What are the key factors that have led to the rise of the ‘BRICs’ (Brazil, Russia, India and China) in the world economy? Focusing on ONE of these countries, examine how its position is changing in the world economy in the context of the current global recession.
1. Rise of BRIC and factors contributing the rise
2. China – The rising dragon, (most influential amongst BRICs)
3. Global financial crisis
a. Impact on China and major challenges ahead
4. China’s global foot prints across three major dimensions amid financial crisis
b. Foreign investments, Aid & human rights, migration
c. Global governance,
5. Conclusion - China’s contribution in rebalancing global growth
Although explored by a trans-nationalist, the term ‘BRIC’ has gained momentum with the recent summit held in June last year. The rise of BRIC is associated with major global shifts. Also there are opportunities and challenges with this rise. But there are common factors which made BRIC increasingly noticeable atleast during last decade. Surely, the unprecedented economic growth and the burgeoning middle class are amongst the visible factors. The other factors are structural and unique advantages. During the past decade, much has been contributed by the rising demand in the global economy where survival of the fittest is very much in practice. More importantly, the dimension of financial crisis makes the case of exploring one of the economy i.e. China much interesting. The rise of china, its competitive advantage and sustainable growth has its roots in Mao era and the delayed focus on industrialization turned out to be boon. Long ago (some 25 years back), all I use to know about china is their hard work and their story of riding bicycle rather than using automobiles (to preserve the environment amongst other the other reasons). Contrasting to this, in 2009, China became world’s biggest car market. This huge shift in Chinese affordability has its global repercussions (both due to causes of this change and its further impact). China is in its way of becoming a global superpower and in the era of financial crisis, it comes out that China has an increasing role to play in rebalancing the global economic growth. Rise of BRIC
With the rising middle class in emerging economies, rising concerns of dependency over fossil fuels which has its contributions to environmental degradation, future energy security & threats of volatility and shift in global production networks, the BRICs is emerging as a “new pole”. With the recent BRIC summit held in June 2009, it has been revealed that the idea behind ‘BRIC’ is towards working out common approaches to issues concerning the development of the global financial architecture and of the world economy as a whole. There are also other possibilities of coordination in energy, agriculture and high technology (Russia Now, 22nd Nov., 2009). The factors leading rise of Brazil, Russia, India and China although being geographically distant and with varying interests would lead to detrimental outcomes which can potentially lead towards a new international political economic order. Over more than a decade, there has been an impressive growth in BRIC economies which has been backed by relative political stability and institutionalization in these nations. The common factors and characteristics of this rise in ‘BRIC’ economies are:- [pic]
“Factors and possible outcomes – Rise of BRICs”
Growth factors and similarities
There has been an impressively sustained high per capita GDP growth more than a decade (with china more than 3 decades) supported by decline in population growth rate. With this, BRIC economies have become a biggest source of labour with rising female participation and declining unemployment levels (less that 10%). A good amount of contribution to this growth goes to rise in...