclusion

It is possible that China could become as big as the US by 2027

India and Russia will individually be larger than Spain, Canada

or Italy by 2020

 By 2025 BRICS will be over half the size of the G7

Long-term projections BRICS could account for almost 50% of

global equity markets by 2050