What does "BRIC" mean?

"BRIC" comes from the English word BRICs, which refers to the four countries of Brazil, Russia, India and China. Because of the English names of these four countries The pronunciation of the word "BRICs" formed by the combination of the first letters is very similar to the word "bricks" in English, so it is called the "BRICs". Among them, Brazil is called the "world's raw material base"; Russia is called the "world's gas station"; India is called the "world's office"; and China is called the "world's factory".

Illustration and introduction of "BRIC"

[Edit this paragraph] Origin of the name

The term "BRICs" was first coined by Goldman Sachs Jim O'Neill, chief economist of the securities company, first proposed it in a paper titled "The World Needs Better Economic BRICs" published on November 20, 2001. In October 2003, the The company predicted in its global economic report titled "Dreaming with BRICs: The Path to 2050" that BRICs will dominate the world economy by 2050, among which: Brazil will dominate the world economy by 2025 It will replace Italy's economic position in 2020 and surpass France in 2031; Russia will surpass the United Kingdom in 2027 and Germany in 2028; if nothing unexpected happens, China may surpass the United States in 2041 and become the world's largest economic power, India It may surpass Japan in 2032; the combined GDP of BRICs may surpass the six major industrial countries in the West (excluding Canada in the G7) in 2041. In this way, by 2050, the world economic landscape will be greatly reshuffled, and the new six major economies in the world will Become China, the United States, India, Japan, Brazil and Russia.

This economic report by Goldman Sachs has brought China, India, Russia, and Brazil, as representatives of emerging economies and leaders of developing countries, to receive more attention from the world. As a result, BRICs (translated as " The title "BRIC" became popular around the world.

On December 1, 2005, Goldman Sachs released a new report "How Solid are the BRICs?" (How Solid are the BRICs?) stating that BRICs do appear to be more advanced than other developing countries (both large and small). be quick. As a result, Goldman Sachs adjusted its forecasts: China will overtake the United States in 2040 (slightly faster than the 2003 forecast), and India will overtake Japan in 2033 (slightly slower than the earlier forecast, as Japan's economic conditions improve) ).

With the birth of the new concept of "BRIC", South Korean President Roh Moo-hyun (late) led hundreds of heavyweight political and business people to launch "BRIC diplomacy"; the first G7 finance ministers meeting in 2005 Representatives of the BRIC countries were invited to attend; the global chessboard of multinational companies such as Japan's Toyota Motor was redeployed. Judging from the current situation, the speed of economic development of the BRIC countries is exactly the opposite of the alphabetical order of the word "BRICs". China is far ahead, followed by India and Russia, and Brazil is relatively tepid. From a broader perspective, the economic performance of at least the top three countries is enough to dwarf all G7 countries. The annual "net growth portion" of Russia and India can surpass the Netherlands today. According to statistics, Russia's foreign exchange reserves have reached as high as 280 billion US dollars, which has exceeded the total of the EU member states.

From June 14 to 16, 2008, the first "BRIC" Foreign Ministers' Meeting was held in Yekaterinburg, Russia. During the meeting, the four foreign ministers held extensive discussions on international economic and financial conditions, energy security and environmental issues, disarmament and non-proliferation of nuclear weapons, international trade and the reform of international organizations. After the meeting of foreign ministers of the "BRIC" countries, a joint statement will be signed to express the unified position of the four countries on urgent issues of world development and international security.

Chinese-English Dictionary Explanation

BRICs BRIC Countries (Brazil, Russia, India and China)

BRIC Countries BRIC Countries (Brazil, Russia, India and China)

1. This year, sales of cars in the BRICs should overtake those in America.

And by this year, the number of cars purchased in the BRICs should exceed those in the United States.

2. Brazil, another of the so-called Brics, was among the small group wanting a deal.

Brazil, another of the so-called Brics, was among the small group wanting a deal. one of the countries in the agreement.

3.The plan is meant to capitalize on the higher growth rates in the so-called "BRIC" countries of Brazil, Russia, India and China.

The company's plan is to capitalize on the higher growth rates in the so-called "BRIC" countries of Brazil, Russia, India and China. The so-called "BRIC" countries (Brazil, Russia, India, China) have gained something from the rapid growth.

