L1.4-BRICs Flashcards
What does BRICs stand for?
Brazil, Russia, India and China
What is the main purpose of the BRICs?
It is a group of emerging countries, who are expected to play a prominent part in global economy or they are already beginning to do so. For e.g. China is currently the 2nd largest economy according to the April 2017 IMF figures.
What are the two new financial institutions that the BRICs announced in July 2014?
1) the new development bank (NDB)- will compete with the IMF in funding infrastructures, building projects across the globe. Has funding of $50billion
2) contingent reserve arrangement (CRA)- will rival with the world bank by providing loans. Current budget of $100 billion.
What is the purpose of the financial institutions funded by the BRICs?
= To assert a larger extent of Global influence, shifting away from the west.
= provide funding for developing countries to create free markets that would be very difficult otherwise.
What was the negative impact of the 2008 recession?
Slowed economic growth massively for the BRICs countries, even China.
How does China ensure political influence as a BRIC country?
It has become a mega-trader, larger than Britain.
This is because commodity prices have soared whereas manufacturing prices have decreased.
How does India’s demographic make it a promising BRIC country?
India’s demographic is dominated by the youth, largely literate with higher standards of English language, which provides more future workers for TNC’s to relocate there and bring foreign direct investment into the infrastructure.
how much are the BRICs economies worth?
US$1 trillion
Do the BRICs get involved in environmental governance?
Yes.
1) They contribute to global summits like the COP climate summit in Paris 2015
2) China is leading in solar panel production and Brazil started an array of sustainable schemes such as ‘green exchange’.
3) however, the top 3 global polluters are part of the BRICs.
What are the G20 countries?
G20 started from the G8 including US, Japan, France, Uk, Germany, Russia, Italy,Canada. These are leading world economies joining forces to recover from the devastating 2008 financial recession.
Why was Russia omitted from the G8?
After it’s military action in Crimea was considered unjustified.
How are the G20 different from BRICs in asserting global political influence?
- they share financial information to avoid tax evasions and monitor each other.
- those part of the G20 are eligible for loss under recession from the IMF which has more funding than the BRICs.
- has more military influence in terms of intervention in Syria, Yemen and with Saudi Arabia.
Do the G20 nation’s have enough economical dominance?
Many of these are developed countries but it is the BRICs who influence global market in terms of regions of growth etc. Whereas the G20 nations focus more on the recovery and stabilising of an economy.
What is the ‘green stimulus package’?
It is a post recession agreement made by the G20 nations to uphold their commitment to removing fossil fuel subsidies.
They have also agreed on the need to tackle climate change and global health problems like the recent Ebola outbreak.
Are there threats to the continual growth and influence exercised by the BRICs?
To some extent.
1) the economic and political influence depends on other developing countries and whether they use the institutions formed by the BRICS (CRA, NDB).
2) the military interventions of Russia and the souring relations between China with other countries like Japan, the Philippines over the South-China sea may threaten their stability and superpower status balance.
