This action might not be possible to undo. Are you sure you want to continue?
SUBMITTED BY: RAHUL MEHTA RAVNEET SINGH MANPREET SINGH SAINI RISHABHPREET SINGH CHEEMA HITESH MALHOTRA
SUBMITTED TO: CA,ATINDER PAL SINGH (MANAGEMENT FACULTY, PCTE GROUPS OF INSTITUTION)
arising out of the inclusion of South Africa into the BRIC group in 2010.OVERVIEW: BRICS is the title of an association of leading emerging economies. but they are distinguished by their large. As of 2012. . China and South Africa. With the possible exception of Russia. India. the group's five members are Brazil. the BRICS members are all developing or newly industrialised countries. Russia. fast-growing economies and significant influence on regional and global affairs.
and an estimated US $ 4 trillion in combined foreign reserves.7 trillion. the five BRICS countries represent almost 3 billion people. As of 2012. such as India and China's disagreements over Tibetan and border issues. the failure of the BRICS to establish a World Bank-analogue development agency. some analysts have highlighted potential divisions and weaknesses in the grouping. Presently. India holds the chair of the BRICS group. and disputes between the members over UN Security Council reform . with a combined nominal GDP of US $ 13.
Russia. India and China] idea was first conceived in 2001 and The acronym BRIC was first used in 2001 by Goldman Sachs in their Global Economics Paper No. beginning a series of high-level meetings. 66. and China) met in New York City in September 2006. Russia. on May 16. . "The World Needs Better Economic BRICs". A full-scale diplomatic meeting was held in Yekaterinburg. Russia.HISTORY: The foreign ministers of the initial four BRIC states (Brazil. India. 2008 The BRIC [Brazil.
There was further discussion of ways that developing countries. such as the BRIC members. Dmitry Medvedev. and Hu Jintao. .First BRIC SUMMIT: The BRIC grouping's first formal summit commenced in Yekaterinburg on June 16. India and China. Manmohan Singh. the respective leaders of Brazil. Russia. and discussed how the four countries could better co-operate in the future. 2009. could become more involved in global affairs. with Luiz Inácio Lula da Silva. all attending The summit's focus was on means of improving the global economic situation and reforming financial institutions.
ENTRY OF SOUTH AFRICA: In 2010. after being formally invited by the BRIC countries to join the group. . 2010. South Africa began efforts to join the BRIC grouping. South Africa officially became a member nation on December 24. and the process for its formal admission began in August of that year. The group was renamed BRICS – with the "S" standing for South Africa – to reflect the group's expanded membership.
2012 South Africa Dmitry Medvedev Yekaterinburg 2nd BRIC Luiz Inácio Brasília Lula da Silva 3rd BRICS Hu Jintao Sanya 4th BRICS Manmohan Singh New Delhi 5th BRICS 2013 Jacob Zuma TBA . Russia 2009 April Brazil 16.BRICS SUMMIT Summit Participants Date Host country Host leader Location 1st BRIC June 16. 2011 March India 29. 2010 April China 14.
which underscores the changed role of these economies. these five countries encompass over 40 per cent of the world’s population and account for nearly 25 per cent of total global GDP in terms of PPP. respectively (Table 1. 6th. 4th. and 26th places. India.BRICS REPORT 2012 The BRICS economies have been identified as some of the fastest growing countries and the engines of the global recovery process.1). Even in the G-20 countries’s forum. Russia. Brazil. four economies figure among the top ten. 8th. with China. If one compares the GDP in PPP terms. and South Africa in 2nd. BRICS are playing a formidable role in shaping macroeconomic policy after the recent financial crisis. . At present.
which is much higher than the world average for the period .9 percent. the Chinese economy grew at an average annual rate of 9. India and Brazil are relatively more domestic demand-driven economies. could become a much more significant force in the world economy. the four original BRIC countries are expected to represent 47 per cent of global GDP by 2050. they witnessed faster economic recovery from the 2008 financial crisis than advanced and other emerging market economies (EMEs). China. particularly the BRICS. Among the BRICS. According to an estimate by Goldman Sachs. which would dramatically change the list of the world’s 10 largest economies. As a group. are the fastest growing economies in the current decade. followed by India.ECONOMIC GROWTH: It is widely perceived that over the next few decades the growth generated by the largest developing countries. Between 1978 and 2009.
Brazil In Brazil macroeconomic stabilization is a key precondition for successful reforms and sustainable growth. improvements are required in the public sector. and it needs to enhance the depth and efficiency of the financial sector. . The challenges that the Brazilian economy faces are: its tradeable goods sector is small when compared to other EMEs like China. saving and investment rates have to increase as in other BRICS economies like China and India. the public debt structure. and financial intermediation.
particularly in inefficient and undercapitalized natural monopolies.Russia In the case of Russia. the key challenges are accelerating the implementation of structural reforms. and strengthening the investment climate. .
. such as education and health. to large parts of the population. the major challenges are : Making the growth process more inclusive. Improving physical infrastructure.India For India. Developing the agriculture sector. and Enhancing delivery of essential public services.
policy changes are needed to address both domestic and external challenges. the economy needs to be restructured away from heavy dependence on export-led growth towards self-sustaining domestic demand. and the opportunity to share in the benefits of growth needs to be spread more equitably across all levels of society.China Similarly for China. . If China is to sustain its rapid economic growth.
the development of rural economies. industrial policy that promotes higher-value added exports.South Africa The key challenge is to achieve higher levels of inclusive growth that raise employment and reduce inequality. and regional integration are prioritized. . green economy initiatives. small enterprise promotion. The expansion of infrastructure networks.
Two agreements namely.“Master Agreement on Extending Credit Facility in Local Currencies” and “BRICS Multilateral Letter of Credit Confirmation Facility Agreement”.The Delhi Declaration Delhi Action Plan which highlights the activities to be undertaken under India’s chairmanship of BRICS . Released “The BRICS Report” focusing on synergies and complementarities between the BRICS economies and highlighting their role as growth drivers of the world economy. .were signed by the Development Banks from BRICS countries.
. which underscores the changed role of these economies. Even in the G-20 countries’s forum.BRICS REPORT 2012 The BRICS economies have been identified as some of the fastest growing countries and the engines of the global recovery process. BRICS are playing a formidable role in shaping macroeconomic policy after the recent financial crisis.
Brazil. and 26th places. At present. four economies figure among the top ten. 4th. 8th. 6th. with China. India. and South Africa in 2nd. . respectively (Table 1. Russia. these five countries encompass over 40 per cent of the world’s population and account for nearly 25 per cent of total global GDP in terms of PPP.1). If one compares the GDP in PPP terms.
the challenges they face in making their growth processes sustainable also vary. .Observations Since the macroeconomic parameters and features of development vary within BRICS economies.
THANK YOU!!! .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.