Study on BRICS

8/11/2019 Study on BRICS

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A PROJECT REPORT ON

A Study on BRICS

Submitted By

Mr. Vaishnav Ambo!ar

Ro No. " #$%%%&

M.Com Sem I

'Business Mana(ement)

A*ademi* +ear" ,%#- #$

/nder the (uidan*e o0 PROJECT 1/I2E

PRO3. S4IVAJI PA5AR

S/BMITTE2 TO /NIVERSIT+ O3 M/MBAI

M/6/N2 CO66E1E O3 COMMERCE

S. N ROA27 M/6/N2'5EST)

M/MBAI -%%%8%

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2EC6ARATION

I 7 VAIS4NAV AMBO69AR Ro No. #$%%%& Student o0 Muund Coe(e O0 Commer*e7 S.

N Road7 Muund'5est) -%%%8%7 studyin( in M. Com Part I hereby de*are that I have

*om:eted the :ro;e*t on < A ST/2+ ON BRICS = under the (uidan*e o0 :ro;e*t (uide

Pro0. Shiva;i Pa>ar durin( the a*ademi* year ,%#- ? #$. The in0ormation is true to the best

o0 my !no>ed(e.

2ate "

Pa*e "

Si(nature "

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CERTI3ICATE

I7 PRO3. S4IVAJI PA5AR hereby *erti0y that

Mr. VAIS4NAV AMBO69AR Ro No" #$%%%& o0

Muund Coe(e o0 Commer*e7 S. N Road7 Muund '5est)7

Mumbai -%%%8% o0 M.Com Part I 'Business Mana(ement) has *om:eted his :ro;e*t on

< A Study on BRICS= durin( the a*ademi* year ,%#- #$. The in0ormation submitted is

true and ori(ina at the best o0 my !no>ed(e.

Pro;e*t 1uide Prin*i:a

Co?ordinator E@terna 1uide

2ate "

A*!no>ed(ement

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I >oud i!e to e@:ress my sin*ere (ratitude to Prin*i:a o0 Muund Coe(e o0 Commer*e

2r. 'Mrs.) Parvathi Ven!atesh7 Course Coordinator and our :ro;e*t (uide Pro0. Shiva;i

Pa>ar 0or :rovidin( me an o::ortunity to do my :ro;e*t >or! on < A Study on BRICS = . I

aso >ish to e@:ress my sin*ere than! to a o0 them in no tea*hin( sta00 o0 our *oe(e. I

sin*erey than! to a o0 them in he:in( me to *arryin( out this :ro;e*t >or!. 6ast but not

the east 7 I >ish to avai myse0 o0 this o::ortunity7 to e@:ress a sense o0 (ratitude and ove

to my 0riends and my beoved :arents 0or their mutua su::ort7 stren(th7 he: and 0or

everythin(.

Sr. No.

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Introdu*tion

The a*ronym BRIC stands 0or Brai7 Russia7 India7 and China. The term >as *oined by

the Chie0 E*onomist o0 1odman Sa*hs7 in ,%%#7 in a :a:er tited Buidin( Better 1oba

E*onomi* BRICs7 >hi*h oo!ed at the (ro>th :ros:e*ts o0 the 0our ar(est emer(in(

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e*onomies that are *uturay and (eo(ra:hi*ay dis:arate. The main 0indin( >as that the

BRICs >oud :ay an in*reasin(y im:ortant roe in the (oba e*onomy. The :ro;e*tions

>ere revised in ater :ubi*ations7 as the BRIC e*onomies 0ared better than e@:e*ted. This

study e@:ands the ori(ina terms o0 re0eren*e to in*ude South A0ri*a be*ause o0 its (ro>in(

si(ni0i*an*e in the (oba e*onomy. The ne> a*ronym is7 there0ore7 BRICS and it

symboies the *oe*tive E*onomi* :o>er o0 Brai7 Russia7 India7 China7 and South A0ri*a.

To(ether the BRICS a**ount 0or more than -% :er *ent o0 the (oba :o:uation7 neary &%

:er *ent o0 the and mass7 and a share in >ord 12P 'in PPP terms) that in*reased 0rom #D

:er *ent in ,%%% to neary ,$ :er *ent in ,%#% and is e@:e*ted to rise si(ni0i*anty in the

near 0uture.

4istory

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#8 " Brai Emer(es 0rom miitary rue7 ee*tin( 3ernando Coar de Meo7 >ho :uts in

:a*e a drasti* e*onomi* stabiiation :an to reverse hy:erin0ation and boost

:rivatiation.

## " Indian 3inan*e Minister Manmohan Sin(h :resides over a s>ee:in( e*onomi*

overhau7 endin( the notorious < 6i*ense Ra; = and settin( the *onditions 0or the t>o

de*ades o0 ra:id (ro>th.

2e*ember ,$7 ## " The Soviet /nion dissoves7 eavin( e*onomi* *haos in its >a!e. Over

the ne@t de*ade7 Russia under President Boris +etsin Stru((es to ena*t < sho*! thera:y =

re0orms7 >ith mi@ed resuts.

#8 " 5hie Investors and Industry 0o*us on stru((in( n 0ormer 91B o:erative Vadimir Putin be*omes

President in Mos*o>7 vo>in( to rebuid the :o>er and :resti(e o0 the Russian state.

November &%7 ,%%# " In an in0uentia :a:er tited < Buidin( Better 1oba E*onomi*

BRICS7 = 1odman Sa*hs resear*h dire*tor Jim ONei :redi*ts the ra:id rise o0 Brai7

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Russia7 India and China. < Re:resentation at (oba e*onomi* :oi*y meetin(s mi(ht need

to be si(ni0i*anty *han(ed7 = he >rites.

2e*ember ##7 ,%%# " China ;oins the 5ord Trade Or(aniation. State?o>ned ne>s:a:er

Peo:es 2aiy de*ares " < This is a histori* moment in Chinas re0orm and o:enin(u: and

the :ro*ess o0 moderniation7 =

January #7 ,%%& " 6e0t? >in( union eader 6ui InH*io 6ua da Siva be*omes President o0

Brai7 !i*!in( o00 a :eriod o0 un:re*edented e*onomi* :ros:erity.

GD# " Rise in the oi?0ueed Russian sto*! mar!et bet>een ,%%#?,%%$.

#% " Rise in Indian sto*! Mar!et7 ,%%#?,%%$.

June G7 ,%%D " 2o> Jones introdu*es the BRIC $% Inde@7 a bas!et o0 $% o0 the bi((est

*om:anies isted on the sto*! mar!et o0 Brai7 Russia7 India7 and China. Initia mar!et

*a:itaiation" --D biion.

Se:tember ,%7 ,%%D " At Putins insisten*e7 BRIC 0orei(n ministers meet in0ormay in Ne>

+or! on the sideines o0 the D#st/.N. 1enera Assemby. They meet a(ain a year ater and

a(ree to boster reations. Russian 3orei(n Minister Ser(ei 6avrov >e*omes >hat he *as n

soverei(n >eath 0und7 ;oinin( China and Persian 1u0 states in *reatin( a vehi*e to invest

e@*ess *a:ita. In A:ri ,%%7 /.S President Bara*! Obama de*ares 6ua < the most

:o:uar :oiti*ian on Earth. =

,%% " The internationa 0inan*ia *risis (eneray a*ts as a boon to the BRICs. At the

*rashs o>est :oint in ,%%7 Indias 12P (ro>th rate >as .G.

June #D7 ,%% " BRIC eaders hod their 0irst summit in +e!aterinbur(7 Russia7 *ain( 0or ord order based on the rue o0 internationa a>7

eFuaity7 mutua res:e*t7 *oo:eration7 *oordinated a*tion and *oe*tive de*ision?ma!in( o0

a states. =

June ,#7 ,%% " Russian President 2mitry Medvedev touts the BRIC (rou: as < a ne>

0orum 0or resovin( (oba :robems = and demands that BRIC *ountries < ta!e :art in

settin( the ne> rues o0 the (ame. =

Se:tember ,$7 ,%% " In a Su**ess 0or the BRICs7 deveo:ed *ountries a(ree to redistribute

Fuotas and vote shares at the IM3 and 5ord Ban! and de*are that the 1?,% is no> the

>ords :remier e*onomi* 0orum7 re:a*in( the 1?8.

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2e*ember ,%% " At the /.N. *imate *on0eren*e in Co:enha(en7 the BRICs ob;e*t to

strin(ent emissions imits :ushed by Euro:ean ne(otiators. In the end7 Brai7 China7 India7

South A0ri*a7 and the /nited States si(n u!e>arm a**ord to redu*e CO,emissions.

A:ri #$7 ,%#% " At their se*ond summit7 hed at Brasiia7 BRIC eaders *a 0or /.N. re0orm

but sto: short o0 su::ortin( Brais and Indias bids to ;oin the Se*urity Coun*i as

:ermanent members.

Juy ,%#% " China overta!es Ja:an to be*ome the >ords se*ond?ar(est e*onomy. Nine

years a0ter 1odman Sa*hs 0ore*ast their rise7 the BRICs *onstitute a Fuarter o0 (oba

e*onomi* a*tivity and more than a third o0 a 12P (ro>th.

2e*ember ,%#%" China invites South A0ri*a to ;oin an e@:anded BRICS (rou:. The sma

< s = has no> (one *a:ita7 and A0ri*a is ;oinin( the :arty.

,%#8 " The year the BRIC e*onomies >i overta!e the /nited States7 a**ordin( to 1odman

Sa*hs.

Ob;e*tives

3oo> the 0oundry mar!et evoution o0 the BRIC *ountries

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Promote the te*hnoo(i*a in0ormation e@*han(e amon( the *ountries o0 this e*onomi*

bo*!.

Im:rove the :ro0essiona deveo:ment and edu*ation o0 the BRIC *ountries

0oundry men.

Ma!in( these *ountries (ettin( *oser to others to obtain the *om:arative advanta(es o0

these *ountries in the bene0it o0 the >hoe 0oundry industry instaed in the bo*!.

