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Globalizati on and BRICs

Click to edit Master subtitle Sachin Raut Dessai style Suthin Chacko

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Globalization
Globalizationis the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure

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IN SIMPLER WORDS
I come into your country and sell my products and you are free to do the same in mine..

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When was this concept first conceived?

The first stage of globalisation was from the late 1400s to 1815 second stage was from 1815 to 1914 third stage was from 1914 to 1968 fourth stage was 1968 to 2001

the the the

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Advantages
Economies

of countrieshave consistentlygrown much fasterthan those countries that try to protect themselves. which have had faster economic growth have then been able toimprove living standards and reduce poverty in foreign direct investment migration has led to greater recognition of diversity andrespect for cultural identities.

Countries

Increase

International

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Disadvantages
The

increasing interdependence of countries in a globalized world makes themmore vulnerable to economic problems has been harmed major economic powers have a major influence in the institutions of globalisation and national culture and languagescan be erodedby the modern globalised culture.

Theenvironment The

Indigenous

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BRICs Countries

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BRICs
25 40

% OF LAND MASS % OF WORLD POPULATION GDP OF $ 8.7 TRILLION % OF WORLD CURRENCY RESERVES

COMBINED 40 45

% OF ECONOMIC GROWTH SINCE FINANCIAL CRISIS WITH THE WORLD INCREASED 6* FROM $ 790 bn (1999) TO $4.2 tn (2008) PROVIDING NATURAL RESOURCES TO IC

TRADE BRS

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Goldman Sachs Report

In

less than 40 years, the BRICs economies could be larger than the G6 in USD terms. could overtake the US as the worlds largest economy in a little over 30 years. Of the current G6, only the US and Japan may be among the six largest economies in 2050. demand from the BRICs economies could rival the current G6 within a decade and dwarf it by 2050.

China

New

Economic Gravity Shifts to Asia

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Overtaking the G6

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Goldman Sachs Report

Individuals

in the BRICs are still likely to be poorer on average than individuals in the G6 economies, except in Russia. if BRICs maintain policies and develop institutions that are supportive of growth. growth offset slow growth in ageing population. capital inflows. income leads to spending pattern change

Possible

Higher

Greater Higher

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Conditions For Growth

Sound, Strong,

stable macroeconomic policies stable political institutions

Openness High

levels of education conditions are not needed.

Miracle

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Rise of the BRICs

A

(further) shift in economic power towards Asia. rise and reshaping of regional networks. patterns. consumption and production

The

Changing A

flow of capital back to the BRICs as the world rebalances. through exchange rates or through prices? need to reshape international institutions.

Appreciation The

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Income Pool

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Global oil demand

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Car Ownership 2025

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Impact on Global Markets

A

sequence of pressures: crude, cars then capital competition and rivalry are important limits on how much further BRICS cooperation can go. of global trade will climb at a rapid rate.

Intra-BRICS

Share The The

growth of a BRICs middle class could be a key market dynamic next decade is likely to be the peak period for resource pressure

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Russia
GDP GDP

$2.223 trillion (PPP)US dollars. real growth rate 4% below poverty line 13.1% of unemployment 7.6% force 75.49 million Rate 6.9% exchange reserves $479.4 billion

Population Rate

Labor

Inflation Foreign

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Development
Use

of vast oil and natural gas reserves

Agreement

on Partnership and Cooperation signed with countries enhanced opportunities for international trade. investment outside Moscow has nearly tripled in last few years.

FDI

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Challenges
Labor WTO

shortages and poorly developed infrastructure membership and long-term growth of the manufacturing sector ambitions as a major power with reality of current situation

Reconciling

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Brazil
GDP GDP

2.172 trillion (PPP)US dollars. real growth rate 7.5% below poverty line 26% of unemployment 6.7% force 103.6 million Rate 5% exchange reserves $288.6 billion

Population Rate

Labor

Inflation Foreign

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Development
Focus

on equitable development has resulted in significant poverty reduction. Middle class now comprises 52% of population economy becoming less dependent on exports becoming a leader in the effort to bring developing nations into the era of globalization global leader in renewable fuels.90% of Brazilian vehicles can be fueled by ethanol

Brazilian Brazil

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Challenges
Overburdened

system

and ineffective judicial

Supreme Court received 250,000 cases in 2010 69% of Brazilians believe judges lack impartiality High risk of broken contracts and lack of reliable legal recourse discourages foreign investment 70 million cases pending in Courts Credit Constrained , high interest rates.

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South Africa
GDP GDP

$524 billion (PPP)US dollars. real growth rate 2.8% below poverty line 50% of unemployment 24.9% force 17.39 million Rate 4.1% exchange reserves $43.83 billion

Population Rate

Labor

Inflation Foreign

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Opportunities
South

Africa joins BRIC as full member on 2010 December. Russia, India and China, had the capacity to bring investments, expertise and functional technologies that could help Africa accelerate its infrastructure development great opportunity for South African business to access markets in the BRIC countries, which comprise more than 40 percent of the world's population.

Brazil,

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Challenges
Poorly The

developed infrastructure.

South African labour market is characterized by an oversupply of unskilled workers and a shortage of skilled ones. unemployment rate stands at about 30%, a significant increase from 26. They have to take certain measures to decrease it.

SA's

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Income per capita rising

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Thank You