BRICS
Introduction:
About the BRICS:
The Big Four or the BRIC nations is a grouping referring to Brazil, Russia, India and China that are said to be on the same stage of economic development. One- fourth of the world activities take place in these emerging markets. The acronym BRIC was first used by an economist Jim O’Neill from Goldman Sachs (2001) in the paper- “Building Better Global Economic BRICs” where he predicted that these four nations will comprise more than 10% of the global output by the end of the decade.
We have seen that from beginning of the British Revolution in the 18th century till 20th century, Europe and United States have shaped out to be the economically dominant superpowers. Although now, the era seems to subside as China and India are emerging as superpowers. The political and economic power seems to shift to the East which seemed to be impossible 20 years ago. The economic potential of these four counties is such that they are expected to be dominating the global market by 2050.Since 1980; the average annual growth rate of China has been close to 9.8% followed by India and Brazil showing average annual growth rates of 5.8% and 2.4% respectively. Since 1988, Russia has also followed suit and has shown high growth rates but still lacks behind. The formation of this group has undergone a lot of controversy that whether at all these four nations together make any sense because at that time the growth of Brazil and Russia seemed too sluggish whereas on the other hand China was doing extra ordinarily good. But the political institutions of the BRIC countries took this as a great opportunity and decided to hold a summit in New York 2006 to further formalize their relations.
One problem with the BRIC nations was that it had no African country representation. If the group claimed to be representing the emerging markets of the world it certainly needed representation from the continent housing the most number of developing and least developing
About the BRICS:
The Big Four or the BRIC nations is a grouping referring to Brazil, Russia, India and China that are said to be on the same stage of economic development. One- fourth of the world activities take place in these emerging markets. The acronym BRIC was first used by an economist Jim O’Neill from Goldman Sachs (2001) in the paper- “Building Better Global Economic BRICs” where he predicted that these four nations will comprise more than 10% of the global output by the end of the decade.
We have seen that from beginning of the British Revolution in the 18th century till 20th century, Europe and United States have shaped out to be the economically dominant superpowers. Although now, the era seems to subside as China and India are emerging as superpowers. The political and economic power seems to shift to the East which seemed to be impossible 20 years ago. The economic potential of these four counties is such that they are expected to be dominating the global market by 2050.Since 1980; the average annual growth rate of China has been close to 9.8% followed by India and Brazil showing average annual growth rates of 5.8% and 2.4% respectively. Since 1988, Russia has also followed suit and has shown high growth rates but still lacks behind. The formation of this group has undergone a lot of controversy that whether at all these four nations together make any sense because at that time the growth of Brazil and Russia seemed too sluggish whereas on the other hand China was doing extra ordinarily good. But the political institutions of the BRIC countries took this as a great opportunity and decided to hold a summit in New York 2006 to further formalize their relations.
One problem with the BRIC nations was that it had no African country representation. If the group claimed to be representing the emerging markets of the world it certainly needed representation from the continent housing the most number of developing and least developing
References: 1. Morazan, Knok and Schafer (2012). The Role of BRICS in the Developing World. Published by: The EU Policy Department 2. SOUAIAIA, A. (2013). To compete globally, BRICS nations need reputation, not imitation. Published in: The Islamic Societies Review 3. Tautz (2013). Watchdogging the BRICS Bank. Article Published in: Z Communications. Date: 28th March 2013. Online Link: http://www.zcommunications.org/watchdogging-the-brics-bank-by-carlos-tautz.html 4. Gallagher, Irwin and Koleski (2012). The New Banks in Town: Chinese finance in Latin America. Published by: Global Development and Environment Institute, Tufts University.