The Brics Will Continue to Dominate the World

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Global business environment

BRICS will continue to dominate the world’s economy!

25/11/11

BRICS will continue to dominate the world’s economy!
BRICS also referred as “golden Brics” have been in the last 10 years leading powers of our global economy. BRICS are composed of five very different countries with diverse pattern of growth; Brazil, Russia, India, china and most recently South Africa; with one point in common, their desire to grow in prosperity and security On almost every scale, the so called BRICS have a greater entity on a global stage, representing 40% of the worlds of the world’s population and almost 25% of the world’s land coverage, (Blake Hounshell,2011). Due to their enormous growth, the BRICS will soon change the ranking of national economies considerably, where the United States will not be the leading economy. As a result they are the only a key powers able to help us survive this economic disaster. Throughout this essay we will be emphasizing the main features that make BRICS so dominant and then will go on to talk about potential outburst of future Brics. But in order to do so, this essay will argue in favor of the Brics, and how we should perceive it as an opportunity rather than a threat. Additionally we will be taking into account the political and social influence of brics on to the rest of the world and its affects. All of these 5 countries have been contributing enormously to the world’s economy in diverse ways. Russia also referred as “the world’s gas station”, is rich in oil and gas resources where as Brazil also known as “the world’s raw material base” is abundant in soybean and iron ore, while China so called “the worlds factory”, has a strong manufacturing sector, and India, appears to be the world’s office since it has a highly professional employees in IT and service sector. As a result, Russia and Brazil can provide raw materials to China and India, while those can provide good services and products for the former two,( Mu Xuequan,2011). In fact contributing to a quarter of its economic output, in other terms combined together, the BRICS have a GDP of 15.435 trillion dollars last year. The BRIC powers will contribute to 60% of global growth by 2014 according to the IMF (the economist, 2011). Although the BRIC countries encounters different patterns of growth, where china has a greater economy than all other 4 powers combined and South Africa’s economy is ¼ of India’s. This demonstrates how BRICS powers are no longer an artificial organization founded on equivalent economic performance, but increasingly a political team representing the developing world, determined to outrun western influence in major international forum. (The economist, 2011) Regardless to their political, social, or environmental challenges, the BRICS will continue to play an ever growing role within the world’s economy. They have the capacity to change the world by threat and opportunities they represent from their economic and political point of view. As a result of an improved educated population, low cost labour and lowering of barriers of trade, the speed in which the Brics are over taking the world’s economy is gigantic, it could mean that the BRICS could potentially overcome the financial crisis that we are facing,(Pierre Haski, 2010). As mentioned above, brics are becoming a threat to many countries, but essentially China could take over the United States as the leading power. Indeed research made by Goldman Sachs’s, chief economist Jim O’Neill 2001,(the inventor of the term BRIC)forecasted in his article “The World Needs Better Economic BRICs” that in 2050 China and India will become the leading economy, with Russia and brazil not far behind. They have been able to manage international trade agreements between one another, which has helped them enhance their growth in FDI, allowing them to have a greater influence over the worlds. Graph 1 shown below demonstrates the changes we will be faced...
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