Tuesday, November 27, 2012

BRICS Group
Updated: April 20, 2012 The BRICS Group is made up of Brazil, Russia, India, China and South Africa. The BRICS alliance has existed as a concept since 2001, when Jim ONeill, a Goldman Sachs economist, identified Brazil, Russia, India and China as rising economic powers and argued that they should play larger roles in global economic policymaking, perhaps by joining the established Group of 7. Earlier, in the 1990s, Russia had already organized a triangular group with India and China known as RIC but the attention generated by Mr. ONeills formulation apparently prompted these three to add Brazil and create a new political club. The first BRIC summit meeting was held in Yekaterinburg, Russia, in 2009, amid the uncertainty of the global economic downturn, with subsequent meetings held in Brazil and China. South Africa joined in 2011. That fall, Mr. ONeill predicted that the groups combined economies, now worth almost $13 trillion, would double in the coming decade, eventually surpassing the size of the economies of both the United States and the European Union. As their leaders gathered in India in March 2012, the five BRICS nations still ranked among the fastest-growing economies in the world, and, individually, their global influence continues to rise. But they have struggled to find the common ground necessary to act as a unified geopolitical alliance. The BRICS are still a new group, and some analysts argue that with time they could become a more cohesive alliance. But for now, they are troubled by internal rivalries and contradictions that have stymied the groups ability to take any significant action toward a primary goal: reforming Western-dominated international financial institutions. Since its inception, the group has discussed creating a development bank to rival the World Bank. Yet to date the proposal has been stalled, partly over worries that China would dominate the new institution. The group was unable to agree in 2011 on a new leader for the International Monetary Fund, or to endorse a candidate in 2012 to lead the World Bank. In other spheres, the group has been splintered. National security and terrorism are common concerns, yet the members are not always in alignment, the most recent division being Irans nuclear ambitions. In April, members of the group pressed for greater influence in institutions like the International Monetary Fund and the World Bank, but also raised the notion of a BRICS bank to address the needs of the fast-growing emerging economies.

The idea faces a number of daunting hurdles, just as deep internal political and economic differences complicate the prospects for the groups unity. India, Brazil and South Africa are democracies and have already used their own separate trilateral group, IBSA, as a primary platform for coordinating positions on several major diplomatic issues. Russia, however, has drifted away from democracy toward strongman rule under Vladimir V. Putin. China is the worlds largest authoritarian state and has by far the largest and most powerful economy in BRICS, which creates a complicated dynamic. China is the heavyweight, and thus the natural leader of the group, except that it is the political outlier. As such, distrust is high between India and China, whose border dispute, which goes back decades, is fueling a quiet military buildup on both sides. Ending the Dollars Dominance The BRIC countries comprise about 15 percent of the world economy and, perhaps more important, have about 40 percent of global currency reserves. Brazil, India and China have also weathered the financial crisis better than the world as a whole; South Africa has the most developed economy south of the Sahara. While they are far from a monolithic group, they are generally united in their frustration with the dollars status as the worlds reserve currency, which enables Washington to run budget deficits without fear of facing the kind of budgetary day of reckoning that other countries risk. The excess dollars pile up in foreign central banks, leaving those countries with a difficult choice: reinvesting the dollars in United States securities or holding them and facing an increase in the value of their own currencies, making their products less competitive in world markets. While there have been periodic complaints about the dollar through the years, the criticisms from the BRIC countries have become more frequent and more acerbic lately, and have included calls for a supranational currency to replace the dollar. Senior officials in most of the BRIC governments India, which does not depend as much on trade, is something of an exception assert that while the United States has acted irresponsibly over the last 30 years by amassing too much debt, they will be the ones who suffer. China, Brazil and Russia have said that they will purchase notes from the International Monetary Fund to begin diversifying their reserves, and China has taken steps to allow the renminbi to trade internationally, bolstering its case as a potential reserve currency. Still, the reality is that even many forceful critics of the dollar see no immediate alternative to it as the vehicle for international trade. No other markets in the world have the depth and liquidity of those in the United States, experts say.

The very notion of the BRIC nations was conceived in 2001 by an economist for Goldman Sachs, and only then embraced by the countries themselves. Their leaders have conducted informal discussions before, but the June 2009 event was their first formal gathering.