In Mar*h ,%#&7 the 0ive *ountries rea*hed an a(reement to estabish a deveo:ment ban!

>ith a mandate to :rovide oans 0or in0rastru*ture :ro;e*ts throu(hout the deveo:in(

>ord. The *reation o0 this institution >as seen as a andmar! event in the 0inan*ia >ord7

>hi*h has on( revoved around the interests o0 >eathy deveo:ed nations.

The :otentia 0or 0uture *oo:eration bet>een the BRICS *ountries remains enormous (iven

their *oe*tive :osition in the >ord e*onomy. In ,%#,7 the 0ive nations >ere home to neary

& biion :eo:e7 a**ountin( 0or rou(hy -& :er*ent o0 the >ordKs tota :o:uation. Their

*ombined 12P aso eFuaed neary ,# :er*ent o0 tota >ord :rodu*tion durin( that year

as >e. And durin( ,%#&7 12P (ro>th in these *ountries is e@:e*ted to hit an avera(e o0 D.

:er*ent7 *om:ared >ith the :ro;e*ted (oba avera(e o0 &.D :er*ent7 a**ordin( to 1odman

Sa*hs resear*h.

5ith the BRICS members no> a**ountin( 0or neary ha0 o0 (oba e*onomi* (ro>th7 these

*ountries are >e?:a*ed to :rote*t the interests o0 the deveo:in( >ord as a >hoe.

Athou(h their nationa interests o**asionay :ut them in *om:etition >ith one another7

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the (rou:Ks su**esses rest on the :rin*i:e that rea resuts >i ony *ome throu(h

*oo:eration.

Over the :ast severa years7 :oiti*a and e*onomi* :ressure 0rom the 5est has been

:ushin( BRICS members *oser to(ether. This trend to>ard unity must *ontinue in order

to *arry the (rou: throu(h the im:ortant trade7 investment and 0inan*ia ob;e*tives that

ay ahead.

3irst o0 a7 BRICS *ountries shoud start 0ree?trade ne(otiations as soon as :ossibe to

*ounter the e00e*ts o0 re(iona e*onomi* deas su*h as the Trans?Pa*i0i* Partnershi: 'TPP)7

the Re(iona Com:rehensive E*onomi* Partnershi: 'RCEP). The bo* shoud aim to rea*h

0ree?trade a(reements >ithin t>o yearsK time in order to advan*e their :osition in the

(oba mar!et. Ideay7 ea*h *ountry shoud evera(e its o>n advanta(es as it moves to>ard

a trade :a*t ? China and India *an o00er their o>?*ost abor >hie Brai7 Russia and South

A0ri*a *an :ut 0or>ard their abundant natura resour*es.

Se*ond7 the (rou: shoud >or! to(ether to estabish sim:i0ied investment :ro*edures

>hi*h !ee: ta@ and administrative barriers at a minimum. A o0 the 0ive *ountries *oud

bene0it dramati*ay 0rom more investment. India7 0or instan*e7 needs 0undin( to modernie

its in0rastru*ture and tee*ommuni*ations net>or!s. Mean>hie7 Brai and Russia need

money to im:rove their manu0a*turin( and ener(y se*tors.

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Thirdy7 BRICS nations need to be*ome more ade:t at :rote*tin( themseves in the

internationa 0inan*ia mar!et. The bo* is :arti*uary vunerabe no> to *a:ita out0o>s

bein( re*orded a*ross emer(in( mar!ets in res:onse to monetary :oi*ies in the 5est.

As nations >ith emer(in( e*onomies7 BRICS members need stron( biatera and

mutiatera ties to :rote*t their interests 0rom the *haen(es :resented by the /S and

other deveo:ed 5estern *ountries.

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(reenba*!. The Ameri*an debt *risis and the *ontinued use o0 Fuantitative easin( by the

3edera Reserve >ea!en the doars :ros:e*ts. Some o0 the *oe*tive de*arations BRICS

have made have been an interestin( turn o0 events7 most notaby7 >hie doin( out G$

biion to the IM3 0or the Euroone baiout 0und7 aso >hen they s:o!e out a(ainst

:rote*tionism in the 2e*ember ,%## 5TO ministeria meet7issuin( a ;oint de*aration to

the e00e*t.

5EA9NESSES

At 0a*e vaue7 the (reatest >ea!ness o0 the BRICS is the 0a*t that they are treated as ;unior

:artners by the ma;or emer(ed e*onomies. The n :oi*y mista!es) to ta!e :ause and truy isten tothe

*om:aints o0 the emer(in( mar!et >ord. The most re*ent 5TO trade round *omes to

mind as >e as Russia and Chinas (ro>in( *om:aints re(ardin( 5ashin(ton

deterioratin( debt :robems.

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http://www.bbc.co.uk/news/business-18516079http://www.bbc.co.uk/news/business-18516079http://articles.economictimes.indiatimes.com/2011-12-14/news/30516144_1_brics-countries-trade-ministers-wtohttp://articles.economictimes.indiatimes.com/2011-12-14/news/30516144_1_brics-countries-trade-ministers-wtohttp://news.xinhuanet.com/english/world/2012-07/20/c_131727735.htmhttp://news.xinhuanet.com/english/world/2012-07/20/c_131727735.htmhttp://news.xinhuanet.com/english/world/2012-07/20/c_131727735.htmhttp://www.bbc.co.uk/news/business-18516079http://www.bbc.co.uk/news/business-18516079http://articles.economictimes.indiatimes.com/2011-12-14/news/30516144_1_brics-countries-trade-ministers-wtohttp://articles.economictimes.indiatimes.com/2011-12-14/news/30516144_1_brics-countries-trade-ministers-wtohttp://news.xinhuanet.com/english/world/2012-07/20/c_131727735.htmhttp://news.xinhuanet.com/english/world/2012-07/20/c_131727735.htm


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T4REATS

3or those se*rety ho:in( the BRICS >i :resent themseves as an aternative to >estern?

*entri* :oiti*a order any time soon >oud be i advised to bet the 0arm on this s*enario.

The (reatest threat to the BRICS is >estern mismana(ement o0 their e*onomies >hat

they *an do *oe*tivey7 at the moment7 is in*reased biatera trade amon( themseves usin(

their nationa *urren*ies.

The Euro one *risis and 5ashin(tons :ro:ensity to e@:ort in0ation via Fuantitative

easin( threatens not ony the BRICS7 but aso the rest o0 the (oba e*onomy. Aso and

ironi*ay7 another threat is the obvious :oiti*a desire o0 individua BRICS *ountries to a*t

out aone7 se:aratey >hen vi*tims o0 se0ish :oi*y?ma!in( *omin( out 5ashin(ton and

Brusses. 5e >itnessed this not on( a(o >ith Brais 0ury a(ainst Ben Bernan!e

Fuantitative easin(. 6oud >ords *ame out o0 Brasiia7 but amost ero internationa 'read"

BRICS) *oe*tive res:onse.

OPPORT/NITIES

The most im:ortant o::ortunity the BRICS have be0ore them is the (ro>in( abiity to a*t

aone and *oe*tivey. This may seem :arado@i*a7 but it isnt. O::ortunities aboundL 3irst7

*ontinue rea and meanin(0u re0orms at home. A the BRICS have am:e room to

're)stru*ture their e*onomies to be more *om:etitive (obay and (ro> their midde *asses

'and *ombat :overty).

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http://www.telegraph.co.uk/finance/economics/9196089/Brazil-president-Dilma-Rousseff-blasts-Western-QE-as-monetary-tsunami.htmlhttp://www.telegraph.co.uk/finance/economics/9196089/Brazil-president-Dilma-Rousseff-blasts-Western-QE-as-monetary-tsunami.htmlhttp://en.mercopress.com/2012/09/21/mantega-says-us-and-japan-have-again-ignited-the-currency-war-and-brazil-will-defend-itselfhttp://www.telegraph.co.uk/finance/economics/9196089/Brazil-president-Dilma-Rousseff-blasts-Western-QE-as-monetary-tsunami.htmlhttp://www.telegraph.co.uk/finance/economics/9196089/Brazil-president-Dilma-Rousseff-blasts-Western-QE-as-monetary-tsunami.htmlhttp://en.mercopress.com/2012/09/21/mantega-says-us-and-japan-have-again-ignited-the-currency-war-and-brazil-will-defend-itself


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the :o:uation (ro>th may be an issue in the 0uture. The *ountry is (ro>in( its :o:uation

at about #.D annuay 'no> havin( a :o:uation around #.# biion).

China "

Com:rehensive re0orms in the 0inan*ia and *or:orate se*tors have 0a*iitated Chinas

su:erb e*onomi* (ro>th rates. In addition7 an in*reasin( 0o*us on industria e@:orts and

monetary trans:aren*y have ed to in*reased 0orei(n investment and aso serve as drivers

o0 Chinas e*onomi* e@:ansion. Chinas :o:uation e@*eeds #.& biion7 ma!in( it the most

:o:uous *ountry in the >ord but (ro>th rates are de*reasin( due to Chinas one *hid

:oi*y.

John ONei7 a (oba e*onomist at 1odmann Sa*hs 6ondon7 re*enty :rodu*ed a re:ort

on the e*onomi* outoo! o0 >hat he termed the BRIC *ountries Brai7 Russia7 India

and China. A 0our *ountries are set 0or dramati* e*onomi* (ro>th that >i ead to

*onsiderabe redistribution o0 the >ords >eath. This re:ort *onsiders some o0 the issues

that may threaten this deveo:ment.

Brai" is *urrenty under(oin( im:ressive deveo:ment. This has :rimariy been 0ueed by

Chinas demand 0or the *ountrys ra> materias. China is investin( heaviy to im:rove

Brais in0rastru*ture to 0a*iitate the e@:ort o0 meta ores7 timber and 0ood su::ies.

