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DEVELOPING ECONOMIES

1.BRAZIL
1. Main articles: Economy of Brazil and Economic history of Brazil

2.
3.
4. São Paulo, the wealthiest city of Brazil and the largest financial center in Latin America
5. Brazil is the largest national economy in Latin America, the world's tenth largest
economy at market exchange rates[87][88] and the ninth largest in purchasing power parity
(PPP),[89][90] according to the International Monetary Fund and the World Bank; with
large and developed agricultural, mining, manufacturing and service sectors, as well as
a large labor pool.[15] Brazilian exports are booming, creating a new generation of
tycoons.[91] Major export products include aircraft, coffee, automobiles, soybean, iron
ore, orange juice, steel, ethanol, textiles, footwear, corned beef and electrical
equipment.[92] The country has been expanding its presence in international financial
and commodities markets, and is regarded as one of the group of four emerging
economies called BRIC.[93] The biggest investment boom in history is under way; in
2007, Brazil launched a four-year plan to spend $300 billion to modernise its road
network, power plants and ports.[94]
6. Brazil had pegged its currency, the real, to the U.S. dollar in 1994. However, after the
East Asian financial crisis, the Russian default in 1998[95] and the series of adverse
financial events that followed it, the Brazilian central bank temporarily changed its
monetary policy to a managed-float scheme while undergoing a currency crisis, until
definitively changing the exchange regime to free-float in January 1999.[96] Brazil
received an International Monetary Fund rescue package in mid-2002 in the amount of
$30.4 billion,[97] a record sum at that time. The IMF loan was paid off early by Brazil's
central bank in 2005 (the due date was scheduled for 2006).[98] One of the issues the
Brazilian central bank is currently dealing with is the excess of speculative short-term
capital inflows to the country in the past few months, which might explain in part the
recent downfall of the U.S. dollar against the real in the period.[99] Nonetheless, foreign
direct investment (FDI), related to long-term, less speculative investment in production,
is estimated to be $193.8 billion for 2007.[100] Inflation monitoring and control currently
plays a major role in Brazil's Central Bank activity in setting out short-term interest
rates as a monetary policy measure.[101]
7. Components and energy
8. Main articles: Agriculture in Brazil, Industry in Brazil, and Energy policy of Brazil
9.
10.
11. Itaipu Dam, the world's second largest hydroelectric plant by energy generation.
12. Brazil's "investment grade" economy is diverse,[102] encompassing agriculture, industry,
and a multitude of services.[103][104] Brazil is finally punching its weight with a booming
economy and stronger global leadership.[91][105] The recent economic strength has been
due in part to a global boom in commodities prices with exports from beef to soybeans
soaring.[104][105] Agriculture and allied sectors like forestry, logging and fishing
accounted for 5.1% of the gross domestic product in 2007.[106] A performance that puts
agribusiness in a position of distinction in terms of Brazil's trade balance, in spite of
trade barriers and subsidizing policies adopted by the developed countries.[107][108] The
industry; from automobiles, steel and petrochemicals to computers, aircraft, and
consumer durables; accounted for 30.8% of the gross domestic product.[106] Industry is
highly concentrated geographically, with the leading concentrations in metropolitan
São Paulo, Rio de Janeiro, Campinas, Porto Alegre, and Belo Horizonte.
Technologically advanced industries are also highly concentrated in these locations.[109]
13. Brazil is the world's tenth largest energy consumer. Its energy comes from renewable
sources, particularly hydroelectricity and ethanol; and nonrenewable sources, mainly oil
and natural gas.[110] A global power in agriculture and natural resources, Brazil
unleashed the greatest burst of prosperity that it has witnessed in three decades.[111]
Brazil will become an oil superpower, with massive oil discoveries in recent times.[112]
[113][114][115]
The governmental agencies responsible for the energy policy are the Ministry
of Mines and Energy, the National Council for Energy Policy, the National Agency of
Petroleum, Natural Gas and Biofuels, and the National Agency of Electricity.[116][117]
14.Science and technology
15. Main article: Brazilian science and technology