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October 8, 2012 7:04 pm

The Brics have taken an unhappy turn

By Gideon Rachman

Ingram Pinn

Over the past three years, conventional wisdom divided the worlds major economies into two basic groups the Brics and the sicks. The US and the EU were sick struggling with high unemployment, low growth and frightening debts. By contrast the Brics (Brazil, Russia, India, China and, by some reckonings, South Africa) were much more dynamic. Investors, businessmen and western politicians made regular pilgrimages there, to gaze at the future.

But now something odd is happening. The Brics are in trouble. The nature of the problem in each nation is different. But there are also some broad difficulties that link them. First, for all the hopeful talk of decoupling, the Brics are all affected by weak western economies. Second, all five nations are finding that endemic corruption is eroding faith in their political systems, and imposing a tax on their economies.

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China remains the daddy of the rising powers. It is the second-largest economy in the world and easily still the fastest growing Bric. And yet the country feels more uncertain about its economic and political future than in many years. As a Chinese friend put it recently: Our economy is slowing sharply, our next leader has disappeared, and we are sending ships towards Japan. Xi Jinping has since reappeared as mysteriously as he disappeared in the first place. But political tensions remain high, with the trial of Bo Xilai about to start and a crucial party congress approaching. For the past generation, Chinas answer to political uncertainty was always the same rapid economic growth. But in 2012, for the first time since the turn of the century, China will grow at less than the totemic figure of 8 per cent a year. In some ways, this is natural, even desirable, reflecting the fact that the Chinese labour force is no longer increasing so fast. But slowing growth also reflects the fall in demand in Europe. Wages in Chinese factories are also rising fast, which is good news for workers but bad for Chinas competitiveness. A slowing China has knock-on effects for the other Brics since it is now the largest trading partner for Brazil, India and South Africa. Brazilian growth has dropped off particularly fast. It hit 7.5 per cent in 2010, the year after Rio de Janeiro was named host city of the 2016 Olympics. This year, the Brazilian economy will probably grow by less than 2 per cent.

As for India, when I visited the country a couple of weeks ago, a senior industrialist told me that business there was suffering from clinical depression. Growth, which topped 9 per cent before the financial crisis, is now just above 5 per cent. Over the summer, the country was reminded of its frailties by the worlds largest power cut: a blackout that affected some 600m people. The political system seemed paralysed and the economic reform process had stalled. A couple of recent announcements have raised hopes that reforms may restart. But the exuberant confidence of a few years back has largely disappeared Russia, too, is in trouble. Vladimir Putins return to the Kremlin provoked mass protests in Moscow. And the shale gas revolution in the US is potentially disastrous for Russia, since it is lowering the global price of gas. Russias central bank is predicting that the country will be running a current account deficit by 2015. The two pillars of the Putin system an acquiescent middle class and a gusher of oil and gas money are both looking wobbly. Jim ONeill, the Goldman Sachs economist who invented the term Brics, has long argued that the South African economy is not large enough to sit naturally alongside the others. Nonetheless, the country has attended the past two Brics summits; and will host the next reflecting the groups metamorphosis into a bloc of non-western powers. Anyway, if the new marks of Bric status are a weakening economy and dysfunctional politics, South Africa merits its place in the group. The countrys mining industry is plagued by wildcat strikes and may well shed thousands of jobs over the coming year. Growth is likely to slip below 3 per cent and the leadership (or lack of it) of President Jacob Zuma is causing deep anxiety. There is no straight line that links unrest at South African platinum mines to troubles at Chinese electronics factories, via a power cut in India, a protest in Moscow and a corruption probe in Brazil. Yet there are broad themes that link the troubles of the Brics. First, declarations of decoupling from the west were premature. The EU remains collectively the largest economy in the world. Recession there and slow growth in the US inevitably affect the Brics. Second, all the years of rapid growth have not brought political harmony to the Brics. One theme that I have come across repeatedly, visiting each of these countries democracies and autocracies alike is that popular rage against corruption is central to politics. That makes both politicians and investors nervous about potential instability. So does all this mean that the Brics story was a fairytale? Not really. It is true that the extreme version of the story in which the Brics were portrayed as lands of untrammelled opportunity and optimism was silly. For all their troubles, however, most of the Brics will continue to grow faster than the sicks for some years. This means that the movement of economic and political power from the west to the emerging world will remain the great story of our time. gideon.rachman@ft.com

The European Union and the BRIC countries A range of statistics to compare the EU with Brazil, Russia, India and China
Reference: STAT/12/80 Event Date: 31/05/2012 Other available languages : FR DE Export pdf word

STAT/12/80 31 May 2012 The European Union and the BRIC countries A range of statistics to compare the EU with Brazil, Russia, India and China The EU has strategic partnerships with all the BRIC countries: Brazil, Russia, India and China. Even though the BRIC countries have certain aspects in common, such as large populations, large land coverage and rapid economic growth, there are equally large economic and social differences between them. In order to compare the four BRIC countries and the EU, Eurostat, the statistical office of the European Union, releases a publication "The European Union and the BRIC countries"1. This publication contains data on demography, economy, health, education, labour market, trade in goods, agriculture, energy and environment, transport and communication as well as science and technology. This release presents a selection of the statistics from the publication.

