Global Economics - BRICS - Brazil | Russia | India |China | South Africa

The world is changing very rapidly, from the Internet and many more. How will the world change and what will it mean for both you and I? It is important to know where the growth will come from and who will have the new wealth.

What Does Brazil, Russia, India, China, and South Africa - BRICS Mean?
BRICS is an acronym developed by economist at Goldman Sachs to describe the the economies of Brazil, Russia, India, China and South Africa combined. Yes, originally it was BRIC, then South Africa became an emerging force and the emerging countries now spell BRICS with the "S" designating South Africa.

The term was first used by Goldman Sachs in an economic analysis report in 2003. The report fore-casted or some say "speculated" that by 2050 these four economies (Brazil, Russia, India and China) combined would be wealthier than most of the current major economic powers.

EU a fifth not South Africa? For some time, the fifth brick in this equation was thought to be Europe. However, the emergence of South Africa has suggested the correct term should be BRICS with the S representing South Africa for economic power.

New World Economic Dynamic

In short, we must take a new look at the global powers of the world and realize the geographic map is not changing, the map of economic power is changing. We have seen changes of this just beginning. The significance affects all of us - no matter country we reside. What we do, who we see, what is discussed on the Internet and most importantly, who funds our pay checks is changing very rapidly. Understanding the new world economic dynamic is critical to our daily lives and our income.

Brazil Russia India China South Africa

show route and directions
A markerSouth Africa -
South Africa
[get directions]

B markerBrazil -
Brazil
[get directions]

C markerRussia -
Russia
[get directions]

D markerChina -
China
[get directions]

E markerIndia -
India
[get directions]

Global Map of BRIC - Brazil Russia India China

Global Map of BRIC - Brazil Russia India China - in Grey and Green - with Green Showcasing the Growth
Global Map of BRIC - Brazil Russia India China - in Grey and Green - with Green Showcasing the Growth | Source

Unlike the EU which is a formal agreement with one monetary system and one unified voice, the BRIC countries are separate. The thesis highlights the fact that these countries control the flow of goods - they are the manufacturers of the world. The stated concern is the economic bloc. My concern is the economic shift and the brain drain that the United States is experiencing and no one wish to recognize.

American have always been self centered. Our knowledge of the world has been limited both in the media and in our culture. The average American doesn't know the world politics. Yes, we learned the cultures are different but how many Americans today even know the EU exists and who can name the countries let alone identify them on a map.

The world is changing rapidly, we as American citizens living and supporting a democracy must understand the world around us in order to remain competitive. We sat back as China took over our manufacturing, we are sitting back now as the BRICE not the BRIC takes over our corporate taxes and our intellectual properties. The brain drain is now extending to a drain on US taxes.

BRIC - Brazil | Russia | India | China

Colorful Global Map of BRIC - Brazil Russia India China Showcasing the National Flags of Each Country
Colorful Global Map of BRIC - Brazil Russia India China Showcasing the National Flags of Each Country | Source

Global Economics - Emerging Markets - BRICS

As consumers, as American consumers, we have choices, we can buy American. We can support countries who pay taxes in this country. We can complain when corporate taxes go overseas. We can complain when we are no longer competitive.

James Watkins detailed how the unions have broken this country. The unions contributed, we allowed it. Lack of knowledge and understanding caused us to not calculate that we gave the jobs of our children and our grandchildren to BRIC. With BRICE fully on the horizon, we need to stand up be counted for, we must vote, we voice our concern.

A democracy in the new global world can only work if the people of that democracy are savvy. Learn about the world, read about the coming changes, voice your opinion, cast your vote.

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Comments 15 comments

soumyasrajan 6 years ago from Mumbai India and often in USA

Hi! American_Choices

You describe nicely some history about BRIC. But I am not so sure that main cause is just unions in USA. I live in Mumbai but spend a lot of time also in USA. I consider USA almost a second home country for me. So I understand both countries well.

First of all it is perhaps not right to put all BRIC countries together. Growth in each of these countries is for different reasons. It is true about the picture you draw - growth in China is quite a bit due to manufacturing work being taken away from USA and other countries (even India) with low salaries. But growth in India is mostly due to internal demand and expansion of economy within India. Exports (including IT BPO etc.) play very small role in Indian economy. India spends almost 80% of all its foreign exchange earning just to buy oil. While growth in Russia is quite a bit due to its oil and gas wealth and exploitation of it and other technology base it had created well.

One more example is that India imports much more than what its exports and its total export import trade is just 4% -5% of its economy. It is a bit strange with this situation even though USA faces main problem with China in rhetoric Obama generally shouts about India and not China by talking about Boston and not Bangalore etc. and imposing visa duty mainly on Indians and not other countries. It is a bit foolishness or perhaps he is too afraid to point China.