Currenty $% miion Braiians ive in rura and urban :overty. As has ha::ened in China

miions o0 these :eo:e >i be removed 0rom :overty as the e*onomy deveo:s but ;ust

ho> many >i be e0t behind Coud this disadvanta(ed se*tion o0 so*iety be a *ause o0

0uture so*ia *on0i*t Brai is be*omin( an im:ortant (oba su::ier o0 0ood7 :rimariy

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soya beans. 4o>ever7 the Amaon rain0orest is bein( destroyed at an aarmin( rate. In the

0uture this may ead to drou(ht in the south o0 the *ountry >hi*h *oud threaten this 0ood

:rodu*tion.

Russia" su::ies o0 (as and oi ma!e Russia a 0ormidabe hydro*arbon :o>er. Mos*o> may

no> be a *onsumer :aradise but the rest o0 the *ountry a(s 0ar behind in terms o0

e*onomi* (ro>th. The *ountrys e(a and :oiti*a in0rastru*tures need to deveo: and be

rein0or*ed. The *ountry is too de:endant on oi su::ies and needs to diversi0y into other

se*tors7 es:e*iay IT. 6o> eves o0 :o:uation (ro>th and a :oor heath*are in0rastru*ture

:ose another threat to the *ountrys deveo:ment.

India" ast year In0osys7 the su**ess0u Ban(aore?based IT *om:any7 re*eived 8%%

a::i*ations 0or #%% internshi:s 0or non?Indian nationas. The *om:any re*eived a tota o0 #

miion ;ob a::i*ations 0rom Fuai0ied Indian (raduates. The Indian edu*ation system has

:re:ared the *ountry >e 0or its (ro>th in the IT se*tor. 1raduates no on(er need to eave

India to deveo: a *areer. 3aith and rei(ion are im:ortant in India >i e*onomi* (ro>th

and in*reased >eath ead to a de*ine in rei(ious beie0 as has ha::ened in 5estern

Euro:e The rura :oor are ra:idy bein( e0t behind by urban (ro>th7 the (overnment

need to address this issue. 2rou(ht in the north o0 the *ountry is an in*reasin( :robem

that may threaten 0ood su::ies.

China" G% o0 the *othes bou(ht in the /S are no> made in China. Consumer ee*troni*s7

the *ar industry7 the *ar *om:onent industry a are deveo:in( ra:idy. Mutinationas are

no> o:enin( resear*h 0a*iities in China. Miions o0 Chinese :eo:e have been :ued out o0

:overty over the ast #% years. The im:a*t o0 the *ountrys re*ent e*onomi* (ro>th on the

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environment has been very hi(h. There is a ris! o0 drou(ht in the north o0 the *ountry

>hi*h may threaten su::ies o0 >heat and other (rains. The :oiti*a situation remains

un*ertain. 4o> >i the Communist Party ada:t to the demands o0 the (ro>in( a00uent

midde *asses

Im:ortan*e o0 BRICs

In the ast 0e> years7 other than the deveo:ed nations7 *ertain ar(e deveo:in( *ountries

su*h as Brai7 Russia7 India7 and China 'BRICs) have a*Fuired an im:ortant roe in

>ord e*onomy as :rodu*ers o0 (oods and servi*es7 re*eivers o0 *a:ita7 and :otentia

*onsumer mar!ets 'Cassioato and 6undva" ,%%$7 #). These 0our *ountries >ent throu(h

ma;or institutiona transitions and *han(es in their e*onomi* stru*ture in the re*ent

history. Around the midde o0 the t>entieth *entury China >itnessed its *ommunist

revoution7 India be*ame inde:endent7 and Brai >ent into a :eriod o0 ,# years o0 miitary

re(ime7 >hie the 0ormer Soviet /nion *ame out o0 the Se*ond 5ord 5ar as a ma;or riva

to the/nited States. 6ater on7 durin( #$%Ks to #G%Ks7 a these *ountries be*ame in>ardy

0o*used and rather *entray :anned their deveo:ment strate(ies7 but durin( #8%Ks and

#%Ks these >ere re:a*ed by (radua inte(ration in the (oba e*onomy.

1odman Sa*hs :ubished a re:ort in O*tober o0 ,%%&7 >hi*h 0o*used the attention on the

*urrent and 0uture (oba im:ortan*e o0 Brai7 Russia7 India and China. The re:ort

su((ested that by ,%$% the sum o0 the 12P o0 the 0our *ountries mi(ht sur:ass the sum o0

the 1D *ountriesK 12P. By ,%,$7 they *oud a**ount 0or over ha0 the sie o0 1D. In ,%%&7

they >ere estimated to be around #$ :er*ent. They >ere >orth /S&.#8GD triion ',%%,) in

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12P and a**ount 0or a::ro@imatey :er*ent o0 the >ordKs 12P. 5hie these 0i(ures may

not ne*essariy be ar(e7 they a**ount 0or a ar(e share o0 the >ordKs tota and area and

:o:uation7 a::ro@imatey ,.G :er*ent o0 the >ordKs tota and 'a::ro@imatey &7G&

sFuare !iometers) and a::ro@imatey -&.& :er*ent o0 the >ord :o:uation 'a::ro@imatey

,.G biion :eo:e7 ,%%&). 3urthermore7 a *ountries are aso endo>ed>ith natura

resour*es su*h as minera and bioo(i*a resour*es.

uite re*enty7 these - *ountries have made the investors ta!e noti*e o0 them

be*ause MCSIBarra7 aMor(an Staneyma;ority o>ned *om:any has *reated a ne> eFuity

inde@ 0or BRICs7 !no>n as MSCIBRICInde@ that in*udes ,%, se*urities >ith a tota

mar!et *a:itaiationo0 about -,% biion 'EM Investor7 ,%%D). In a simiar vein7 1odman

Sa*h and Aian 1oba have aso set u: BRIC 0unds7 >hi*h indi*ate a >ide a**e:tan*e o0

the BRICs *on*e:t and an investor a::etite 0or o::ortunities in the - emer(in( e*onomies.

Aso their in*reasin( e*onomi* and(eo:oiti*aim:ortan*e7 and be*ause o0 territoria and

:o:uation sie they re:resent an enormous :otentia *onsumer mar!et 'Cassioato and

6undva" ,%%$7 &). The BRICs mar!et *oud *ontribute #.8 biion ne> *onsumers >ithin

the ne@t t>enty 0ive years7 as they are be*omin( in*reasin(y >eathy7 and >a(es and

*onsumer s:endin( is on the rise. This shoud resut into a (ro>th o0 midde *ass

:o:uation7 >hi*h is :redi*ted to in*rease 0our 0od in the ne@t de*ade 'Mar!etin( >ee!7

,%%D). ChinaKs a00uent midde *asses aone a**ount 0or ha0 a biion :eo:e7 rou(hy

eFuivaent to the sie o0 the Euro:ean /nion.

A 0e> other india*tors that :rove that BRICs are havin( a (ro>in( im:a*t on the >ord

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e*onomy are that7 bet>een ,%%% and ,%%$ BRICs *ontributed rou(hy t>enty ei(ht :er*ent

o0 (oba (ro>th and 0i0ty 0ive :er*ent in :ur*hasin( :o>er :arityterms. More than thirty

:er*ent o0 tota >ord demand in :ast 0ive years ori(inated in the BRICs e*onomies.

Amon( the BRICs nations7 intra?trade has (one u: to ei(ht :er*ent o0 tota trade 0rom 0ive

:er*ent in ,%%%. These nations hod thirty :er*ent o0 >ord reserves7 >ith China bein( the

dominant *ontributor. 2es:ite this reserve a**umuation7 rea e@*han(e rates in ea*h

*ountry have a::re*iated over the ast t>o years re0e*tin( the (rou:Ks !ey roe in the

heathy sur:us savin(s. Neary 0i0teen :er*ent o0 the >ord32Iis 0o>in( to these nations7

u: three times 0rom ,%%% eves. Aso 32I out0o> has risen more than si@?0od to more than

three :er*ent o0 the (oba tota. BRICs a**ount 0or ei(hteen :er*ent o0 (oba oi demand

and their share is movin( steadiy 'OKNei7 ,%%D).

Over the ast 0e> years the im:ortan*e o0 these *ountries be*ame even more evident as

China too! a ead roe in >ord e*onomi* (ro>th. Aready at the end o0 the #%s China

ran!ed 0irst in the >ord in the :rodu*tion o0 *rude stee7 *oa7 *ement7 0ertiierand TV?

sets and se*ond in the :rodu*tion o0 ee*tri*ity7 *hemi*a 0iber and *otton. Earier these

*ountries >ere :rimariy seen as sour*es o0 o>?*ost :rodu*ers7 but no> they re:resent

substantia (ro>th o::ortunities 0or both MNCKs and o*ay based 0irms. A survey

*ondu*ted by the Pri*e 5aterhouse Coo:ers ',%%$) o0 #-#% CEOKs >ord>ide reveaed that

China eads in *ost redu*tion and in*reasin( *a:a*ity. In se*ond :a*e7 India >ith its

reativey o> abor *ost eves out:a*es Brai and Russia as an e@:ense?redu*in(

destination. And it is India that ran!s hi(hest 0or a**essin( a hi(hy s!ied taent :oo. An

over>hemin( G# :er*ent o0 CEOKs said their *om:any :anned to do business in at east

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one o0 the BRICs *ountries over the ne@t three years. G8 :er*ent vie> *hina as the most

si(ni0i*ant mar!et o::ortunity7 0oo>ed by India 'D8 :er*ent)7 Russia '-8 :er*ent) and

Brai '-D :er*ent). China and India are aso seen as :osin( the (reatest *om:etitive

threat.