The population of the BRIC countries nearly six times higher than the EU27 China (1 354 million inhabitants in 2010 or 20% of the world population) and India (1 210 mn or 18%) are the two most populous countries in the world. Brazil with 191 million inhabitants and Russia with 142 million accounted for 3% and 2% respectively of the world population. The EU27, with 501 million inhabitants, accounted for 7% of the total world population. Within the BRIC countries, the population density varied in 2010 from 8 persons per km2 in Russia and 22 in Brazil to 382 persons per km2 in India and 141 in China, compared with 116 persons per km2 in the EU27. In general, the BRIC countries have a younger population than the EU. In 2010 those aged less than 15 made up 31% of the population in India, 24% in Brazil, 19% in China and 15% in Russia. In the EU27, 16% of the population were aged less than 15. The EU27 had a significantly higher share of the population aged over 60 than all the BRIC countries. Among the BRIC countries, China had the highest life expectancy at birth in 2009 (72 for men and 76 for women), followed by Brazil (70 for men and 77 for women), Russia (63 for men and 75 for women) and India (63 for men and 66 for women). The average life expectancy in the EU27 was 77 years for men and 83 for women. Demography, 2010 Total population, millions EU27 501 Brazil 191 Russia 142 India 1 210 China 1 354 Population % of world density, population inhabitants/km2 7.3 2.8 2.1 17.5 19.6 116 22 8 382 141 Share of population aged under 15 15.6 24.2 14.9 30.6 18.5 Life Share of expectancy, population 2009 aged over 60 Men Women 23.2 11.0 17.5 4.9 8.5 77 70 63 63 72 83 77 75 66 76

Sources: EU27: Eurostat, BRIC countries: Brazilian Institute of Geography and Statistics, Russian Federal State Statistics Service, India Census 2011, China Statistical Yearbook 2010, OECD, United Nations, World Health Organization. but EU27 GDP nearly 50% higher than the BRIC countries Among the BRIC countries, China had the highest GDP (4 300 billion euro in 2010, 9% of world GDP), followed by Brazil (1 600 bn, 3%), India (1 300 bn, 3%) and Russia (1 100 bn, 2%). The EU27 had a GDP of 12 300 bn euro in 2010, 26% of world GDP. When comparing the GDP per capita in the BRIC countries with the EU27, Russia (61% of the EU27 average) had the highest ratio, followed by Brazil (33%), China (22%) and India (10%).

On a global level, in 2010, the EU27 was the largest player in world trade, accounting for 17% of world trade, followed by the USA (14%) and China (12%), compared with 3% for Russia and 2% each for India and Brazil. All four of the BRIC countries were among the ten largest trading partners of the EU27 in 2010, with China in second place, Russia third, India eighth and Brazil tenth. Economy GDP at current prices (billion euro), 2010 EU27 12 256 Brazil 1 576 Russia 1 116 India 1 300 China 4 331 Share of world GDP per capita GDP, 2010 (EU27=100), 2009 25.9 3.3 2.4 2.7 9.2 100 33 61 10 22 Trade in goods, 2010 % of EU % of world trade trade 2.2 8.6 2.4 13.8 16.7 1.7 2.6 2.4 12.4

Sources: EU27: Eurostat, BRIC countries: United Nations, OECD Marriage rate twice as high in China as in the EU27 Within the BRIC countries, the marriage rate was highest in China (9.0 marriages per 1 000 inhabitants), followed by Russia (8.5) and Brazil (6.6), all above the EU27 (4.5). As regards divorces, Russia (4.5 divorces per 1 000 inhabitants) had the highest rate, followed by China and the EU27 (both 2.0) and Brazil (1.4). More cars per inhabitant in the EU than in Russia, more mobile phone subscriptions per inhabitant in Russia than in the EU Among the BRIC countries, Russia (166 mobile phone subscriptions per 100 inhabitants2 in 2010) had a level above the EU27 average (125), while Brazil (104), China (64) and India (61) had lower levels. Within the BRIC countries, Russia (233 cars per 1 000 inhabitants in 2009) had the largest number of cars per 1 000 inhabitants, followed by Brazil (178), China (34) and India (12). In the EU27, there were 473 cars per 1 000 inhabitants. Social Mobile phone Crude marriage rates (per Crude divorce rates (per subscriptions 1000 inhabitants), 2010* 1000 inhabitants), 2010** (per 100 inhabitants), Number of cars (per 1000 inhabitants), 2009

