Development and challenges of BRICS

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Introduction

In economies, BRIC is an acronym that refers to the fast-growing developing economies of Brazil, Russia, India, and China. The BRIC countries idea was first conceived in 2001 by Jim O'Neil, the chief economist of Goldman Sachs.  

After a meeting at New York on 21st September 2010 by BRIC Foreign Ministers, they agreed that South Africa may be invited to join BRIC. South Africa officially became a member of BRIC on 24th December 2010 and they were invited to attend the 3rd BRICS Summit in Sanya on 14 April 2011. The group was renamed BRICS – with the "S" standing for South Africa to reflect the group's expanded membership. Goldman Sachs predicted that BRIC economies would become much bigger shares of the global economy by 2050. According to the prediction, China and India would become the first and the third largest economies by 2050, while Brazil and Russia capturing the fifth and sixth spots. Together, the BRICS nation makes up more than 20% of the world land area and more than 40% of the world population. In 2012, the BRICS nation has a combined nominal GDP of approximately $14.9 trillion, which is around 19% of world GDP. Since the end of 2009, the BRICS alone have make up for more than 50% of the global economic growth.

Objectives of BRICS

To discuss economy and trade, primarily towards reform of the International Monetary Fund (IMF) and the World Bank To increase the representation of emerging economies in these financial institutions. To seek political access in global rule-setting processes - They wanted to have greater power and able to have a greater voice on the rich countries. To promote the technological information exchange among the countries and improve the professional development and education. Follow the foundry market evolution of the BRIC countries

Promote the technological information exchange among the countries of this economic block Improve the professional development and education of the BRIC countries foundry men Making these countries getting closer to others to obtain the comparative advantages of these countries in the benefit of the whole foundry industry installed in the block.

Background of each country in BRICS

Brazil
Brazil overtook the U.K. in 2011 to become the world’s sixth largest economy behind Germany (fourth) and France (fifth) according to the Centre for Economic and Business Research’s (CEBR) World Economic League Table. From 1961 to 2010, Brazil’s economy grew at a robust clip of 4.5 percent on average over the 50-year period. From 1961 to 1980, Brazil’s economy achieved average annual GDP growth of more than 8.5 percent. Brazil export a lot basic raw and primary goods, such as sugar, rubber and gold. In future, Brazil could dominate as exporters of raw material. Russia

Russia is the third trading partner of the EU and the EU is the first trading partner of Russia. EU exports to Russia are dominated by machinery and transport equipment, chemicals and agricultural products. The EU is the most important investor in Russia. It is estimated that up to 75% of Foreign Direct Investment stocks in Russia come from EU Member States. EU imports from Russia are dominated by raw materials, in particular, oil (crude and refined) and gas. In future, Russia might dominate the raw material supplies

India
India’s rapid economic growth and development is accompanied by the dramatic rise.  People across India and other developing countries flock to cities and urban areas in search of greater opportunity and higher living standards.  The fruits of their labors and the economic advantages of cities’ financial, human and social capital help fuel India’s development and urbanization. India is believe could dominated in services area.

China
China stands at the head of the economic class of the original BRIC countries. After sustaining decades of annual GDP growth exceeding 10 percent, China overtook Japan in 2010 to become the world’s...
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