Resear*h Methodoo(y

It is in this interestin( *onte@t7 that a *om:arative study o0 the *om:etitiveness o0 BRICs

*ountries is reFuired >ith a s:e*ia 0o*us on India. 3or this :ur:ose >e have used the

1oba Com:etitiveness Re:orts 0or the years ,%%-?,%%$ and ,%%$?,%%D7 be*ause the

methodoo(y ado:ted by these re:orts have a soid theoreti*a 0oundation and *ombines

:ubi*y avaiabe in0ormation and the resuts o0 an E@e*utive O:inion Survey that >as

desi(ned s:e*i0i*ay 0or the needs o0 the study '3ende and 3ren!e" ,%%$7 ,).1CRao>s

measurement and ben*hmar!in( o0 many *riti*a 0a*tors i!e set o0 institutions7 :oi*ies7

and set o0 sustainabe *urrent and medium??term eves o0 e*onomi* :ros:erity. It is buit

around nine di00erent :iars7 ea*h o0 >hi*h is *riti*a to drivin( :rodu*tivity and

*om:etitiveness in nationa e*onomies.

These :iars are

#. Institutions

,. In0rastru*ture

&. Ma*ro?e*onomy

-. 4eath and :rimary edu*ation

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$. 4i(her edu*ation and trainin(

D. Mar!et e00i*ien*y

G. Te*hnoo(i*a readiness

8. Businessso:histi*ation

. Innovation.

The other im:ortant as:e*t o0 the 1oba CI is that it ta!es into a**ount the 0a*t that

*ountries around the >ord are at di00erent eves o0 *om:etitiveness and e*onomi*

deveo:ment7 and a**ordin(y it treats the *ountry by :rovidin( hi(her >ei(hta(e to those

sets o0 :iars7 >hi*h are more im:ortant at that sta(e o0 deveo:ment. There0ore7 >hie a

nine :iars may matter 0or a *ountries7 the im:ortan*e o0 ea*h 0or nationa

*om:etitiveness de:ends on a *ountryKs :arti*uar sta(e o0 deveo:ment. So7 :iars are

or(anied into & sub?inde@es7 ea*h *riti*a to a :arti*uar sta(e o0 deveo:ment. The & sub?

inde@es are *om:osed as 0oo>s Basi*

ReFuirements Sub?inde@ 'Sta(e #" 3a*tor?driven)

Institutions ':iar#)

In0rastru*ture ':iar ,)

Ma*roe*onomy ':iar &)

4eath and basi* edu*ation ':iar -)

E00i*ien*y enhan*ers Sub?inde@ 'Sta(e ," E00i*ien*y?driven)

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4i(her edu*ation and trainin( ':iar $)

Mar!et e00i*ien*y ':iar D)

Te*hnoo(i*a readiness ':iar G)

Innovation and So:histi*ation 0a*tor sub?inde@ 'Sta(e &" Innovation??driven)

Business So:histi*ation ':iar 8)

Innovation ':iar )

Summary

The ra:id rate at >hi*h the emer(in( e*onomies o0 Brai7 Russia7 India7 China and South

A0ri*a have in re*ent years been *osin( the (a: >ith the deveo:ed >ord has been

breathta!in(. The :o:uar BRICS a*ronym re0errin( to these risin( :o>ers has in the ast

de*ade *ome to si(ni0y the ma;or shi0ts under>ay in (oba e*onomi* and :oiti*a

reations. +et those >ho assume that the :atterns o0 (ro>th observed in the ast ,% years

>i *ontinue unabated shoud bear in mind that the BRICS states 0a*e *onsiderabe

obsta*es to their individua :aths o0 deveo:ment. These obsta*es in*ude the threat o0

:oiti*a and so*ia instabiity arisin( 0rom e@treme so*ia ineFuaity and ram:ant

*orru:tion7 as >e as :robems *aused by an inadeFuate in0rastru*ture unabe to !ee:

a:a*e o0 the ra:id e*onomi* (ro>th seen in re*ent years. 3urther obsta*es in*ude massive

environmenta :robems and the >ei(ht o0 demo(ra:hi* :ressures on abor mar!ets and

edu*ation and so*ia >e0are systems.

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Even i0 the BRICS mana(e to maintain their im:ressivey hi(h rates o0 e*onomi* (ro>th7

this aone >i not adeFuatey eFui: them to meet the *haen(es ahead. Indeed7 BRICS

*ountries aready mar!ed by re(iona and so*ia dis:arities >i i!ey see :robems

asso*iated >ith so*ia ineFuaity and environmenta sustainabiity 0urther e@a*erbated.

E@:erien*e sho>s that ony emer(in( :o>ers su*h as South 9orea or Tai>an that have

made the ri(ht :oi*y *hoi*es at the ri(ht sta(e in their e*onomi* deveo:ment have

mana(ed to sustain soid (ro>th >ithout 0ain( into the midde?in*ome tra:. Ma!in( (ood

*hoi*es in this re(ard entais deveo:in( in0rastru*tures7 restru*turin( edu*ation7 heath

*are and innovation systems7 as >e as ensurin( stabe institutions and e(a *ertainty. In

0a*t7 eaders e@er*isin( (ood (overnan*e use the dynami*s o0 e*onomi* :ros:erity to

advan*e the re0orms under>ay in order to a*hieve sustainabe (ro>th >ith broad im:a*t

throu(hout so*iety. 4o>ever7 the atest internationa resear*h sho>s that this is :re*isey

>here more e00e*tive *a:a*ity in (overnan*e is needed.

4o> >e do the :oiti*a systems o0 the BRICS :er0orm 2oes ea*h *ountry have the

institutiona 0rame>or! needed to advan*e its :ath o0 deveo:ment and to e00e*tivey

address needed re0orms >ith sustainabe soutions 5hat are the stru*tura barriers to

sustainabe deveo:ment >ithin ea*h :oiti*a system 5ith the su::ort o0 an internationa

net>or! o0 e@:erts7 the Bertesmann Sti0tun( has *ondu*ted an indi*ator?based inventory

o0 the state and :er0orman*e o0 (overnan*e in ea*h BRICS *ountry. 3o*usin( on #$ :oi*y

areas7 in*udin( e*onomi*7 abor7 edu*ation7 heath *are7 so*ia >e0are7 environmenta and

resear*h and innovation :oi*y7 this study dra>s u:on the anayti* too o0 the Sustainabe

1overnan*e Indi*ators 'S1I). This inventory ao>s 0or a systemati* do*umentation o0 the

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need 0or re0ormin *ore :oi*y areas. At the same time7 the :er0orman*e o0 ea*h *ountrys

system o0 (overnan*e7 that is the *ore e@e*utive and other :oi*y sta!ehoders7 is e@amined.

In this >ay7 the *a:a*ity 0or re0orm7 or the e@tent to >hi*h individua :oiti*a systems *an

not ony identi0y :robems7 but aso 0ormuate and im:ement strate(i* soutions7 is

e@:ored in ea*h BRICS state.

Com:arin( ea*h BRICS state to one another :rovides a :ro0ie o0 their individua stren(ths

and >ea!nesses. This in turn yieds insi(ht into the 0a*tors drivin( su**ess and the

stru*tura de0i*its in the :oiti*a steerin( *a:abiities o0 ea*h state. I0 >e then in! u: in a

*om:arative assessment the 0indin(s 0or re0orm need and re0orm *a:a*ity7 >e see

*onsiderabe di00eren*es in ea*h *ountrys :ros:e*ts 0or deveo:ment :ros:e*ts that in

some *ases do not mat*h the >ides:read rhetori*Qassum:tions o0 (ro>th and :ro(ress

ahead. 5hat are the deveo:ment :ros:e*ts 0or ea*h BRICS *ountry and ho> do they

*om:are in terms o0 the S1I 0indin(s

Russia Poorest :er0orman*e >ithin the BRICS (rou:

Russia is the :oorest :er0ormer >ithin the BRICS (rou:7 >ith the (overnment sho>in(

si(ni0i*ant >ea!nesses in the area o0 steerin( *a:abiity. The *ountry a(s in terms o0

*entra (overnment strate(i* :annin( *a:a*ity7 e00e*tive interministeria *oordination and

im:ementation *a:a*ity. 1iven the :revaen*e o0 :oiti*a :atrona(e and *ienteism7 the

a*! o0 invovement o0 inde:endent e@:erts and other sta!ehoders7 and 0reFuent

*ontradi*tions in the *ommuni*ation o0 :oi*ies7 0or>ard?oo!in( :oi*y?ma!in( in the

sense o0 sustainabe (overnment is :ra*ti*ay im:ossibe in todays Russia. Even the

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medium term hods itte ho:e o0 im:rovement7 as the Russian 3ederation is aso the >orst

:er0ormer in the hi*h e@amines institutiona

se0?monitorin( and re0orm *a:abiities. In *om:arin( stru*tures 0or the invovement and

:arti*i:ation o0 *ivi so*iety7 ony China 0ares >orse.

India ? Immense :robems7 but a distin*t nationa?eve *a:a*ity 0or re0orm

Indias :ros:e*ts are *onsideraby more :romisin(. The *ountrys e*onomi* outoo! is

:ositive7 than!s to its 0avorabe demo(ra:hi* deveo:ment. 4o>ever7 the S1I e@:erts >arn

that o:timisti* (ro>th :ro;e*tions are de:endent on the sub*ontinents abiity to over*ome

enormous so*ia and re(iona dis:arities7 modernie its in0rastru*ture7 and ma!e 0urther

:ro(ress in *ombatin( :overty throu(h re0orms in the edu*ation and heath *are se*tors. At

east at the nationa eve7 the S1I e@:erts assess Indias *entra?(overnment steerin(

*a:abiity :ositivey. The *ountrys to: ran!in( on the *riterion o0 strate(i* *a:a*ity *an be

e@:ained in ar(e :art by the strate(i* roe :ayed by the *abinet7 the te*hni*a e@:ertise

and stron( *oordinatin( 0un*tion o0 the Prime Ministers O00i*e7 an a*tive e@*han(e

bet>een s*hoars and the (overnment7 and *onsutation >ith so*ieta (rou:s that is to some

e@tent institutionaied 0or im:ortant :oi*y :ro:osas. The sub*ontinents (overnment has

aso demonstrated tan(ibe :ro(ress in terms o0 ho> e00e*tivey :oi*ies are im:emented7

athou(h i!e China7 there are si(ni0i*ant re(iona dis:arities that reFuire attention. In the

area o0 (overnan*e7 it is :arti*uary im:ortant that the (overnment do more to batte the

*ountrys ram:ant *orru:tion by stren(thenin( oversi(ht me*hanisms.

