It may be no secret that China’s economic health will have an impact on the rest of the BRICS countries in addition to America and Europe. India and China need the resources of Brazil, Russia and South Africa and those three countries prosper due to the business from India and China.
For a better understanding of the BRICS, I turned to Investopedia for a definition, which said, “The BRIC thesis posits that China and India will become the world’s dominant suppliers of manufactured goods and services, respectively, while Brazil and Russia will become similarly dominant as suppliers of raw materials.
“It is important to note that the Goldman Sachs thesis isn’t that these countries are a political alliance (like the European Union) or a formal trading association – but they have the potential to form a powerful economic bloc…”
Due to lower labor and production costs, many companies also see the BRICS as a source of foreign expansion opportunities.
In addition, what was once only an acronym has become something else.
Although the BRIC acronym came into existence in 2001 when there was no real political organization among the four original countries, on June 16, 2009, due to the 2008 global financial crises, the leaders of the four BRIC countries held their first summit in Yekaterinburg, Russia, and issued a joint declaration. Since then, they met in Brasilia in 2010 and again in Sanya, China in 2011.
In 2010, South Africa launched efforts to join the BRIC group, and the process of its formal admission began in August. Later in 2010, the BRIC countries expanded to include South Africa, becoming the BRICS.
The next meeting of the BRICS is scheduled in New Delhi, India, March 2012.
Continued on January 16, 2012 in The Economic Health of BRICS – Part 6 or Return to Part 4
______________
Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.
Subscribe to “iLook China”
Sign up for an E-mail Subscription at the top of this page.
iLook China 