Any way in India still people are most friendly to USA.

There are two more aspect to what you write. You are neglecting two points - While in WTO there are provisions of free trade, guidelines of foreign exchange rates are not streamlined. China has used this loophole (it is not such a big loophole but unfortunately USA does not seem to have courage to correct things, it can easily impose countervailing duty on china by saying that its foreign exchange rate manipulation is actually a subsidy. Not just USA every country should do it). But again Obama and earlier USA administrations are either too afraid to do it or they and top corporate guys in USA have created some sort of nexus with Chinese to allow this situation- and that may be reason they do not blame China much).

Finally One last aspect. You are neglecting that minimal life style in USA provided to every working family is much better than India and China (In Europe it is even better than USA in many countries). This has not come just because of unions. Ford for example was responsible for reducing working hours from 10-12 to 8.

Instead of crying that oh! unions have ruined us one should argue other way around. A minimal life style to working people must be provided to family of every working people all over world in China India every where. (people who work in China for exporting to USA do not have that great life). The development of infra structure in India for example for doing this will generate jobs in millions and many of those will be in USA also.

In India for example IT boom has been used to increase over all salaries in manufacturing and government also.

Some of these aspects I cover in articles I have written. Two examples are

http://hubpages.com/politics/a-new-darkage

http://hubpages.com/politics/Population-Myths-Indi...

I also plan to cover some of what I wrote above in parts II III about dark age.

Hope you do not mind this long comment


American_Choices profile image

American_Choices 6 years ago from USA Author

soumyasrajan,

First, I love long comments. Second, you bring to us a vast sphere of experience from your travels and great information to share.

I think Unions contributed but management conceded but more importantly, the American consumer allowed it. Getting a deal is great IF it doesn't put your neighbor out of work.

The economic downturn here in the US, I hope has taught us discernment. It is not about the cheapest, it is about the best - what is best for your household, for your neighborhood, your nations, etc...

Antitrust and protectionism can only do so much. Unions can only do so much. The American consumer is really the driving force.

Thank you so much for sharing. I look forward to reading your works. Please stop by again.


soumyasrajan 6 years ago from Mumbai India and often in USA

Hi! American_Choices

I quite agree with you. By the way when Ford made these changes he was against unions and for a long time he did not allow unions in his company. He was ready to close down his company but not allow unions. It was only threat of his wife that she will divorce him as that will ruin life of his children that made him change.

But by and large I agree with you. Main driving force in USA was consumers who were ready to pay little more for better life style for even a labour. Ford also saw without union that his company will do well if he can make his own employees also his consumers to start with which is what he did by making life easier for them giving them loans for buying houses car etc. I used to admire easy banking system in USA to give loans and service like Sears giving life time guarantees. People were ready to pay for it then and also now. In India in my generation one could not buy even a small apartment with top salaries in government jobs until about retirement because there was no loan system. Now it has improved but still for example loans are rarely more than 15-20 years.

But some where the drive was lost in USA. Game started being was make cheaper and make money at the top. Banks started playing financial games and just counting number of loans and not worry about will they pay back that large loans or not. Companies like Sears practically closed down. But I have still confidence in American society as well as in Indian society. Let us hope these values come back in USA and get recreated in India (in India they were there long back but got destroyed hundreds of years back among top people as happens a little in USA now. Average people- silent majority never lost it both in India and USA that is what makes me feel confident)

I often give an example -perhaps it is also in one of my hub- the garbage picking up truck. One can admire technology in it but more important is one sees the desire of managers and technologists who developed it to provide some comfort to the guy who drives it. He does not have to come out in that hard winter must have been one of the motivation.


pramodgokhale profile image

pramodgokhale 4 years ago from Pune( India)

It is certain the world is going Multipolar instead unipolar,BRICS a club can do balancing of the global economy and despite many hurdles they can grow if they do by heart to achieve the goal.

The bank in line with the World bank and free trading will boost economies of member countries and spin-offs in technologies which Russians possess space and defense critical items.


American_Choices profile image

American_Choices 4 years ago from USA Author

BRICS will change the balance in the world - you are absolutely correct.

The hurdles are many but the path has been carved.

I enjoy seeing Russia emerge, I just hope Russia opens education fairly to all citizens of Russia. The exclusion of jews from certain educational tracks is a concern I will state loudly. While the United States has benefited from Russia's brain drain, the prejudice of jews is something we must speak up against - from all nations and from all points of the Internet.

The missing snippet of Sergey Brin's parents reason for migrating to the United States saddens me. Information about the world, the real world and any persecution I feel is what is the highest and best use of the Internet.

