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Author Topic: BRICS.  (Read 1272 times)

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Offline Annushka

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BRICS.
« on: July 14, 2014, 11:20:09 PM »
15-16 July 2014 in the cities of Fortaleza and Brasilia (Brazil) will host the sixth summit of the BRICS - the fusion of five countries: Brazil, Russia, India, China and South Africa. Russia will be represented by President Vladimir Putin. Among the agenda items signing documents on the establishment of the "New Development Bank" BRICS and Pula currency reserves.
BRICS (BRICS) - an abbreviation for country names in English, before joining South Africa in 2009, the organization was called the BRIC countries. Acronym BRIC was coined by Jim O'Neill, chief economist of Goldman Sachs Bank in Article 2001, entitled Building Better Global Economic BRICs. The term has been widely used in explaining the shift in the global economy in which growth engine become rapidly developing countries.
The organization was founded in June 2006 at the St. Petersburg Economic Forum. Then, the first round table with the participation of Ministers of Economy of Brazil, Russia, India and China. In 2006-2008. negotiations took place FMs, and in July 2008 in Toyako (Japan) at the summit of the Group of Eight leaders met these countries (Russian President Dmitry Medvedev represented).
The first BRIC summit held in June 2009 in Yekaterinburg (including the outcomes of the joint statement on global food security). Since then, the summits are held annually, alternately in member countries: Brazil (Brasilia) in April 2010 in China (Sanya, already in the BRICS) in April 2011, in India, the New Delhi) in March 2012 and in South Africa (Durban) in March 2013 at the meetings in 2010-2012. discussed financial cooperation. A Memorandum of Cooperation between Vneshekonmbankom, China Development Bank, National Bank of socio-economic development of Brazil and the Export-Import Bank of India (2010), the Framework Agreement on Financial Cooperation within the BRICS Interbank mechanism (2011), the Agreement on granting loans in national currencies (2012). In 2013, in Durban agreements were signed on co-financing of cooperation in the sphere of "green economy" and infrastructure projects in Africa, etc.
In addition to the summits, meetings are held at the level of foreign ministers, finance ministers, etc.
To date, the organization has a number of structures, including exchanges Alliance, created in 2011, this includes the Moscow stock exchange, the Brazilian BOVESPA, the Corporation exchanges and clearing organizations of Hong Kong, the Johannesburg Stock Exchange (South Africa), the National and Bombay Stock Exchange (India ). The aggregate market capitalization of the companies whose shares are traded on the stock exchanges of the BRICS exceeds $ 9 trillion. Sales were opened in June 2012 in Moscow at the Exchange. Also function Studies Institute BRICS (since 2010, Rio de Janeiro), the Scientific Council, the Business Council, the Consortium expert centers (established in 2013). In 2013 it was decided to establish a Network University BRICS - combine into a single educational consortium of leading universities of Brazil, Russia, India, China and South Africa.
The question of establishing a bank BRICS discussed with 2012 To date the parties agreed on the amount of the authorized capital of the bank's 100 billion euro. The Bank will finance infrastructure projects in the participating countries. In 2013 it was decided to create a pool of foreign exchange reserves - the IMF for use in emergency situations.
State BRICS possess important resources for the global economy and have a great impact on the global and regional markets. In Brazil, a well-developed agricultural sector (in this sector generated about 30% of GDP), Russia is the world's largest exporter of energy resources (16% of world trade in energy), India - the world's largest producer of tea (470 million tons per year) and spices (approx. 30% of the world market), China has the largest workforce, and South Africa - huge mineral reserves (91% of world reserves of manganese, 58% chromium, 53% gold and 20% of the diamonds)
As of 2013, the total GDP of these countries is 16.039 trillion dollars (21.5% of the global total), while the value of gold reserves - $ 4.4 trillion. Total area BRIKC countries - 26% of the planet, and the population - 42% of the world. BRICS share of world trade - 16.1% in military spending - 10.8%, in the manufacture of traditional forms of energy - 40.2% Consumer market developing rapidly, increasing annually by $ 500 billion (the largest market in the world)

"The BRICS countries have unique natural resources and a substantial technological, financial and industrial potential", - Vladimir Putin said.

MOSCOW, July 15 /ITAR-TASS/. Russia’s President Vladimir Putin says that BRICS member countries (Brazil, Russia, India, China and South Africa) are elaborating Economic Cooperation Strategy at the moment, for they plan to reinforce their competitive ability at the global market.
“On Russia's initiative the BRICS’ Economic Cooperation Strategy is being drafted at the moment. It will focus on creating preconditions for accelerated economic development and strengthening the international competitiveness of our countries, the expansion and diversification of trade relations, and ensuring interaction for innovative growth”, he told Itar-Tass in an interview ahead of the BRICS summit, adding that a number of prospective cooperation ventures are being studied to make sure the document is backed by concrete investment projects.

