An effort has been made to give an insight into the futuristic economies of the world viz; BRIC COUNTRIES. The vision four decades down the lane seems to be more pragmatic despite the upheavals in most of the developed countries and also the sporadic factors of throughout the globe. The need for looking into the economies beyond the established economies/ development eco has arisen due to shift in global economic power away from the developed G7 economies towards the developing world.
TABLE OF CONTENTS Sr. No
1. 2. Introduction Brazil a) b) c) d) Introduction Economy Trading Policies Other Aspects 10-12
Russia a) Introduction b) Economy c) Trading policies d) Other Aspects India a) b) c) d) e)
13-17 Introduction Economy Trading policies Other Aspects India 2020 18-22
China a) Introduction b) Trading policies c) Other Aspects Dreaming with the BRICs Statistics Forecast History a) Introduction b) Enlargement c) Financial Diversification d) Criticism Proposed Inclusions a) Introduction b) Mexico c) South Korea d) United Korea
6. 7. 8. 9.
23-24 25 26-27 28-32
Other Emerging Economies Of the World a) Beyond the BRICs b) Mexico c) Indonesia d) Turkey e) Standard‘s and Poor f) EAGLE g) BEM h) Global Growth Generation i) Six Major Emerging Economies Conclusion Abbreviations Bibliography
12. 13. 14.
38 39 40
INTRODUCTION TO BRIC COUNTRIES
In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. It is typically rendered as "the BRICs" or "the BRIC countries" or alternatively as the "Big Four". The acronym was coined by Jim O'Neill in a 2001 paper entitled "Building Better Global Economic BRICs". The acronym has come into widespread use as a symbol of the shift in global economic power away from the developed G7 economies towards the developing world. The BRICs would organize themselves into an economic bloc, or a formal trading association, as the European Union has done. However, there are some indications that the "four BRIC countries have been seeking to form a 'political club' or 'alliance'", and thereby converting "their growing economic power into greater geopolitical clout". On June 16, 2009, the leaders of the BRIC countries held their first summit in Yekaterinburg, and issued a declaration calling for the establishment of an equitable, democratic and multi polar world order. Since then they have met in Brasília in 2010 and will in China in 2011.
Name Of The Country Brazil Russia India China
Name Of The Republic Federative Republic Of Brazil Russian Federation Republic Of India People‘s Republic Of China
Head Of The State
Head Of the Government Dilma Rousseff Vladimir Putin Manmohan Singh Wen Jiabao
Dmitry Medvedev Pranab Mukherjee Hu Jintao
001 10.486 Area (sq. i.400 3. like ASEAN.
To get an insight about the BRIC it is necessary to have an insight about the economy of each of the BRIC countries. as a way of extracting political concessions from the United States. Name Of The Country Brazil Russia India China GDP (PPP) ($ billions) 2. The thesis was proposed by Jim O'Neill. Nevertheless.518.287.000 1.The economic potential of Brazil.297 1. they would be the largest entity on the global stage.336.km) 8.618. they have taken steps to increase their political cooperation.075. Brazil.e.821 38. such as the proposed nuclear cooperation with India.219 4.927. India and China is such that they could become among the four most dominant economies by the year 2050. These countries encompass over 25% of the world's land coverage and 40% of the world's population and hold a combined GDP (PPP) of 18.338 Population 192. it is not the intent of Goldman Sachs to argue that these four countries are a political alliance (such as the European Union) or any formal trading association.851.787.640.000 2.302.240 9. Russia.084 18.877 17.179. These four countries are among the biggest and fastest growing emerging markets. through the implicit threat of political cooperation. India and China individually. mainly as a way of influencing the United States position on major trade accords..970. Russia.486 trillion dollars.000 141. global economist at Goldman Sachs. On almost every scale. or. An overview of each of the BRIC countries is provided as under:
local companies have successfully turned global. including ethanol production. overcoming Russia for the first time. thanks to superior technology and organization. It is also a pioneer in many fields. Brazil is also a pioneer in the fields of deep water oil research from where 73 percent of its reserves are extracted. Its economy is the largest in Latin American nations and the second largest in the western hemisphere. in the region and beyond. According to the World Economic Forum. The Brazilian economy has been predicted to become one of the five largest economies in the world in the decades to come. The annual Brasil Investment Summit takes place in São Paulo and is the largest gathering in Brazil of international investment experts covering opportunities in alternative vehicles. as well as measures taken to liberalize and open the economy. Brazil develops projects that range from submarines to aircraft and is involved in space research: the country possesses a satellite launching centre and was the only country in the Southern Hemisphere to integrate the team responsible for the construction of the International Space Station (ISS). Brazil was the first capitalist country to bring together the ten largest car assembly companies inside its national territory. has been at the forefront of the Latin American multinationals phenomenon by which. and thus realizing an increasing portion of their revenues internationally. and advanced trading strategies
. Brazil. providing a better environment for private-sector development. together with Mexico. According to government statistics. have significantly boosted the country‘s competitiveness fundamentals. Brazil was the top country in upward evolution of competitiveness in 2009. and partially closing the competitiveness gap with India and China among the BRIC economies. gaining eight positions among other countries. Brazil is one of the fastest-growing major economies in the world with an average annual GDP growth rate of over 5 percent. These multinationals have made this transition notably by investing massively abroad. The owner of a sophisticated technological sector. Important steps taken since the 1990s toward fiscal sustainability. infrastructure.BRAZIL
Introduction The economy of Brazil is the world's seventh largest by nominal GDP and eighth largest by purchasing power parity.
surging exports. and a floating exchange rate. The economic boom and high interest rates have attracted foreign currency inflows that have driven up the value of the currency (the real) by nearly 40% since the start of 2009.
. Since domestic savings are not sufficient to sustain long-term high growth rates. has indicated her intention to continue the former president‘s economic policies. the economy is the world‘s eighth-largest and is expected to rise to fifth within the next several years. and other areas. In an effort to limit the appreciation. economic growth and social programs helped lift tens of millions of Brazilians out of poverty. Expected to continue to grow in the 4% to 5% range. has contributed to the country‘s transition from a regional to a global power. airports. 2011. who took office on January 1. Brazil is generally open to and encourages foreign investment. the government has increased dollar reserves and capital controls. inflation control. Brazil must continue to attract FDI.Economy The Brazilian economy‘s solid performance during the financial crisis and its strong and early recovery. and domestic consumption has become an important driver of Brazilian growth. and the United States is traditionally the top foreign investor in Brazil. including 2010 growth of 7. including sound fiscal management. President Dilma Rousseff. and other infrastructure sectors over the next few years. During the administration of former President Lula.5%. For the first time. It is the largest recipient of foreign direct investment (FDI) in Latin America. especially as the government plans to invest billions of dollars in off-shore oil. leading the central bank to boost interest rates and the Rousseff government to announce cuts in 2011 spending. sports facilities. a majority of Brazilians are now middle-class. Rising employment and strong domestic demand pushed inflation to nearly 6% in 2010. nuclear power. The major international athletic competitions that Brazil will host every year until the 2016 Rio Olympics are also leading the government to invest in roads.
and Brazil has the majority of the world's largest rain forest. the Amazon. building on partial trade liberalization agreements concluded with these countries in 2004. such as bio fuels. agricultural research. iron ore. tropical fruits. becoming Brazil's principal export market and an important source of investment. frozen concentrated orange juice (FCOJ). In 2008 Mercosul concluded a free trade arrangement with Israel. Brazil is one of the world's leading producers of hydroelectric power. Brazil faces serious environmental obstacles in providing potable water to its citizens and removing and treating their waste water.
