BRICS :the rising power -

Abstract

The acronym BRIC stands for Brazil, Russia, India and China. The term was coined by the Chief Economist of Goldman Sachs, in 2001, in a paper titled ‘Building Better Global Economic BRICs’, which looked at the growth prospects of the four largest emerging economies that are culturally and geographically disparate. The main finding was that the BRICs would play an increasingly important role in the global economy. The projections were revised in later publications, as the BRIC economies fared better than expected. This thesis expands the original terms of reference to include South Africa because of its growing significance in the global economy. The new acronym is, therefore, BRICS and it symbolizes the collective economic power of Brazil, Russia, India, China and South Africa. Together the BRICS account for more than 40 per cent of the global population, nearly 30 per cent of the land mass, a share in world GDP (in PPP terms) that increased from 16 per cent in 2000 to nearly 25 per cent in 2010 and is expected to rise significantly in the near future. This thesis focuses on synergies and complementarities between the economies, highlighting their role as growth drivers of the world economy. The emphasis is on best practices, areas of cooperation and strengthening economic links so that the BRICS could collectively play a more central role in the ‘new normal’ of the post-crisis global economy. This is also perhaps the most opportune time for forging closer links, given that the world economy is in a state of flux and a rebalancing is taking place towards the emerging economies. Their pivotal role in the global recovery has already catapulted the BRICS into the leadership role, which needs further cementing through greater interface among economies. The thesis, which is in five parts, is in the nature of a forward-looking report that seeks to reinforce and strengthen the position of BRICS in the global economy. Chapter 1 of the study introduces the topic with some fundamental informat