Vladimir Putin: It is time to raise the BRICS' role to a new level
Putin said Russia intended to actively develop trade and economic ties within the association. He stressed that the share of BRICS member countries’ in Russian foreign trade balance was rising steadily: last year it was 12.5%, but only within the first four months of this year it already reached 13.1%
“Despite instability in the international economy, the volume of the BRICS countries' mutual trade is increasing (in 2013, it was over $300 billion)”, he said.
Russian leader believes that it was in the common interest to use the complementarity of national economies to the maximum, as cooperation opportunities in the sphere are great indeed.
“This is the market with almost three billion consumers. The BRICS countries have unique natural resources and a substantial technological, financial and industrial potential”, Putin stressed.
Russia’s President recalled that last year the member countries’ businesses established the BRICS Business Council, which was still to fully realise its potential. He added that BRICS nations had already started work to identify and eliminate barriers that impede business interaction within the association.
“The BRICS countries have shared attitudes towards other modern challenges in the economy, including the prompt completion of the Doha Round Negotiations, creating a more just global trade system and ensuring transparency in regional trade agreements”, Putin concluded.

http://en.itar-tass.com/russia/740582

Offline Annushka

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Re: BRICS.
« Reply #1 on: July 14, 2014, 11:25:27 PM »
BRICS bank to be headquartered in Shanghai.

MOSCOW, July 10. /ITAR-TASS/. BRICS bank will be headquartered in Shanghai, Russian presidential aide Yury Ushakov told journalists on Thursday.
This was recorded in the documents, he added.

Russian Finance Minister Anton Siluanov earlier said the short-list of cities for the bank's headquarters included Shanghai and New Delhi.
According to Ushakov, the agreement on founding the New Development Bank of BRICS and on creation of an exchange reserves' pool will be signed at the next summit of the organization to take place in Brazil's Fortaleza July 15-16. “Thus, the basis for the macroeconomic coordination of the five states will be laid,” the presidential aide noted. “The new institutions will allow enforcing the global finance system, which is particularly important amid the IMF reform that reached a deadlock.”
The authorized stock of the bank amounts to $100 billion, the dedicated capital — $50 billion, the paid-in capital — $10 billion (paid upon request — $40 billion). The paid-in capital will be formed within 7 years.
“Russia's stake is $2 billion, that means the capital is proportionally distributed among the bank's participants,” Siluanov noted earlier. There is an agreement between the countries that the stake of BRICS members in the capital will not be lower than 55%. The bank will engage in infrastructure projects mainly in the BRICS countries.
The pool of nominal exchange reserves will be able to quickly react to capital outflow providing in swaps the liquidity in convertible currency. It will amount to $100 billion. The distribution among the member-states will be as follows: China - $41 billion, Brazil, India and Russia — $18 billion each, South Africa — $5 billion. The national banks of the BRICS states will be keeping their resources designated as stakes in the pool within their gold and forex reserves.
The plenary session of BRICS summit will be devoted to the search for new sources of economic growth. In addition, the leaders will meet with the leadership of the BRICS Business Council. According to Ushakov, Russia is represented by members of the Chamber of Commerce and Industry, Rostec state corporation, Russian Private Equity Fund, Russian Railways OJSC, and Vnesheconombank.
The leaders will place a special emphasis on the international agenda, in particular the situation in Syria and Afghanistan, the Middle East settlement and the Ukraine crisis. The five countries advocate political and diplomatic settlement of conflicts and reject force and sanction pressure as means of politics “violating other countries' sovereignty”, Ushakov said.
The summit first day is planned to end with a Fortaleza declaration and plan of actions. The declaration would reflect the BRICS view of “the current political and economic situation and the BRICS countries' common approaches to the issues of international cooperation”, the presidential aide added.
Apart from the official program, Russian president Vladimir Putin will meet Chinese President Xi Jinping and the recently elected Indian Prime Minister Narendra Modi. “This will Putin's first meeting with India's new leader,” Ushakov said. A breakfast with South Africa's President Jacob Zuma is also on schedule.
On the next day, the five leaders will go to Brazil's capital for an outreach meeting with Latin America's presidents and prime ministers to discuss prospects of cooperation with the countries in the region, particularly in trade and investments.
Putin will also meet Venezuelan President Nicolas Maduro, Bolivian leader Evo Morales and have the first meeting with the president of Uruguay Jose Alberto Mujica. Other brief meetings were possible, Ushakov said.
 
http://en.itar-tass.com/economy/739845

Online andrewfi

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Re: BRICS.
« Reply #2 on: July 15, 2014, 07:52:58 AM »
This is a BIG THING!
...everything ends always well; if it’s still bad, then it’s not the end!


Offline Halo

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Re: BRICS.
« Reply #3 on: July 15, 2014, 08:25:31 AM »
I've been reading that for a decade.  I'm sure in another decade, I will still be reading what a "big thing" this is.
After the fall of communism, the biggest mistake Boris Yeltsin's regime made was not to disband the KGB altogether. Instead it changed its name to the FSB and, to many observers, morphed into a gangster organisation, eventually headed by master criminal Vladimir Putin. - Gerard Batten

Offline Maxx

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Re: BRICS.
« Reply #4 on: July 15, 2014, 09:35:28 AM »
I've been reading that for a decade.  I'm sure in another decade, I will still be reading what a "big thing" this is.

