BRICS states

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The BRICS states

The BRICS countries are an association of emerging economies. The abbreviation "BRICS" stands for the first letters of the five associated states Brazil , Russia , India , China and South Africa - the first letters of the English names Brazil , Russia , India , China and South Africa were decisive . The composition is almost identical to that of the O5 countries , which include Mexico instead of Russia.

history

BRIC summit in Yekaterinburg 2009.
From left to right: Luiz Inácio Lula da Silva , Dmitri Medvedev , Hu Jintao , Manmohan Singh .
BRIC Summit 2010 in Brazil.
From left to right: Dmitri Medwedew, Luiz Inácio Lula da Silva, Hu Jintao, Manmohan Singh.
BRICS summit in China 2011. From left to
right: Manmohan Singh, Dmitri Medwedew, Hu Jintao, Dilma Rousseff , Jacob Zuma .
BRICS Summit 2012 in India.
From left to right: Dilma Rousseff, Dmitri Medwedew, Manmohan Singh, Hu Jintao, Jacob Zuma.
The BRICS heads of state on July 15, 2014 in Brazil From left to
right: Vladimir Putin, Narendra Modi, Dilma Rousseff, Xi Jinping, Jacob Zuma.
BRICS summit 2016 in India.
From left to right: Michel Temer , Vladimir Putin , Narendra Modi , Xi Jinping and Jacob Zuma.

The abbreviation BRIC was coined by Jim O'Neill , chief economist of the major bank Goldman Sachs , who used it in a number of publications, first at the end of 2001. These emerging countries had annual growth rates of 5 to 10% in economic output over a longer period of time . O'Neill also came up with the idea of ​​the Next Eleven as the "successor" to the BRICS countries.

On December 23, 2010, South Africa officially received an invitation to join this group from the BRIC state China after consultation with the other states. On April 14, 2011, South Africa took part for the first time as a member of the annual meeting of the group of states that has been called BRICS ever since.

Due to the economic stagnation in the industrialized nations, investors turned their attention to the BRICS countries, so that more and more financial products were issued to them, e.g. B. Funds and certificates , not least from Goldman Sachs, the "inventors" of the BRICS countries.

The following important information is still missing in this chapter:
Reference to the New Development Bank founded in 2014 and the Contingent Reserve Arrangement .
Help Wikipedia by researching and pasting it .

Industrial development and economic weight

Industrial development and economic weight are very different in the BRICS countries.

China

China is by far the largest economy in the group and with just under 1.37 billion inhabitants also has the largest population of all BRICS countries and the world. In terms of total economic power, it is now close to that of the EU or the USA, but in terms of GDP per capita according to purchasing power parity within the BRICS countries, it is only in second place and below a third of the US level, far behind Russia and just ahead of Brazil and South Africa.

The Chinese economic power has more than doubled since 2008 and even if the growth has weakened somewhat in the last few years, at over 6% annually it is still well above that of the western industrialized countries (1.5–2%). The country is striving for a leading role in the global economy in the medium term and is already working on catching up with the western industrialized countries in high-tech sectors (aircraft construction, medical technology, etc.).

Forecasts suggest that China's GDP in 2050 will be roughly the same as that of the EU and the US combined.

India

India is the second largest of the BRICS countries in terms of population (approx. 1.31 billion) and economic strength, and is already the third largest economy in the world in terms of purchasing power parity. At the same time, the country is also the least developed country in the BRICS group, has the lowest GDP per capita and the lowest position in the human development index (131st place in 2016).

Just like China, the country has experienced rapid economic development in recent years, with growth rates that are mostly just below those of China, but nonetheless over 6 or 7% annually (2016: 7.1%). In the long term, India will be the fastest growing member of the BRICS group, even if growth will slow down significantly.

India will probably take the place of the USA as the second largest economy in the world around the year 2050, at this point it will have 1.7 billion inhabitants, making it the most populous country in the world.

Russia

Russia is the most highly developed of all the BRICS countries and is in 49th place on the Human Development Index (for comparison: China is in 90th place), it also has the highest GDP per capita. In terms of area, Russia is by far the largest country in the world, but has a population of only 144 million people and is therefore in penultimate place within the BRICS group.