16.
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18. An Embraer ERJ-135 regional jet. Airplanes are one of the sophisticated products
exported by Brazil.
19. Brazilian science effectively began in the first decades of the 19th century, when the
Portuguese Royal Family, headed by John VI, arrived in Rio de Janeiro, escaping from
the Napoleon's army invasion of Portugal in 1807. Until then, Brazil was a Portuguese
colony, without universities, and a lack of cultural and scientific organizations, in stark
contrast to the former American colonies of the Spanish Empire, which although having
a largely illiterate population like Brazil and Portugal, had, however, a number of
universities since the 16th century.
20. Technological research in Brazil is largely carried out in public universities and
research institutes. Nonetheless, more than 73% of funding for basic research still
comes from government sources.[118] Some of Brazil's most notables technological hubs
are the Oswaldo Cruz Institute, the Butantan Institute, the Air Force's Aerospace
Technical Center, the Brazilian Agricultural Research Corporation and the INPE. Brazil
has the most advanced space program in Latin America, with significant capabilities to
launch vehicles, launch sites and satellite manufacturing.[119] On 14 October 1997, the
Brazilian Space Agency signed an agreement with NASA to provide parts for the ISS.
[120]
Uranium is enriched at the Resende Nuclear Fuel Factory to fuel the country's
energy demands. Plans are on the way to build the country's first nuclear submarine.[121]
[122]

21. Brazil is one of the three countries in Latin America[123] with an operational
Synchrotron Laboratory, a research facility on physics, chemistry, material science and
life sciences.

2.CHINA
Economy
Main articles: Economy of the People's Republic of China, Economy of Hong Kong, and
Economy of Macau

Nominal GDP from 1952 to 2005.


See also: Economic history of China
From its founding in 1949 to late 1978, the People's Republic of China was a Soviet-style
centrally planned economy. Private businesses and capitalism were suppressed. To propel the
country towards a modern, industrialized communist society, Mao Zedong instituted the Great
Leap Forward which is now widely seen – both within the PRC and outside – as a major
economic failure and a great humanitarian disaster. His death and the end of the Cultural
Revolution allowed Deng Xiaoping and the new Chinese leadership to reform the economy and
move to a market-oriented mixed economy under one-party rule. Collectivization of the
agriculture was dismantled and farmlands were privatized to increase productivity. A wide
variety of small-scale enterprises were allowed to flourish while the government relaxed price
controls and promoted foreign investment. Foreign trade was focused upon as a major vehicle of
growth, which led to the creation of Special Economic Zones (SEZs) first in Shenzhen (near
Hong Kong) and then in other Chinese cities. Inefficient state-owned enterprises (SOEs) were
restructured by introducing western-style management system and the unprofitable ones were
closed, resulting in massive job losses.

Shanghai Stock Exchange building at Shanghai's Pudong financial district


Since economic liberalization began in 1978, the PRC's investment- and export-led[73] economy
has grown 70 times bigger[74] and is among the fastest growing in the world.[75] It now has the
world's third largest nominal GDP at 30 trillion yuan (US$4.4 trillion), although its per capita
income of US$3,300 is still low and puts the PRC behind roughly a hundred countries.[76] The
primary, secondary, and tertiary industries contributed 11.3%, 48.6%, and 40.1% respectively to
the total economy. If PPP is taken into account, the PRC's economy is second only to the US at
US$7.9 trillion corresponding to US$5,900 per capita.[77] The PRC is the fourth most visited
country in the world with 49.6 million inbound international visitors in 2006.[78] It is a member of
the WTO and is the world's third largest trading power behind the US and Germany with a total
international trade of US$2.56 trillion - US$1.43 trillion in exports (#2) and US$1.13 trillion in
imports (#3). Its foreign exchange reserves have reached US$1.9 trillion, making it the world's
largest.[79] It is among the world's favorite destination for FDI, attracting more than US$80 billion
in 2007 alone.[80] The PRC's success has been primarily due to manufacturing as a low-cost
producer. This is attributed to a combination of cheap labor, good infrastructure, medium level of
technology and skill, relatively high productivity, favorable government policy, and some say, an
undervalued exchange rate. The latter has been blamed for the PRC's bulging trade surplus
(US$262.7 billion in 2007)[81] and has become a major source of dispute between the PRC and its
major trading partners – the US, EU, and Japan – despite the yuan having been de-pegged and
risen in value by 20% against the US dollar since 2005.[82]
In 1978, Deng Xiaoping initiated the PRC's market-oriented reforms.
The state still dominates in strategic "pillar" industries (such as energy and heavy industries), but
private enterprise (30 million private businesses)[83] now accounts for approximately 70% of
China's national output, up from 1% in 1978.[84] Its stock market in Shanghai (SSE) is raising
record amounts of IPOs and its benchmark Shanghai Composite index has doubled since 2005.
SSE's market capitalization reached US$3 trillion in 2007 and is the world's fifth largest
exchange. China now ranks 34th in the Global Competitiveness Index.[85] Twenty nine Chinese
companies made the list in the 2008 Fortune Global 500.[86] Measured on market capitalization, 3
out of 10 of the world's most valuable companies are in China including #2-PetroChina, #5-
China Mobile (world's most valuable telecommunications company), and #6-Industrial and
Commercial Bank of China (world's most valuable bank).[87]
Although still relatively poor by the world's standard, the PRC's rapid growth managed to pull
hundreds of millions of its people out of poverty since 1978. Today, about 10% of the Chinese
population (down from 64% in 1978) live below the poverty line of US$1 per day (PPP) while
life expectancy has dramatically increased to 73 years. More than 90% of the population is
relatively literate,[88] compared to 20% in 1950.[89] Urban unemployment declined to 4 percent in
China by the end of 2007 (true overall unemployment might be higher at around 10%).[90] Its
middle class population (defined as those with annual income of at least US$5,000) has now
reached 80-150 million.[91][92][93] China's retail market is worth RMB8921 billion (US$1302
billion) in 2007 and growing at 16.8% annually.[94] It is also now the world's third biggest
consumer of luxury goods with 12% of the global share.[95]
The PRC's growth has been uneven when comparing different geographic regions and rural and
urban areas. The urban-rural income gap is getting wider in the PRC with a Gini coefficient of
46.9%. Development has also been mainly concentrated in the eastern coastal regions while the
remainder of the country are left behind. To counter this, the government has promoted
development in the western, northeastern, and central regions of China. The economy is also
highly energy-intensive and inefficient – it uses 20%-100% more energy than OECD countries
for many industrial processes.[96] It has now become the world's second largest energy consumer
behind the US[97] but relies on coal to supply about 70% of its energy needs.[98] Coupled with a
lax environmental regulation, this has led to a massive water and air pollution (China has 20 of
the world's 30 most polluted cities).[96] Consequently, the government has promised to use more
renewable energy with a target of 10% of total energy use by 2010 and 30% by 2050.[99]

