Last Ibe on BRICS

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PRESENTED BY -GROUP : 11

RANU JAIN

NEHA SURANA

JIMIT PAREKH PALAK PATEL

TARAK CHAWAN

DAHIWAT


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The BRICs

BRICS And LICs.

Painting BRIC by numbers.

INDIA: A rising growth potential.

RUSSIA: A smooth political transition.

CHINA: Unleashing the Caged Tiger.

The B in BRICs: Unlocking Brazils growth potential.

Shared Challenges & opportunities. BRIC & International Politics.

Influence The BRIC summit Criticism Conclusion

Content :


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WHAT IS BRICS ?

BRIC AND BRICs are the acronym used to refer to the

combination of the four biggest emerging market countries :

BRAZIL , RUSSIA , INDIA , CHINA.


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The BRIC :

A grouping acronym referring to the countries of Brazil, Russia,India, and China.

Term was first prominently used in a Goldman Sachs report from2003. These countries arent a political alliance - but they have the

potential to form a powerful economic bloc.

These four countries are among the biggest and fastest growingemerging markets.

Already BRIC accounts for: 40 per cent of the world's population,25.9 per cent of its total geographic area.


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The acronym has come into widespread use as a symbol of the shift in global

economic power away from the developed G7 economies towards the developing world.

The thesis was proposed by Jim O'Neill, global economist at Goldman Sachs.

On almost every scale, they would be the largest entity on the global stage.

These four countries are among the biggest and fastest growing emerging markets.

They have changed their political systems to embrace global capitalism.

The report states that in BRIC nations, the number of people with an annual income

over a threshold of $3,000, will double in number within three years and reach 800

million people within a decade.

Mexico and South Korea are currently the world's 13th and 15th largest by nominal GDP,

just behind the BRIC and G7 economies, while both are experiencing rapid GDP growth of

5% every year.

THESIS


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UNDERSTANDING THE BRIC ECONOMIES

How Brazil, India, China and Russia will change your business outlook ?

The U.S. economy at more than $13.3 trillion gross domestic product is several times

more than No. 2 Japan ($4.5 trillion) and many times over most of the rest of the

world.

1. So what's changing?

2. Making an indirect move toward these economies.

3.Making the most of cheaper BRIC labor.

4. Find partners to work with in these key economies.

5.At minimum, get ready to compete with BRIC talent.


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CULTURE AND WORK STYLE IN BRIC ECONOMY

BRAZIL

The cultural attitude toward time may also have implicationsfor the facility.

Office standardization has become more important as offices become modernized.

Technology use is pervasive in modern Brazilian offices.

RUSSIA

Managers prefer to sit in private offices that have been furnished with higher quality

furniture rather than sit with the general workforce.

There is some technology in the office, but Russia,

was late to embrace the Internet.


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INDIA

Some Indian organizations are facing the same workplace struggles as

companies in Western countries, namely workspace size and designation and

worker mobility.

Indias technology infrastructure is behind other BRIC countries and the

Internet penetration of the population of the country is only 1.7 percent.

CHINA

Understanding the importance of extended family in China helps one

understand dynamics in the traditional Chinese office.

Panel heights are very low so that every one can see each other andcommunicate with others from a seated position.

An office that incorporates these attributes of open vistas and protective

spaces could very well appeal to any worker,

regardless of culture.


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BRIC :

1. Federative Republic of BrazilPresident (head of state and government): Dilma Rousseff

2. Russian FederationPresident (head of state): Dmitry Medvedev

Prime Minister (head of government): Vladimir Putin

3. Republic of IndiaPresident (head of state): Pratibha PatilPrime Minister (head of government): Manmohan Singh

4. People's Republic of ChinaPresident (head of state): Hu JintaoPremier (head of government): Wen Jiabao


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It is no more BRIC Economy


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It is BRICS Now


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GDP (Purchasing power parity) Total : $18,486 billion (2010 estimate) China $10,084 billion India $4,001 billion Russia $2,219 billion Brazil $2,182 billion

GDP (nominal) Total : $10,982 billion (2010 estimate) China $5,878 billion

Brazil $2,090 billion Russia $1,477 billion India $1,537 billion

Cont


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Area Total : 38,518,338 km2 (2010 estimate) Russia 17,075,400 km2 China 9,640,821 km2 Brazil 8,514,877 km2

India 3,287,240 km2

Population Total : 2,851,302,297 (2010 estimate) China 1,336,970,000 India 1,210,000,000 Brazil 192,787,000 Russia 141,927,297

Cont.


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New Growth Drivers for Low-Income Countries: The

Role of BRICs

The emergence of BRICsBrazil, Russia, India, and Chinais reshaping low-income countries (LICs) international economic relations.

Bilateral trade, which grew exponentially over the past decade, is the

backbone of LICBRIC relations.

BRIC foreign direct investment holds the potential to boost productivity of

LIC industries

Development financing provided by BRICs can help LICs alleviate some keybottlenecks to domestic economic activity


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To maximize its benefits, BRIC financing should be

used for high-return projects, and its debt

implications carefully assessed

Growing LIC-BRIC ties have boosted growth in LICs


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Dreaming with BRICs: The Path to

2050 :

BRICs currencies could appreciate by 300%.providing a big tailwind for investors in BRICassets.