. China has significantly increased its purchases of Brazilian soy.Trade Policy Brazil has been a leading player in the World Trade Organization‘s Doha Round negotiations and continues to seek to bring that effort to successful conclusion. The trade bloc also plans to launch trilateral free trade negotiations with India and South Africa. and is key for economic growth and foreign exchange. and Argentina. as well as a strengthening of the Mercosul (Mercosur in Spanish) customs union with Uruguay. and has the world's largest commercial cattle herd (50% larger than that of the U. Paraguay. coffee. Brazil enjoyed a positive agricultural trade balance of $55 billion in 2009. Brazil is a leader in science and technology in South America and a global leader in some fields.S. Brazil is the world's largest producer of sugarcane. deep-sea oil production. and another arrangement with Egypt was signed in 2010. and steel in recent years.
Other Aspects Agriculture Agriculture is a major sector of the Brazilian economy. Agriculture accounts for about 6% of GDP (25% when including agribusiness) and 36% of Brazilian exports.) Environment. and remote sensing. and Technology About half of Brazil is covered in forests. To further increase its international profile (both economically and politically). the Rousseff administration is also seeking expanded trade ties with developing countries. Science.
when they are signed and enter into force. Brazil was a leader of the G-20 group of nations and in 2009 became a creditor country to the International Monetary Fund (IMF). As Brazil's domestic economy has grown and diversified. and most recently Haiti. Brazil is currently leading the UN peacekeeping force in Haiti. The oil reserves in these fields are conservatively estimated at between 30 billion and 80 billion barrels. aircraft and consumer durables. it had been a member of the UN Security Council nine times. Output from the existing Campos Basin and the discovery of the new fields could make Brazil a significant oil exporter by 2015. Brazil is serving as a non-permanent member of the UN Security Council. the country has become increasingly involved in international economic and trade policy discussions. steel and petrochemicals. Proven mineral resources are extensive. Deposits of nickel. East Timor.. Mozambique. For example. zinc are exploited. the Democratic Republic of the Congo. Large iron ore and manganese reserves are important sources of industrial raw materials and export earnings. High quality cooking grade required in steel industry is short in supply. which would put Brazil in the top 10 countries in the world in reserves. chromites. and Japan are primary markets for Brazilian exports and sources of foreign lending and investment. they initialled an air transportation agreement and an air transportation memorandum of understanding that. Brazil announced in early 2008 the discovery of the Tupi and Carioca oil fields off the coast of Rio de Janeiro. It has contributed troops to UN peacekeeping efforts in the Middle East.5 percent of the GDP. Brazil‘s diverse industries range from automobiles. In 2010. Accounting for 28. computers.S. tungsten. The U. Brazil is seeking a permanent position on the Council. lead.
The International Space Station (ISS)
. uranium. Prior to this.
Foreign Relations Brazil is a charter member of the United Nations and participates in its specialized agencies. Industries Brazil has the second biggest industrial sector in America. gold.Other Recent Developments The United States and Brazil signed an Air Services Liberalization Agreement in 2008 that increased commercial air travel between the two countries. Western Europe. tin. Cyprus. In 2010-2011. will continue and expand this process. Angola. bauxite.
the accompanying steep fall in global demand. now has the highest billionaire population of any city in the world. As the global financial crisis gathered steam in the fall of 2008.. a breakdown of commercial transactions through the banking system. implementation of key economic reforms (tax.RUSSIA
Introduction The economy of Russia is the eleventh largest economy in the world by nominal value and the sixth largest by purchasing power parity (PPP). Russia's capital. of which more than $200 billion were classified as stabilization funds designed to shelter the budget from commodity price shocks. and the threat of runaway inflation. Several high-profile business disputes earlier in 2008 drove capital out of Russia. as businesses sold shares to raise collateral for margin calls required by international lending institutions. Household consumption and fixed capital investments both grew by about 10% per year during this period and replaced net exports as the main drivers of demand. starting with heavy capital flight in September 2008. Russia‘s stock market had collapsed. the economy has not been as seriously affected by the global financial crisis compared to much of Europe. Economic reforms in the 1990s privatized most industry. delayed payments on sovereign and private debts. In late 2008 and early 2009. Russia has undergone significant changes since the collapse of the Soviet Union. oil.
Economy The Russian economy underwent tremendous stress in the 1990s as it moved from a centrally planned economy to a free market system. As of 2011. It is also rich in agriculture. The result was a rapid and steep decline (60%) in the value of the rubble. which caused a crisis in its stock market. tight fiscal policy. Russia experienced the first recession after 10 years of rising economy. largely because of the integration of short-term macroeconomic policies that helped the economy survive. Difficulties in implementing fiscal reforms aimed at raising government revenues and a dependence on short-term borrowing to finance budget deficits led to a serious financial crisis in 1998. and precious metals. Russia has an abundance of natural gas.1%
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. moving from a centrally planned economy to a more market-based and globally integrated economy. Moscow. to 1. until the stable growth resumed in late 2009 and 2010. The global economic crisis hit Russia hard. Foreign exchange reserves grew to almost $600 billion by mid-2008. and tightening of credit served to almost bring Russia‘s economic growth to a halt in the fourth quarter of 2008. commodity prices. with notable exceptions in the energy and defence-related sectors. Inflation and exchange rates stabilized due to a prudent fiscal policy (Russia ran a budget surplus from 2001-2008). labour and land codes). flight of foreign investment. banking. Despite the deep but brief recession. By mid-September. coal. the third-largest in the world. The Russian economy bounced back quickly from the 1998 crisis and enjoyed over 9 years of sustained growth averaging about 7% due to a devalued rubble. and favourable commodities prices.
years of very low investment have left much of Russian industry antiquated and highly inefficient.
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. goods.7 billion while exports to Russia increased just 13% to $6. Russia's overall trade surplus in 2009 was approximately $100 billion--compared with $180 billion in 2008 and $129 billion in 2007--a reflection of the slower growth in exports and severe contraction of imports. and high-tech products. However.down from 9. so armaments remain an important export category for Russia. imports from Russia grew 41% year over year to $25. World prices continue to have a major effect on export performance. U. which successfully avoided a run on the rubble and bank deposits but at the cost of a steep decline in foreign exchange reserves to $387 billion by mid-February 2009. natural gas. aluminium.
Other factors Industry Russia is one of the most industrialized of the former Soviet republics. electrical equipment.S. At the same time. notably in metals.5% during the same period in 2007. Efforts have been made with varying success over the past few years to convert defence industries to civilian use. meat (mostly poultry).S. metals. and the Russian Government is engaged in an ongoing process to privatize many of the state-owned enterprises. By 2010. and a rise in oil prices. U. however. an increase of 35% from 2009. the government attempted a managed devaluation.