3.INDIA
Economy
Main article: Economy of India
See also: Economic history of India
See also: Poverty in India

The Bombay Stock Exchange, in Mumbai, is Asia's oldest and India's largest stock exchange.
For an entire generation from the 1950s until the 1980s, India followed socialist-inspired
policies. The economy was shackled by extensive regulation, protectionism, and public
ownership, leading to pervasive corruption and slow growth.[98][99][100][101] Since 1991, the nation
has moved towards a market-based system.[99][100] The policy change in 1991 came after an acute
balance of payments crisis, and the emphasis since then has been to use foreign trade and foreign
investment as integral parts of India's economy.[102]
With an average annual GDP growth rate of 5.8% for the past two decades, the economy is
among the fastest growing in the world.[103] It has the world's second largest labour force, with
516.3 million people. In terms of output, the agricultural sector accounts for 28% of GDP; the
service and industrial sectors make up 54% and 18% respectively. Major agricultural products
include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water buffalo, sheep,
goats, poultry; fish.[53] Major industries include textiles, chemicals, food processing, steel,
transport equipment, cement, mining, petroleum, machinery, software.[53] India's trade has
reached a relatively moderate share 24% of GDP in 2006, up from 6% in 1985.[99] India's share of
world trade has reached 1%. Major exports include petroleum products, textile goods, gems and
jewelry, software, engineering goods, chemicals, leather manufactures.[53] Major imports include
crude oil, machinery, gems, fertilizer, chemicals.[53]
India's GDP is US$1.089 trillion, which makes it the twelfth-largest economy in the world[104] or
fourth largest by purchasing power adjusted exchange rates. India's nominal per capita income
US$977 is ranked 128th in the world. In the late 2000s, India's economic growth has averaged
7½% a year, which will double the average income in a decade.[99]
Despite India's impressive economic growth over recent decades, it still contains the largest
concentration of poor people in the world, and has a higher rate of malnutrition among children
under the age of three (46% in year 2007) than any other country in the world.[105][106].
The percentage of people living below the new international poverty line $1.08 a day (PPP, in
nominal terms Rs 21.6 a day in urban areas and Rs 14.3 in rural areas in 2005) decreased from
60% in 1981 to 42% in 2005 - the 3rd highest rate in South Asia after Nepal and Bangladesh,
despite having a higher per capita income earning overall[107] 85.7% of the population was living
on less than $2.50 (PPP) a day in 2005, compared with 80.5% for Sub-Saharan Africa.[108] Even
though India has avoided famines in recent decades, half of children are underweight, one of the
highest rates in the world and nearly double the rate of Sub-Saharan Africa.[109]
Ongoing reforms are watched closely as India could become potentially important for the global
economy. A Goldman Sachs report predicts that "from 2007 to 2020, India’s GDP per capita will
quadruple," and that the Indian economy will surpass the United States by 2043, but India "will
remain a low-income country for several decades, with per capita incomes well below its other
BRIC peers. But if it can fulfill its growth potential, it can become a motor for the world
economy, and a key contributor to generating spending growth.".[101] Although the Indian
economy has grown steadily over the last two decades; its growth has been uneven when
comparing different social groups, economic groups, geographic regions, and rural and urban
areas.[110] World Bank suggests that the most important priorities are public sector reform,
infrastructure, agricultural and rural development, removal of labor regulations, reforms in
lagging states, and HIV/AIDS.

