History, present and future of BRIC countries

History, present and proximo of BRIC countriesINTRODUCTIONOur topic for research is BRIC issues, so firstly we must know what is BRIC. BRIC is a related acronym that refers to the economies of Brazil, Russia, India and mainland chinaware.This idea was corporal by Brazilian president Luis Inacio Lula da Silva in June 2007. The raw material reason for these four countries to come together was their common dissatisfaction the prevailing orbicular frugal and political order largely dominated by the US and her western all in allies. They have non been given the importance that these countries should have got in relation to their size and share in the saving. Its only the G-8 countries that decide for the upcoming rules of global knowledge base order. So this was the reason for formation of the BRIC countries. The BRIC countries are in addition referred to as the big four as all of them are deemed to be at similar stage of economic ontogeny. The acronym was coined by Jim ON eill in a 2001 paper entitled The valet Needs Better Economic BRICs.The pursuance(a) is the position of BRIC nations in relation to the worldCountriesShare of world nominated gross domestic product (%)Share of worldmilitary spending (%)Share of worldpopulation (%)Share of worldlandmass (%)Average share (%)http//upload.wikimedia.org/wikipedia/parkland/ cockle/0/05/Flag_of_Brazil.svg/22px-Flag_of_Brazil.svg.pngBrazil3.31.72.85.63.4http//upload.wikimedia.org/wikipedia/commons/thumb/f/fa/Flag_of_the_People%27s_Republic_of_China.svg/22px-Flag_of_the_People%27s_Republic_of_China.svg.pngChina9.36.619.56.210.4http//upload.wikimedia.org/wikipedia/commons/thumb/4/41/Flag_of_India.svg/22px-Flag_of_India.svg.pngIndia2.32.417.31.96.0http//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Flag_of_Russia.svg/22px-Flag_of_Russia.svg.pngRussia2.43.52.110.94.7According to Goldman Sachs, by 2050 the combined economies of the BRIC countries would eclipse the combined economies of the current richest countries in the world. The BRIC countries combined currently account for to a greater extent than quarter of worlds land and more than than than 40% of worlds population. The economic potential of Brazil, Russia, India and China is such that they mess depart the top four dominant countries of the world by the year 2050.The following(a) leaders were present at the summithttp//upload.wikimedia.org/wikipedia/commons/thumb/3/3c/Lula_-_foto_oficial05012007_edit.jpg/80px-Lula_-_foto_oficial05012007_edit.jpgBrazilBrazilLuiz Incio Lula da Silva, presidenthttp//upload.wikimedia.org/wikipedia/commons/thumb/e/e9/Dmi undertake_Medvedev_official_large_photo_-5.jpg/86px-Dmitry_Medvedev_official_large_photo_-5.jpgRussiaRussiaDmitry Medvedev, Presidenthttp//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Manmohansingh04052007.jpg/78px-Manmohansingh04052007.jpgIndiaIndiaManmohan Singh, Prime Ministerhttp//upload.wikimedia.org/wikipedia/commons/thumb/c/c4/Hu_Jintao_%28Cropped%29.png/107px-H u_Jintao_%28Cropped%29.pngPeoples Republic of ChinaChinaHu Jintao, PresidentBRIC countries hold a combined GDP (PPP) of 15.435 trillion dollars. On almost e genuinely surmount, they would be the largest entity on the global stage. These four countries are among the biggest and fastest growing appear markets. In a paper Dreaming with BRICS The Path to 2050, published in 2003, the following was estimatedChinas economy allow for surpass the economy of Germany in the next few years, of japan by 2015, and of the United States of America by 2041.The offshoot rate of India exit be the highest and it will overtake Japan by 2032.BRICs currencies can appraise by 300% over the next 50 years.Taken together, the BRIC countries can be larger than United States and the developed economies within 40 years.By the year 2025. The BRIC countries will bring about 200 million deal with incomes above $15000 in the worlds economy. It is equal to the combined populations of Germany, France and United Kingdom.But consort to the reports the economy of china overtook the economy of Germany in the year 2007 instead of the prophecy of 2008 and Japan in the July 2010.ISSUES RELATING TO BRIC COUNTIESThe first official BRIC summit was held on 16 June 2009, in Yekaterinburg, Russia. Luiz Incio Lula da Silva, Dmitry Medvedev, Manmohan Singh, and Hu Jintao, the respective leaders of Brazil, Russia, India and China, all attend this summit.The main focus of this summit was to improve the current global economic situation and discussing how these four countries could work together in the future for the emergence of the world economy. They also discussed how these countries could be better involved in global affairs in the future. They also suggested that there was a gather up for a new global reserve currency that is diversified, stable and predictable. This statement was a kind of an attack on the dominance of the US dollar.The foreign ministers of all these countries had earlier also met on May 16, 2008 in Yakaterinburg. One week before their first official summit, Brazil had offered $10 billion dollars to the worldwide fiscal Fund (IMF) which was the first time that the country had ever make headway such a loan. This loan showed how the economy of Brazil is growing and that it is in a good state now.China has also planned to garb a total of $50.1 billion and Russia planned to invest $10 billion.The following the major issues discussed by BRIC coping with the current international financial crisisDiscussions were held on issues such as the worlds reserve currency and some countries will try and adopt local currencies as settlement currency for bilateral flip so that they can overcome the impact of international financial crisis and serve trade contacts with other countries. The BRIC countries discussed ways to overcome the financial crisis that many move of the world were facing as a result of the