BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa.The grouping was originally known as "BRIC" before the inclusion of South Africa in 2010. The BRICS members are all developing or newly industrialised countries.
2. BRICS stand for Brazil, Russia, India, China,
South Africa.
BRICS is international political organization of
leading emerging economies its Five members are
all developing and newly industrialized countries.
Agreements between group of countries within
a geographic region To reduce & ultimately
remove the tariff and non- tariff barriers to the
free flow of the goods, Services and Factors of
production between each other
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3. OBJECTIVE OF BRICS NATIONS.
To achieve regional development
To remove trade barriers.
Economic development.
Optimum use of resources.
Building relationship.
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4. ABOUT BRICS FORUM
The BRICS Forum was formed in 2011
It is an independent international organization
that works for a structured social, economic
and environmentally sustainable BRICS block.
Currently the forum is working on building
partnerships and collaborating with member
state institutions.
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5. FOCUS OF BRICS FORUM
To establish a development bank to balance the influence of
the World Bank and IMF, as well as creating a joint foreign
exchange reserve.
Business
Competitiveness
Governance & Leadership
Science & Technology
Poverty
Private Sector & Prevention of Corruption
Investment Landscape
Innovation in building Infrastructure
Trade
Healthcare 5
6. BRAZIL
10th fastest growing economies in the last centuries.
Extremely rich in resources such as coffee, sugarcane,
crude oil and iron etc.
Focus on equitable development has resulted in
significant poverty reduction.
Textiles, chemicals , iron ore , steel and motor vehicles
industries.
Brazil today is the most popular of the BRICs so far as
foreign direct investment is concerned.
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7. RUSSIA
Russia has capability in high-technology sectors
Accounts for around 20% of the world’s oil and gas
reserves.
Fall in the number of people living below the poverty line.
Consumer market of over 140 million people.
68% of people comes under middle income group.
Highly educated workforce.
Third largest exporter of steel and aluminium
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8. 1.2 billion people
2nd largest labour force
Holds second place followed by China in BRICS
Democratic country.
Broad knowledge economy.
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9. 18Th fastest growing economy.
Third largest country in land size.
Biggest of all BRIC nations GDP wise.
13% of people comes under middle income group..
Holds more than $3 trillion forex reserves.
Largest exporter/ importer for 32 and 34 countries respectively.
Cheap labour work force 9
10. The South African economy is now the 23rd largest in
the world
Inflation is below 6.6% and falling.
25% of goods produced in South Africa are for export
Richest in terms of its mineral reserves.
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11. POTENTIAL MEMBERS
Indonesia, Turkey, Mexico and Germany hav
e
been mentioned as candidates for full
membership of the BRICS,
while
Egypt, Argentina, Iran, Nigeria, Syria and
most recently Bangladesh have expressed
interest in joining BRICS
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12. FEW FACTS ABOUT THE BRICS
The BRICS countries make up 21 percent of global GDP.
They have increased their share of global GDP threefold in
the past 15 years.
The BRICS are home to 43 percent of the world's population.
The BRICS countries have combined foreign reserves of an
estimated $4.4 trillion.
Intra-BRICS trade flows reached $282 billion in 2012 and are
estimated to reach $500 billion by 2015. In 2002, it was
$27.3 billion.
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15. TARGET SECTORS FOR BRICS TRADE
Manufacturing, services and agriculture
Energy, infrastructure, mining beneficiation
and healthcare
Construction and water provision
The green economy and tourism
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16. CHALLENGES
Development of BRICS bank
Reducing the rural/urban income gap
Maintaining macroeconomic stability
Inadequate Financial reforms
Managing Supply Chain
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17. ADVANTAGES
India is also expected to grow faster than China after
2020
Rising incomes in the BRICs nations will create a new
middle consumer class
Featured as- “Roadmap For Contribution”
Important drivers for growth in the global economy.
Expansion of their consumer markets and the rise of
multinational companies.
The establishment of a “positive multipolarity" in
international affairs 17
18. DISADVANTAGES
Lost speed and altitude over the past two years
Chances of Intra Trade Disputes are high
Difficulties of articulating their conflicting interests
in some sort of common vision became more evident.
Different viewpoints and influence in the
international arena.
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19. CONCLUSION
We believe the BRICS markets retain strong
characteristics that attract equity investors.
We can count here a strong economic growth,
favorable demographics, rich natural
resources, and strong finances.
The worries and uncertainty will likely continue
to create some angst in the global market,
But
we firmly believe that these markets should do
well in the long-term
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Currently the forum is working on building partnerships and collaborating with member state institutions to provide cutting edge information for businesses and industry alike
2.BUSINESS The forum will work with business units in the member states to form effective standards for information exchange. This would facilitate better access of information and avenues of growth.
3. COMPETITIVENESS The forum will develop indicators of competitiveness specific to the BRICS nations which helps in understanding the markets better
4. GOVERNANCE N LEADERSHIP The forum will work with state units as well as private sector to develop better practices that would help the BRICS in building a sustainable bloc
5. SCINCE N TECHNOLOGY The forum has identified Science & Technology as a key area for the BRICS to focus on. With emphasis on academic network alliances between the member states, cutting edge practices in the field will be used to handle the focus areas.
6. POVERTY The forum realizes the importance of poverty reduction in the member states and will work with various private organizations and entrepreneurs to use technology to reduce poverty and increase awareness of literacy
KEY ADVANTAGES :
One of the fastest growing economies in the last centuries
Brazilian economy becoming less dependent on imports
Extremely rich in resources such as coffee, sugarcane, crude oil and iron etc.
Focus on equitable development has resulted in significant poverty reduction.
CHALLENGES FOR THE FUTURE:
Overburdened and ineffective judicial system.
Industrial output is weak
KEY ADVANTAGES
1.15 billion people
2nd largest labour force
Approximately 2.5 million college graduates per year.
Democratic country.
CHALLENGES FOR THE FUTURE
Improving basic educational achievement
Improving infrastructure and electrical capacity
Expanding technology industry
KEY ADVANTAGES
Broad expansion of educational achievement
Rapid economic growth
Third largest country in land size
CHALLENGES FOR THE FUTURE
Support to rural areas and less-developed regions
Bank of China sees inflation as a bigger risk
Need to improve the investment
KEY ADVANTAGE
The South African economy is now the 23rd largest in the world
Inflation is now below 5% and falling.
25% of goods produced in South Africa are for export
CHALLENGES FOR THE FUTURE:
The economy is growing but not fast enough
Lack of skills, particularly in IT.
48% of the population is living below the poverty line
The BRICS leaders in 2014. Left to right: Putin, Modi, Rousseff, Xi and Zuma
China’s economy is driven by its exports of manufactures and central role in the global value chains; but its domestic consumption is still very limited, which creates a current account surplus for China. There is China’s currency manipulation, where the pegging of the renminbi to the US dollar gives China an unfair trade advantage by making its exports cheaper. The currency issue is and will continue to be a source of tension in the BRICS unless it is dealt with effectively. India’s economy, on the other hand, is driven by strong capital imports and, because of its flexible exchange rate olicy , it is plagued by current account deficits. Brazil and South Africa are also experiencing current account deficits.
. Emerging countries’ abilities to balance growth, inflation and global competitiveness will be a crucial factor in this. Even if their overall growth this year may be a little lower than in recent years, most of these economies are still expected to grow faster than those of developed nations.