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by in0uentia interest (rou:s >ithin the Communist Party o0 China 'CPC) have to date

:revented a reversa o0 these ne(ative trends.

South A0ri*a Notabe ada:tabiity7 but od :robems remain

South A0ri*a ran!s in the midde o0 the BRICS (rou: in terms o0 (overnan*e *a:a*ities.

4o>ever7 :ro:ery inter:retin( this :osition reFuires a *oser oo!7 as the middin( s*ore

*on*eas a tension bet>een the individua resear*h dimensions. On the one hand7 a number

o0 re*ent deveo:ments :oint to an im:rovement in re0orm *a:a*ity7 thou(h si(ni0i*ant

>ea!nesses remain. On the :ositive side7 the (overnment has re*enty made si(ni0i*ant

*han(es to its institutiona arran(ements7 enhan*in( its strate(i* :annin( *a:a*ities.

A*ademi* e@:ertise is used by the (overnment7 and *ivi so*iety a*tors and interest (rou:s

are in (enera su**ess0uy invoved in the :oi*y?ma!in( :ro*ess. 4o>ever7 the South

A0ri*an (overnment *ontinues to sho> *ear room 0or im:rovement in the areas o0 e00e*tive

interministeria *oordination7 :oi*y im:ementation and *ommuni*ation :oi*y. In the !ey

0ieds o0 edu*ation and abor mar!et :oi*y7 South A0ri*a sti sho>s (arin( >ea!nesses.

The (ro>th o0 :oiti*a 0a*tions >ithin the ANC and the si(ni0i*ant eves o0 :atrona(e7

*orru:tion and ne:otism have a 0urther ne(ative im:a*t. In addition7 0unds at the sub?

nationa and o*a eves are not used e00e*tivey enou(h.

Brai The best :a*ed amon( the BRICS to a*hieve on(?term so*ia soutions

In the S1I e@:erts vie>7 Brai has the most :romisin( 0uture :ros:e*ts o0 any o0 the

BRICS *ountries7 an assessment that a::ies to *urrent trends in !ey :oi*y areas as >e as

to the Fuaity o0 (overnan*e *a:a*ities. The e(a*y o0 the de*ades?on( miitary di*tatorshi:

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remains :a:abe7 and South Ameri*as ar(est *ountry *ontinues to 0a*e :ressin(

:robems7 :arti*uary in the 0orm o0 inadeFuate in0rastru*ture and hi(h eves o0 so*ia

ineFuaity7 0et es:e*iay !eeny in the area o0 edu*ation. 4o>ever7 the *ountry >as Fui*!

to re*o(nie the si(ns o0 the times7 and in re*ent years im:emented im:ortant re0orm

measures that the *urrent administration has ee*ted to retain. The :ositive deveo:ments

in the so*ia se*tor s:ea! to the su**ess o0 the ne> so*ia measures and a*tive minimum

>a(e :oi*y be(un under the :revious administration and *ontinued under the *urrent

(overnment. 2es:ite the :ositive trends7 ho>ever7 S1I e@:erts say the (overnment shoud

:ay :arti*uar attention to 0urther stren(thenin( its steerin( *a:abiity. Even >hen

orientin( :oi*y to>ard the on( term7 time horions em:oyed are sometimes too short.

Thus7 Brai a(s *om:arativey some>hat behind other BRICS *ountries in terms o0

strate(i* :annin( *a:a*ity7 even thou(h institutiona arran(ements desi(ned 0or this

:ur:ose have been *ontinuousy stren(thened in re*ent years. Beyond these areas7

interministeria *oordination and :oi*y steerin( 0un*tion *om:arativey >e.

In the area o0 im:ementation Fuaity too7 Brais (overnment :er0orms Fuite >e in

*om:arison >ith the other BRICS. 4o>ever7 :er0orman*e does de:end on the s:e*i0i*

:oi*y area. 5hie the (overnment has been :arti*uary su**ess0u in the area o0 so*ia

:oi*y7 it a(s some>hat in terms o0 in0rastru*ture :ro;e*ts and industria :oi*y. 6i!e

South A0ri*a and India7 Brai aready has in :a*e an a*tive and *onstru*tive *ivi so*iety7

>hi*h is an essentia resour*e 0or sustainabe (overnan*e. The 6ua (overnment o00ered an

im:ressive demonstration o0 the :otentia bene0its o0 a*tivey en(a(in( *ivi so*iety in the

0i(ht a(ainst :overty and so*ia ineFuaity a *haen(in( tas! durin( a :eriod o0

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transition. The ne> (overnment under 2ima Rousse00 >oud do >e to maintain this

o:enness.

3indin(s o0 the re:ort

The 0a*t the BRICS e@ist says somethin( im:ortant and very tein(. The *urrent (oba

e*onomi* and 0inan*ia order is under(oin( irreversibe *han(e be*ause it is e@hausted and

out o0 ne> ideas. The BRICS are not 0or*in( this *han(e they are embra*in( it and

ada:tin( to this *han(e a**ordin(y.

The BRICS >i rarey a*t to(ether to>ard :arti*uar 0orei(n :oi*y (oas7 but *ount on

them to a *oe*tivey demand the (oba e*onomy truy serve the interests o0 *onsumers in

the (oba mar!et:a*e. Ea*h member o0 the BRICS have s:e*i0i* and diverse

*hara*teristi*s7 but their interest to>ard a more eFuitabe (oba e*onomi* order is a but

universa amon( them.

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E*onomi* (ro>th is not enou(h

The rhetori* o0 (ro>th asso*iated >ith the :o:uar BRICS a*ronym shoud not :ermit us

to overoo! an im:ortant 0a*t" there is in ea*h o0 these *ountries an enormous need 0or

re0orm in !ey :oi*y areas and asso*iated (overnan*e stru*tures. Even investment ban!

1odman Sa*hs7 >hi*h *oined the >idey used a*ronym and sha:ed the dis*ourse o0 (ro>th

asso*iated >ith this (rou: o0 *ountries7 identi0ies in a re*ent re:ort !ey 0a*tors that must be

in :a*e i0 e*onomi* (ro>th is to deveo: in a sustainabe manner. Aon( >ith

ma*roe*onomi* stabiity and o:enness to 0orei(n investment7 these !ey 0a*tors in*ude

*om:etent and stabe institutions7 a reiabe ;udi*ia system7 and 0un*tionin( edu*ation and

heath systems. A oo! at re*ent 5ord Ban! and /nited Nations indi*ators sho>s that ea*h

o0 the BRICS *ountries *ontinue to sho> *onsiderabe need 0or re0orm in :re*isey

these !ey areas. 3urthermore7 ea*h *ountry in this (rou: su00ers 0rom massive eves o0

*orru:tion. This :robem bears *onsiderabe ris!s7 sin*e a reiabe e(a 0rame>or! and

the e00e*tive *ontro o0 *orru:tion are not ony :rereFuisites 0or e00e*tive :oi*y

im:ementation7 but are aso o0 *riti*a im:ortan*e 0or the stabiity and e(itima*y o0 a

:oiti*a system.

4o>ever7 this voumes *om:rehensive *om:arative study oo!s at issues >e beyond

*orru:tion. 5ith the he: o0 the S1I indi*ators7 the survey dra>s a *om:arative :ro0ie o0

the stren(ths and >ea!nesses o0 the BRICS *ountries7 *ontainin( both an anaysis o0

re0orm needs in !ey :oi*y areas and an assessment o0 (overnan*e *a:a*ities >ithin the

BRICS states. In short7 it is not ony about the need 0or re0orm7 but aso in the broadest

sense about the BRICS *ountries *a:a*ity to en(a(e in re0orm. A *om:arative evauation

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o0 the 0indin(s o0 the surveys *ore dimensions sho>s that the 0ive *ountries have very

di00erent deveo:menta :ros:e*ts :ros:e*ts that at times *ontrast shar:y >ith the o0t?

re:eated rhetori* o0 (ro>th and :ro(ress.

At the outset it must be em:hasied that ea*h o0 the BRICS *ountries 0a*e enormous

:resent day :ressures7 the rea*h and im:a*t o0 >hi*h vary 0rom state to state. 4o>ever7

some o0 these :robems >i ony (ro> in the 0uture. In addition to the threat o0 mountin(

:oiti*a and so*ia instabiity rooted in massive so*ia ineFuaity and *orru:tion7 there are

(ro>in( ris!s o0 in0rastru*tura 0aiure as many have not !e:t a:a*e o0 the ra:id e*onomi*

(ro>th in re*ent years.

There are aso (ro>in( demo(ra:hi* :ressures >ei(hin( heaviy u:on abor mar!ets and

so*ia >e0are systems. 3inay7 there are :robems asso*iated >ith the unsustainabe

e@:oitation o0 natura resour*es and environmenta and air :oution that have

a**om:anied ra:id (ro>th. Combined to(ether7 these :ressures *reate a hi(hy *om:e@ set

o0 :robems to be addressed todays and 0uture eadershi: in ea*h o0 the BRICS states. 3or

at east some o0 the BRICS states7 it is 0ar 0rom *ear that the o:timisti* deveo:ment

s*enarios envisioned by investment ban!ers o0ten *on*erned narro>y >ith *ore e*onomi*

:arameters *an be reaied. Even i0 the ra:id rates o0 (ro>th do remain at their hi(h eves7

:robems asso*iated >ith e*onomi* (ro>th >i not be automati*ay soved. In 0a*t7 BRIC

*ountries aready mar!ed by enormous re(iona and so*ia dis:arities >i ony see

:robems o0 so*ia ineFuaity and environmenta sustainabiity 0urther e@a*erbated.