crisis that started in U.S.Coping with global climate de viateA nonher important BRIC issue is to get by with global climate change. This is a genuinely important issue because we need to ensure that the world becomes a better planet to live in. The pattern of sustainable education was stressed in solving this problem. Sustainable development means that the resources should be used efficiently and effectively such that it is not only useful to the present extensions exclusively also available for the future generations.They also discussed that environmental issues should not be made an excuse to enclose the economic and social development of emerging economies. environmental degradation should not hinder economic growth.The colloquium on Climate Change Law and plaque in South Asia, aims to inspire legal discussion within and between the BRICs countries. It is being jointly organized by the Environment Ministry of Government of India and the Geneva-based outside(a) Union for the Conservation of Nature (IUCN).Development of second and third generation renewable energiesThe development of second and third generation renewable energies is a subject of common interest for all the countries. They also hope that more and more countries of the world will participate in the development and employment of renewable sources of energy so as to facilitate economic development. introduction peace and securityWorld peace and security is a normal issue concerning the pitying race. Without peace and security economic growth and development cannot happen. The emerging markets should encounter a greater role among international two-part institutions to improve the efficiency, vitality of international multilateral mechanism. Such countries can play a positive role to preserve the sovereignty of all countries as well as maintain world peace.BRIC cooperation will enhance the joint of developing nationsBRIC countries share common interests and concerns in international affairs and should unify cooperation.It is necessary f or the BRIC countries to strengthen dialogue, coordination and cooperation to enhance the overall voice and influence of emerging markets and developing countries, and promote world peace, stability and universal development.BRIC countries beg more say in financial system reformThe BRIC countries have welcomed the elaborateness of the Balse committee that standard accounting bodies need to be set up. The BRIC ministers concur that stabilization of international financial system through liquidity sign and recapitalization is a priority. They are also taking measures to promote domestic demand in their national economies.The BRIC countries to play roles as new donors to AfricaAfrica has plenty to promote from the growing involvement of China and other BRIC nations in trade and investing on the continentNeed for changes in global institutions, including the International Monetary Fund (IMF) and the World BankThe BRIC countries have realized the need for change in global instituti ons including the International Monetary Fund and the World Bank. thither is also a need to update regulation of financial markets to cancel another global crisis. On matters relating to the IMF, the countries have agreed to aim at achieving a significant 7% shift in Quota shares in party favor of EMDCs and New arrangement to borrow.For the World Bank, the nations discussed ways and means of enhancing the voice community of developing countries and agreed to aim for a shift of a 6% of parity.They also supported an increase in capital for both the World Bank and its private lending arm, the International Finance Corporation (IFC).Challenges in setting conditions for sustained growthBrazil is the only nation where the growth rates have been less than expected. This is because Brazil is much less devote to trade and it has lower investment and savings. The public and foreign debt is also very high. Unless these obstacles are removed, Brazil is unlikely to achieve the targets set for it.Environmental constraintsEnvironmental degradation is a critical risk to the economic rise of the BRIC nations. world(a) warming can have a bad impact on the rural incomes. Also urbanization and industrialization puts a lot of contract on the environment.Many major cities like Shanghai, Mumbai, Rio de Janeiro are vulnerable to advance sea levels.Resources issueRussia and Brazil are resource rich nations but china and India have to depend a lot upon imports to fuel their growth. If good prices rise, it will have a lot of effect on their imports and thence their growth.If technology advances and reduces dependence on conventional energy sources, Russia and Brazil will face reduced prospects for growth.DemographicsThe population of India is increasing at a very high rate while the population of Russia is at decline. Brazil and China have declining populations (in case of China due to one family one peasant policy). Population decline could be a significant constraint for Russi a and China, though China could avoid this by relaxing the rules a bit.Structural constraints totally the BRIC countries have structural issues which need to be addressed. India needs significant economic reforms. Brazil saves and invests too little. Each country should invest at least(prenominal) that much to ensure that it has infrastructure to maintain growth.IranBrazil has expressed proportion with China towards the Iranian nuclear issue.DevelopmentChina has showed willingness to be a positive partner in global development saying The scale and complexity of the challenges that we face in the course of development are extraordinary anywhere else in the world and have been rarely seen in human history. China is willing to be dedicated to peace and cooperation and is willing to make greater contribution to mankind.The above were most of the major BRIC issues which we have tried to explain through our research.