Trade Policy After hitting lows in 2009.S. the Russian economy had begun a modest recovery. inorganic chemicals. were fuel oil. it has developed large manufacturing capacities.7 billion in 2010. since commodities--particularly oil. Russian GDP growth and the surplus/deficit in the Russian Federation state budget are closely linked to world oil prices. exports to Russia were machinery. and precious stones. Russia inherited most of the defence industrial base of the Soviet Union. Russian exports to the U.0 billion. aircraft. bolstered by government anti-crisis policies. Besides its resource-based industries. The Central Bank of Russia responded by pumping liquidity into Russian banks. Russia is currently the 32nd-largest export market for U. and Russia grew to $31.S. and timber--comprise nearly 90% of Russian exports. Russia‘s leaders put renewed emphasis on promoting innovation as key to economic modernization as well as on the need to diversify the economy away from oil and gas. and transport equipment. vehicles.S. food products. trade between the U. which helped avert a banking crisis. Russia is now the world's thirdlargest exporter of steel and primary aluminium. the global rebound.
9% GDP growth in 2009--a sharp contrast to the pre-crisis performance of 8.‖ from havens like Cyprus and Gibraltar. and rising unemployment hurt investment and consumption. urban and suburban gardens. Russia's per capita cumulative FDI lagged far behind such countries as Hungary. but not reach the levels seen in 2008. although long-term leases are permitted. Foreigners are not allowed to own farmland. Small plots averaging one acre in size. and these flows reversed during the economic downturn.2% in 2011. By the end of 2010. and gardening cooperatives produce over half of Russia's food output. Former state and collective farms have been largely privatized. although the annual flow of FDI into Russia was in line with those of China. 2010 saw Russia‘s economy return to growth with a 3. India. Grain production for export is concentrated in the south of European Russia. but management quality is uneven and profitability is highly dependent on proximity to major urban markets. Most foreign mergers and acquisitions in 2009 were in the politically sensitive energy sector. and the Czech Republic.
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. and Brazil.
Gross Domestic Product Tighter credit. analysts predicted that the total FDI for the year would again top $40 billion. Poultry production has rebounded and is rising at 17% per year. However. Poland. collapsing global demand.1% in 2007. global uncertainty. Russia‘s Economic Development Ministry predicts that the nation‘s GDP will grow 4.8% increase in GDP. and led Russia to have -7. but given its massive expanses. largely because of the huge capital requirements required relative to other sectors. Investment/Banking Foreign direct investment (FDI) in 2009 fell to less than $40 billion after reaching an all-time high of $75 billion in 2008. Moreover. the country still accounts for about 9% of the world's arable land. Much of the FDI in recent years was Russian capital ―returning home.Agriculture Russia has relatively little area for agriculture.
and agriculture account for 54%.
Economy India has fared the global financial crisis remarkably well. United States. continuing economic liberalisation has moved the country towards a marketbased economy. sugarcane. China. poultry and fish. jute. The labour force totals 500 million workers. The country‘s per (PPP) is $3.000 to 1.000. and 18% of GDP respectively. Estimates are that the middle class will grow ten-fold by 2025. India is capitalizing on its large numbers of well-educated people skilled in the English language to become a major exporter of software services and software workers.166-$20. India's top five trading partners are United Arab Emirates. goats. but there is a large and growing middle class of more than 50 million Indians with disposable income ranging from 200. as free market principles were initiated in 1991 for international competition and foreign investment. potatoes.55% a year. In recent years.833). high unemployment and malnutrition.339 (IMF. information technologyenabled services and pharmaceuticals.1 billion and is growing at 1. tea. sheep. textiles. Major agricultural products include rice. A revival of economic reforms and better economic policy in first decade of the 21st century accelerated India's economic growth rate. wheat. machinery.000 rupees per year ($4. water buffalo.INDIA
Introduction The Economy of India is the ninth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). Following strong economic reforms from the post-independence socialist economy. food processing. industry. cotton. 29%. chemicals. Since 1991. By 2008. cattle. cement. 700 million Indians live on $2 per day or less. mining. petroleum.
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. Major industries include telecommunications. Despite the 2008-2009 downturns. steel. but more than half of the population depends on agriculture for its livelihood. the country's economic growth progressed at a rapid pace. oilseed. the government expects the annual GDP growth to return to around 9%. transportation equipment. India's population is estimated at more than 1. Services. India had established itself as the world's second-fastest growing major economy. Despite fast economic growth India continues to face massive income inequalities. Saudi Arabia and Germany. Indian cities have continued to liberalise business regulations. In 2009-2010. 129th) in 2010. It has the world's 12th largest economy--and the third largest in Asia behind Japan and China.
education.S. The United States is India's largest investment partner. Principal U. the "reservation" of key products for small-scale industries. and high fiscal deficits.S.S. Major U. regulatory and foreign investment controls. roads.0% or less because of the financial crisis and resulting global economic slowdown. India has been crucial in voicing the concerns of the developing world.Growth for the fiscal year ending March 31.. telecommunications. Automatic approvals are available for investments involving up to 100% foreign equity. up from $126 billion in 2005-2006. petroleum exploration/processing. and mining. depending on the kind of industry. Also. The World Bank plans to double aid to India to almost $3 billion a year. For instance. Foreign investment is particularly sought after in power generation. with compounding effects of various taxes. The rapidly growing software sector is boosting service exports and modernizing India's economy. and rural livelihoods
Trade and investment Global trade India is a founding-member of General Agreement on Tariffs and Trade (GATT) since 1947 and its successor. U. health. agricultural and related products. gems and jewellery.5 billion in foreign exchange reserves by December 2009. India has continued its opposition to the inclusion of such matters as labour and environment issues and other trade into the WTO policies. They contributed to the $283. aircraft and parts. Foreign assistance was approximately $3 billion in 2006-2007. the WTO. India's external debt was nearly $230 billion by the end of 2008. exports are diagnostic or lab reagents. Since liberalisation. Internet-enabled services. labour market rigidities.6 billion.0%. advanced machinery. Foreign portfolio and direct investment inflows have risen significantly in recent years. leather products. corruption. a cumbersome bureaucracy. the value of India's international trade has increased sharply. While participating actively in its general council meetings.59. and computer hardware. but has been revised downward by a number of economists to 7. with the United States providing about $126 million in development assistance. imports from India include textiles and ready-made garments.-India bilateral merchandise trade in 2008 topped nearly $50 billion. with a 13% share.
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. cotton. fertilizers. 2009 was initially expected to be between 8. the tax structure is complex. ferrous waste/scrap metal. and chemicals. ports.
Economic growth is constrained by inadequate infrastructure. with focus on infrastructure. Government receipts from the 34-day 3G auction were $14.