EU27 4.5 Brazil 6.6 Russia 8.5 India : China 9.0 * EU27 and Brazil: 2009 ** EU27: 2008 and Brazil: 2009 *** EU27: 2009 : Data not available

2.0 1.4 4.5 : 2.0

2010*** 125 104 166 61 64

473 178 233 12 34

Sources: EU27: Eurostat, BRIC countries: Eurostat for marriage and divorce rates for Russia, United Nations, International Telecommunication Union, World Bank

Eurostat Pocketbook "The European Union and the BRIC countries", PDF version - free download from Eurostat website. Some of the data presented in this News Release could differ from the data in the publication, due to updates made after the data extractions used for the publication. Mobile phone subscriptions per 100 inhabitants refer to the number of subscriptions to public mobile telecommunication systems using cellular technology related to the population. Active pre-paid cards are treated as subscriptions. One person may have more than one subscription.

Published by: Eurostat Press Office For further information: Louise CORSELLI-NORDBLAD Morag OTTENS Tim ALLEN Tel: +352-4301-32 021 Tel: +352-4301-33 444 morag.ottens@ec.europa.eu eurostat-pressoffice@ec.europa.eu Eurostat News Releases on the internet:http://ec.europa.eu/eurostat

Chinas Development Plans Lead World, BRICs

By

jason
January 10, 2011Posted in: Aid & Development, China, Cities & Countries, Countries

China passed Japan to become the worlds second largest economy in 2010 and seems set to overtake the U.S. shortly in historical terms. A vision for the future and diligent planning are two aspects of Chinas rapid economic development that dont always get the attention they might deserve in the daily news headlines.

China and the BRICs

Other developing countries would be emulating Chinas success more closely if rapid economic growth and development were merely a matter of low labor costs and a large domestic market. A quick comparison of Chinas development performance to that of the other BRIC countries (Brazil, Russia, India) suggests the role of unique factors that distinguish Chinas impressive performance. The term BRIC refers collectively to a group of countries with similar economic development characteristics and was first coined by Jim ONeil of Goldman Sachs Asset Management in a 2001 paper titled The World Needs Better Economic BRICs. Together, the four BRIC countries comprise about 40 percent of the worlds population, cover more than a quarter of the worlds land area over three continents, and account for more than 25 percent of global GDP. China officially invited South Africa to join the group of BRIC nations in 2010. South Korea and Mexico were originally excluded from the BRIC classification by Goldman Sachs on the basis that the two countries were already too much farther along in their economic development than the others. Some economic data help put the global economic performance of China and the other BRICs in better perspective. From 2000 to 2008, the BRICs share of total world economic output rose from 16 to 22 percent. Together, they accounted for 30 percent of the increase in global output from 2000 to 2008. China alone comprised more than half of the BRIC contribution with rights to greater than 15 percent of the growth in world economic output. The chart below from The Economist shows BRIC GDP growth and share of the world economy relative to other emerging and developing economies and the rest of the world. (Click on the image to view the full-size chart in a separate window or browser tab.)

China Difference
Despite the efforts to link China with the other BRIC countries, the scale of Chinas economy and pace of its development stand apart from those of its BRIC peers. The chart below compares key economic and development measures for the BRIC nations, including GDP, merchandise exports, and the UNDPs Human Development Index (HDI). (Click on the image to see a larger version.)

For more on Chinas HDI and development statistics, see the related post Analyzing Global Progress: Interpreting the 2010 UNDP Human Development Report and Index. So why has China been so successful relative to many of its BRIC and other developing country counterparts in key areas of economic development? A host of influences that are beyond the scope of this article differentiate Chinas experience from those of other BRIC and developing nations. Differences in politics, education, regulations, and many other factors all come to bear on each countrys economic performance and prosperity. In Chinas case, a very long and prosperous history also cant be discounted as a critical component of rapid development and re-emergence on the world stage. While many other countries, including India and Russia, underwent substantial border restructurings in the 20th century, Chinas unification dates all the way back to the second century BC. Although China experienced significant political upheaval during its subsequent history, it managed to maintain a position as the worlds leading power for all but about 200 years of the past two millennia. During this time, Chinese civilization gave birth to some of the most influential inventions in world history, including paper, printing, gunpowder, and the compass.

