BRICS Economies & internal & external forces influencing international stage

Economies of BRICS: BRICS stands for Brazil, Russia, India, China and South Africa and these all are deemed towards newly economic development and progress. These 5 countries are distinguished by promising emerging markets by their demographics and economic potential. These five BRICS countries represent almost 3 billion people, with a combined nominal GDP of over USD 16 trillion, and an estimated USD 4 trillion in combined forex reserves. As per 2012 statistics there are around 2.8 billion people and this constitutes around 40 percent of world’s population and covers around quarter of the world’s land area over three continents and account for 25 percent of the global GDP. They have a potential to affect the global economy and acts as an engine of global economic growth and development. As per 2003, Goldman Sachs forecasted that China and India would become the first and third largest economies by 2050, with Brazil and Russia capturing the fifth and sixth spots. While these economies only reflected a small portion of the global GNP at that time, economists have projected that in 40-50 years, these nations may very well catch up to the OECD countries in their economic prowess. At the outset, these four BRIC nations are seemingly disparate; however, they have a common thread in that they are all developing nations with a significant growth potential. India and Russia stand for strengthening of BRICS as a mechanism for strategic and ongoing coordination of the activities undertaken by the member states on a growing range of international political and economic issues. There are various action plans towards the development. Example includes full support for the eThekwini Action Plan adopted at the BRICS Summit in 2013 and to contribute actively to its implementation. India and Russia are developing all aspects of multilateral cooperation within BRICS as the most solid basis for further strengthening of diverse ties among its members and are supporting the projects for establishing the BRICS Development Bank and the Contingent Reserve Arrangement among member states. The countries are working in coordination like Indian side agreed to consider the Russian proposal to develop a Strategy of Multilateral Economic Cooperation of BRICS member states. Russia also commended India's active participation in the Shanghai Cooperation Organisation (SCO) as an observer state and reiterated its strong support for New Delhi's bid for full membership of the SCO. One example of the group’s importance to the world economy was reflected by the collective pledge of the BRICS countries to contribute a huge $75 billion at the 2012 G-20 Summit in Los Cabos, Mexico, towards preventing the contagion of the Euro zone crisis into the global market. Below are the key indicators and statistics of the BRIC nations The BRICS economies, if viewed collectively over the last two decades, have emerged as a force to be reckoned with. This is duly reflected by the increasing share of BRICS in the world GDP. From a share of a little over 10% of the world GDP in 1990, BRICS now commands a share of more than 25%. This implies that the economic size of BRICS in terms of its share in world GDP expanded by 150% in the two decade periods. As in the case of their share in world GDP, the BRICS share in world trade has also improved significantly over the last two decades, from 3.6% to over 15%. The primary contribution to this in terms of value has come from China, whose share has increased from less than 2% to over 9%. This is, however, not to argue that other BRICS countries have not contributed. Their shares have also increased, with Brazil’s share rising from 0.8% to 1.2%; Russia’s from 1.5% to 2.3%; and India’s from 0.5% to 1.8%. South Africa is the only country in the group whose share in world trade has remained constant over the last two decades. Trade Indicators: Trade appears to have played a significant role in boosting the economic growth prospects of these countries. There is evidence to suggest that trade liberalization has been seen and used as a tool for promoting economic growth and facilitating development in all the BRICS countries. As per above table BRICS countries have become more open, reflected by indicators such as trends in trade openness, current account balance and forex reserves, among others. In most of these parameters, BRICS countries have performed reasonably well, as reflected by above table. The rising GDP and forex reserves, increasing share in global trade, and trade openness augurs well for the group as a whole. They have bolstered the BRICS economic and political status at the global level and have helped BRICS countries to play a bigger role, as evidenced in the aftermath of the global crisis periods. Growing BRIC Middle Class As per various studies worldwide, the rapid economic growth and demographics of China and India are expected to give rise to a large middle class whose consumption wou...

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BRICS ECONOMIES S...

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BRICS ECONOMIES S...

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The role of Brazil, Russia, India, China and South Africa (BRICS) is increasin...

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