Powerful countries:
whos who?
Comprehensive National
Power (CNP), Chinese
Government
Score 2007 Score 2014
Germany 62 Germany 35
China 59 Japan 30
Japan 58 UK 25
Canada 57 India 25
S Korea 53 Brazil 20
India 50 Turkey 20
0
What began as an economic
idea, is now an official reality;
the first BRIC summit held in (2010, Goldman Sachs)
2009.
In 2010, South Africa joined the
group i.e. BRICSs not BRICs!
Do BRICS make any sense?
100%
trillion in 2012
80%
Compares with $17 trillion for
EU & $16 trillion for the USA 70%
China
60% South
Africa
50% India
China alone accounts for 55% of Russi
BRICS GDP and 49% of their 40% a
Brazil
military spending
Take China out of the BRICS, and 30% Between 2000-
the BRIS look much less powerful 20%
2012, China
overtook the UKs
10% economy rising
from 6th to 2nd
0%
largest (UK
dropped from 4th
to 6th)
Barriers to BRICS
Russia Sluggish global recovery dents
Russias oil and gas exports
(fossil fuels are 45% of all
exports). Dependent upon
Ukraine for gas exports
Philippines 2,123
Why so special treatment to China?
China became globally significant when its GDP passed
5% of global total in 2005; now heading for 10%
That level of global GDP gives it huge economic
influence
USA V/S China
Economic Per capita GDP in China is still only 1/10th of that in
the USA
The US attracts a constant stream of high skill
migrants from all over the world; China still
relatively isolated
Universities with global reputations e.g. MIT,
Stanford, Harvard.
China tends to copy, rather than innovate.
Cultural
China has few (if any, Lenovo? China Mobile?)
global brands
The USA dominates the global entertainment
industry
Military
China is a long way off in terms of global military
reach
Internatio The USA is still the nation the world turns to in a
nal crisis, such as a major natural disaster
China does seem to shun international involvement
and has yet to get people behind it.
Chinas new aircraft carrier its
only carrier entered service in
Sept 2012 and they planning to
launch one in 2016
The Liaoning is actually the ex-
Soviet Varyag launched in 1988.
The USA has 11, with 3 more under Carriers Operating Building
construction USA 11 3
Chinas long term military plans are
Italy 2
to be able to defend out to the
UK 1 2
Second Island Chain. Meanwhile (helicopter)
Obamas Pivot is shifting forces to India 1 2
the Pacific.
China 1 3
France 1
Spain 1
Russia 1
China goes Global
There is no doubt that China is
expanding
Its state-run companies and
banks, as well as its Sovereign
Wealth Funds (worth about $1.2
trillion in 2012) are all investing
overseas
As the diagram shows, this is
global - it is not confined to 1 or
2 regions
Its 2005-13 overseas investment
was about the same size as the
entire Swiss economy.
China also owns $1.3 trillion of
US government debt (as does
Japan)
State led InvestmentChin
Sales
Fortune 500 (US$
a global rank billion)
Rank 2012
Although growing, India has large coal Oil imports are rising
electricity generation reserves, but cannot rapidly with costs
capacity is tiny supply demand from rising too as the Rupee
compared to China, domestic supply remains weak
To Conclude India
Strengths Weaknesses
The least
Education Infrastructure developed
English Energy and water overall of the
language supply BRICs, with
Youthful Poverty huge rural
population Weak inward poverty, but
IT and investment also huge
Software potential
Opportunities Threats
Huge domestic Tensions within
market southern Asian region
Vast growth e.g. Pakistan
potential Resource / food crises
Urbanisation Red tape/ bureaucracy
BRICS own World BAnk
Global Integration of BRICS
Trade Integration
Bilateral trade and investment accords between the key
members of the grouping
Continental/regional trade integration facilitated by
BRICS institutions
Trans-continental trade/investment integration
Alliances with other continental and transcontinental
integration groups
Global integration initiatives
Dealing with protectionism in trans-border investment
flows
Greater accountability and transparency in the formation
of RTAs
http://valdaiclub.com
BRICS Share of Global
Export
According to statistics of the World Trade Organization
(WTO), the participation of BRICS in global exports
more than doubled between 2001 and 2011, from 8%
to 16%.
BRICS total exports have grown more than 500%, while
total global exports grew 195% in the same period
Between 2002 and 2012, intra-BRICS trade increased
922%, from US$ 27 to 276 billion, while between 2010-
2012
BRICS international trade rose 29%, from US$ 4.7 to
6.1 trillion dollars
http://brics.itamaraty.gov.br/about-
brics/economic-data
BRICS Inflation
http://www.business-
standard.com/article/economy-
policy/india-s-fundamentals-best-
BRICS Trade Profile
BRICS Global remittance and FDI
Inflow
http://www.worldbank.org/content/
dam/Worldbank/GEP/GEP2016a/Glo
bal-Economic-Prospects-January-
Stock market performance of BRICS
https://www.msci.com/resources/fa
ctsheets/index_fact_sheet/msci-
bric-index.pdf
Sector wise Performance of
BRICS
Global Financial Crisis in
BRICS
The financial meltdown of October 2008 sent stock markets
in BRIC economies tumbling as foreign investors fled. The
notion that emerging economies were decoupled from the
crisis in the developed world has proved wrong
Growing consumer spending in BRIC countries will help
them to withstand the crisis. While the pace of growth is
excepted to slow, BRIC will remain a huge and growing
consumer market
The crisis is expected to remove the danger of inflation
making life easier for BRIC consumers and allowing
governments to ease interest rates, fuelling further growth
However, unlike other emerging economies, BRIC have large
trade surpluses and foreign exchange reserves that make
them more resilient to the crisis.
Acknowledgement
Goldman Sachs Yearly Report 2015
CitiGroup articles on BRICS
Superpower.com
MIT Lincoln online library
NDB official Website
Wikipedia
If you note any images which are wrongly cited, please contact
the Geographical Association (www.geography.org.uk)
Every attempt has been made to cite the source of each image
where appropriate
Development data are from the CIA Factbook, which is
continually updated. Some data may therefore now vary from
those cited at the time of this Presentation.