Economic Fundamentals - Group Assignment
IMPACT OF BRICS ON THE SOUTH AFRICAN
BRAZIL, RUSSIA, INDIA, CHINA, SOUTH AFRICA
Table of Contents
1. Executive Summary
What is BRICS?
BRICS countries economic performance
International Monetary Fund (IMF)
How has S.A gained from its association with BRICS?
Brazil, Russia, India, China and South Africa (BRICS) are the names of an association of emerging economies. The BRICS members are all developing countries with large, rapidly growing economies.
South Africa (S.A) was the last country to join the association. With members like China and India who are emerging superpowers of the world, the benefits to S.A as a country are substantial. South Africa has come into the world spotlight after hosting the 2010 Soccer World Cup and BRICS can prove to be an important association to help us capitalize on the exposure we received.
BRICS nations are quickly evolving from emerging markets to growth markets. They represent a major shift in the geopolitical chessboard.
Members consisting of Brazil, Russia, India, China and South Africa (BRICS) are all developing or newly industrialized countries that are distinguished by their large, fast growing economies and significant influence on regional and global affairs.
South Africa officially became a member on December 24, 2010, after being formally invited by the BRIC countries to join the group. The group was renamed BRICS with the "S" standing for South Africa, to reflect the group's expanded membership. Although still a relatively young grouping, BRICS has already shown its economic resilience, increasing political effectiveness and continuing contribution to global growth.
The natural resources that exist in the BRICS nations and the fact that they have approximately 45% of the world’s population makes it easy to see why they are on the threshold of a bright economic future.
With broad vision and shared prosperity as its theme, BRICS benefit to South Africa should be considerable and the future of our country should be that much brighter. However economic growth seems to be only a small part in that this association will offer. Political standpoint and representation of Africa on the global playground plays a big part of what South Africa’s role in BRICS is about.
What is BRICS?
According to Wikipedia (2012), the five BRICS countries represent almost 3 billion people, with a combined nominal Gross Domestic Product (GDP) of US$13.7 trillion, and an estimated US$4 trillion in combined foreign reserves with India presently leading the BRICS group.
In April 2011, South African President Jacob Zuma attended the 2011 BRICS summit in Sanya, China, as a full member.
The BRICS countries emerged from their meetings in New Delhi and declared that: 1. trade between their countries would take place in their own currencies, doing away with the use of the reserve U.S. dollar,
2. trade among the BRICS countries themselves would be increased in order to reduce the influence of exporting to countries in Europe and to the U.S. (Trade among the BRICS countries is growing at a 28% annual rate and is expected to double in just a few years from the $230 billion worth of trade being transacted today in the BRICS countries, increasing their GDP influence.)
3. Their finance ministers would study the possibility of...