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BRICs. Sai Kumar Swamy PGPM, IIM Bangalore. Agenda. Origin of Term Other Terms Facts about BRICs Country-wise analysis of Economy Political Environment Social Indicators Issues faced by BRICs BRICs - Future. Origin of Term – GS report 2001.
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BRICs Sai Kumar Swamy PGPM, IIM Bangalore
Agenda • Origin of Term • Other Terms • Facts about BRICs • Country-wise analysis of • Economy • Political Environment • Social Indicators • Issues faced by BRICs • BRICs - Future
Origin of Term – GS report 2001 • The aggregate size of theBRICs was about 23.3% (PPP) of world GDP at the end of 2000 • Higher than Euroland and Japan • Size of BRICs currently is 8% (as per GDP) • Some are larger than G7 nations – China > Italy & Canada • Analysis projected 4 possible scenarios of the future • BRICs rise from 8% to 12% - A • BRICs rise from 8% to 27% - D • BRICs should be part of Global Economic Policy • Predictions for 2010-11 • China to be bigger than Germany • Brazil and India closing in on Italy • Brazil will experience the weakest growth • China will become a better trading nation than the #3 rank it has
BRICs – Some key Facts • Population – 40% • Land – 25% • GDP – $13-14Tn • Mfcg Goods – China • Services – India • Raw materials – Russia & Brazil • 2050 • USA – 38 • India – 37 • China – 70 • Brazil – 11 • Russia – 8 • Mega-Diverse Countries • Resource Rich
Other Terms • BRIMC • BRIMCK • BRICK • BRICS • CEMENT
Brazil – Key facts • Portuguese colony • 5th largest country in the world • 8.5Mn sq. Kms • 3 time zones • Rich in natural resources • World’s largest river – Amazon • Population – 192 Mn • 5th largest • Density of Population – 22 per Sq. Km • Forest Cover – 57% • 2nd largest forest area in the world • Amazon Heat Sink
Brazil – Economy • GDP • $2.5Tn • Rank – 6th • PCI – $10,455 • Growth rate – 3% • Agriculture – 6%; Industry – 27%; Services – 67% • Inflation – 6.5% • Labor Force – 100Mn • Exports • $200Bn • Aircraft, Automobiles, Sugar, Ethanol, Textiles, Iron Ore, Orange Juice, Beef • Imports • $180Bn • Forex Reserves - $350Bn • Oil Importer – From 2006 its been self sufficient in Oil
Brazil – Social Indicators & Political Environment • Democratic Federal Republic • Presidential System • DilmaRoussef • Workers Party • Political Environment • Stable • History of Army rule • HDI • 0.813 - HIGH • Rank – 75 • Poverty – 26% • Crime – 23.8 • Infant Mortality – 34 • Literacy – 88%
Russia – Key facts • Largest country in the world • 17Mn sq. Kms • 11 time zones • Rich in natural resources • Largest Natural Gas reserves • 2nd largest Coal reserves • Highest Oil producer • 4th highest Nuclear Energy • 10% of World’s arable land • Water resources – 2nd in the world • Population – 142 Mn • 9thlargest • Density of Population – 8 per Sq. Km • Forest Cover –26% • Largest forest area in the world
Russia – Economy • Commodity driven economy • GDP • $1.4Tn • Rank – 10th • PCI – $10,521 • Growth rate – 4.9% • Agriculture – 4%; Industry – 37%; Services – 59% • Inflation – 6.1% • Labor Force – 75Mn • Exports • $376Bn • Oil, Natural Gas, Minerals, Timber, Arms, IT Services • Imports • $237Bn • Forex Reserves - $502Bn • Economic crisis – 1990s
Russia – Social Indicators & Political Environment • Federation • Semi-Presidential System • President – Head of State • Vladimir Putin • DimitryMedvedev • Political Environment • Stable • HDI • 0.817 - HIGH • Rank – 71 • Poverty – 14% • Crime – 30 • Infant Mortality – 69 • Literacy –99.4%
China – Key facts • 3rd/4th Largest country in the world • 9.6 Mn sq. Kms • 1 time zone • Rich in natural resources • 10% of World’s arable land • World’s largest exporter • 2nd largest importer • Largest standing army • Population – 1338 Mn • Largest • Density of Population – 139 per Sq. Km • Forest Cover –20%
China – Economy • GDP • 7.3Tn • Rank – 2nd • PCI – $5184 • Growth rate – 9.5% • Distribution of growth • Agriculture – 9%; Industry – 47%; Services – 44% • Inflation – 5% • Labor Force – 780Mn • Exports • $1600Bn • Office machinery, telecom equipment, Apparel • Imports • $1300Bn • Forex Reserves - $3200Bn • Economic reforms – 1978 • Energy & Transportation bottlenecks
China – Social Indicators & Political Environment • People’s Democratic Dictatorship • Single Party system • Presidential System • Hu Jintao • Political Environment • Un-Stable • Democratic Movements suppressed • HDI • 0.772 - MEDIUM • Rank – 91 • Poverty – 10% • Crime – 30 • Infant Mortality – 69 • Literacy –99.4%