BRICS

1. BRICS Professor Wang Guo An Zhejiang Gongshang University Mobile:136-0051-6079 E-mail:wangguoan@mail.zjgsu.edu.cn

2. Brazil+Russia+India+China=BRIC B+R+I+C+South Africa=BRICS

3. How BRICS came into being由来 BRICS’ development发展 BRICS’ characteristics and influence特点与影响 BRICS’ challenges and future挑战与未来 BRICS

4. 2001年美国高盛公司首次提出“金砖四国” 概念，囊括了全球最大的四个新兴市场国家。“金砖四国”（BRIC）引用了巴西、俄罗斯、印度和中国的英文首字母，由于该词与英文中的砖（Brick）类似，因此被称为“金砖四国”。

5. Goldman Sachs美国高盛has argued that, since the four BRIC countries are developing rapidly, by 2050 their combined economies could eclipse the combined economies of the current richest countries of the world. These four countries, combined, currently account for more than a quarter of the world's land area and more than 40% of the world's population.

7. BRICS is a grouping acronym that refers to member countries Brazil, Russia, India, China and South Africa. Founded as BRIC, it is typically rendered as “the BRICS” or “the BRICS countries” or alternatively as the “Big Five”. They are called emerging markets or economies.

8. BRICS

9. The acronym (originally "BRIC") was coined by an economist Jim O'Neill in a 2001 paper entitled "Building Better Global Economic BRICS". The acronym has come into widespread use as a symbol of the shift in global economic power away from the developed G7 economies (France, Germany, Italy, Japan, UK, USA and Canada) towards the developing world. On April 13, 2011 the "S" was formally added to BRIC to form BRICS after the admission of South Africa into the union.

10. Why did BRIC emerge? • The 1998 Asian Financial Crisis undermined the authority of the International Monetary Fund, and the Iraq War diminished US influence in the UN. In addition, the failure of the Doha round of talks revealed problems in the governance of world trade. Meanwhile developing countries have been emerging and growing in stature as these issues developed, and they have begun to question the old rules established by the developed countries. These were the circumstances under which the BRIC emerged. Essentially, the five countries of BRICS have a common aim and purpose – to band together to redefine the international rules, working together with the developed countries of course.

11. In June 2009, four leaders held their first meeting for the first time in Russia. 2009年6月四国领导人首次在俄罗斯举行首次会晤，并发表《“金砖四国”领导人俄罗斯叶卡捷琳堡会晤联合声明》。 In April 2010, the second "BRIC“ summit was held in Brazil. 2010年4月第二次“金砖四国”峰会在巴西召开。会后四国领导人发表《联合声明》，就世界经济形势等问题阐述了看法和立场，并商定推动“金砖四国”合作与协调的具体措施。至此，“金砖国家”合作机制初步形成。

12. BRICS’ Development • In November 2010, South Africa applied to join in the BRICS during the Group 20 summit. 2010年11月二十国集团会议在首尔举行，南非在此次会议上申请加入“金砖四国”。 • On December 2010, South Africa has been accepted as a member of the "BRIC” countries and "BRIC”was renamed as "BRICS" .2010年12月中国作为“金砖国家”合作机制轮值主席国，与俄罗斯、印度、巴西一致商定，吸收南非作为正式成员加入“金砖国家”合作机制，“金砖四国”即变成“金砖五国”，并更名为“金砖国家”(BRICS)。

13. South Africa received a formal invitation to join from China in 2010. Combined GDP of the nations accounted for 18 percent of the world's total in 2010.South Africa attended the summit as a member for the first time in 2011 in Sanya, Hainan province, China. The group was renamed BRICS to reflect the now-five-nation membership.

14. On April 14, 2011, President Hu Jintao met with Brazilian President Dilma Rousseff, Russian President Dmitry Medvedev, Indian Prime Minister Manmohan Singh and South African President Jacob Zuma. The third formal meeting of BRICS included South Africa for the first time.