It is the second largest producer of rice. employed 52. and the Association of Southeast Asian Nations. India is now strengthening its political and commercial ties with the United States. China. and scientific and technical capacity give it added weight. and also has the world's second largest cattle population with 175 million animals in 2008. Foreign Relations India's size. apparels." Like the United States. secular. accounting for 10. India has a federal form of government. Government According to its constitution. due to positive economic reforms aimed at deregulating the economy and stimulating foreign investment. India is the largest producer in the world of milk. India has positioned itself as one of the front-runners of the rapidly growing Asia-Pacific region. India is a "sovereign. and despite a steady decline of its share in the GDP. rigid FDI policies were a significant hindrance. democratic republic.
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.Foreign direct investment India is a preferred destination for FDI. and jewellery. as well as the second largest fruit and vegetable producer. jute and pulses. India has strengths in telecommunication. population.7% of the GDP in 2009–10. India has a large pool of skilled managerial and technical expertise. India is an active member of the South Asian Association for Regional Cooperation (SAARC). information technology and other significant areas such as auto components. Despite a surge in foreign investments. is still the largest economic sector and a significant piece of the overall socio-economic development of India. logging and fishing accounted for 15. socialist. chemicals.9% and 8. military prowess.6% of the world fruit and vegetable production respectively. and strategic location give it a prominent voice in international affairs and its growing economic strength. the European Union. The size of the middle-class population stands at 300 million and represents a growing consumer market.1% of the total workforce. and has adopted a British-style parliamentary system. Japan. Iran. Agriculture and allied sectors like forestry. However. However. sugarcane. wheat. the central government in India has greater power in relation to its states. cotton and groundnuts.
Other Aspects Agriculture India ranks second worldwide in farm output. India is also the second largest producer and the largest consumer of silk in the world. pharmaceuticals.
wherever they may be. perhaps it is time India took the natural resource game a little more seriously. Airbus. water. With many of these changes and greater urbanisation — more than a third of the people should be living in towns and cities in 2020 — politics can be expected to undergo a change.India 2020: Positive views: India‘s GDP in 2020 will be around $3 trillion at today‘s prices and exchange rates. Since the total increase in world oil production in the last three decades was barely 9 mbd. oil producers will have to deliver an extra 9 million barrels of oil per day to feed the extra demand from just these two countries. Citizens will be less concerned about voting their caste. for the better. good public transport and clean air. If India‘s oil demands more than doubles over the next 10 years. and should also overtake Canada and Spain. instead. As the domestic market grows. they will cast their vote for the politicians who they think are more likely to provide them with electricity. the country will become a gigantic magnet for the world‘s companies that will come to do business. expect bitter battles over land.
Counter Views The advent of scale change in India will create turmoil in global markets. is that in the age of climate change. as well as market for. Nevertheless. It‘s going to be a disruptive decade ahead for other markets too: in metals. has said that India‘s will be the fastest growing aviation market in the next 20 years. India will also be the fifth or sixth largest maker of. a literacy rate by 2020 of 80 per cent (close to today‘s world average of 84 per cent). More immediately. And since India by the end of the coming decade will account for 10 to 12 per cent of world economic growth. cars. If this explains why China has been busy in a one-country race to grab the world‘s resources. In global rankings— India will have become bigger than Russia and Brazil (two of the BRIC economies). oil prices catch fire at some point in the next few years. and life expectancy finally crossing the 70-year mark. domestic manufacture cannot be far behind. this becomes highly problematic. energy and even agro-commodities. as Indian demand starts looking more like what Chinese demand has been in the recent past. of course. The harsh fact is that India has 350 people per
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. perhaps even approaching 75 years. The problem. expect sustained improvement in India’s socio-economic indicators — like a halving of the percentage of people below whichever poverty line you choose.
but has to be worked for and will not happen automatically.square kilometre — something like eight or 10 times the global average.000 hectares of land (or 50 sq km). if a large industrial project or power plant wants 5. By the end of the decade. political oversight and the institutions of governance improve and become more effective. it could displace as many as 20. Indian democracy has withstood the test of poverty. if the land is in an under-populated area. typically.
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. then. but still substantial.
Conclusion One could argue that all countries go through such phases — and that this is a stage through which India too is passing before market regulation. of course. That positive outcome is possible. It now has to demonstrate that it can withstand the test of growing prosperity. Less.000 people. it could be 400 people per sq km.
exports to other major trading partners in the year following the global financial crisis.4% in 2009 to $227 billion. China accounted for 12% of the world's total energy consumption and 15% of total fresh water consumption.
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.47 trillion.S. easing credit restrictions for mortgage and SMEs. suggesting a strong economic upturn and a desire to take steps to manage it. China could become the world's largest economy (by nominal GDP) sometime as early as 2020. U. surpassed Japan's $5. It is one of the world's fastest-growing major economies. with consistent growth rates of 5% .S. China's GDP was valued at $5.S.4 billion China is now one of the most important markets for U. surpassing Germany. growth has occurred across a vast population (nearly 1. those percentages were down far less than U. thus.S. roads and ports. It consumed 50% of the world's production of cement. It has primarily focused on increasing affordable housing. In 2004. trade deficit with China fell by 15. and became the world's second largest economy after the U. lower taxes such as those on real estate sales and commodities. In 2010.15% over the past 30 years. China. agricultural exports continue to play a major role in bilateral trade.5 billion). China's rapid-fire growth is as longer-lived as the Japanese counterpart in the 60's to 80's and is not showing signs of slowing. exports in 2009. The top three U. China is the largest creditor nation in the world and owns approximately 20. China is also the largest exporter and second largest importer of goods in the world. pumping more public investment into infrastructure development. totalling $12. liberating millions of people from poverty and unlocking massive segments of demand. as in other developing countries and emerging economies. In China. and nuclear reactors and related machinery ($8.S.
Trade The U. exports to China in 2008 were electrical machinery ($9. such as the rail network.87 trillion.8% of all foreign-owned US Treasury securities.3 billion).S. At the 2009 Economic Work Conference in December 'managing inflation expectations' was added to the list of economic objectives. China launched its Economic Stimulus Plan to specifically deal with the Global financial crisis of 2008–2009. China became the world's top manufacturer in 2011.CHINA Introduction The People's Republic of China ranks since 2010 as the world's second largest economy after the United States.2 billion in 2009 and thus making China the United States' fourth-largest agricultural export market. oil seeds and related products ($9.3 billion). together with other emerging economies such as (Botswana) it has also sustained a healthy average growth rates of over 6% per annum for several decades. By the end of 2009 it appeared that the Chinese economy was showing signs of recovery.
iron. petroleum. commercial space launch vehicles. Major industries are mining and ore processing. Its strength as an export platform has contributed to incomes and employment in China. soybeans. China has become a preferred destination for the relocation of global manufacturing facilities. textiles and apparel. other fibres. vegetables. armaments. toys. coal. and aircraft.6% of China's GDP. China has pursued policies such as fostering the rapid development of foreign-invested factories. wheat. and satellites. Major non-food crops include cotton. Industry Industry and construction account for about 48. and pork. and oilseeds. In recent years. telecommunications equipment. even though only 13.5% of the land is suitable for cultivation and agriculture contributes only 11% of China's GDP. aluminium. fertilizers. To increase exports. tea.