Chaplin was exiled for speaking up.

My blogs will probably be hushed with less traffic for me speaking up but it is I cannot withhold my tongue when my grand children are in uniform and could be sent overseas to fight for freedom.

I can understand the personal safety concern for Sergey Brin's family in Russia but I would hope Russia would take another look at their policies and realize they cannot hide the truth from the world.

The world is changing very rapidly and yet IF we do not speak up for full disclosure, how can we change for the better.

Google has backed corporate profits to some degree with the travel industry. I can understand protecting jobs and industry standards but limiting education to certain races is simply wrong.

The jews have been persecuted throughout the ages. The bible talks about the news. IF we allow our brethren, any brethren, muslim, jew, christian or my friends whom I agree to disagree - the atheists, we are not recognizing our unity.

Life is not about diversity. The word for the world here on the Internet must simply be unity. Support our brethren of all races, all religions and all non-religions.

We cannot bring our atheist friends to know God if we don't listen.

We cannot be true to a great God that created the universe if we cannot promote unity.

Let's fight for unity for all, justice for all, freedom for all.


ZeldaV 4 years ago

I already get a cramp seeing the BRICS acronym.

After blackSouth Africans were referred to as 'BLACK DIAMONDS' on Swedish website AFRICASCAN; in conjunction with SA's intended addition to BRIC, thereby becoming the S in BRICS.

Why??

Because it is a derogatory term. It doesn't mean that they value blacks - they are simply there to be mined as BLOOD DIAMONDS... A Black Diamond is a black person who earns at least R7000pm, is educated (not well educated) and has a credit rating... Sitting ducks ripe for plucking, by dumping Swedish product on a market that doesn't yet have purchase savvy. A willing victim, if you wish.

It is sickening.


pramodgokhale profile image

pramodgokhale 4 years ago from Pune( India)

ZeldaV

I agreed Sir,

Europeans are worried and they make such comments. BRICKS

let them come together they will do global balancing.


ZeldaV 4 years ago

You have me wrong pramodgokhale, I don't say I am for the BRIC/S alliance.

I am a disillusioned South African. I am disillusioned with the way the black ANC government has lusted after money that big business and international bankers (especially the world bank) has waved in front of them. The EToll Scandal where SAAB/Kapsch who were already involved in bribing state officials, got into the act on forcing citizens into buying EToll roads while at the same time providing loans through the world bank to pay for the infrastructure is a shining example.

Guess what!! SAAB/Kapsch is co-owned by the Wallenberg Swedish family, who are the same bankers from the world bank, and who were the same people (Swedes) who placed the derogatory comment about BLACK DIAMONDS on their trade web, TRADESCAN AFRICA!

Both the Swedes AND the ANC FatCats are despicable!


ZeldaV 4 years ago

The WORLD BEWARE!!! Things are not always as they seem.

Why is Sweden, who is a member of the UN, supplying (B)RIC and other eastern countries with arms through its Denel/SAAB factories in South Africa?

No matter how much it was ever denied, remember the old Apartheid days, rumours of nuclear weapons... Well SA is the only African country using nuclear energy (possibly excluding the northern most countries). Who says they haven't dug it out again?


American_Choices profile image

American_Choices 4 years ago from USA Author

ZeldaV

This is fascinating. I appreciate you sharing these terms with us.

I like your term "purchase savvy" - I think I must pick that up and write a hub about it.

The demographics of purchase power is changing as the world changes and we invent new terms to get our arms about these massive changes.

Consumers, I feel need to embrace the term you shared "purchase savvy".

Thank you very much for contributing.


American_Choices profile image

American_Choices 4 years ago from USA Author

BRICS is hard to write without the k - our fingers have memory but we know what you are talking about.

The European markets are critical and we cannot forget about it.


American_Choices profile image

American_Choices 4 years ago from USA Author

ZeldaV,

I hear your frustration and sadly we here in the United States fighting the same woes.

We as consumers can make a change but only if we speak up and hit the facts hard. We must keep the emotions out of it to make a change.

Taxes and banking are items the global citizen must be educated upon and contribute their thoughts and vote accordingly.


American_Choices profile image

American_Choices 4 years ago from USA Author

ZeldaV,

Again important points tied to history showcasing how we can learn our history and contribute those events to mold a better future.


hahahaaaaA 3 years ago

and brics hates honky crackers which are all illegals in north america who you kidding ? you stinky white parasites always talk a big game and dehumanize oppressing these countries which are now a unity which will crush you!


American_Choices profile image

American_Choices 3 years ago from USA Author

The world is changing and countries are growing. I believe those outside of the BRICS are not aware of this.

Fascinating your ip address leads to Canada.

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