Internationa or(aniations su*h as the 5ord Ban! and OEC2 2eveo:ment Centre have

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Pros:e*ts in *ross?nationa *om:arison

Russia Poor :ros:e*ts in!ed to (overnan*e 0a>s

A *oser oo! at the S1I 0indin(s 0or Russia *eary sho>s that the *ountrys *urrent

e*onomi* (ro>th derives amost e@*usivey 0rom an e@tensive e@:oitation o0 natura

resour*es. The *ountry has 0aied to diversi0y its e*onomi* stru*ture7 investments in

in0rastru*ture are on( overdue7 and o0 :arti*uar *on*ern there is no on(?term

e*onomi* strate(y in :a*e. A deveo:ment tra;e*tory that reies not ony on ri*h

natura resour*es >oud redu*e e@:osure to (oba e*onomi* 0u*tuations7 >hie at the

same he: rei(n in Russias risin( eves o0 environmenta :oution. At the same time7

(ro>in( ineFuaity >ithin Russian so*iety is (ivin( (reater im:etus to the *ountrys

bur(eonin( :oiti*a :rotest movements. The :oiti*a7 e*onomi*7 so*ia and environmenta

*haen(es 0or Russia are thus immense.

4o>ever7 Russias *urrent (overnan*e *a:a*ities are not >e suited either to addressin(

these :robems e00e*tivey or to :rodu*in( on(?term soutions. Indeed7 the S1I e@:erts

:aint a rather bea! :i*ture o0 Russias :oiti*a re0orm *a:a*ity in *om:arison to the other

BRICS. Throu(hout the entire *ate(ory o0 the (overnments steerin( *a:abiity7 it is

evident that Russia has *onsiderabe *at*hin( u: to do >hen *om:ared to the other BRICS

*ountries7 >ith the *ountry sho>in( si(ni0i*ant >ea!nesses in ea*h o0 the *ate(orys

individua as:e*ts.

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Putins re(uar7 dire*t intervention and in0uen*e 'n a 0e> individua deveo:ments to>ard

(reater (overnment e00i*ien*y7 0or e@am:e throu(h the introdu*tion o0 re(uatory im:a*t

assessments 'RIA). 4o>ever7 in i(ht o0 :oiti*a :atterns that are o0ten 0ra(mented and

*ienteisti* '0eaturin( *onsiderabe eves o0 :atrona(e)7 a a*! o0 *onsutation >ith

inde:endent e@:erts or sta!ehoders >ithin so*iety7 and an o0ten *ontradi*tory

*ommuni*ations :oi*y7 0or>ardoo!in( :oi*y?ma!in( in the sense o0 sustainabe

(overnan*e hardy a::ears :ossibe in Russia today.

India 3a*in( immense :ressures7 but *onsiderabe re0orm *a:a*ity at the nationa eve

The outoo! 0or India7 by *ontrast7 is some>hat more ambi(uous. The *ountrys e*onomi*

:ros:e*ts are :ositive7 than!s to 0avorabe demo(ra:hi* deveo:ment. I0 one beieves the

1odman Sa*hs :ro;e*tions7 India >i see stron(er on(?term (ro>th than China7

a*hievin( annua (ro>th rates o0 more than $ over the ne@t 0our de*ades. By the year

,%&-7 Indias :o:uation is e@:e*ted to e@*eed that o0 China7 ma!in( it the most :o:uous

*ountry in the >ord.

A**ordin( to the S1I e@:erts7 ho>ever7 these o:timisti* (ro>th :ro;e*tions 0or the

sub*ontinent >i de:end on its abiity to over*ome enormous so*ia dis:arities7 modernie

its in0rastru*ture as a basis 0or industria deveo:ment7 and ma!e :ro(ress in the heath

and edu*ation se*tors. 5ithout substantia :ro(ress in these areas7 the *oveted urban

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>hite?*oar ;obs >i in the 0uture remain out o0 rea*h 0or the vast ma;ority o0 Indias

:o:uation. The dynami* e*onomi* deveo:ment o0 re*ent years7 aon( >ith su**esses in the

edu*ation and heath se*tor7 :arti*uary in the *ountrys e*onomi* *enters7 *annot hide the

0a*t that a very ar(e :ro:ortion o0 Indias :o:uation sti ives in ab;e*t :overty.

Com:ared >ith the other BRICS *ountries7 the share o0 the :o:uation >ith a *oe(e

de(ree is aso rather o>. 4o>ever7 it is *ause 0or o:timism that India7 0ares *om:arativey

>e in terms its (overnan*e *a:a*ities and en;oys *onsiderabe re0orm *a:a*ity. S1I

e@:erts o00er a 0avorabe evauation o0 the Indian *entra (overnments dire*tive *a:a*ity

'at the nationa eve). Indias to: :osition on the *riterion o0 strate(i* *a:a*ity *an be

e@:ained in :art by the strate(i* roe :ayed by the *abinet7 the te*hni*a e@:ertise and

stron( *oordinatin( 0un*tion o0 the Prime Ministers O00i*e7 the a*tive e@*han(e bet>een

s*hoars and the (overnment7 and *onsutation >ith so*ieta (rou:s that is to some e@tent

institutionaied 0or im:ortant :oi*y :ro:osas.

The Fuaity o0 im:ementation e@er*ised by Indias (overnment has aso enabed tan(ibe

:ro(ress >ith res:e*t to the :reviousy noted :oiti*a *haen(es7 earnin( it the number

t>o ran!in( on this issue7 a0ter Brai. Primary a*hievements in*ude in( :rovision o0 te*hni*a and vo*ationa trainin( 'thou(h startin( 0rom a very o>

base).= Other s:e*i0i* :oi*y im:ementation su**esses in*ude initiative :rovidin(

heath insuran*e 0or the :oor7 the *ountry>ide im:ementation o0 the MNRE1A 'The

Mahatma 1andhi Nationa Rura Em:oyment 1uarantee A*t7 a :ro(ram to (enerate

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Chinas *assi0i*ation in *om:arison >ith the other BRICS is aso some>hat ambi(uous.

On the one hand7 the *ountry e@:erts note that it retains *onsiderabe une@:oited :otentia

even a0ter the ra:id e*onomi* (ro>th o0 re*ent years7 and im:ortant e*onomi* :oi*y

>ea!nesses have aready been addressed. 4o>ever7 the *ontinuation o0 Chinas (ro>th

tra;e*tory *annot be ta!en 0or (ranted7 and is :redi*ated on 0ar?rea*hin( re0orms bein(

ta!en in *entra :oi*y areas as >e as >ithin the (overnan*e system itse0. A number o0

0a*tors threaten sustainabe e*onomi* deveo:ment in China. The hi(h eves o0 ineFuaity7

es:e*iay bet>een the urban and rura :o:uations and bet>een the *oasta :rovin*es and

the >estern re(ions7 are o0 :arti*uar im:ortan*e. Mi(rant >or!ers7 >ho are e00e*tivey

e@*uded 0rom the so*ia >e0are and heath *are systems7 no> number ,%% miion.

2emo(ra:hi* *han(e and the *osin( o0 the demo(ra:hi* >indo> due to the de*ades?on(

one *hid :oi*y are ta!in( :a*e at a s:eed as im:ressive as that o0 re*ent years e*onomi*

(ro>th. This deveo:ment >i :a*e the abor mar!et7 in0rastru*ture7 edu*ation and so*ia

systems under enormous :ressure. The state?*ontroed 0inan*ia system is aso (reaty in

need o0 re0orm. 1ro>in( environmenta :robems and an emer(in( housin( bubbe raise

0urther Fuestions as to the sustainabiity o0 the :oiti*a eadershi:s *urrent *ourse.

Corru:tion and inadeFuate e(a *ertainty aso 0i(ure :rominenty as :otentia sour*es o0

*itien unrest. In 0a*t7 the number o0 annua vioent :rotests has in*reased to #%%7%%%7

a**ordin( to S1I e@:erts.

/nresoved *on0i*ts in Tibet7 inner Mon(oia7 and the :rovin*es o0 in;an( and +unnan

:ose serious ris!s to :oiti*a stabiity in the Peo:es Re:ubi*. It is not at a *ear >hether

China >i :rove abe in the on( run to :rovide on(?term sustainabe :oi*y soutions to

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these :robems. In *om:arison >ith the other BRICS *ountries7 Chinas system o0

(overnan*e sho>s varyin( eves o0 :er0orman*e. On the one hand7 the *ountry stands out

0or its :arti*uary stron( 0o*us on on(?term strate(i* :oi*y :annin(7 >hi*h is re0e*ted in

detaied :annin( do*uments and mutiyear :oi*y a(endas. The hierar*hi*ay driven

interministeria *oordination aso 0un*tions Fuite e00e*tivey. But it is un*ear to >hat

e@tent the (overnment *onsuts (enuiney inde:endent a*ademi* e@:ertise7 >hi*h is an

im:ortant underta!in(7 (iven the *om:e@ity o0 :robems at hand. The same a::ies to

the tar(eted invovement o0 *ivi so*iety sta!ehoders in the sense o0 so*ieta *onsutation

here7 too7 the (overnment 0ais to se*ure on(?term su::ort 0or its :oi*ies. 3or these

reasons7 Chinas steerin( *a:abiity re*eives nothin( more than a middin( ran! in BRICS

*om:arison.

6i!e India7 Chinas muti?eve :oiti*a system su00ers 0rom severe re(iona dis:arities in

terms o0 the Fuaity o0 (overnan*e. This is mani0est most *eary in terms o0 the :oor :ubi*

servi*es on o00er in :eri:hera re(ions. Re(ions are ar(ey de:endent on their o>n in*ome

0or im:ementation o0 the *entra (overnments a(enda. This resuts in si(ni0i*ant

di00eren*es in the Fuaity o0 im:ementation bet>een e*onomi*ay and 0is*ay stron( 'o0ten

urban) areas and the :rimariy a(ri*utura interior.