Other Aspects Agriculture China is the world's most populous country and one of the largest producers and consumers of agricultural products. machinery. China hopes to further increase agricultural production through improved plant stocks. consumer products including footwear.Export growth continues to play an important role in China's rapid economic growth. chemicals. ships. cement. and technology. and liberalizing trading rights. fertilizers. which assemble imported components into consumer goods for export. automobiles and other transportation equipment including rail cars and locomotives.
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. Almost 40% of China's labour force is engaged in agriculture. China is among the world's largest producers of rice. authorities have been giving greater attention to the management of state assets--both in the financial market as well as among state-ownedenterprises--and progress has been noteworthy. steel. corn. and electronics.
The U.S. Chinese science strategists see China's greatest opportunities in newly emerging fields such as biotechnology and computers. which will require more than $2 trillion in electricity infrastructure investment to meet the demand.
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. and annexes.China accords. renewable energy. China led the world in clean energy investment with $34. The U. and health.S. The agreement is among the longest-standing U. where there is still a chance for China to become a significant player. In 2009.. memoranda of understanding. The agreement covers cooperation in areas such as marine conservation.S. China is the world's largest energy consumer and the world's third-largest net importer of crude oil.5 gigawatts (GW).6 billion and has installed renewable energy capacity of 52.S. agreements.Science and Technology Science and technology have always preoccupied China's leaders. China's political leadership comes almost exclusively from technical backgrounds and has a high regard for science. is a focus of national pride. space program is often held up as the standard of scientific modernity in China. Energy Driven by strong economic growth. Federal agencies and numerous branches that participate in cooperative exchanges under the Science and Technology Agreement and its nearly 60 protocols. China is also the second-largest energy producer in the world. which successfully completed its third manned orbit in September 2008. after the United States. A 5-year agreement to extend the Science and Technology Agreement was signed in April 2006. and includes over 11 U. indeed.-China Science and Technology Agreement remains the framework for bilateral cooperation in this field. China's demand for energy is surging rapidly. but they have built a dense network of trans-Pacific contacts that will greatly facilitate U. China‘s small but growing space program. after the United States and Japan. second in the world behind the United States.S. China's electricity consumption is expected to grow by over 4% a year through 2030. Most Chinese students who went abroad have not returned.-China scientific cooperation in coming years.
China's continued and increasing reliance on coal as a power source has contributed significantly to China's emergence as the world's largest emitter of acid rain-causing sulfur dioxide and green house gases. The two sides also signed an MOU on Cooperation on Energy Efficiency in Buildings.Coal continues to make up the bulk of China's energy consumption (70% in 2008). and China continues to attract large investment inflows. to protect the environment. As China's economy continues to grow. Foreign exchange reserves were $2. China's outbound foreign direct investment has also surged in recent years.S. and have now surpassed those of Japan. and the Environment in order to expand and enhance cooperation between the two sides on clean and efficient energy. the two countries negotiated a Memorandum of Understanding (MOU) to Enhance Cooperation on Climate Change. including carbon dioxide. and China is the largest producer and consumer of coal in the world.. Energy. and to ensure energy security. China's coal demand is projected to rise significantly.
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. receiving over $108 billion in 2008 according to the Chinese Ministry of Commerce. during the U. reaching $52 billion in 2008.39 trillion at the end of 2009.-China Strategic and Economic Dialogue.
Foreign Investment China is one of the leading FDI recipients in the world. making China's foreign exchange reserves the largest in the world. In July 2009. Foreign-invested enterprises produce about half of China's exports.
5-km span stretches across the wide blue waters of Jiaozhou Bay and connects the booming northern port city of Qingdao with an airport built on a nearby island and the industrial suburb of Huangdao.
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. However. The bridge has eclipsed the previous world record span. by at least four km. the longest sea bridge of the world was built connecting the ends of the Jiaozhou Bay.000 tons of steel was used in the construction enough for almost 65 Eiffel Towers . typhoons or the impact of a 300.and 2. aimed at realigning overall economic development and achieving rational distribution of national resources across China. A total of 450. Chinese officials said that the bridge would be strong enough to withstand a magnitude 8 earthquake. it will be eclipsed in 2016 by another Chinese trestle bridge. The 42." the "West-to-East Gas Transmission.3 million cubic metres of concrete.000-ton ship.Key national projects The "West-to-East Electricity Transmission. which will linking Hong Kong with Macau and Guangdong province and will be about 50 km long. Recently." and the "South–North Water Transfer Project" are the government's three key strategic projects. the Lake Pontchartrain Causeway in Louisiana.
Brazil is dominant in soy and iron ore while Russia has enormous supplies of oil and natural gas. services.DREAMING WITH THE BRICs: THE PATH TO 2050
The BRIC thesis recognizes that Brazil. based on current trends. and companies have diffused outward from the United States across the world. technology. India and China have changed their political systems to embrace global capitalism. respectively. meaning manufacturing. real estate. and resource supplying simultaneously. They noted significant areas of research and development. Goldman Sachs predicts that China and India. India has 10 of the 30 fastest-growing urban areas in the world and. It should be noted that of the four countries. Goldman Sachs' thesis thus documents how commodities. Brazil remains the only nation that has the capacity to continue all elements. and services. This will have significant implications for demand for urban infrastructure. work. will become the dominant global suppliers of manufactured goods and services.
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. while Brazil and Russia will become similarly dominant as suppliers of raw materials. which will lead to the prosperity of the growing middle-class. we estimate a massive 700 million people will move to cities by 2050.
"India's influence on the world economy will be bigger and quicker than implied in our previously published BRICs research". Cooperation is thus hypothesized to be a logical next step among the BRICs because Brazil and Russia together form the logical commodity suppliers to India and China. Russia. and expansion that are happening in the country. the BRICs have the potential to form a powerful economic bloc to the exclusion of the modern-day states currently of "Group of Eight" status. Thus.
It was the significant increase by 108 more billionaires than the previous years. the four BRICs may account for 41% of the world's market capitalization by 2030. Together. US GDP might be only slightly larger than China's GDP.
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. BRIC countries for the first time have surpassed Europe in count of billionaires by 301 billionaires or one billionaire ahead over Europe. India's GDP per capita in US$ terms will quadruple". more inflows into foreign direct investment. China might surpass the US in equity market capitalization terms by 2030 and become the single largest equity market in the world.In the revised 2007 figures. Goldman Sachs predicts that "from 2007 to 2020. based on increased and sustaining growth. By 2020.
Based on Forbes report released on March 2011.