15. Broad Vision and Shared Prosperity 展望未来 共享繁荣

16. The BRICS Summit, thethird of its kind,was held on April 14 in Sanya, a coastal city of China's Hainan Province. The summit focused on global financial reforms, the international economic and financial situation, multi-polarity of global systems, development issues and co-operation among the member countries.

17. BRICS Leaders MeetingSanya, Hainan, China, 14 April 2011

19. In 2010, BRICS’ GDP accounted for 18 percent of global GDP; their average growth rate was nearly 7 percent, over 2 percentage points higher than average world growth. Foreign investment in BRICS countries accounted for 53 percent of the world's total. Their voting power at the International Monetary Fund (IMF) was increased. Many see them as the leaders of the world economic recovery and the growth engine of the world, and expect them to play an ever more important role in the G20.

20. BRICS’ four topics in Sanya • Reform of the international economic system • The current situation in Libya and the Middle East and BRICS' common stance on how to deal with such political crises. • How to deal with climate change and natural disasters caused by climate change. • Map out a new development plan for BRICS.

21. BRICS’ characteristics and influence • At present, the five BRICS countries account for nearly 30 per cent of the world's land area, 42 per cent of the global population, and 15 per cent of the world total trade volume. The trade among these five countries experienced a rapid growth at 28 per cent annually from the year 2001 to 2010 and reached the amount of US$ 230 billion.

22. BRICS’ characteristics and influence The BRICS economies account for 18 percent of the world's economic aggregate and attract 53 percent of the foreign capital. By 2015, BRICS' total GDP will increase to 23 percent of the world total, by 2020 to 31 percent. by 2030 to 47 percent. Between 2000 and 2010, BRICS' GDP grew by an incredible 92.7 percent.

23. BRICS’ characteristics and influence BRICS aim at • promotion of the peace and development of the world. • improvement of the developing countries’ rights. • enhancing the communication between developed and developing countries .

24. BRICS’ characteristics and influence BRICS in common • the fastest growing economies nowadays in the world with tremendous potential. • are in the similar stage of development and face the same historical task of developing their economies and improving the well-being of their people. • are also facing the similar challenges or problems in restructuring the economy, maintaining a healthy and sustainable growth and in achieving an inclusive, equitable and green development. • enjoy highly complementary advantages and solid foundation for extensive cooperation to promote common development based on equality and mutual benefit.

25. BRICS’ characteristics and influence BRICS mechanism • open • transparent • Inclusive • has provided a platform for BRICS members to express their views, coordinate their stances and take joint action in forming the new international political and economic order.

26. BRICS’ characteristics and influence BRICS, a multi-level cooperative framework the Leaders Summit as its highest form, assisted by meetings of • Senior Security Representatives, • Foreign Ministers, • Finance Ministers, Governors of Central Banks • Think Tanks, • business circles and • financial institutions.

27. Cruzior 巴西币 葡萄牙语 • Ruble 卢布 俄语 • Rupee 卢比 印度语 • RMB 人民币 汉语 • Rand兰特 英语

28. BRICS’ characteristics and influence • IMPORT: Their import and service demands, at over $2 trillion, accounts for 13.5 percent of global imports. This represents a 277 percent growth in imports. • Capitalization: the market capitalization of BRIC companies grew from $1.2 trillion to $6.4 trillion between 2000 and 2010, a massive 641 percent increase. • Population: The five countries' combined population will peak at 44 percent of the world total by 2015 These countries have large numbers of highly qualified professionals and technicians.

29. BRICS’ characteristics and influence

31. BRICS’ characteristics and influence • Build global balance to the world • Cooperate with developed countries • Benefit the members • A coordination platform for emerging economies and a bridge between developing and developed countries.

