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BRIC nations likely to overtake G-7: experts
New Delhi: Putting developmental aspirations of common people at the heart of the BRIC engagement, the leaders of so-called BRIC nations of Brazil, Russia, India and China at a recently concluded summit have decided to scale up cooperation in areas ranging from science and technology, trade and investment, pharmaceuticals and infrastructure.
Experts described the gathering of the world’s top emerging economies at the second BRIC summit as a key to ‘contributing to world economic growth and prosperity.’ Professor Arun Mohanty, director, Eurasian foundation, JNU, opines that Godman Sachs’ projection—the emerging economies of Brazil, Russia, India and China would overtake the G-7 nations—may come true much sooner than expected. BRIC countries, currently home to 42% of world population account for 23% global GDP, two-fifths of global foreign exchange reserves and 32% arable land. According to Mohanty, Goldman Sachs’ latest projection suggests that BRIC nations will be the largest economies in the world by 2032. In the intervening period BRIC might turn into BRICS that would include South Africa or BRICSAM, if we bring Mexico-another emerging economy-into its fold. “In less than two decades G-6 consisting of Brazil, Russia, India, China, South Africa and Mexico-all emerging economies-could overtake G-7 in terms of GDP and global trade turnover. Obviously, this will provide the teeth to these countries to assert themselves as a strong group and have greater voice, may be most decisive say in global affairs in the next two decades,” said Mohanty.
According to the Russian President Medvedev, the recently concluded meeting showed that the BRIC format is maturing “and allows us to not only coordinate our efforts but to also make concrete decisions.” The leaders decided to not discuss Iran in their plenary session ‘but rather concentrate on issues relating to global governance,’ according to Brazil’s presidential adviser on international affairs, Marco Aurelio Garcia.
Prime Minister Manmohan Singh said BRIC, the name was coined by Goldman Sachs in 2003, was not borne out of a crisis but was an act of long-term faith in our people and in our economies. “However, the global economic and financial crisis has created a new relevance for BRIC.”
At the first BRIC summit, the group discussed the US dollar’s status as the world’s main trading currency, and the topic was back on the agenda this time. The issue of removing dollar from mutual trade is not very easy given the fact the exchange rates of currencies of Russia, India Brazil are not sustainable and subject to constant fluctuation, and Chinese currency is not at all convertible. However, the inclusion of the issue in the BRIC summit 2010 agenda was aimed at exerting pressure on leading global powers.
"They have asked for reforms at IMF and World Bank in order to ensure more equitable voice and balance between advanced and developing countries. With the decline of non-alignment movement, BRIC along with other emerging economies are likely to carry the banner of developing world and defend their interests in various international forums. It was evident by the role played by BRIC nations in the G-20 meetings," points out Mohanty at JNU.
BRIC nations likely to overtake G-7: experts
New Delhi: Putting developmental aspirations of common people at the heart of the BRIC engagement, the leaders of so-called BRIC nations of Brazil, Russia, India and China at a recently concluded summit have decided to scale up cooperation in areas ranging from science and technology, trade and investment, pharmaceuticals and infrastructure.
Experts described the gathering of the world’s top emerging economies at the second BRIC summit as a key to ‘contributing to world economic growth and prosperity.’ Professor Arun Mohanty, director, Eurasian foundation, JNU, opines that Godman Sachs’ projection—the emerging economies of Brazil, Russia, India and China would overtake the G-7 nations—may come true much sooner than expected. BRIC countries, currently home to 42% of world population account for 23% global GDP, two-fifths of global foreign exchange reserves and 32% arable land. According to Mohanty, Goldman Sachs’ latest projection suggests that BRIC nations will be the largest economies in the world by 2032. In the intervening period BRIC might turn into BRICS that would include South Africa or BRICSAM, if we bring Mexico-another emerging economy-into its fold. “In less than two decades G-6 consisting of Brazil, Russia, India, China, South Africa and Mexico-all emerging economies-could overtake G-7 in terms of GDP and global trade turnover. Obviously, this will provide the teeth to these countries to assert themselves as a strong group and have greater voice, may be most decisive say in global affairs in the next two decades,” said Mohanty.
According to the Russian President Medvedev, the recently concluded meeting showed that the BRIC format is maturing “and allows us to not only coordinate our efforts but to also make concrete decisions.” The leaders decided to not discuss Iran in their plenary session ‘but rather concentrate on issues relating to global governance,’ according to Brazil’s presidential adviser on international affairs, Marco Aurelio Garcia.
Prime Minister Manmohan Singh said BRIC, the name was coined by Goldman Sachs in 2003, was not borne out of a crisis but was an act of long-term faith in our people and in our economies. “However, the global economic and financial crisis has created a new relevance for BRIC.”
At the first BRIC summit, the group discussed the US dollar’s status as the world’s main trading currency, and the topic was back on the agenda this time. The issue of removing dollar from mutual trade is not very easy given the fact the exchange rates of currencies of Russia, India Brazil are not sustainable and subject to constant fluctuation, and Chinese currency is not at all convertible. However, the inclusion of the issue in the BRIC summit 2010 agenda was aimed at exerting pressure on leading global powers.
"They have asked for reforms at IMF and World Bank in order to ensure more equitable voice and balance between advanced and developing countries. With the decline of non-alignment movement, BRIC along with other emerging economies are likely to carry the banner of developing world and defend their interests in various international forums. It was evident by the role played by BRIC nations in the G-20 meetings," points out Mohanty at JNU.
BRIC nations likely to overtake G-7: experts
