Professional Documents
Culture Documents
20
15
10
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
-5
-10
World
Russian Federation
India
Brazil
China
1400
1200
1000
800
600
400
200
0
China Brazil India Russian Federation
Where theyre going
Brazil
Brazil
Large and well-developed agricultural, mining,
manufacturing, and service sectors
Since 2003: macroeconomic stability
Two quarters of recession
2010: GDP growth reached 7.5%
Brazil
Worlds sixth largest economy in terms of GDP
High level of income equality declining
An attractive destination for foreign investors
(CIA, 2012)
Challenges:
Ease of doing business
Diversification
Infrastructure
Russia
Russia
From centrally planned to more market-based ,
globally integrated.
Economic reforms (1990s): privatisation, but
SOEs in energy and defense-related sectors.
Heavy state interference in private sector.
Russia
Russia is commodity-driven:
2011: surpassed Saudi Arabia to become worlds
leading oil producer
Second-largest producer of natural gas
World's largest natural gas reserves
Second-largest global coal reserves
Eighth-largest crude oil reserves
Vulnerable to boom and bust cycles
Russia
Very hard hit by 2008 credit crunch
Growth rebounded in late 2009
Growth further encouraged by high oil prices in
2011
Budget deficit reduced, along with
unemployment and inflation
Growth challenges: corruption, access to capital,
infrastructure, workforce (CIA, 2012)
India
India
From autarky to open-market economy
Diverse economy
Services: major source of economic growth
>50% of output
But only 33% of labour force
IT services is an especially competitive sector
India
Promising growth (ONeill, 2007):
Increased productivity
Openness
Financial deepening
Infrastructure investment
But challenges remain:
Incomplete reforms
Ease of doing business
Environmental degradation
Education
Poverty & inequality.
China
China
Increasingly market-oriented economy, playing
a major global role
Currently the world's largest exporter.
GDP second only to that of the USA.
State-owned enterprises still play an important
role (CIA, 2012)
Strategic planners
Five Year Plans
China
Good growth:
Human capital
Gradual path to openness
Reform of SOEs
Economic challenges:
Stimulating domestic demand
Sustaining adequate job growth
Reducing corruption
Environment
Ageing population
China
Demographics (ONeil, 2009)
An increasingly ageing population (One-child policy)
Uneven development: coastal provinces more
developed than interior (hukou system)
Revision of the one-child policy
Slower labour force growth, could be offset by
urbanisation & human capital advances
Ageing population could benefit saving & certain
sectors
Pensions
Unmarried males
China
Revision of the hukou system
Migration should be facilitated to allocate
resources more efficiently
Other costs of migration: unemployment, job
hunting, living conditions
Why they matter
The world in 2050
2000 2010 2050
US US China
Japan China US
Germany Japan India
UK Germany Japan
France France Germany
China UK UK
Italy Brazil Brazil
Canada Italy Mexico
Brazil India France
Mexico Canada Canada
Spain Russia Italy
Other emerging markets to watch
The Next Eleven (N-11)
Will BRICS stay BRICS?
BIICs
BRINCS
Do the summits matter?
The conclusion:
The world is changing, and BRICS (for now) are
important drivers of that change.