In the 0i(ht a(ainst *orru:tion7 China a*!s both a 0ree media system and a *ivi so*iety

se*tor inde:endent o0 the state7 either o0 >hi*h mi(ht other>ise :ay a >at*hdo( roe.

Courts in China aso a*! inde:enden*e 0rom the e@e*utive. E@a*erbatin( this :robemati*

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state o0 a00airs is the absen*e o0 o::ortunities :rovided 0or *ivi so*iety eaders to e@a*t any

(enuine in0uen*e on :oi*y.

3or the ast three de*ades7 Chinas (overnment has distin(uished itse0 throu(h a hi(h

de(ree o0 ada:tabiity and 0e@ibiity. The Fuestion 0or the 0uture >i be >hether Chinas

eaders *an retain this ada:tabiity7 and :arti*uary >ith an eye to the ra:idy *osin(

demo(ra:hi* >indo> en(a(e in the ne*essary so*ia re0orms. O::osition and :o>er

stru((es by in0uentia interest (rou:s >ithin the Communist Party o0 China 'CPC) have

to date :revented any reversa o0 these :ro0oundy ne(ative trends. Any 0uture Chinese

eadershi: is bound to inherit a *onsideraby di00i*ut set o0 *haen(es that >i be di00i*ut

to ta*!e in a *onte@t o0 in*reasin( demo(ra:hi* :ressures and so>in( (ro>th.

South A0ri*a 6audabe ada:tabiity7 tren*hant :robems :ersist

South A0ri*as demo*rati* *onsoidation has made substantia :ro(ress7 and the :rin*i:e o0

the rue o0 a> is be*omin( >idey a**e:ted by :oiti*a a*tors. 2es:ite hi(h eves o0 state

debt inherited 0rom the a:artheid era7 South A0ri*a has sin*e su**ess0uy restored

ma*roe*onomi* stabiity7 redu*ed state debt7 stren(thened the >e0are state and (enerated

notabe eves o0 e*onomi* (ro>th. 4o>ever7 the (ro>th o0 re*ent years has not had the

:ositive im:a*t on the abor mar!et needed to *ombat so*ia dis:arities e00e*tivey. Poverty

and e@treme so*ia ineFuaity *ontinue to re:resent enormous :robems. South A0ri*a has

the hi(hest eves o0 so*ia ineFuaity >ithin the BRICS (rou:7 and the e(a*y o0 :ast

a:artheid *ontinues to >ei(h heaviy on the :resent. A 0o*us on em:oyment?intensive

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(ro>th is there0ore absoutey essentia in order to *ombat stru*tura :overty and

unem:oyment.

In *om:arison to Brai7 Russia7 India and China7 the S1I *ountry e@:erts rate South

A0ri*a as sho>in( the >orst :oi*y :er0orman*e in terms o0 abor mar!et and edu*ation

:oi*y. In the area o0 in0rastru*ture deveo:ment as >e7 South A0ri*a 0a*es enormous

*haen(es. In re*ent years7 the hi(h demand 0or ener(y has ed re:eatedy to :o>er (rid

overoads and devastatin( :o>er outa(es7 a situation :artiay attributabe to the dominant

:osition o0 the state?o>ned Es!om :o>er *om:any.Moreover7 the ta@?based 0inan*in( o0

>e0are state bene0its is 0ar 0rom sustainabe. It is di00i*ut to assess >hether South A0ri*as

re0orm *a:abiity is su00i*ient to meet these :oiti*a7 e*onomi* and so*ia *haen(es. In

terms o0 (overnan*e *a:a*ities7 South A0ri*a *urrenty hods a middin( :osition >ithin the

BRICS (rou:.

Inter:retin( the middin( :osition hed by South A0ri*a >ithin the BRICS (rou: in terms

o0 its (overnan*e *a:a*ity reFuires a *oser oo! be*ause o0 ho> this ran! mas!s the

dis*re:an*ies bet>een individua dimensions o0 anaysis. On the one hand7 re*ent

deveo:ments :oint to an im:rovement in re0orm *a:a*ity7 thou(h severa severe

short*omin(s :ersist. On the other hand7 in more en*oura(in( deveo:ments7 the

(overnment has re*enty made im:ortant *han(es to its institutiona arran(ements7 thereby

enhan*in( its strate(i* *a:a*ity.

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A*ademi* e@:ertise is used by the (overnment7 and *ivi so*iety a*tors and interest (rou:s

are in (enera su**ess0uy invoved in the :oi*y?ma!in( :ro*ess. 4o>ever7 in this area it

a::ears that the :oiti*a dominan*e o0 the ANC :arty means that trade?union?asso*iated

interest (rou:s are (iven :re0eren*e. Overa7 South A0ri*as :er0orman*e in the area o0

*onsutation >ith sta!ehoders in so*iety is on :ar >ith that o0 the other BRICS

demo*ra*ies7 India and Brai. 4o>ever7 the South A0ri*an (overnment sho>s *ear

:otentia 0or im:rovement in its *ommuni*ation :oi*y7 and to some e@tent in its

interministeria *oordination as >e. The (overnments abiity to e00e*tivey im:ement

:oi*y ob;e*tives aso 0as some>hat short.

2es:ite *ertain su**esses in the im:ementation o0 so*ia :ro(rams7 (arin( >ea!nesses are

evident in the !ey areas o0 edu*ation and the abor mar!et7 a heavy burden 0or the *ountry

to bear. The (ro>in( stren(th o0 :oiti*a *am:s >ithin the ANC 'asso*iated >ith a (ro>in(

0a*tionaism) and the *onsiderabe eves o0 :atrona(e >ithin the :arty undermine e00e*tive

de*ision?ma!in( and im:ementation. In addition7 0inan*es at the subnationa and o*a

eves are not used e00e*tivey enou(h7 as the bureau*ra*ies at these eves o0ten a*! the

ne*essary *om:eten*ies and abiities to s:end the 0unds ao*ated to hi(h?im:a*t :ro;e*ts

>isey. In this *onte@t7 the hi(h eves o0 *orru:tion and ne:otism re:resent an enormous

:robem.

4o>ever7 South A0ri*a does bene0it 0rom the :ositive and *onstru*tive roe :ayed by *ivi?

so*iety a*tors7 an as:e*t in >hi*h it sho>s :araes >ith India and Brai. In this res:e*t7

the demo*rati* re(imes o0 India7 Brai and South A0ri*a are si(ni0i*anty better :ositioned

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0or the 0uture than are Russia and China. South A0ri*a even :er0orms best in this area

amon( a the BRICS states.

+et this deveo:ment must >ithout Fuestion be 0urther stren(thened. The medio*re eve

o0 :oiti*a !no>ed(e *itiens sho> today shoud be *ountera*ted throu(h better media

and edu*ationa o00erin(s. Moreover7 these o00erin(s must be made a**essibe to the entire

:o:uation7 re(ardess o0 so*ia or (eo(ra:hi*a ori(in. In addition7 South A0ri*a shoud

e@:and the :ariaments de 0a*to e@e*utive oversi(ht :o>ers7 and eiminate any remainin(

ine00i*ient stru*tures. This may :rove a :arti*uary di00i*ut tas!7 (iven the on(standin(

ma;ority :osition hed by the ANC.

Brai Amon( the BRICS7 best?:ositioned to resove on(?term so*ia :robems

The *ountry e@:erts rate Brai as the most :romisin( o0 the BRICS states in terms o0

*urrent !ey :oi*y trends and the Fuaity o0 its (overnan*e *a:a*ities. South Ameri*as

ar(est *ountry remains a00e*ted by the e(a*y o0 its :ast de*ades?on( miitary eadershi:

and *ontinues to abor under the :ressure o0 :robems su*h as :oor in0rastru*ture and hi(h

eves o0 so*ia ineFuaity. +et the *ountry has been Fui*! to re*o(nie the si(ns o0 the times7

and in re*ent years im:emented im:ortant re0orm measures that the *urrent

administration has ee*ted to *ontinue.

Thus7 in :arae >ith e*onomi* diversi0i*ation7 substantia im:rovements in the *ountrys

so*ia deveo:ment have been made. In the ast de*ade7 the in*iden*e o0 e@treme :overty

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has been redu*ed by ha07 and about ,% miion Braiians have *imbed su**ess0uy into

the midde *ass. Both deveo:ments s:ea! to the su**ess o0 the ne> so*ia measures7 o0 an

a*tive minimum >a(e :oi*y and o0 the as ta!en by in!in(

so*ia trans0ers to *hidrens s*hoo enroments. 2urin( the 0irst e(isative session o0

6uas :residentia term7 rea minimum >a(es rose by a third. These deveo:ments in

Brai sho> that the 0i(ht a(ainst :overty and so*ia ineFuaity throu(h systemati* :oi*y

re0orm may be a :rotra*ted one7 but that :ro(ress is de0initey :ossibe.

Brais most :ressin( need 0or 0urther re0orm is in the area o0 edu*ation :oi*y. The

*ountrys edu*ation system under:er0orms *onsideraby in internationa *om:arison7 as

attested to by the *ountrys PISA resuts in re*ent years. 2es:ite :ro(ress made7 Brai

mana(ed to *imb ony ei(ht sots 0rom ,%%% '$&rd) to ,%% 'D$th) on the PISA ran!in(.

President Rousse00 has de*ared over*omin( so*ia dis:arities in edu*ation a !ey :oiti*a

(oa7 and edu*ationa e@:enditures have risen a**ordin(y in re*ent years. /ni!e the oi?

im:ortin( *ountries o0 China and India7 Brai has the advanta(e o0 oi autonomy7 and

neary ha0 o0 its ener(y :ro0ie is made u: by rene>abe ener(y sour*es.

4ydro:o>er aone satis0ies #$ o0 Brais ener(y needs7 and a**ounts 0or 8% o0 the

*ountrys ee*tri* :o>er (eneration. 2es:ite the e@tensive and usa(e and resutin(

environmenta :robems7 Brais environmenta :oi*y is ;ud(ed as bein( reativey

:ositive7 :arti*uary in *om:arison >ith the and?ri*h *ountries o0 Russia and China.