Vision and Planning for Economic Development

In addition to historical capital, another factor in Chinas success that often seems to get little attention is the effect of the countrys concerted, coordinated efforts at envisioning and implementing long-term development plans. Chinas penchant for planning shows up in a variety of areas, including several recent hot topics in the international news media.

Natural resource acquisitions Chinas aggressive, worldwide efforts to acquire the rights to natural resources have garnered much media interest. For such a large country, China has surprisingly limited quantities of the natural resources that are so critical to sustaining the countrys future economic growth and performance. To cite just a few noteworthy recent examples, China has invested heavily in Africa and Australia to secure access to mineral rights and in South Asia to stake claim to natural gas fields. Rare Earths Chinas newly dominant position in the rare earths market dates to Deng Xiaopings 1982 vision that the scarce deposits could someday be to China what oil is to the Middle East. Since the 80s, China seems to have set about encouraging the growth of the countrys rare earths industry and knowledge infrastructure. In 1998, the Chinese Ministry of Science and Technology made Basic research in rare earth materials the first group of 15 highpriority national research projects. Chinas rare earth plans included cultivating a deep pool of scientific and technical experts in the field. Today, there are reportedly at least 6,000 researchers and other experts who focus on rare earth science in China, versus about 20 in the U.S. Green energy China understands the need to develop clean energy sources to compensate for its shortage of natural resources and limit the harmful pollution from rapid industrialization and urbanization that already poses a serious public health problem. Rare earths are a fundamental input to important clean energy technologies and products, including wind turbines. Chinas efforts to control and leverage its hold on the rare earths market has partly been aimed at building the countrys position in the green energy industry by driving foreign companies to invest and operate in China. Bicycles Chinas leading position in the world bike market dates to Communist efforts to meet the universal desire for three durable goods: a sewing machine, a bicycle and wristwatch. Since 1970, world bike production has outstripped global car output by a factor or more than 2.5 to 1. In 1991, the Chinese government made developing electric bicycles or e-bikes an official technology goal. By 2006, there were 2,600 manufacturers of e-bikes in China who were jockeying for position in the rapidly growing domestic and world markets.

Findings and Implications

This article should not be mistaken for an argument on behalf of a government-led economy or highly interventionist industrial policy. Nevertheless, the Chinese experience does point to areas in which it can make good sense to implement some form of over-arching measures to help bring about conditions that are most conducive to successful development and prosperity. In economic terms, there is a place for organizations of some form, be they public or private, to help ward off the economic and development pitfalls that can arise from insufficient access to critical market information and public goods that can result in inadequate investment in the economic infrastructure that undergirds sustainable, long-term economic growth and development.

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China in Africa: South Africa Joins BRICs Summit

By jason April 26, 2011Posted in: Africa, Brazil, China, Countries, Foreign Policy, Globalization, South Africa China hosted the third annual BRICs Summit on April 14, 2011. With South Africa joining Brazil, India, Russia and China for the first time, the event highlights Chinas and other BRIC countries investments and growing influence on the African continent. Other noteworthy developments included the promotion of trade, investment and infrastructure projects and support for Russias long-standing WTO bid.

China, South Africa and the BRICs

China invited South Africa to join the original group of four BRIC countries in December, 2010. In one key respect, size, South Africa does not measure up to its BRIC counterparts. With 50 million people, South Africas population is a fraction of other BRIC countries populations, which range from Russias 143 million people to Chinas 1.34 billion. The man credited with the BRICs moniker, Jim ONeil of Goldman Sachs Asset Management, has long contended that South Africas population is too small for BRIC status. A countrys population limits the potential size of its economy and the countrys capacity to function as an engine of global economic growth and development. At roughly $285 billion in 2009, South Africas economy was less than one quarter that of Russias, the smallest of the original BRIC country economies at about $1,232 billion. The chart below presents selected economic development statistics for the BRIC countries, Africa and other potential BRIC country candidates. (Click on the image to view the full-size chart in a separate browser tab or window.)

On its own, Indonesia looks to fit the BRIC mold better than South Africa. With greater than 230 million people, Indonesias population is more than 4 times larger than South Africas population and more than 60 percent bigger than Russias. At $540.3 billion in 2009, Indonesias GDP was nearly double that of South Africa, though it was still less than half the size of Russias economy.