The country benefits greatly from its huge oil and gas reserves; However, the recent drop in world market prices has led to a recession; In 2015 GDP shrank by almost 3%. However, Russia is still the sixth largest economy in the world according to purchasing power parity , nominally the twelfth largest. Russia is a member and by far the largest state of the " Eurasian Economic Union ".

Brazil

Brazil is the third largest BRICS state in terms of population (approx. 208 million) and the eighth largest economy in the world in terms of purchasing power parity. In the mid-2010s, Brazil experienced a severe recession, which was made worse by a political crisis caused by the extremely widespread corruption in the political ranks, with GDP falling by almost 8%. The Brazilian economy is developing very unsteadily, but on average it is growing more slowly than that of China or India. Brazil is about the same level of development as China.

South Africa

South Africa is the smallest of the BRICS countries in almost all respects, it has by far the smallest population (approx. 55 million) and is by far the smallest economy (nominal GDP approx. 300 billion US dollars, worldwide ranked 39) . However, the country is of great importance as a supplier of raw materials, both for diamonds and precious metals and for raw materials such as zinc, iron, coal, manganese and others.

Compared to the rest of the BRICS countries and also to other emerging countries, South Africa has low annual growth rates (below 3%), the country has problems with rampant corruption and extremely high social inequality. For sub-Saharan Africa, South Africa is quite highly developed, but nonetheless, after taking social inequality into account, it is the country of the BRICS countries with the lowest ranking in the human development index (131st place, India 127th place)

Share in the world economy

About 40% of the world's population , just over three billion people, live in the BRICS countries. Their share in the nominal global gross domestic product was around 23% in 2016. For GDP according to purchasing power parity it was significantly higher at 32%. (For comparison: around 11% of the world's population live in the G7 countries; after adjusting for purchasing power, 33% of global GDP is generated there)

country population GDP ( nominal ) GDP ( purchasing power parity ) Human Development Index
in millions in the world in US $ million in the world in US $ million in the world Achieved value space
China 1,371.2 18.7 11,218,281 15.1 23.194.411 18.3 0.738 (high) 90
India 1,311.1 17.8 2,256,397 3.0 9,489,302 7.5 0.624 (medium) 131
Brazil 207.8 2.8 1,798,622 2.4 3,216,031 2.5 0.754 (high) 79
Russia 144.1 2.0 1,280,731 1.7 3,938,001 3.1 0.804 (very high) 49
South Africa 55.0 0.7 294.132 0.4 761.926 0.6 0.666 (medium) 119
total 3,089.2 42.0 16,848,162 22.7 40,599,671 32.0 - -
world 7,350.0 100.0 74.188.701 100.0 126,687,917 100.0 - -

Status / source: Population in 2015, nominal GDP 2016, GDP (KPP) 2017, HDI 2015

Exports in 2014 in billions of euros
China People's RepublicPeople's Republic of China People's Republic of China 2,342
RussiaRussia Russia 498
IndiaIndia India 322
BrazilBrazil Brazil 225
South AfricaSouth Africa South Africa 91

For comparison, other leading export nations are shown here:

Export in 2014 in billions of euros for comparison
United StatesUnited States United States 1,621
GermanyGermany Germany 1,508
JapanJapan Japan 684
FranceFrance France 583

I.a. Due to speculative overheating (as in China) and the fall in raw material prices (crude oil, iron ore, copper, nickel, etc.), a crisis in the BRICS countries set in from mid-2013 to early 2014, which led to strong returns of capital into the dollar. and euro area led. After the investment potential of the BRICS countries had been exhausted, Jim O'Neill called for investments in the financial products of the MIST countries (largely managed by Goldman Sachs) - another word he created for the group of countries Mexico, Indonesia, South Korea and the Turkey. Here too, a crisis-ridden development has spread since 2015.

