BRICS ECONOMIES

Brics Economies

Brics Economies

Introduction

The government leaders of four of the largest and fastest growing nations of the world have organized for the first time at a summit in Russia. After underlining the broad struggles of their individual economies' developments, the once-sunny skyway to uncharted prosperity for BRICs (Brazil, Russia, India and China) is now recognized as clouded by the challenges each faces through global recession and national limitation. Fastest Growing Economies are Organizing.( Donahue, 2009)

The first BRIC summit took place in Yekaterinburg, Russia on June 16, 2009, where the government heads of Brazil, Russia, India and China participated in discussions upon the outlook for each of the economies, the stability of the dollar as the world reserve currency and achieving greater influence within the IMF (International Monetary Fund).

Discussion

The challenges for each of these rapidly growing nations were also defined during the discussions at this summit to prove that future organization and cooperation among them would be imperative.

According to elements discussed in the June 16, 2009 Wall Street Journal article “Dollar-Trashing Rates Low on BRIC Agenda,” by Riva Froymovich, sustainable development and success in the each of these four super-powered regions is dependent upon key growth conditions such as:

•Net Importer vs. Net Exporter

•Pegging Domestic Currency to the US Dollar

•Barriers to Trade

•Current Account Management

The Impact of Global Recession on Developing Nations

As the world's fastest growing nations with the most swiftly developing economies, BRICs are expected to emerge as global superpowers with the ability to significantly impact international trade, monetary and civil policies through the next several decades. However, each of the BRIC countries hosts a myriad of growth issues that have arisen due to the onset of the global financial recession beginning at the last quarter of 2008.

Brazil's struggles were discussed at length at the São Paulo Conference, “Brazil: Challenges and Opportunities in the New Global Scenario” hosted by The Americas Society and Council of the Americas on June 9th, 2009. Specifically highlighted were trade barriers with the US (while preferring exportation of risk-averse primary goods to China) and radical corporate governance. The crisis has provoked new approaches to business in Brazil, some of which are criticized to be counterproductive to its growth.

Russia has been challenged with a diminishing population, increased corruption and strained export competition since the onset of the crisis. To accompany an arguably unbalanced government and serious necessity for modern infrastructure throughout the 11 time zones ...