Presentation on brics

It shows the Working, Functions and Members of BRICS, objectives, important Summit, effects, advantages, disadvantages, financial Contribution and The BRICS Bank.

1. PRESENTATION BY:- AMAN LODHA PUSHKARA BHONSLE ANKUSH MANGAL z

2. BRICS stands for Brazil, Russia, India, China Goldman Sachs predicted in 2001 that some leading economy of the world will emerge to give competition to western world.. BRIC is an international political organization of leading emerging economies, its Five members are all developing industrialized countries. Biggest and fastest growing emerging economies. BRIC

3. South Africa has been asked to join the BRIC group of major emerging markets. Officially admitted as a BRIC nation on December 24, 2010 South Africa stands at a unique position to influence African economic growth and investment

4. China is South Africa’s largest trading partner India wants to increase commercial ties with Africa South Africa was brought into BRIC, "not only South Africa but a larger African market of a billion people,"

5. 1-To achieve regional development 2-To remove trade barriers. 3-Economic development. 4-Optimum use of resources. 5-Builiding relationship. Objectives of BRICS

6. The BRIC countries met for their first official summit on 16 June 2009, in Yekaterinburg, Russia. To Discuss the current global financial crisis, global development, and further strengthening of the BRICS group. BRICS Summit

7. The Fourth BRICS Summit was hosted in New Delhi on 29 March 2012 under the theme of “BRICS Partnership for Global Stability, Security and Prosperity.” The Summit has imparted further momentum to the BRICS process of planning a joint development bank.

8. Already BRICS accounts for: 46 per cent of the World's Population, 25.9 per cent of its Total Geographic Area, 30 per-cent of Global GDP By 2050, BRICS countries expected to accounts 60% of global GDP. The Path to 2050

9. BRICS could be larger economies than the United States and the developed economies of Europe within 40 years. China and India will become world’s dominant suppliers of manufactured goods and services Brazil and Russia will become dominant suppliers of raw materials.

10. 10 th fastest growing economies in the last centuries. Extremely rich in resources such as coffee, sugarcane, crude oil and iron etc. Focus on equitable development has resulted in significant poverty reduction. Brazil today is the most popular of the BRICs so far as foreign direct investment is concerned. 12 BRAZIL

11. 20% of the world’s oil and gas reserves. Fall in the number of people living below the poverty line. Consumer market of over 140 million people. 68% of people comes under middle income group. Highly educated work force is available. Third largest exporter of steel and aluminium 13 RUSSIA

12. 1.2 billion people. 2nd largest labour force. Holds second place followed by China in BRICS. Approximately 2.5 million college graduates per year. Broad knowledge economy. 14 INDIA

13. Second Largest economy today. Third largest country in land size. China is the world’s largest exporter of merchandise goods. 13% of people comes under middle income group.. Holds more than $3 trillion forex reserves. The Private Sector is the main driver of growth and employment. 15 CHINA

14. The South African economy is the 23rd largest in the world. Inflation is below 6.6% and falling. 25% of goods produced in South Africa are for export. Richest in terms of its mineral reserves. 16 SOUTH AFRICA

15. 18 Few facts about the BRICS The BRICS Countries make up 18 % of Global GDP. They have increased their share of Global GDP threefold in the past 15 years. The BRICS are home to 46 % of the World's Population and  26% of the planet's land mass. The BRICS Nations have combined Foreign Reserves of an estimated $4.4 trillion. Intra-BRICS trade flows reached $282 billion in 2012 and are estimated to reach $500 billion by 2017. According to statistics of the World Trade Organization (WTO), the participation of BRICS in Global Exports have doubled between 2001 to 2011, from 8% to 16% respectively. Between 2010-2012, BRICS´ International Trade rose 29%, i.e from $4.7 to $6.1 trillion dollars.

16. India is also expected to grow faster than China after 2020. Rising incomes in the BRICs nations will create a new middle consumer class in the world. All BRIC countries have accumulated great levels of Foreign Exchange reserves. Expansion of consumer markets and the rise of Multinational Companies. BRIC countries will have a comparative advantage in development patterns. 19 ADVANTAGES

17. The dominance of the Chinese economy and its role in trade relations makes the BRICS much more of a China-with-partners group than a union of equal members. BRICS countries lack mutual economic interests. BRICS members lack common understandings about priorities that are necessary for productive sharing of experiences. Different view-points and influence in the international arena. 20 DISADVANTAGES

18. The global financial meltdown of 2008 has not left the economies of Brazil, Russia, India, China & south Africa known as the BRICS club injured. As the developed world faces recession, BRICS growth is inevitably set to slow. Yet strong foreign exchange reserves and growing domestic demand has allowed BRICS to with stand the crisis and continue growing, strengthening their position as a major consumer market. Recession & Brics

19. India has provided loans of more than $200million to the African countries since 2010 Š China has invested almost $4000 million as foreign direct investment. Š Russia too has contributed more than $3000million as FDI Š Brazil has invested around $4000 million in Africa. Financial contribution

20. Strong consumer demand, which could take the lead as the prime engine for growth. Š High levels of foreign exchange reserves. foreign exchange reserves will allow governments to boost public spending in order to support the economy. This could take the form of social benefits to encourage consumers to spend more Strengths

21. Inclusive growth BRICS economies could become a much larger force in the world economy. BRICS maintain policies and develop institutions that are supportive of growth Opportunities

22. BRICS nations are going to develop a joint bank within the BRICS nations for assistant them self on July 2014 (Treaty signed) July 2015 (Treaty in force) BRICS NATIONS BANK

23. And to meet the following reasons: Growing emerging markets. Climate change, food and energy security, International economic exchange. Financial assistant. Population control

24. To establish a development bank to balance the influence of the World Bank and IMF, as well as creating a joint foreign exchange reserve. Business Competitiveness Governance & Leadership Science & Technology Poverty Private Sector & Prevention of Corruption Investment Landscape Innovation in building Infrastructure Trade Healthcare FOCUS OF BRICS FORUM

25.   Egypt ,  Argentina ,  Iran ,  Nigeria ,  Syria  and most recently  Bangladesh  have expressed interest in joining BRICS to increase the share capital and become a member of the New Development Bank established by the BRICS Nations. 29 Potential members

26. Strength of the BRICS nations 1- To use resources. 2-Market opportunities. 3-Economic developments. Weakness of the BRICS nations 1- Population problem. 2- lack of Infrastructure. 3- Decreasing GDP growth rate. SWOT Analysis

27. Opportunities of the BRICS nations 1- To expand the market. 2- Regional development. 3-Monetry resources. Threats of the BRICS nations 1-Financial crises. 2- Threats from other unions. 3-dollar role

28. BRICS doesn’t have a concrete and constructive agenda for change or vision for a future world order. China is the muscle of the group and the Chinese know it. They have effective veto power over any BRICS initiatives

29. BRICS nations have the potential and the resources to form a powerful economy with greater opportunity than any other nation. If the government of India takes speedy and effective measures to overcome these challenges in FDI attraction and given a few years with those developments India will definitely overtake Brazil and Russia and its increase competitiveness at par with its global competitors. Conclusion