South Africa: Gateway to the Continent

South Africas freshly minted BRIC credentials make more sense when it comes to the countrys relationship with Africa. Sub-Saharan Africas collective population of more than 840 million people helps to allay concerns about size. As the most developed country in sub-Saharan Africa, South Africa serves as a vital gateway to the Continent as well as a valuable conduit between the developing (South) and developed (North) country worlds. In an interview with Chinas Xinhua news agency, South African Ambassador Bheki Langa suggested, South Africa is uniquely placed to bring the African perspective to the BRICs forum, considering South Africa is the largest investor of developing countries in Africa and South Africas foreign policy priority is the African continent. At the 2011 BRICs Summit, the BRIC countries declared their intention to explore cooperation in the sphere of science, technology and innovation, including the peaceful use of space. A recent study on global science research by the U.K.s Royal Society identified South Africa as the linchpin of the continents collaborative efforts in science R&D. In addition, the IBSA Initiative between South Africa, Brazil and India promotes South-South cooperation in several arenas, including science and research collaboration in fields such as nanotechnology, oceanography and Antarctic research.

Chinas Investment in Africa

For some time, China has viewed Africa as a key component of its plans for future economic growth and development. China has invested aggressively across the African Continent to secure access to natural resources needed to fuel and sustain rapid, annual economic growth of close to 10 percent. Chinese companies see Africas promising economic development as an opportunity to develop their businesses by helping to build roads, power plants, telecom systems, schools and other foundational infrastructure. By 2005, Chinas foreign direct investments (FDI) in Africa totaled some $1.6 billion according to a BBC News report.

During the period 2005-10, Chinas investments in Africa grew dramatically by an additional $43.6 billion in Sub-Saharan Africa and another $52.4 billion in the Middle East and North Africa (including Algeria, Egypt, Libya, Morocco, Sudan and Tunisia). Together, the two regions accounted for 30.3 percent of Chinas total outward investment, versus investments of 17.1 percent in other Asian countries and just 8.9 percent in the U.S. In 2010, trade between China and Africa exceeded $120 billion. The chart below from the Economist presents data on Chinas outward investment and trade with Africa.

Article 25 of the Sanya Declaration from the BRICs Summit 2011 affirms BRIC countries support of infrastructure development in Africa and its industrialization within [the] framework of the New Partnership for Africas Development (NEPAD). The African Union (AU) established NEPAD in 2001 as a strategic framework for Pan-African socio-economic development. NEPAD manages programs and projects designed to enhance Africas growth, development and participation in the global economy. Many of Chinas and Indias activities in Africa have been channeled through the Forum on China-Africa Cooperation (FOCAC), set up in 2000, and the India-Africa Forum.

China and Brazil

At the BRICs Summit 2011, Brazil and China signed a joint communiqu in which the two countries agreed to continue to promote cooperation in bilateral trade and investment. Industrial sectors singled out for cooperation and mutual investment include: aviation, automotive, energy, high technology, logistics and mining. China indicated it would encourage Chinese companies to increase their imports of high value-added products from Brazil. In return, Brazil invited Chinese companies to bid for high-speed rail projects in Brazil. Both countries anticipated establishing a partnership for infrastructure construction ahead of Brazils hosting of the 2014 World Cup and 2016 Olympic Games.

Russia: Fitting In?

BRIC trade ministers from China, India, Brazil and South Africa expressed strong support for admitting Russia to the World Trade Organization (WTO) this year. To date, political issues and disagreements over agricultural policies have hindered Russias 18-year bid to join the WTO.

Contrary to its prior stance, Russia supported the BRIC country position on pushing forward with global climate change negotiations and sustainable development. Until recently, Russia has tended to break ranks with the other BRIC countries on environmental and sustainability issues in order to protect its economically advantageous role as a major exporter of fossil fuels.

BRICs, Global Economic Growth and Development

Expanded cooperation among the BRIC countries has many important motivations and implications for the international political economy. On one hand, cooperation contains an element of us-versus-them in which BRIC countries seek to enhance their leverage in international organizations and negotiations. On the other hand, cooperation facilitates global economic growth and development by expanding markets, promoting international trade and investment and facilitating the efficient, effective allocation of limited resources. Investments in infrastructure, clean energy and natural resources help ensure that the BRIC countries will continue to function as powerful engines of global economic growth. Cooperation helps provide vital infrastructure that Africa and BRIC country partners require to sustain economic development and rising living standards. Related articles and content: