THE BRICS LEADERS; MANMOHAN SINGH, XI LINPING,

JACOB ZUMA, DILMA ROUSSEFF, & VLADIMIR PUTINOn The World Stage .. (BRICS Summit, Durban, March 2013)

BRICS AND ITS WORLD SHARE

43% OF THE WORLD POPULATION LIVE IN THE BRICS NATIONS
OF GLOBAL OUTPUT IS GENERATED BY BRICS NATIONS TRILLION USD, TOTAL FOREIGN CURRENCY RESERVE

25%

4.4

 MARCH 2013, BRICS APPROVED 100 BILLION

USD, FUND TO COMBAT CURRENCY CRISES (CHINA 41, BRAZIL, RUSIA, INDIA 18 BILL EACH, AND SOUTH AFRICA 5 BILL USD)
BRICS ARE SEEKNG GREATER FINANCIAL SWAY

TO MATCH THEIR RISING ECONOMIC POWER

TRADE WITHIN THE GROUP SURGED TO 282

BILLION USD (2012), FROM 27 BILLION USD IN 2002, AND MAY REACH 500 BILLION USD BY 2015

THE BRICS MAIN AMBITION;

THAT LEADERS WANT TO BREAK WESTS MONOPOLY (MAJOR POLITICAL ISSUE)

THE APPEAL FOR BRICS IN SETTING UP AN ALTERNATIVE TO CHALLENGE WESTERN SUPREMACY AT GLOBAL INSTITUTIONS IS ENTICING PARTICULARLY GIVEN THE EFFECTS OF THE FINANCIAL CRISIS IN DRAGGING DOWN;

(1)THE EUROZONE NATIONS, (2) SLOWING GROWTH, AND (3)TIGHTENING CREDIT SUPPLIES

 THE LAST SUMMIT OF BRICS AGENDA (MARCH 2013)

WAS AN ATTEMPT TO HAMMER OUT THE FINER DETAILS OF AN AGREEMENT TO ESTABLISH AN INFRASTRUCTURE BANK DESIGNED TO RIVAL THE US AND EUROPEAN LED WORLD BANK THAT HAS DOMINATED DEVELOPMENT FINANCE FOR SEVERAL DECADES.

PROBLEM

GLOBAL INSTITUTIONS SUCH AS THE WORLD BANK, THE INTERNATIONAL MONETARY FUND AND THE UN SECURITY COUNCIL ARE NOT CHANGING FAST ENOUGH REFLECT THEIR NEW FOUND CLOUT.

 THE DISPARATE BRICS GROUPING HAS, HOWEVER STRUGGLED TO TURN THAT IDEOLOGICAL BELIEF INTO CONCRETE PROGRESS TOWARD THEIR GOALS

ESTABLISHING THE NEW DEVELOPMENT BANK

CHINESE PRESIDENT XI JINPING SAID; THE POTENTIAL OF BRICS DEVELOPMENT IS INFINITE, BUT THE REAL POTENTIAL OF BRICS COOPERATION IS YET TO BE

REALISED.

CHINA TO IMPLEMENT A NEW GROWTH STRATEGY

NEW LEADERSHIP SEEMS

DETERMINED TO COME TO GRIPS WITH A VAST ARRAY OF INTERNAL IMBALANCES THAT THREATEN THE ENVIRONMENT, PROMOTE DESTABILISING INCOME INEQUALITY, AND EXACERBATE REGIONAL DISPARITIES.

 A STRUCTURAL SHIFT IN CHINA INVESTMENT AND EXPORT LED GROWTH MODEL TOWARDS A MORE BALANCED

CONSUMER BASED AND SERVICES LED ECONOMY

THE STRATEGY SHIFT (FROM PERSISTENTLY WEAK GLOBAL GROWTH IS UNLIKELY TO PROVIDE THE SOLID EXTERNAL DEMAND FOR CHINESE EXPORTS), see the next page

..

 IS ALSO A DELBERATE EFFORT BY CHINESE POLICY

MAKERS TO AVOID THE DREADED MIDDLE INCOME TRAP A MID STAGE SOWDOWN THAT HAS ENSNARED MOST EMERGING

ECONOMIES WHEN PER CAPITA INCOME NEAR

17.000 USD

DEVELOPING ECONOMIES THAT MAINTAIN THEIR

OLD GROWTH MODELS FOR TOO LONG FALL INTO IT, AND CHINA PROBABLY WILL HIT THE THRESHOLD IN THREE TO FIVE YEARS.

 For China to avoid

income trap

the middle

(1) A well articulated of urbanization strategy

has emerge as a key pillar of consumer led rebalancing. Purchasing power parity for urban workers per capita income is powerful and 3 times higher than that of their counterpart in the countryside

 (2) The China new government focus

on strengthening the social safety net as a pillar of a modern consumer society 160 million people with access to public service and benefit remain shut out of government supported health care, education, and social security.

 The tendency of Chinas economy has shown that

they are moving of its capacity from the emerging market or the champions of developing countries into dual ways and vice versa between nations with main principle that China competing with everyone from every where and for everything. This is the dominant symbol of China Models. State is important (Mercantilism), but it should also be reconciled with the other state power to be a part of free-markets interest .

 Moreover Chinas Model at first depend on small and medium enterprises mechanism, and State Own Enterprises (SOEs) are important as the giant locomotive of Chinas economy, but latter she also developed her own MNC enterprises with high skills, high-value as for big multinational,

winning the war for talent, is one of the most pressing issues especially as hot labor markets in emerging markets are causing extremely high turnover rates.

 WOWWWWWBRICS rising its power China models is taking advantage to the

others political economy models (Liberalism, and Marxism) with accounted for more than half of global GDP at PPP and they are even take on and beat the best of developed world multinationals.

 Unfortunately the West with its capitalism/liberalism model which supported by its political democracy has just created new problems for the world economy bankruptcy Crisis Austerity Social Charity cut the public spending these are the result of two crisis; (1) the USA crisis in 2008, and follows (2) by the European Crisis in 2010.
State fail to control of the individual ambitions (dogs eat dogs) on financial markets and trade,

non-performing loan, short Term Loans, etc the Excess of Western Capitalism ..

 BRICS CONCRETE STEPS TOWARDS THE WEST

1. Resurging BRICS set to challenge Western order.

2. Fuelling global economic growth agreed (Durban,

March 2013) to create development bank to help fund on 4.5 trillion USD for infrastructure program a direct challenge to the World Bank that they accuse of Western bias. 3. The development bank (was started in 2009), to chart a new and more equitable world economic order amid the world economy meltdown.

Closing Remarks:

1. The future of world political-economy has been shifted inevitably and tremendously. 2. For the time being China has become the main leader of BRICS. 3. BRICS is becoming more significant and also determine of its role to be the champions of the developing countries

 4. BRICS for the first time to approve

fund to bail out currencies 100 billion USD to combat the world currencies crisis March 2013. 5. BRICS is a new identification of real multiplication authority of states its solidity is going to be more powerful than one dominant state - USA

Thankyou