The document discusses the role of BRICS (Brazil, Russia, India, China, South Africa) in international trade and development. It outlines the objectives of BRICS, which include regional development, removing trade barriers, and economic cooperation. BRICS countries have increased their financial and technical assistance to other nations over the last decade. The formation of the New Development Bank by BRICS is highlighted as a way to balance influence from the World Bank and IMF.
Role of BRICS in development of international trade
1. ROLE OF BRICS IN DEVELOPMENT
OF INTERNATIONAL TRADE
Pramod Gawade
16-PGDM-ABPM-54
Pramod Gawade
(16-PGDM-ABPM-54)
2. ABOUT BRICS
• BRICS stands for Brazil, Russia, China, and South Africa.
• Came into existence in 2001 as BRICS nation
• It is the fastest growing and emerging economics
• BRICS is the international political organization of leading emerging
economies. Its five members are all developing industrialized countries
• The term BRICS was used for the first time in the Goldman Sachs report
2003
3. BRICS: Characteristics
• Vast Land Area
• Developing Economy Globally
• Friendly Trade Relations
• Challenges Related To Economic And Social Integration
• Desire To Make The International Order More Representative
• Possibility Of Cooperation In Many Areas
4. OBJECTIVE OF BRICS
• To achieve regional development
• To remove trade barriers
• Economic development
• Optimum use of resources
• Building relationship
5. Role of BRICS
The role of Brazil, Russia, India, China and South Africa
(BRICS) as emerging protagonists in international development
cooperation is significantly and rapidly changing.
Over the last decade, BRICS have increased their financial as
well as technical assistance and established distinct ways and
means of economic cooperation, especially through southsouth-
cooperation with Low Income Countries (LIC).
7. BRAZIL
KEY ADVANTAGES :
One of the fastest growing economies in the last centuries
Brazilian economy becoming less dependent on imports
Extremely rich in resources such as coffee, sugarcane, crude oil
and iron etc.
Focus on equitable development has resulted in significant
poverty reduction. Textiles, chemicals , iron ore , steel and motor
vehicles industries.
Brazil today is the most popular of the BRICs so far as foreign
direct investment is concerned.
8. RUSSIA
KEY ADVANTAGES:
Russia has capability in high-technology sectors
Accounts for around 20% of the world’s oil and gas reserves
fall in the number of people living below the poverty line
68% of people comes under middle income group.
Highly educated workforce.
Third largest exporter of steel and aluminium
9. INDIA
KEY ADVANTAGES
• 1.15 billion people
• 2nd largest labour force
• Approximately 2.5 million college graduates per year
• Broad knowledge economy
• Holds second place followed by China in BRICS
• Democratic country.
10. CHINA
KEY ADVANTAGES
• Broad expansion of educational achievement
• Rapid economic growth
• Third largest country in land size
• 13% of people comes under middle income group.
• Holds more than $3 trillion forex reserves.
• Largest exporter/ importer for 32 and 34 countries respectively.
• Cheap labour work force
11. SOUTH AFRICA
KEY ADVANTAGE
The South African economy is now the 23rd largest in the world
Inflation is now below 5% and falling.
25% of goods produced in South Africa are for export
Richest in terms of its mineral reserves
16. TARGET SECTORS FOR BRICS TRADE
• Manufacturing, services and agriculture
• Energy, infrastructure, mining beneficiation and healthcare
• Construction and water provision
• The green economy and tourism
17. What Is International Trade?
International trade is the exchange of goods and services between
countries. This type of trade gives rise to a world economy, in which
prices, or supply and demand, affect and are affected by global
events. Political change in Asia, for example, could result in an
increase in the cost of labor, thereby increasing the manufacturing
costs for an American sneaker company based in Malaysia, which
would then result in an increase in the price that you have to pay to
buy the tennis shoes at your local mall. A decrease in the cost of
labor, on the other hand, would result in you having to pay less for
your new shoes.
18. FOCUS OF BRICS FORUM
To establish a development bank to balance the influence of the world bank
and IMF, as well as creating a joint forging exchange reserve.
• Business
• Competitiveness
• Governance& leadership
• Science & technology
• Poverty
• Privet sector & prevention of corruption
• Investment landscape
• Trade
• healthcare
19. Rising impact of the BRICSs in global financial
markets
• The US current account deficit (capital imports) and the current
account surplus (capital exports) of emerging and oil producing
countries including the BRICS’s capital movements run counter to
the "common assumption” that capital flows from developed
countries to developing countries.
• Recent capital exports by emerging countries stem mainly from
rising foreign exchange reserves.
20. NEW DEVELOPMENT BANK
• Formed on July 2014 and came into force in July 2015. Earlier
known as “ BRICS Development Bank”.
• Headquarter in Shanghai.
• 1st president from India & Chairman of Board of Directors from
Brazil and Chairman of Board of Governors from Russia.
• Unlike the world bank which assigns vote based on capital share, In
the NDB each participant country will be assigned one vote.
• NDB is source of rising strength of BRICS & against the domination
of western countries through WORLD BANK & IMF