The BRICS Formation The BRICS Formation

Presented by Group 10.2Sareesha Poonoosamy, Luphumlo Twala, Dirk

Ordendaaland Collin Fish

International Management

IntroductionIntroduction

Overview

The BRIC Formation

The future significance of BRIC – video

Advantages and disadvantages of South Africa joining

Conclusion

Questions

The BRIC Landscape The BRIC Landscape

Video Video

The BRIC Formation The BRIC Formation

Relevance of BRIC : WORLD Relevance of BRIC : WORLD GDPGDP

Source:https://www.cia.gov/library/publications/the-world-factbook/geos/sf.html

BRAZILBRAZIL

GDP: $ 2.194 trillion GDP Real Growth Rate: 7.5% GDP per capita (PPP): $ 10,900Source: CIA World Fact Book

Source: Global Edge Business Review: The BRIC Countries, Thomas Hult: Vol 3, No.4, 2009. 

RUSSIARUSSIA

GDP: $ 1.477 trillion GDP Real Growth Rate: 3.8% GDP per capita (PPP): $ 15,900 (Source: CIA World Fact Book)

Source: Global Edge Business Review: The BRIC Countries, Thomas Hult: Vol 3, No.4, 2009. 

INDIAINDIA

GDP: $ 1.43 trillion GDP Real Growth Rate: 8.3% GDP per capita (PPP): $ 3,400 Source: CIA World Fact Book

Source: Global Edge Business Review: The BRIC Countries, Thomas Hult: Vol 3, No.4, 2009. 

CHINACHINA

GDP: $ 5.745 GDP Real Growth Rate: 10.3% GDP per capita (PPP): $ 7,400Source: CIA World Factbook

Source: Global Edge Business Review: The BRIC Countries, Thomas Hult: Vol 3, No.4, 2009. 

The future significance of The future significance of BRIC BRIC

Source:https://www.cia.gov/library/publications/the-world-factbook/geos/sf.html

Advantages Advantages • May serve as gateway for BRIC into rest of SADC / Africa

• Enhance trade possibilities with BRIC countries

• Significant inflows of FDI to upgrade and expand infrastructure

• Opportunities for new global political platform

• Opportunity for SA to lead African emergence as global economic force

• Benefit from fraternal environment, share economic lessons learnt

• Platform on which to further diversify away from European markets (limits risk)

Disadvantages Disadvantages Smallest population and economy size ($300 billion)

HIV/AIDS pandemic

May lose position as Africa’s biggest economy in future

Runs risk of becoming irrelevant (limited power) within BRICS due to her small size compared to BRICS peers

Proposed growth policies might achieve the opposite- Weakening the rand-Direct govt intervention in a range of sectors-Reducing international competition

Disadvantages Disadvantages Unresolved issues (internal conflict) affecting

BRIC cohesion

Limited access due to barriers of entry

Conclusion Conclusion Investment origin

Informal association

BRIC countries will become a dominant force

Our Credentials

Pros and cons for South Africa

Demonstrates South Africa’s growing

stature

Potential benefits

Great opportunity

Final outcome is in our hands

Questions