STATISTICS (Global Rankings)
Categories Area Population Population growth rate Labour force GDP (nominal) GDP (PPP) GDP (nominal) per capita GDP (PPP) per capita GDP (real) growth rate Human Development Index Exports Imports Current account balance Received FDI Foreign exchange reserves External debt Public debt Electricity consumption Number of mobile phones Number of internet users Motor vehicle production Military expenditures Active troops Rail network Road network Brazil 5th 5th 107th 5th 8th 7th 55th 71st 15th 73rd 18th 20th 47th 11th 7th 28th 47th 9th 5th 5th 6th 12th 14th 10th 4th Russia 1st 9th 221st 7th 11th 6th 54th 51st 88th 65th 11th 17th 5th 12th 3rd 24th 122nd 4th 4th 7th 19th 5th 5th 2nd 8th India 7th 2nd 90th 2nd 10th 4th 137th 127th 5th 119th 16th 11th 169th 29th 6th 26th 29th 5th 2nd 4th 7th 10th 3rd 4th 3rd China 3rd 1st 156th 1st 2nd 2nd 95th 93rd 6th 89th 1st 2nd 1st 5th 1st 23rd 98th 2nd 1st 1st 1st 2nd 1st 3rd 2nd
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963 4.610 18.444 544 229 1.835 3.068 4.630 8.592 4.FORECASTS
Gross Domestic Product [2050-2006] (US$ billions) Rank 2050 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Country China United States India Brazil Mexico Russia Indonesia Japan United Kingdom Germany Nigeria France South Korea Turkey Vietnam Canada Philippines Italy Iran Egypt 2050 2045 2040 2035 2030 2025 2020 2015 2010 4.071 440 88 1.567 2.768 2.668 25.849 2.562 3.169 2.061 582 2.346 1.133 5.870 4.101 3.437 12.710 57.265 2.192 5.444 1.279 745 2.333 3.278 16.303 3.087 17.514 6.892 3.663 2.083 3.535 37.306 2.286 6.194 14.848 2.310 45.204 7.943 3.040 2.024 4.714 2.300 1.300 4.508 740 273 1.320 3.083 3.340 8.042 4.083 158 2.856 400 2.371 419 4.072 415 171 1.353 2.914 312 129
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.602 7.471 6.366 8.817 20.010 6.700 289 2.514 33.667
70.900 1.009 1.570 3.631 445 3.256 1.149 3.227 3.577 1.737 2.133 1.937 4.683 11.388 1.765 3.326 716 318 2.010 2.133
38.265 1.089 2.631 5.831 2.305 572 157 1.391 953 467 4.604 2.740 9.194 1.302 882 2.519 306 2.900 562 4.761 680 3.595 3.048 1.366 1.861 965 458 1.904 29.580 7.720 1.546 3.022 34.886 3.554 752 5.846 6.569 2.569 1.744 4.861 2.644 1.055 1.673 1.720 3.097 22.559 1.327 1.742 2.273 718 3.950 2.728 6.241 1.033 5.479 5.814 3.341 1.549 215 2.823 26.640 4.124 4.420 4.033 2.389 162 1.978 16.316 2.677 5.815 1.348 25.510 10.607 3.344 4.224 3.326 218 2.716 1.102 5.
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.226 13. Russia. more than double the 2. BRIC's takeover made record by 22 percent of global deals or increase by 74 percent in one year and more than quadruple in the last five years
Groups Countries 2050 2045 2040 2035 2030 2025 2020 2015 2010 Brazil.324 98. Germany.278 28.653 8. It is a record number of executives from emerging markets.414 30. Nomura Holdings Inc's co-head of global investment banking said that "It's a reflection of where economic power and influence is starting to move. Italy.090 40. there are 365 corporate executives from BRIC and other emerging nations out of 1000 participants.437 Japan.925 20.640 India.5 percent rate for developed countries.617 48.483 55. France.858 36." The IMF estimates emerging markets may expand 6. BRIC 128. China Canada.475 53.745 39.039 59.281 43.At World Economic Forum 2011.757 74.5 percent in 2011. United Kingdom.781 33. G7 66.
South Africa stands at a unique position to influence African economic growth and investment. Evidence of agreements of this type is abundant and is available on the foreign ministry websites of each of the four countries. observers include India) and the IBSA Trilateral Forum. and South Africa in annual dialogues. the EAGLES (Emerging and Growth-Leading Economies) and the 7 per cent Club (which includes those countries which have averaged economic growth of at least 7 per cent a year). which unites Brazil. Also important to note is the G-20 coalition of developing states which includes all the BRICs. and slightly above that of India. Turkey and South Africa). South Africa was officially admitted as a BRIC nation on December 24. According to Jim O‘Neill of Goldman Sachs who originally coined the term. because of the popularity of the Goldman Sachs thesis "BRIC". India. President Jacob Zuma is expected to attend the BRICS summit in Beijing in April 2011 as a full member. thus far. Oman and the United Arab Emirates) and "BRICET" (including Eastern Europe and Turkey) have become more generic marketing terms to refer to these emerging markets. Some of these sources claim that President Vladimir of Russia was the driving force behind this original cooperative coalition of developing BRIC countries. However. Jim O'Neill of Goldman Sachs argued that Africa could be considered the next BRIC. "BRICA" (GCC Arab countries – Saudi Arabia. Africa's combined current gross domestic product is reasonably similar to that of Brazil and Russia. and India wants to increase
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. however. no text has been made public of any formal agreement to which all four BRIC states are signatories. Proposals include CIVETs (Colombia. Kuwait. Analysts from rival banks have sought to move beyond the BRIC concept. The capital ―S‖ in BRICS stands for South Africa. Vietnam. by introducing their own groupings of emerging markets. that they have not reached a multitude of bilateral or even quadrilateral agreements. Egypt. Also. Trilateral agreements and frameworks made among the BRICs include the Shanghai Cooperation Organization (member states include Russia and China. 2010 after being invited by China and the other BRIC countries to join the group. South Africa is a "gateway" to Southern Africa and Africa in general as the most developed African country. China is South Africa‘s largest trading partner. In an August 2010 op-ed. this term has sometimes been extended whereby "BRICK" (K for South Korea). "BRIMC" (M for Mexico).HISTORY Introduction Various sources refer to a purported "original" BRIC agreement that predates the Goldman Sachs thesis.
Enlargement Pretoria sought BRIC membership over 2010 and the process for formal admission began as early as August 2010. Qatar. This does not mean. Indonesia. Bahrain.
By comparison the reduced acronym IC would not be attractive.
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. The BRIC's study specifically focuses on large countries.commercial ties to Africa. In the original essay that coined the term. South Korea and Singapore.
Marketing The BRIC term is also used by companies who refer to the four named countries as key to their emerging markets strategies. South Africa is also Africa‘s largest economy. not necessarily the wealthiest or the most productive and was never intended to be an investment thesis. and agreed with the conclusions. According to estimates provided by the USDA. but as number 31 in global GDP economies it is far behind its new partners. He believed that the potential was there but did not anticipate inclusion of South Africa at this stage. or a formal trading association which this move signifies. although the term "Chindia" is often used. Jim O'Neill expressed surprise when South Africa joined BRIC since South Africa's economy is a quarter of the size of Russia's (the least economically powerful BRIC nation). the wealthiest regions outside of the G6 in 2015 will be Hong Kong. then they would gain exposure to Asian debt and equity markets rather than to Latin America. If investors read the Goldman's research carefully. Goldman Sachs did not argue that the BRICs would organize themselves into an economic bloc.
