Sunday, April 1, 2012

BRICS Countries

Brics Countries
Trade in local currencies, investment in each other’s economies, moves for a new
Development Bank and collective stand on Syria and Iran.  The BRICS summit
 in Delhi (on 31st March 2012) could be a game-changer
(Times of India 1.4.2012)

  1. Last year, trade between the BRICS countries stood at around $230 Bln, and by 2015 it will be $500 Bln.
  2. The block accounts for 25% of global GDP; 30% of land area, 45%of the world’s population.

Today,s emerging economies may become tomorrow's global powers.  Here's a look at the power the BRIC

countries pack and where they stand in the world order.

Comparision with

South Africa
8.5 m sq km (5th)
17 m sq km (1st)
3.2 m sq km (7th)
9.6 m sq km (4th)
1.2 m sq km (25th)
9.83 m sq km (3rd)

192 million (5th)
143 million (8th)
1.2 billion (2nd)
1.4 billion (1st)
50 million (24th)
311 million (3rd)

$2.30 trillion (7th)
$2.37 trillion (6th)
$4.40 trillion (3rd)
$11.30 trillion (2nd)
$555 billion (25th)
14.78 Trillion (1st)

$2.50 trillion (6th)
$1.88 trillion (9th)
$1.84 trillion (10th)
$7.30 trillion (2nd)
$422 billion (29th)
14.78 Trillion (1st)

Per Capita
$ 12,917(53rd)
$ 13,235(52nd)
$ 1527(133rd)
$ 12,917(53rd)
$ 8342(104th)

Growth Rate

GDP in 2020
6th biggest
4th biggest
5th biggest
2nd biggest
20th biggest

  1. BRICS leaders proposed to trade among themselves in their local currencies
  2. Made significant progress on the setting up of the new Development Bank
  3. Expressed their concern at the slow pace of quota and governance reforms in IMF
  4. Decided to abide by UN sanction and not the unilateral ones imposed by the US and European countries on Iran and Syria.  They said “We wish to see these countries living in peace and regain stability and prosperity as respected members of the global community.”
  5. World Bank chief Zoellick expresses doubts about success of Development Bank “It’s a complicated venture which will have a hard time getting off the ground and match the expertise of the World Bank”.
  6. Rakesh Vaidyanathan, the president of Sao Paulo-based Institute BRICS tells why the developed world is suspicious of emerging economies: “The west is worried that for the first time a non-contiguous global architecture that doesn’t involve them is becoming a reality.”
  7. In the days to the summit the air was thick with negativity. “What do they talk at these summits?  It’s just a talk shop and a photo op,” an American diplomat said.
  8. If BRICS has become a force to reckon with, it’s because of the hard work done by a lot of people.  Contrary to the perception that BRICS leaders meet once a year to click some snaps together, the members have already put in place a number of mechanisms to deepen their co-operation.  In the past couple of years there have been a number of meetings between BRICS ministers for trade, other ministers for agriculture, health, and a contact group on economic and trade issues.  “The BRICS countries today comprise new growth poles in a multi-polar world”, says Sudhir Vyas, secretary (economic relations), in the ministry of External affairs and the Indian sherpa for the summit.

To be continued.