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 the BRICs was about 23.3% (PPP) of world GDP at the end of 2000 BRICs  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  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 CountriesCountries  Resource Rich

Other Terms  BRIMC  BRIMCK  BRICK  BRICS  CEMENT

Brazil – Key facts  Portuguese colony  5 th largest country in the worldworld  8.5Mn sq. Kms  3 time zones  Rich in natural resourcesresources  World’s largest river – Amazon  Population – 192 Mn  5 th largest  Density of Population – 22 per Sq. Km  Forest Cover – 57%  2 nd largest forest area in the world forest  Amazon Heat Sink

Brazil – Economy  GDP  $2.5Tn  Rank – 6 th  PCI – $10,455 PCI  Growth rate – 3%3%  Agriculture – 6%; Industry – 27%; Services – 67%  Inflation – 6.5%  Labor Force – 100Mn  Exports 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  Dilma Roussef  Workers Party  Political Environment  Stable  History of Army rule  HDI  HIGH  Rank – 75  Poverty – 26%  Crime – 23.8  Infant Mortality – 34  Literacy – 88%

Russia – Key facts  Largest country in the worldworld  17Mn sq. Kms  11 time zones  Rich in natural resources  Largest Natural Gas reserves  2nd largest Coal reserves  Highest Oil producer  4 th highest Nuclear Energy  10% of World’s arable land  Water resources – 2 nd in the world  Population – 142 Mn  9 th largest  Density of Population – 8 per Sq. Km  Forest Cover –26%  Largest forest area in the world

Russia – Economy  Commodity driven economy  GDP GDP  $1.4Tn  Rank – 10 th  PCI – $10,521 PCI  Growth rate – 4.9%4.9%  Agriculture – 4%; Industry – 37%; Services – 59%  Inflation – 6.1%  Labor Force – 75Mn  Exports Exports  $376Bn  Oil, Natural Gas, Minerals, Timber, Arms, IT Services Oil, Natural Gas  Imports  $237Bn  Forex Reserves - $502Bn  Economic crisis – 1990s

Russia – Social Indicators & Political Environment  Federation  Semi-Presidential System  President – Head of State  Vladimir Putin  Dimitry Medvedev  Political Environment  Stable  HDI  HIGH  Rank – 71  Poverty – 14%  Crime – 30  Infant Mortality – 69  Literacy –99.4%

China – Key facts  3 rd /4 th Largest country in the world  9.6 Mn sq. Kms  1 time zone  Rich in natural resourcesresources  10% of World’s arable land  World’s largest exporter  2 nd largest importer  Largest standing army  Population – 1338 Mn  Largest  Density of Population – 139 per Sq. Km  Forest Cover –20%

China – Economy  GDP GDP  7.3Tn  Rank – 2 nd  PCI – $5184 PCI  Growth rate – 9.5% Growth rate 9.5% Distribution of growthgrowth  Agriculture – 9%; Industry – 47%; Services – 44%  Inflation – 5%  Labor Force – 780Mn  Exports 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  MEDIUM  Rank – 91  Poverty – 10%  Crime – 30  Infant Mortality – 69  Literacy –99.4%

ANNEXURES

BRICss

Brazil - MapMap

Brazil - ResourcesResources

Brazil - Deforestation

Deforestation

Brazil – GDP Growth Ratess

Brazil – GNIGNI

Brazil - Exportss

Russia - MapMap

Russia - GDPGDP

Russia – GDP Growth RatesRates

Russia - GNI per Capitaper

Russia - ExportsExports

Russian Oil & Gas Pipelines&

China - GDPGDP

China – GDP Growth Ratess

China – GDP Growth RatesRates

China - Distribution of growthgrowth

China – Natural ResourcesResources

China – ExportsExports

China - GNI per Capitaper

Mega-diverse Countriess

Gini

HDI