Andrew is a 1000% correct. This is a BIG THING. The fact it has been in the works for about 5 years now and the world hasn't changed much is no assurance that the world will stay the same. Biggest threat I see from it will be to the power of the US dollar. Too bad for those relying on them. World Wars and revolutions are fought over such things. China recently made a deal with South Korea to exchange their currencies and bypass the dollar. China recently did the same thing with Japan. When America can no longer rely on it's printing press for it's imports then expect it to go to war.

Offline WestCoast

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Re: BRICS.
« Reply #5 on: July 15, 2014, 07:28:29 PM »
This is a BIG THING!

I wouldn't say it's a big thing but I would say it's interesting. Putin like's to think Russia is on equal footing with the US, the EU, the UK, Germany, China, France and a few other countries when talking about GDP and the economy. The simple fact is Russia is no where near the equal of the US or China or the EU. Russia is far behind.

Even among the big 3 in the EU, the UK, France and Germany, Russia still lags behind. Even in the BRICS Russia is #3 behind behind Brazil. Perhaps with a little fancy economic sleight of hand Russia could be listed as tied for #2 using nominal GDP. Of course using the same sleight of hand using PPP GDP Russia would be a distant #3. Perhaps worse #4 out of 5.

The point is when you look at all the countries in the world using nominal GDP Russia is comfortably in the top ten. Over the long term using nominal GDP Russia won't move much and will probably stay in the top 10 but lose ground to India and maybe Brazil. However over time in the BRICS Russia is going to lose position to India and Brazil and come out only ahead of SA.

In other words #4 out of 5 countries. Not much prestige in being 4th best out of 5. The good news is by the time this happens in about 2025 Putin will probably be out of power, although he might still be around to be blamed for Russia's poor showing.         
andrewfi says ''Proximity is almost no guarantee of authority" and "in many cases, distance gives a better picture with less emotional and subjective input."

That means I'm a subject matter expert on all things Russia, Ukraine and UK.

Offline Maxx

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Re: BRICS.
« Reply #6 on: July 15, 2014, 08:07:25 PM »
This is a BIG THING!

I wouldn't say it's a big thing but I would say it's interesting.

That confirms that Andrew and I are right.

Offline Donhollio

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Re: BRICS.
« Reply #7 on: July 15, 2014, 08:11:48 PM »
 What are Putin's future plans?  Is there an official plan, or will it be more of the thuggery that we've seen in the past?   

Offline WestCoast

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Re: BRICS.
« Reply #8 on: July 15, 2014, 08:45:10 PM »
This is a BIG THING!

I wouldn't say it's a big thing but I would say it's interesting.

That confirms that Andrew and I are right.

Maxx I haven't read enough of your posts to know how good a grasp of economics you have. I know Andrew's understanding is limited.

By interesting I mean how will Russia and China get along in the BRICS? China doesn't tend to tolerate lesser nations and by any measure Russia's economy is far, far behind China's.  How will the other members react if China doesn't allow its currency to 'float' in the near future?

Will the BRICS be able to transition to a non US dollar fund? If so when? Haven't heard anything on the makeup of a non US dollar fund, even though there's been talk of such a fund at other organizations for decades.
andrewfi says ''Proximity is almost no guarantee of authority" and "in many cases, distance gives a better picture with less emotional and subjective input."

That means I'm a subject matter expert on all things Russia, Ukraine and UK.

Offline WestCoast

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Re: BRICS.
« Reply #9 on: July 15, 2014, 08:53:13 PM »
What are Putin's future plans?  Is there an official plan, or will it be more of the thuggery that we've seen in the past?

Donny I really don't see why Putin would change now. If you can rig your own election to win, why change a winning plan? Will Putin send troops into Ukraine and openly help the separatists? Or will he continue helping covertly? Will he annex the area if the separatists can hold the area?
andrewfi says ''Proximity is almost no guarantee of authority" and "in many cases, distance gives a better picture with less emotional and subjective input."

That means I'm a subject matter expert on all things Russia, Ukraine and UK.

Offline Annushka

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Re: BRICS.
« Reply #10 on: July 16, 2014, 01:41:37 AM »
Quote
This is a BIG THING!

Quote
The fact it has been in the works for about 5 years now and the world hasn't changed much is no assurance that the world will stay the same. Biggest threat I see from it will be to the power of the US dollar. Too bad for those relying on them. World Wars and revolutions are fought over such things. China recently made a deal with South Korea to exchange their currencies and bypass the dollar. China recently did the same thing with Japan. When America can no longer rely on it's printing press for it's imports then expect it to go to war.

I agree with you, gentlemens! :thumbsup: tiphat


 

 

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