32. BRICS’ characteristics and influence • but currently neither has a permanent secretariat nor serves as a formal international organization. • a fledgling organization to take shape. • still in its infancy, entailing strengthened dialogue and communications among member countries

33. BRICS’ characteristics and influence • will deepen South-South cooperation, change the game rules of international finance and trade, and give developing countries more rights to speak. • will restructure the global pattern of economy, trade and diplomacy. • Will improve international circumstances for emerging economies, to some extent create a more healthy and beneficial international atmosphere, and display a fresh picture of emerging economies.

34. BRICS’ characteristics and influence It’s expected to help set up a more just and reasonable international political and economical order ! The political landscapes: • The influence the BRICS nations have on world politics is their participation in global efforts for good governance. The economic landscapes: • BRICS members have played an irreplaceable role in the handling of global financial and economic issues.

35. BRICS’ characteristics and influence Their cooperation can result in a truly win-win situation. The BRICS economies import a huge amount of equipment from developed countries to meet their urbanization and industrialization demands. Their combined demand and the developed countries' capital and technological superiority can drive global economic growth, and help the developed economies to recover from the global economic crisis.

36. BRICS’ characteristics and influence • The expanding market in the five BRICS countries will boost trade between its members, and increase the exports of countries in Africa, Latin America and Southeast Asia. • Growing ODI (overseas direct investment) boosts regional cooperation. • The principle: seeking common ground while shelving differences.

37. BRICS benefits the members

38. Seeking common ground while shelving differences

39. BRICS’ characteristics and influence 金砖国家聚会一直强调是一种合作机制 首先，与七国集团不同，金砖国家聚会一直避免了使用“集团”、“同盟”等字眼。成员国官方对金砖国家合作机制非对抗性的属性定位也很明确。俄外长称，“金砖外交”是其多元外交的一部分；中国也一直强调协调与合作，而不是对抗与对立。

40. BRICS’ challenges and future 俄罗斯国土广袤，资源丰富，其武装力量足以和欧美分庭抗礼；中国和印度专注于发展经济，但中印之间还有领土纠纷；印度作为西方欣赏的“民主国家”，作为英联邦成员，和西方世界有着特殊关系，甚至被看作西方世界的一员；巴西与南非隔洋相望……。因此，金砖国家走到一起，很大程度上是把这个机制当作一个可以相互借力的平台，是众多平台相互制衡的一个要素，是不同体制、不同地域的国家合作的一次尝试，在国际组织五花八门、各种对话机制和组织层出不穷的今天，金砖合作机制将为世界发展锦上添花。即便是金砖五国和七国集团GDP数字相当，那又如何？西方七国有着共同的价值观，虽内部有争吵，但在美国的“领导”下基本还算是一个有机整体。而反观金砖五国，地跨四大洲，历史传统、价值取向、社会制度各异。各种复杂的因素让金砖国家难以在政治诉求上达成高度一致。

41. BRICS’ challenges and future They have to deal with domestic problems and have to • take measures to narrow the large income gap • improve their social security systems • increase the pace of industrialization • take steps to control inflation • stem the flow of hot money into their economies.

42. BRICS’ challenges and future • BRICS is currently a loosely connected economic forum. • There have been frictions in the relationships of the five countries. China has border disputes with India, trade disputes with Brazil.

43. Enlargement of BRICS will be slow • BRICS, now covering Eurasia, South America and Africa, has gained adequate representativeness. • a larger membership was likely to hold up the consensus-building process, • a hasty enlargement was likely to impede its decision-making ability, the priority now is to strengthen the cohesion of the current five members. • Though the mechanism is open and welcomes those with considerable economic strength, population size, regional representativeness and international influence when the time is ripe.

44. Suggestions for BRICS • Increase their coordination in the framework of large international meetings such as the G20 and the UN General Assembly. • Build a dispute and crisis management mechanism to cope with possible international frictions. • Slowly enlarge BRICS.

45. Thanks 杭州 浙江工商大学 王国安教授 E-mail:wangguoan@mail.zjgsu.edu.cn http://econet.zjgsu.edu.cn/andrew.wang 136-00516079