Summit meeting

  1. June 16, 2009 in Yekaterinburg , Russia
  2. April 15, 2010 in Brasília , Brazil
  3. April 14, 2011 in Sanya , People's Republic of China
  4. March 29, 2012 in New Delhi , India
  5. March 27, 2013 in Durban , South Africa
  6. July 15-17, 2014 in Fortaleza , Brazil (with the establishment of the New Development Bank and the Contingent Reserve Arrangement )
  7. July 8th to 9th, 2015 in Ufa , Republic of Bashkortostan , Russia
  8. October 15-16 , 2016 in Benaulim / Goa , India
  9. 3rd to 5th September 2017 in Xiamen , People's Republic of China
  10. July 25-27, 2018 in Johannesburg , South Africa
  11. November 13-14, 2019 in Brasília , Brazil

Alternative constructions

Occasionally the BRIC states are expanded to the so-called BRICK states by adding South Korea (with the letter K from Korea) . Although South Korea is already a developed industrial country, it is still achieving high growth rates.

Far less often the “K” in BRICK means Kazakhstan . The reason to add Kazakhstan is given by its growing importance as an energy supplier and its location between the “classic” BRIC countries Russia, China and India, which brings the Eurasian-Pacific perspective of the emerging countries to the fore. (If Brazil is left out, the term RICK states is used.)

Other variants are:

  • BRIICS for Brazil, Russia, India, Indonesia, China and South Africa
  • BRIKT for Brazil, Russia, India, Korea and Turkey
  • BRICSAM for Brazil, Russia, India, China, South Africa, the ASEAN countries (Brunei, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) and Mexico

literature

  • Georg Erber, Mechthild Schrooten: BRICS: Germany benefits from growth in Brazil, Russia, India, China and South Africa: for how much longer? In: DIW weekly report. 79, (34), 2012, pp. 3-9. ( Online edition of the article , pdf, 321.66 kB)
  • Georg Erber: BRICS-Bank: Nothing except expenses. In: Oekonomenstimme. July 24, 2014. oekonomenstimme.org
  • Rolf L. Langhammer: The BRICS Development Bank: A fund, but not yet a bank. In: Oekonomenstimme. August 18, 2014. oekonomenstimme.org
  • George Magnus: Will Emerging Markets Shape or Shake the World Economy? Wiley & Sons, New York 2010, ISBN 978-0-470-66082-9 .
  • Dyrk Scherff: BRIC - a success story, in: Frankfurter Allgemeine Sonntagszeitung No. 2, January 15, 2012, p. 43.

Web links

Commons : BRICS countries  - collection of images, videos and audio files

Individual evidence

  1. ^ J. O'Neill: Building Better Economic BRICs. Goldman Sachs Global Economics Paper No: 66, 30th November 2001 ( Memento of September 7, 2012 in the Internet Archive )
  2. ^ Minister Nkoana-Mashabane on South Africa's full membership of BRICS. ( Memento of December 18, 2013 in the Internet Archive ) December 24, 2010.
  3. ^ Diepresse.com: The BRIC countries become the BRICS countries . Retrieved April 15, 2011.
  4. ↑ a b c World Bank: data on the annual economic growth of all economies. Accessed July 1, 2017 .
  5. ↑ a b The UN's "Human Development Report" from 2016. (PDF) Retrieved on July 1, 2017 (English).
  6. ^ World Bank: Data on the annual economic growth of all economies. Accessed July 1, 2017 .
  7. ↑ PwC's forecasts for the global economy in 2050. (PDF) February 2017, accessed on July 1, 2017 (English).
  8. ↑ a b UN predictions on global population development. (PDF) 2015, accessed on July 1, 2017 (English).
  9. ^ "Human Development Report" of the UN. (PDF) 2016, accessed on July 1, 2017 (English).
  10. ^ Federal Statistical Office: Report on the G7. (PDF) 2015, accessed on July 1, 2017 .
  11. ↑ World Bank: Population data from 2000 to 2015. Retrieved on July 1, 2017 (English).
  12. ↑ IMF: nominal GDPs of all economies 2015/16. Accessed July 1, 2017 .
  13. ↑ IMF: Estimates of GDP adjusted for purchasing power in 2017. Accessed July 1, 2017 (English).
  14. ^ Human Development Report of the UN. (PDF) 2016, accessed on July 1, 2017 (English).
  15. ↑ WTO data
  16. ↑ WTO data
  17. ↑ The BRICS countries are in crisis. Sächsische Zeitung online, August 11, 2015 sächsische.de
  18. ↑ This investment strategy is MIST. Handelsblatt, August 21, 2012, online: handelsblatt.com