RISE OF BRIC

Bridwater, Rasheed & Sharmeen

Agenda
Shaping of the Economy Population/Financial Growth Political Landscaping

GDP Growth And Reserves

GDP Growth Rate
10 8 6 4.3 4 2 0 U.S Brazil Russia India China 1.7 2.7 2011 6.9 9.3

Reserves Amount in U.S$ Bn

3500 3000 2500 2000 1500 1000 500 0 India Brazil Russia U.S China 497 537 2011 3254

299

352

FDI Growth
BRIC FDI inflows decrease (2009-2010 global investigation)

China- low-value manufacturing base became less competitive , stringent restrictions, corruption, red tape and general business-unfriendliness prevail. India- poor business backdrop, restrictions on foreign participation in many sectors, slow reform and the lack of commodities Brazil- poor record on property rights, political influence on the judiciary and corruption. Russia- has no freedom in emerging markets and a track record of high-profile expropriations.

FDI Growth
BRIC FDI Raised back 2011-2012

FDI in China reached 116.1 billion by 2011. FDI in India rise its lowest 1.6billion in 1990 to 46 billion in 2011-2012. Projected to an increase of 60billion by 2013. Current news (Oct 2012) India's government has approved 49% foreign direct investment in insurance companies and opened the pension sector to foreign investors

FDI Growth

Exports/Imports

Population
Annual Population Growth Rate
China India Russia Brazil 0 0.5 0 0.9 1 1.5

0.5
1.4

2011

China most populous country in the world India on 2nd, Brazil on 5th, and Russia on 9th

Percentage Of People Aged 60 and Older

China

India

Russia

2030 2010

Brazil 0 5 10 15 20 25 30

Labor Force
Brazils Unemployment Rate: 5.3% Russias Unemployment Rate: 5.4% Indias Unemployment Rate: 3.8%

Chinas Unemployment Rate: 4.1%

Military spending (Defense)

BRICs combined expenditure of nearly 13% to the global defense expenditure Brazil Buying modern all military equipment from France and British industry. Especially the submarines that are capable of carrying long range missiles. Spending 34 Billion USD as of 2010. Russia Transforming and resuscitating the military power. Building new vessels that are capable of launching nuclear weapons (authorized by Nuclear Proliferation Treaty (NPT). Spending 59 billion USD as of 2010.

Military spending (Defense)

India The highest growth rate in terms of population and man power fit for service in military. Capability of Nuclear weapons (without NPT agreement), draws a great attention from the world China Having the highest population. Provides the largest military including man power fit for service. Highest military expenditure of all , nearly 120 Billion USD per year. United States, the Largest military equipment exporter, including sales of military equipment to all four of the BRIC nations.

Education
Doctoral degrees in engineering, by selected country/economy: 200008 20,000 15,000 10,000 5,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008

China U.S Russia

Two third of the foreign students in U.S are from China and India . In Bachelor degree(Engineering &Science) China has ten time more growth than U.S

R&D Spending And Growth

China ranks 2nd in R&D spending ,149 billion in 2010 with 22% annual growth India performed $32 billion of R&D in 2010 with 9%

annual growth
Brazil performed $23 billion in 2010 Russia performed $22 billion in 2010

Consumer Spending/ Saving Rate

Two opposite pattern : China-India: low spend and high saving.

Brazil-Russia: high spend and low saving.

Chinese saving rate 31% of income, where Brazilian

saving rate 10% of income. Chinese and Indian spending rate 23% of income, where Brazilian and Russian spending 34% of income.

Corruption
Brazil government embezzled public funds to support political campaigns

Everything in Russia is for sale

Political awards contracts for business deals Doing business in China often requires bribes

Challenges
Volatile markets Unstable economies. Export driven economies Weak infrastructure Energy concerns Shortage of skilled workers in certain areas

Questions