Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

BRICS

No description
by

Mélisande Petit

on 10 November 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of BRICS

BRAZIL
SOUTH AFRICA
INDIA
RUSSIA
CHINA
BRICS
Ryan ALEMAN
Mark BIBAT
Clara FOURNET
Mélisande PETIT
Questions?
HISTORY
HISTORY
HISTORY
HISTORY
HISTORY
Future of the BRICS
New Development Bank recently lauched
Rough path in the past

Headquarters in Shanghai

India will have control for the first 6 years

Combines features of the World Bank and IMF
China: $41 billion
India, Brazil & Russia: $18 billion each
South Africa: $5 billion

TOTAL: $100 billion

IMF: $755.7 billion (2010)
Development Bank funds
Future power houses
Political power

Carve out the future of economic order between themselves

Global leaders of the world
Where BRICS STAND IN 2050
Pop.: 202,656,788 (5th)
GDP: $2.244 trillion (7th)
GDP/capita: $11,067
HDI: 0.744 - Rank: 79
Dilma ROUSSEFF
Pop.: 143,800,000 (9th)
GDP: $2.057 trillion (9th)
GDP/capita: $14,317
HDI: 0.778 - Rank: 57
Vladimir PUTIN
Pop.: 1.21 trillion (2nd)
GDP: $2.048 trillion (10th)
GDP/capita: $1,626
HDI: 0.586 - Rank: 135
Narenda MODI (P.M.)
Pop.: 1.35 trillion (1st)
GDP: $9.469 trillion (2nd)
GDP/capita: $6,959
HDI: 0.719 - Rank: 91
Xi JINPING
Pop.: 54,002,000 (25th)
GDP: $341 billion (34th)
GDP/capita: $6,354
HDI: 0.658 - Rank: 118
Jacob ZUMA
Union of Soviet Socialist Republics established in 1922

USSR quickly industrialized

Emerged as a world power after World War 2

Declined in late 70's 80's.

Disbanded in 1991

Russian Federation quickly gaining steam
Portuguese Colony until 1827

Kingdom of Brazil abolished in 1889

Had numerous dictators and pseudo-republics

Massive economic growth since 1960

Now a substantial Latin American Power
Formally a British colony since 1857

Economy limited and focused on supporting UK

Indian nationalism and dissent in early 20th century

Became independent in 1947

Economy grew slowly until 1976
Chinese civil war Communist victory

Closed economy developed slowly

Many economic blunders

Liberalizing measures quickly built growth

Become a defacto capitalist economy
British possession after Boer and Zulu wars

Slowly separated from British Crown

Left the Commonwealth, and established Apartheid

International pressure and political upheaval

Apartheid abolished and rejoined Commonwealth
New emerging economies
MIST - Mexico, India, South Korea, Turkey

PINE - Philippines, Indonesia, Nigeria, Ethiopia

CIVETS - Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa

KUTE - Kenya, Uganda, Tanzania, Ethiopia

MINT - Mexico, Indonesia, Nigeria, Turkey
Who are the MINT?
The next big thing

Expected to show strong growth

Youngers years

Lots of growth opportunities
STRENGtHS
Greatest strength: growth stories
New global growth forecast (IMF) cutting growth:
3.3% in 2012
3.6% in 2013
3.5% this year
3.9% next year
Blame on the U.S. and Europe for not getting their fiscal, monetary, budget “cliffs” in order
China’s growth trajectory is slowing
Lower demand for its exports by the more advanced economies
Continued internal purchasing demand within each of the BRICS economies
Natural tendency to trade their goods in national currencies
Doling out $75 billion to the IMF for the Eurozone bailout fund
Spoke out against protectionism in the December 2011 WTO ministerial meet
STRENGtHS
Treated as junior partners by the major emerged economies
“IMF-Washington consensus” designed to protect and advance the economies of the Euro-Atlantic-Japan sphere of economic influence
Scarce overlapping and collective foreign policy agendas
Unable to create a united front to demand reordering of the global political system
WEAKNESSES
THREATS AND RISKS
Western mismanagement of their economies
Increased bilateral trade using their national currencies
Eurozone crisis and Washington’s propensity to export inflation via quantitative easing
Political desire to act out alone when victims of selfish policy-making coming out Washington and Brussels
Political risk
April 2014: Political Risk Map by Aon Risk Solutions
Increased risk rating for all five emerging market BRICS countries
Including:
political violence
government interference
sovereign non-payment risk
Downgraded rating
Political risks increased from moderate levels
Economic weakness increased role of the government in the economy
Particular concern given this year’s World Cup and the 2016 Olympics
BRAZIL
Largely
downgraded rating
Ukraine and the annexation of Crimea
Weak operating environment for business
Increased exchange transfer risks
Risk of new capital controls
Economy dominated by the government
Increase in the risk of political violence
RUSSIA
Downgraded rating
Legal and regulatory risks elevated by ongoing corruption
Moderately high levels of political interference
Risks of political violence:
Territorial disputes
Terrorism
Regional and ethnic conflict
INDIA
Downgraded rating to moderately high
Deterioration in political risk
Slowing economic growth
Economic policy deadlock and economic sluggishness mutually reinforced
CHINA
Downgraded rating
Despite having strong political institutions
Struggling from recurrent strikes
Weaken the outlook for business
Raise financing costs
South africa
Environmental CONSTRAINTS
Potentially a critical risk to the economic rise
Grave impact on rural incomes (India, Brazil and China)
Urbanization, industrialization, intensive agriculture
Environmental CONSTRAINTS
Major cities vulnerable to rising sea levels
¼ of the population living near the coast
Significant agricultural sectors
Bound by environmental pacts 
limit their growth
RESOURCE ISSUES
Brazil and Russia: resource-rich commodity exporters
China and India: dependence upon imports
Growing shortages and competition for resources drive up commodity prices
If technological advances reduce dependence on conventional energy sources and/or commodities  Russia and Brazil will face reduced prospects for growth
India: robust population growth
Russia: population in decline
Brazil and China: forecast to face declining populations
China: 'one family one child' policy
Significant constraint particularly for Russia and China
DEMOGRAPHICS
Poor infrastructures
Brazil saves and invests too little
India needs significant economic reforms
Invest enough in infrastructure to maintain growth

GENERAL UNCERTAINTY
STRUCTURAL CONSTRAINTS
Catching up with the developed economies
The development of a partnership
Jim O'Neill (Goldman Sachs) invented the term
First summit in June 2009 in Russia
Research and development
Education
The entry of South Africa
Full transcript