By 2050, BRIC countries expected to accountfor over 40% of the worlds population, and60% of global GDP.

Taken together, the BRICs could be larger thanthe United States and the developedeconomies of Europe within 40 years.


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INDIA:A Wise Elephant :

Globalization

Forces of globalization set the stage for rapid rise of Indianeconomy .

Confluence of internal changes and external forces of globalizationallowed India to leverage the power of English-speaking technical

talent to produce powerful software for the global market.

Key Advantages

1.15 billion people

2nd largest labor force: 516.3m people Approximately 2.5 million

college graduates per year Those with graduate degrees and above have risen from 20.5

million in 1991 to 48.7 million in 2004


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INDIA:A Wise Elephant :

Trends

Number of people in absolute poverty has declined sharply

Exports have boomed

Foreign exchange reserves are ample for the first time in history

Newfound economic dynamism has shifted the balance of leaderspriorities from geopolitical goals to mutual economic interests.

Challenges for the Future

Improving governance

Improving basic educational achievement

Improving infrastructure and electrical capacity in cities

Expanding technology industry


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RUSSIA : A Smooth Political Transition

A Smooth Political Transition

An easy case for globalization

Undue emphasis on economics over politics

Disregard of cultural values

Russia can still benefit from a globalized world without undertakingpainful reform.


Labor shortages and poorly developed infrastructure

WTO membership and long-term growth of the manufacturingsector

Reconciling ambitions as a major power with reality of currentsituation


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THE B IN BRIC : Unlocking Brazils

Growth POTENTIAL :THE B IN BRIC : Unlocking Brazils Growth POTENTIAL-

The uneasy emergence of an economic leader in Latin America

One of the fastest growing economies in the last century

But over-reliance on agricultural commodity exports resulted in adevelopment marked by boom and bust

Focus on equitable development has resulted in significant povertyreduction

Brazilian economy becoming less dependent on exports

A global leader in renewable fuels.


Overburdened and ineffective judicial system


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CHINA: Unleashing The Caged Tiger :

How did China do it?

Chinas successes are associated with liberalization andglobalization.

China focused not only on opening economy, but also on

institutionalizing globalization. Assimilation of best practices from across the globe .

A Painful Transition

State enterprise employment declined from 110 million in1995 to 66 million in 2005.

Urban-rural income gap is getting wider .

Environmental cost of industrialization.


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CHINA: Unleashing The Caged Tiger :

Key Advantages:

Broad expansion of educational achievement

Rapid economic growth

Resilience to global economic downturn .


Recognition as a global power requires adherence tointernational norms

Continued reform of state-run enterprises. Demographic shifts threaten sustained growth.

Navigating a complex relationship with US and world.


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Shared Challenges & Opportunities :

Challenges

The face of poverty in 20th century was rural children.

The face of poverty in the 21st century will be theurban elderly.

Making the global system more accommodating todiverse cultures and values.

Opportunities

Inclusive growth critical for sustained globalization(politically) in developing countries, because potentiallies in bringing up all .


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BRIC and International politics :

New world order.

U.S troops has been deployed in Afghanistan for more than 8 yearswithout any substantive outcome. Afghanistan is close to China,India and Russia.

The controversial question of Iran. Russia, China and India couldsecure more proximity to the region.

BRIC cooperation is not solely an anti-U.S., or anti-westernphenomenon, but is based on deeper common interests.

Improve Bargaining Position with Western Countries.

Stabilize International Environment and Prevent Encirclement


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INFLUENCE :

Account for 15% of the global economy and 42% of globalcurrency reserves.

Between 2000 and 2005, the BRICs contributed roughly

28% of global growth in US dollar terms and 55% inpurchasing power parity (PPP) terms.

Their share of global trade continues to climb at a rapidrate. At close to 15% currently, it is now double its level in

2001.

The BRICs share of oil demand is moving steadily higher,with an estimated 18% share in the current year


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BRIC Summit Aftermath :

The BRIC countries met for their first official summit on 16June 2009, in Yekaterinburg, Russia.

Discussed the current global financial crisis, global

development, and further strengthening of the BRIC group.

Attacked the role of dollar as the primary internationalcurrency & suggested new global reserve currency that is'diversified, stable and predictable'.

Issued a joint statement on global food security, calling for"action by all governments and the relevant internationalagencies


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Criticism :

Understatement of GDP growth in China which predicts growthfalling far below normal development.

The BRICs dream isnt green.

Nothing more than a neat acronym for the four largest emergingmarket economies.

BRICs doesnt have a concrete and constructive agenda for changeor vision for a future world order.

It is not clear what BRIC would do even if they were given theopportunity to remake the international order.


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Conclusion :

The Importance of the U.S.

The BRICs have come together in a political

grouping in a way that has far exceeded mostexpectations.

Although BRIC cooperation has been significant,

intra-BRIC competition and rivalry are importantlimits on how much further BRIC cooperation cango.


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THANK YOU


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THANK YOU

maam and sir IBE was a great subject . (as it is said when anything gets over then

only you realize its importance.)

For all your support and cooperation.

For watching our work (which was ALWAYS eye paining to watch).

For making us realize how to work in a group.

For all group conflicts. And most importantly good knowledge of outside world.

For making us understand topic and helping in all possible ways.

For scolding us for our own improvement.

And much more

thank you

Last Ibe on BRICS

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