Russia
Economy
Main article: Economy of Russia

Regional product per capita as of 2006 (darker is higher)


The economic crisis that struck all post-Soviet countries in the 1990s was twice as intense as the
Great Depression in the countries of Western Europe and the United States in the 1930s.[114][115]
Even before the financial crisis of 1998, Russia's GDP was half of what it had been in the early
1990s.[115] Since the turn of the century, rising oil prices, increased foreign investment, higher
domestic consumption and greater political stability have bolstered economic growth in Russia.
The country ended 2007 with its ninth straight year of growth, averaging 7% annually since the
financial crisis of 1998. In 2007, Russia's GDP was $2.076 trillion (est. PPP), the 6th largest in
the world, with GDP growing 8.1% from the previous year. Growth was primarily driven by
non-traded services and goods for the domestic market, as opposed to oil or mineral extraction
and exports.[6] The average salary in Russia was $640 per month in early 2008, up from $80 in
2000.[116] Approximately 14% of Russians lived below the national poverty line in 2007,[117]
significantly down from 40% in 1998 at the worst of the post-Soviet collapse.[79] Unemployment
in Russia was at 6% in 2007, down from about 12.4% in 1999.[118][119]
A Rosneft petrol station. Russia is the world's leading natural gas exporter and the second
leading oil exporter.

Soyuz TMA-2 moves to launch pad, about to carry the first resident crew to the International
Space Station
Russia has the world's largest natural gas reserves, the second largest coal reserves and the eighth
largest oil reserves. It is the world's leading natural gas exporter and the second leading oil
exporter. Oil, natural gas, metals, and timber account for more than 80% of Russian exports
abroad.[6] Since 2003, however, exports of natural resources started decreasing in economic
importance as the internal market strengthened considerably. Despite higher energy prices, oil
and gas only contribute to 5.7% of Russia's GDP and the government predicts this will drop to
3.7% by 2011.[120] Russia is also considered well ahead of most other resource-rich countries in
its economic development, with a long tradition of education, science, and industry.[121] The
country has more higher education graduates than any other country in Europe.[122]
A simpler, more streamlined tax code adopted in 2001 reduced the tax burden on people, and
dramatically increased state revenue.[123] Russia has a flat personal income tax rate of 13 percent.
This ranks it as the country with the second most attractive personal tax system for single
managers in the world after the United Arab Emirates, according to a 2007 survey by investment
services firm Mercer Human Resource Consulting.[124][125] The federal budget has run surpluses
since 2001 and ended 2007 with a surplus of 6% of GDP. Over the past several years, Russia has
used oil revenues from its Stabilization Fund of the Russian Federation to prepay all Soviet-era
sovereign debt to Paris Club creditors and the IMF. Oil export earnings have allowed Russia to
increase its foreign reserves from $12 billion in 1999 to $597.3 billion on 1 August 2008, the
third largest reserves in the world.[126] The country has also been able to substantially reduce its
formerly massive foreign debt.[127]

Russia is Europe's key oil and gas supplier.[128]


The economic development of the country though has been uneven geographically with the
Moscow region contributing a disproportionately high amount of the country's GDP.[129] Much of
Russia, especially indigenous and rural communities in Siberia, lags significantly behind.
Nevertheless, the middle class has grown from just 8 million persons in 2000 to 55 million
persons in 2006.[130] Russia is home to the largest number of billionaires in the world after the
United States, gaining 50 billionaires in 2007 for a total of 110.[131]
Over the last five years, fixed capital investments have averaged real gains greater than 10% per
year and personal incomes have achieved real gains more than 12% per year. During this time,
poverty has declined steadily and the middle class has continued to expand. Russia has also
improved its international financial position since the 1998 financial crisis.[6] A principal factor in
Russia's growth has been the combination of strong growth in productivity, real wages, and
consumption.[132] Despite the country's strong economic performance since 1999, however, the
World Bank lists several challenges facing the Russian economy including diversifying the
economy, encouraging the growth of small and medium enterprises, building human capital and
improving corporate governance.[25] Inflation grew to about 12% by the end of 2007, up from 9%
in 2006. The upward trend continued in the first quarter of 2008, driven largely by rising food
costs.[6][117] Infrastructure, ageing and inadequate after years of being neglected, is considered to
be a bottleneck to economic growth.[133] The government has said $1 trillion will be invested in
infrastructure by 2020.[134]