3uture environmenta :er0orman*e >i de:end on the ne> (overnments abiity to ta!e

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e00e*tive measures a(ainst de0orestation o0 the tro:i*a rain 0orest7 and >hether7 as

announ*ed by President Rousse007 *ear?*uttin( o0 the Amaon re(ion *an in 0a*t be

su**ess0uy redu*ed by 8% by ,%,%.

Brais *haen(es >ithout Fuestion remain si(ni0i*ant. 4o>ever7 a oo! at the *ountrys

(overnan*e *a:a*ities aso su((ests that it *an maintain its :reviousy :ositive deveo:ment

trend. This said7 the (overnment shoud stren(then its steerin( *a:abiity 0urther. In dire*t

*om:arison >ith other BRICS *ountries7 Brai a(s some>hat behind in terms o0 strate(i*

:annin( *a:a*ity7 athou(h institutiona arran(ements have been *ontinuousy im:roved

over the ast severa years. RIAs are sti not reFuired today7 but a stren(thenin( o0 this

ty:e o0 instrument *an be observed in re*ent years. A number o0 other Fuite (ood

a::roa*hes to su**ess0u interministeria *oordination and :oi*y steerin( are evident7

:arti*uary in the :residents O00i*e o0 the Chie0 o0 Sta00.

In *om:arison >ith the other BRICS7 Brais (overnment aso :er0orms very >e in terms

o0 the Fuaity o0 :oi*y im:ementation. 4o>ever7 :er0orman*e does de:end on the s:e*i0i*

:oi*y area. 5hie the *ountry has been :arti*uary su**ess0u in the area o0 so*ia :oi*y7

it a(s some>hat in terms o0 in0rastru*ture and industria :oi*y. The (overnment aso

0aied to >in Nationa Con(ress a::rova 0or a ta@ re0orm :ro:osa. Nonetheess7 the S1I

e@:erts note that des:ite many (ood a::roa*hes and deveo:ments7 the (overnan*e

*a:a*ities o0 the Braiian e@e*utive are sti ham:ered by the :redominan*e o0 short?term

:oiti*s over on(?term interests. This eads to short*omin(s in terms o0 soid :annin(7 and

undermines the stabiity o0 (overnan*e stru*tures that mi(ht other>ise better resist various

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:oiti*a in0uen*es and :ermit (reater institutiona e00i*ien*y and trans:aren*y. 5hie

im:ementation Fuaity is *riti*a7 the need to stren(then the (overnments bar(ainin(

*a:abiity vis?U?vis the Nationa Con(ress is :erha:s even more ur(ent.

6i!e South A0ri*a and India7 Brai aready has a very *onsiderabe body o0 sustainabe

(overnan*e :re*onditions in :a*e today. The 6ua (overnment :rovided an im:ressive

demonstration o0 the :otentia that ies in a*tivey invovin( *ivi so*iety durin( a time o0

*om:rehensive transition. Sta!ehoders in so*iety have thus (ained si(ni0i*ant in0uen*e in

re*ent years. The S1I e@:erts a(ree that this in0uen*e is stron(er in :eriods >hen ee*tions

are near7 as is *ommon in other demo*ra*ies. 4o>ever7 in Brai their in0uen*e has

*imbed *ontinuousy over a *ourse o0 years7 even inde:endenty o0 ee*tions. Thus the

institution o0 0ree7 :eriodi* ee*tions is no on(er the ony means throu(h >hi*h the

Braiian (overnment remains a**ountabe to so*ieta interests. Rather7 an everyday

demo*rati* :ra*ti*e seems to be *autiousy deveo:in(7 in >hi*h the (overnment *onsuts

>ith and see!s to invove so*ieta sta!ehoders durin( the e(isative session. But as the S1I

e@:erts note7 this :ra*ti*e is stron(y de:endent on the eve o0 en(a(ement sho>n by

individua (overnments and their members. The ne> (overnment under 2ima Rousse00

>oud do >e to maintain this o:enness to>ards *ivi so*iety.

A**ordin( to the *ountry e@:erts7 ever7 the trend is a :ositive one7 as

Braiian (overnments have been see!in( to modernie (overnment stru*tures and brin(

them in ine >ith internationa standards tar(etin( a >hoe?o0?(overnment a::roa*h to

re(uatory Fuaity7 im:roved intra?(overnmenta *oo:eration and strate(i* :annin(.=

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Con*usion

The BRICS a::ears to be on its >ay to reaisin( the :redi*tions made in ,%%#7 >ith the

emer(in( dynami*s over the ast de*ade 0urther estabishin( these :redi*tions. Startin(

>ith a share o0 a itte over #% in >ord 12P7 and ess than - in >ord trade in #%7

BRICS no> *onstitutes about ,$ o0 the >ord 12P and #$ o0 >ord trade. The in*rease

in 12P im:ies that the e*onomi* sie o0 BRICS in terms o0 its share in >ord 12P has

e@:anded by #$% in the t>o de*ade :eriods. In addition7 a the BRICS *ountries have

no> be*ome a*tive members o0 ma;or internationa and mutiatera institutions7 su*h as

the 5TO7 the /N7 the 1?,% and the /N3CCC. Their im:ortan*e in (oba e*onomi* and

:oiti*a a00airs is aso re0e*ted by various other indi*ators7 su*h as trends in 32I in0o>s

and out0o>s7 trade o:enness7 *urrent a**ount baan*e7 0ore@ reserves and e*onomi*ay

a*tive abour 0or*e7 >hi*h *oud ma!e BRICS a 0ormidabe 0or*e to re*!on >ith in the

0uture.

2es:ite :ositive deveo:ments on various 0ronts7 ho>ever7 severa issues remain to be

addressed at both individua and the (rou: eve. One su*h issue is the reativey o>

ran!in( o0 the BRICS *ountries >ith the e@*e:tion o0 South A0ri*a in the 5ord Ban!s

annua re:ort7 2oin( Business ,%#,. Other issues that :ose obsta*es 0or the BRICS

*ountries in*ude inadeFuate in0rastru*ture a a*! o0 institutionaisation the

hetero(eneous nature o0 the (rou: and a*! o0 *ohesive identity the 0ra(ie nature o0 trade

and investment in!a(es amon( the BRICS *ountries and di00eren*es >ithin the (rou: on

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vaues7 e*onomi*s7 :oiti*a stru*tures and (eo:oiti*a interests. Based on *urrent

e@:erien*e7 one *an ar(ue that it is hi(hy uni!ey that BRICS *ountries >i be abe to

*reate a :o>er bo* *a:abe o0 be*omin( a :oiti*a and e*onomi* (uidin( 0or*e in the

*omin( years. 4o>ever7 the (rou: *an de0initey e@:e*t to in*rease its in0uen*e

si(ni0i*anty as the members institutionaise trust and *onsoidate the BRICS (rou:in(. It

needs to be made *ear that i0 not addressed ur(enty7 the issues indi*ated above *oud :ose

serious *haen(es to the (rou:s reaiation o0 >hat >as :redi*ted by 1odman Sa*hs.

The o::ortunities ahead and the *haen(es 0a*ed by these *ountries *a 0or *han(in( ho>

individua member *ountries vie> BRICS as a (rou:. A more *o?o:erative and

*oaborative a::roa*h on issues o0 *ommon and (oba interests is reFuired7 >hi*h *an

:erha:s he: in a*tuaisin( the *o?o:eration. Some o0 these are deineated beo>.

There is a need to 0a*iitate *oser *o?o:eration and *o?ordination o0 :ositions on

various internationa issues7 !ee:in( broader interests in mind. BRICS needs to

*onsoidate as a (rou: and to 0ind *ommon :ositions on issues o0 internationa

im:ortan*e.

The *urrent institutionaisation me*hanisms are a*!in( a (rassroots *ivi so*iety

dimension. Civi so*iety is >e !no>n 0or its *ose in!a(es >ith the *itienry7 and

*oud be indis:ensabe >hen it *omes to the mobiisation o0 the :eo:e in su::ort

o0 the BRICS :ro;e*t. One *an e@:e*t that sin*e these :ro*esses are sti evovin(7

this va*uum >i be 0ied.

There is a need 0or tar(et?driven and time?bound deiverabes a**om:anied by

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a::ro:riate measures and me*hanisms 0or deivery and im:ementation that are

tied to adeFuate monitorin( systems. The im:ementation o0 *ommitments made

is a de0inite >ay o0 *ementin( the institutionaisation o0 BRICS.

3or BRICS to (ain 0ormidabe (round in its roe in internationa a00airs7 su*h as

eadershi: o0 the 5TO7 IM3 and the 5ord Ban!7 there is a need to de*ide on

*ommon *andidates and to 0ied or su::ort *ommon *andidates 0or su*h

:ositions. A 0aiure to do so >i *onsoidate the :er*e:tion o0 a a*! o0 soidarity

and >ea!en the BRICS :osition in (oba a00airs. There is aso a need to ta!e a

*ommon stand in the 1?,%. Su*h a move >oud s:ea! to the stated desire o0 the

BRICS to see a re0orm o0 (oba e*onomi* (overnan*e to (ive them a (reater

voi*e and in*reased re:resentation.

To address issues su*h as 0ood se*urity7 there is a need to :romote :eer earnin(

and to e@*han(e best :ra*ti*es in the BRICS *ountries.

To su**ess0uy 0a*e *haen(es at the domesti* 0ront and at the (rou: eve7 there

is a need to in*rease e@:enditure on RW27 es:e*iay in the areas o0 sustainabe

deveo:ment7 in*udin( 0ood se*urity. One >ay o0 a*tuaisin( this *o?o:eration in

RW2 >oud be by ta!in( advanta(e o0 the e@istin( *o?o:eration amon( thin! tan!s

in the BRICS. 2i00erent institutes that s:e*iaise in di00erent resear*h areas *oud

*ome to(ether and share !no>ed(e in the :romotion o0 RW2.

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Study on BRICS

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