"Without China. which might result in slower economic growth than anticipated. Eastern Europe and Latin America. China is the muscle of the group and the Chinese know it. there is a finite limit to how much the BRIC countries can develop before exceeding the ability of the global economy to supply. thus throwing off the projections and their dates." Deutsche Bank Research said in a report that "economically. such as oil. At issue are the multiple serious problems which confront Russia (potentially unstable government. these institutional investors have contributed to the financial and economic development of key emerging nations such as Brazil. Brazil's stock market. the BRICs are just the BRI. has gone from approximately 9.) and the comparatively much lower growth rate seen in Brazil. whereas Russia is viewed essentially as an exporter of oil and commodities. Indeed. proponents of a set carrying capacity for the Earth may argue that. Brazil's lower growth rate obscures the fact that the country is wealthier than China or India on a per-capita basis. They have effective veto power over any BRIC initiatives because without them. In reality. They are the biggest potential market. coal. As David Rothkopf wrote in Foreign Policy. They are the U. Academics and experts have suggested that China is in a league of its own compared to the other BRIC countries.Brazil and Latin America being somehow "in the middle". etc.000 in May 2008
Financial diversification It has been argued that geographic diversification would eventually generate superior riskadjusted returns for long-term global investors by reducing overall portfolio risk while capturing some of the higher rates of return offered by the emerging markets of Asia. natural gas. a bland. other fossil fuels. when the "R" in BRIC is extended beyond Russia and is used as a loose term to include all of Eastern Europe as well. For global investors.On the other hand. China overshadows and will continue to
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. partner in the G2 (imagine the coverage a G2 meeting gets vs. India. given current technology. financially and politically. However. and uranium might soon experience a peak in production before enough renewable energy can be developed and commercialized. has a more developed and global integrated financial system and has an economy potentially more diverse than the other BRICs due to its raw material and manufacturing potential. who cares really? They are the one with the big reserves. and Russia. The economic emergence of the BRICs will have unpredictable consequences for the global environment.S. India and China constitute both large-scale production platforms and reservoirs of new consumers. critical lack of modern infrastructure. then the BRIC story becomes more compelling. many important resources currently necessary to sustain economic growth. environmental degradation. China. soft cheese that is primarily known for the whine [sic] that goes with it. By doing so. the Bovespa.
Criticism A criticism is that the BRIC projections are based on the assumptions that resources are limitless and endlessly available when needed.000 in September 2002 to over 70. a G8 meeting) and the E2 (no climate deal without them) and so on.
There is also the possibility of conflict over Taiwan in the case of China and smaller democracies that lie in the vicinity of these two authoritarian giants will no doubt be affected by human rights issues being relegated to a lower global priority. most emerging economies invested only 2% to 5% of their GDP. China's exports and its official forex reserve holdings are more than twice as large as those of the other BRICs combined. Russia and India can be attributed to a large extent to China's early focus on ambitious infrastructure projects: while China invested roughly 9% of its GDP on infrastructure in the 1990s and 2000s. mediocre schools. for there might be a decrease in the overall labour force and a negative change in the proportion of workers to retirees. The result has been solid and paced economic development that rival its early 70's "miracle years". Border conflicts with Pakistan. the EU states and the USA. mostly over the long held dispute over Kashmir. Only in recent years has the country established a framework of political. Finally. Moreover.. Russia and India) combined. Brazil's and China's populations will begin to decline in several decades with their demographic windows closing in several decades as well. aging power grids. Human rights issues do not inform the foreign policies of these two countries to the same extent as they do the policies of other large states such as Japan. India's relations with its neighbour Pakistan have always been tense. lowest unemployment rates in decades. India. have further aggravated any economic ties. but it had until recently consistently failed to achieve investor expectations. Brazil's economic potential has been anticipated for decades." It added that China's economy is larger than that of the three other BRIC economies (Brazil.. In 1998. some pension investment experts have argued that ―China alone accounts for more than 70% of the combined GDP growth generated by the BRIC countries [from 1999 to 2010]: if there is a BRIC miracle it‘s first and foremost a Chinese one‖. The pre-eminence of China and India as major manufacturing countries with unrealised potential has been widely recognised. This considerable spending gap allowed the Chinese economy to grow at near optimal conditions while many South American and South Asian economies suffered from various development bottlenecks (poor transportation networks. there was a nuclear standoff between Pakistan and India.
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. There is also the issue of population growth.). and social policies that allowed it to resume consistent growth. as reflected in its expanding capital markets. civil unrest.that led to the accumulation of reserves and liquidation of foreign. The population of Russia has been declining rapidly in the 1990s and only recently did the Russian government predict the population to stabilize and grow in 2020. Factors such as international conflict. This impedes progress by limiting government finances. In that perspective. increasing social unrest.overshadow the other BRICs. and limiting potential domestic economic demand. There are many uncertainties and assumptions in the BRIC thesis that could mean that any or all of these four countries will not live up to their promise. This may have implications for those countries' future. The "growth gap" between China and other large emerging economies such as Brazil. and consistent international trade surpluses . but some commentators state that China's and Russia's large-scale disregard for human rights and democracy could be a problem in the future. economic.
these gains have largely been the result of the strength of emerging markets generally. unlike India it has no serious disputes with its neighbours.
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. Whilst they accept there has been spectacular growth of the BRIC economies. In a not-so-subtle dig critical of the term as nothing more than shorthand for emerging markets generally." The Heritage Foundation's "Economic Freedom Index".The Economist. which measures factors such as protection of property rights and free trade ranks Brazil ("moderately free") above the other BRICs. but two are huge exporters of natural resources (Brazil and Russia). expressed the following view: "In some ways Brazil is the steadiest of the BRICs. CEMENT (Countries in Emerging Markets Excluded by New Terminology). Unlike China and Russia it is a full-blooded democracy. Henry Kissinger has stated that the BRIC nations have no hope of acting together as a coherent bloc in world affairs. It is the only BRIC without a nuclear bomb. and that any cooperation will be the result of forces acting on the individual nations. but in economic and political terms nothing else (apart from the fact that they are all big emerging markets) links the four. outbreaks of disease and terrorism are all factors that are difficult to predict and that could have an effect on the destiny of any country. Other critics suggest that BRIC is nothing more than a neat acronym for the four largest emerging market economies. in its special report on Brazil.unwise political policy. critics have suggested a correlating term. Two are manufacturing based economies and big importers (China and India). and that strength comes through having BRICs and CEMENT.
while both are experiencing rapid GDP growth of 5% every year. Goldman Sachs argues that the economic potential of Brazil. However. along with the BRICs. Due to Mexico's rapidly advancing infrastructure. While South Korea was not originally included in the BRICs. adding that they are a "critical part of the modern globalised economy" and "just as central to its functioning as the current G7".‖ A Goldman Sachs paper published later explained why Mexico and South Korea weren't included in the original BRICs. just behind the BRIC and G7 economies. among the other countries they looked at.
