Came into existence in the year 2001 as BRIC

NATIONS.

The term BRIC was coined by Chief Economist

of investment firm Goldman Sachs.
 The countries of Brazil, Russia, India and China
are four of the biggest emerging economies
today. Way back in 2001, Goldman Sachs had
predicted that by the year 2050, these four
countries would become bigger than the six
most-industrialised nations in dollar terms.
Now, things have changed to such an extent,
that the prediction has been moved closer to
year 2025.
 Developing countries are being thought of as
engines of the world economy. The World
Bank has said that since 2008, the developing
world have contributed almost all of what
economic growth there has been. The countries
of Brazil, Russia, India and China lead the way
in terms of their contribution to global growth
rate, leading to a situation where the emerging
economies depend lesser on the developed
world than ever before.
 Trade happens globally, and the share of the
BRIC nations in this world trade has increased
substantially over the years. In 2001, the BRICs
accounted for just 7% of world trade, but by
2008, their share had increased to almost 13%.
 China and India, being close neighbours, are
trading more than ever before. Also, all the
BRICs have taken the global economic crisis, as
a means to make better their relationships with
the poorer developing world. For instance, all
the four BRICs have significantly increased
their contributions, financially, to the African
continent. According to research done by the
Overseas Development Institute (ODI), the
BRICs have invested huge amounts, in the
form of foreign direct investment (FDI), as well
as loans, to countries in Africa.
 India has provided loans of more than $200
million to the African countries since 2009.
China has invested almost $4000 million as
foreign direct investment.
Russia too has contributed more than $3000
million as FDI.
Brazil has invested around $4000 million in
Africa.
 Brazil, Russia, India and China, are today
bigger than ever before.
Their GDP has grown, their reserves of Foreign
Direct Investment (FDI) has become bigger, as
has their financial contributions to the rest of
the world.
The BRICs together play an essential role in the
G20.
Besides the G20, three of the four BRICs are
important members of the World Trade
Organisation.
 Through their membership in the WTO, they
can ensure that the needs and demands of the
developing world are met on an equal par with
those of the developed and industrialised
world.
 The global financial meltdown of 2008 has not
left the economies of Brazil, Russia, India and
China, known as the BRIC club injured.
As the developed world faces recession, BRIC
growth is inevitably set to slow.
Yet strong foreign exchange reserves and
growing domestic demand has allowed BRIC
to withstand the crisis and continue growing,
strengthening their position as a major
consumer market.
 The financial meltdown of October 2008 sent stock
markets in BRIC economies tumbling as foreign
investors fled. The notion that emerging economies
were disconnected from the crisis in the developed
world has proved wrong.

As the global economy was set to slow in 2009, BRIC

economies felt the consequences. China and Brazil
witnessed weaker demand from the USA and Europe
for their exports, while India's services sector,
oriented towards developed economies, suffered.
Russia was the most vulnerable of the BRIC countries
as it is heavily reliant on the hydrocarbon sector,
which was hit by falling energy prices.
 However, unlike other emerging economies,
BRIC had large trade surpluses and foreign
exchange reserves that made them more
resilient to the crisis. Governments were set to
use the reserves to increase spending and boost
consumer demand.
Growing consumer spending in BRIC countries
helped them to withstand the crisis. While the
pace of growth was excepted to slow, BRIC
remained a huge and growing consumer
market.
 The crisis was expected to remove the danger
of inflation making life easier for BRIC
consumers and allowing governments to ease
interest rates, fuelling further growth.
 After a decade of growth, BRIC economies have built
up strong consumer demand, which could take the
lead as the prime engine for growth. In 2007,
consumer expenditure as a share of GDP amounted to
35.0% in China, 48.0% in Russia, 54.1% in India and
61.0% in Brazil.
All BRIC countries have accumulated high levels of
foreign exchange reserves, measuring in 2007
US$1,528 billion in China, US$464 billion in Russia,
US$266 billion in India and US$179 billion in Brazil.
These foreign exchange reserves will allow
governments to boost public spending in order to
support the economy. This could take the form of
social benefits to encourage consumers to spend more
 The surplus could also be used for public
investments in transport infrastructure
upgrades, which are planned in all BRIC
countries. These upgrades would improve the
business environment and create jobs that
could offset job losses from weaker exports.
 The BRICs are becoming superpowers.
Whether they would surpass the expectations,
lying on them is something that we can only
speculate on. But it is no doubt, that they have
become more important today than before
more rests on their growth rather than on the
growth of the previously bigger powers of the
world.
 In recent years, new terms have emerged to describe the
largest developing countries such as BRIC that stands
for Brazil, Russia ,India, and China , along with
BRICET (BRIC + Eastern Europe and Turkey).
BRICS (BRIC + South Africa).
BRICM(BRIC + Mexico) .
BRICK (BRIC + South Korea).
Next Eleven (Bangladesh, Egypt, Indonesia, Iran, Mexico,
Nigeria, Pakistan, Philippines, South Korea, Turkey, and
Vietnam) .
CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey
and South Africa).These countries do not share any
common agenda, but some experts believe that they are
enjoying an increasing role in the world economy and on
political platforms.
 PRESENTED BY:

ABHISHEK.
RAJESH .
VIPIN.
SHAHID.
THANK YOU !!!!