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. with Jim O'Neill pointing out that Korea ―is better placed than most others to realize its potential due to its growth-supportive fundamentals. "BRIMC" and "BRICK" are becoming more generic marketing terms to refer to these six countries. this new found local wealth also contributes to the nation's economy by creating a large domestic consumer market which in turn creates more jobs. due to the popularity of the Goldman Sachs thesis. Russia. a figure comparable to Brazil from the original BRICs. but they are economies that they decided to exclude initially because they looked to them as already more developed.PROPOSED INCLUSIONS Introduction Mexico and South Korea are currently the world's 13th and 15th largest by nominal GDP. Mexico and China is such that they may become (with the USA) the six most dominant economies by the year 2050. the four BRIC countries and South Korea should not be really thought of as emerging markets in the classical sense". recent solid economic growth led to Goldman Sachs proposing to add Mexico and South Korea to the BRICs. In their paper "BRICs and Beyond". increasing middle class and rapidly declining poverty rates it is expected to have a higher GDP per capita than all but three European countries by 2050. only Mexico and South Korea have the potential to rival the BRICs. changing the acronym to BRIMCK. According to the paper. India. Goldman Sachs stated that "Mexico.
is likely going to create an economy larger than the bulk of the G7. with a GDP per capita higher than Italy and Spain. or even between 2010 and 2020. Korean reunification would immediately raise the country's population to over 70 million. South Korea already overtook a G7 and G8 economy. infrastructure and large amount of capital in the South. such as Japan. According to some opinions. Commentators such as William Pesek Jr. estimating GDP to surpass $6 trillion by 2050. If it occurred. By GDP (PPP). as well as Korea's strategic location connecting three economic powers.
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. the United Kingdom. The young. will take over Italy before 2018
United Korea In September 2009. Goldman Sachs published its 188th Global Economics Paper named "A United Korea?" which highlighted in detail the potential economic power of a United Korea. suggesting that it stands out from the Next Eleven economies. from Bloomberg argue that Korea is "Another 'BRIC' in Global Wall". a reunited Korea could occur before 2050. skilled labour and large amount of natural resources from the North combined with advanced technology. It then surpassed Spain in 2010 and at current speed. in 2009. Canada. Germany and France within 30–40 years of reunification. which will surpass all current G7 countries except the United States.South Korea South Korea is by far the most highly developed country when compared to the BRICs and N-11s.
OTHER EMERGING ECONOMIES OF THE WORLD
Beyond the BRICs: A broader look at emerging market growth prospects The rapid growth and increasing global significance of what is called the ‗E7‘ emerging economies: the BRIC economies of Brazil. with the aim of upgrading infrastructure. electricity generation. Japan. banking. In the aftermath of the financial and economic crisis that began in mid-1997. and electricity.
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. The country is also a member of G-20 major economies. the national economy has recovered and undergone another period of rapid economic growth. Israel. The economy contains rapidly developing modern industrial and service sectors. plus Mexico. The country is among the world's leading producers of agricultural products. Mexico The economy of Mexico is the 13th largest in the world in nominal terms and the 11th by purchasing power parity. with increasing private ownership. As an export-oriented economy. the government took custody of a significant portion of private sector assets through acquisition of nonperforming bank loans and corporate assets through the debt restructuring process. Russia. and communications. Turkey The economy of Turkey is largely developed. Since 2004. rice. yet the state still plays a major role in industry. construction materials. and much of Central and South America. India and China. railroads. motor vehicles. It has a market economy in which the government plays a significant role by owning more than 164 enterprises and administers prices on several basic goods. According to the Forbes Global 2000 list of the world's largest companies in 2008. according to the World Bank. Turkey had a rapidly growing private sector. consumer electronics and home appliances. textiles. including fuel. more than 90% of Mexican trade is under free trade agreements (FTAs) with more than 40 countries. Indonesia Indonesia is the largest economy in Southeast Asia and is one of the emerging market economies of the world. natural gas distribution and airports. In recent years. transport. Recent administrations have expanded competition in ports. telecommunications. Mexico had 16 companies in the list. Indonesia and Turkey have a significant impact on the world economy. including the European Union. ships and other transportation equipment.
Turkey 18. Poland 15. Some of these sources are as under: S&P (Standard and poor) As of 31 December 2010. Turkey 17. South Africa
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. Taiwan 16. Morocco 11. Chile 3. India 8. China 4. Malaysia 13. Egypt 6. Peru 12. Brazil 2. Czech republic 5. Hungary 7. the best guides tend to be investment information sources like ISI Emerging Markets and The Economist or market index makers). Russia 19. Indonesia 9. Mexico 10.It is difficult to make an exact list of emerging (or developed) markets. Philippines 14. Standard and Poor's list of emerging economies are as under:
Philippines 5. South Africa 6. 1. or 3G (countries). Taiwan 4.EAGLE Emerging and Growth-Leading Economies (EAGLE) of the world (except the BRIC countries) are. These consist of Indonesia. Mexico 4. Turkey "Global Growth Generators" "Global Growth Generators". South Korea 7. BRIC countries plus South Korea and Indonesia will lead the world's economy with more than a half of all global growth by 2025.
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. Poland 8. Egypt BEM The Big Emerging Market (BEM) economies (apart from the BRIC countries) are: 1. Egypt 2.
Six major emerging economies According to World Bank issued at May 2011. is an alternative classification determined by Citigroup analysts as being countries with the most promising growth prospects for 20102050. Mexico 5. seven other emerging countries. The only country to appear in all emerging market lists or groups is Indonesia. South Korea 3. Indonesia 3. Indonesia 2. Turkey 6. and two countries not previously listed before. Egypt. specifically Iraq and Mongolia.
the modern-day states currently have significant areas of research and development. Developed countries have saturated their markets and hence the need to look beyond their economies Despite the signs of affluence envisaged in the emerging markets.CONCLUSION
The visions foreseen by the world‘s established organisations like The World Bank. There is also a spontaneous growth of urban areas in the world. Be that as it may. The IMF and the best economic analysts of the globe point to the fact that political systems throughout the world have to willy -nilly embrace global capitalism.
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. which will lead to the prosperity of the growing middle-class universally. While the BRICs have the potential to form a powerful economic bloc. there are many uncertainties and assumptions in the new economic order ( E7) thesis that could mean that any or all of these countries might not live up to their promise. and expansion that are happening. the new trend is poised to surmount any obstacle or hurdle.
Free Trade Agreements BEM .Brazil.Foreign Direct Investment FCOJ. China.World Trade Organisation SAARC . India.International Monetary Funds PPP .International Space Station FDI.Small Medium Enterprise GW . Russia. China.Emerging And Growth Leading Economies CEMENT .Frozen Concentrated Orange Juice UN . Egypt. India. Turkey EAGLE . China. BRICET . Turkey. India. Korea BRICA .Brazil. Arab Countries.ABBREVIATIONS
BRIC . Russia. GDP. Veitnam. Russia. Russia.South Asian Associations For Regional Corporation SME .Brazil.Gross Domestic Product ISS.Giga Watt MOU . Indonesia.United Nation IMF .Brazil. CIVET – Columbia.General Agreements on Tariffs and Trade WTO . European Nations.Purchasing Price Parity GATT . China.Memorandum Of Understanding BRICK .Countries Emerging FTA .Big Emerging Markets
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wikipedia.com India 2020: A Vision for the New Millennium by A P J Abdul Kalam with Y S Rajan Https://www.org/wik/ emerging economies Https://www.wikipedia.bric.org/wiki/bric Https://en.org
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