4.Thanks in large part to the BRICs, a record 65% of GM's sales in the first quarter were outside America.

Thanks in large part to the BRICs, a record 65% of GM's sales in the first quarter were outside America.

, accounting for a record 65% of GM's first-quarter sales, surpassing the United States.

5. Mature vehicle markets may be close to saturation, but there is huge unsatisfied demand in the big emerging car markets of Brazil, Russia, India and China (the so-called BRICs).

Mature auto markets may be close to saturation, but there is huge unmet demand in the emerging auto markets of Brazil, Russia, India and China (the so-called BRIC countries).

China - the world's factory

The Central Country - China is the most dynamic economic region in the world. It has introduced the highest amount of foreign investment and has become the production base of the world's largest enterprise group. With 1.3 billion residents, China is the most populous country in the world. Its abundant, cheap, and reliable labor force drives China's economic prosperity. In addition to its unparalleled price advantage, the quality of its employees is also constantly improving. However, there are also crises lurking beneath the engine of world economic growth. Although the Central Bank of China has enacted loan restrictions, the hidden danger of economic overheating has not been eliminated; the huge gap between urban and rural areas and personal income has also caused imbalances in development and endangered social stability; environmental pollution has worsened. In addition, China's stock market lacks an independent and effective monitoring mechanism, the government manipulates the stock market, and a series of problems such as insufficient raw materials and energy have created bottlenecks for the Chinese economy.

Brazil - the world's raw material base

Brazil's GDP ranks first in Latin America. In addition to the traditional agricultural economy, the production and service industries are also increasingly prosperous, especially in raw materials. It has a natural advantage in terms of resources. Brazil has the world's highest reserves of iron, copper, nickel, manganese and bauxite. In addition, emerging industries such as communications and finance are also on the rise. Cardoso, the former president of Brazil and leader of the Workers’ Party, formulated a set of economic development strategies that laid the foundation for success in subsequent economic revitalization. This set of economic reform policies was later carried forward by current President Lula. Its core contents are: introducing a flexible exchange rate system; reforming the medical and pension systems; and streamlining the government official system. However, some critics believe that what succeeds is also what fails. The constant corruption and bribery within the Workers' Party has shaken the foundation of the current government's rule to a large extent. Is the economic boom in this fertile land of South America sustainable? The risks behind the opportunities are also huge. Long-term investors based on the Brazilian market therefore need strong nerves and enough patience.

India - World Office

India is the second most populous democratic country in the world. More than 6,000 listed companies have also made its stock market unprecedentedly large. In the past 20 years, the Indian economy has grown steadily at an average annual rate of 5.6%, and behind the economic front is an army of high-quality jobs. According to preliminary statistics, Western companies are becoming increasingly attractive in the eyes of India's approximately 23 million college graduates. A quarter of the 1,000 largest companies in the United States use software developed in India. The Indian pharmaceutical industry also occupies an important position in the global market. 40% of the world's "generic drugs" (drugs and pharmaceuticals that have expired patent period) are produced in India. This industry has driven personal disposable income to rise rapidly at a double-digit growth rate. At the same time, Indian society has emerged A group of middle class people who value enjoyment and are willing to consume. In addition, some large infrastructure projects, such as the 6,000-kilometer-long highway network and the booming export trade, have also provided a strong successor force for economic development. Of course, the Indian economy also has weaknesses that cannot be ignored, such as insufficient infrastructure, high fiscal deficit, and excessive dependence on energy and raw materials. In terms of politics, changes in social ethics and moral concepts and tensions in Kashmir may trigger economic turmoil.

Russia - the world’s gas station

The Russian economy, which has gone through the 1998 financial crisis, is like a phoenix flying out of the ashes. In recent international credit ratings, Rated investment grade by Standard & Poor's, a well-known securities research institution. Rising oil and gas prices have undoubtedly given Russia's economy a new wing.

The mining and production of these two major industrial bloodlines control one-fifth of today's national production, and create 50% of the export trade output value and 40% of the national income. In addition, Russia is also the largest producer of palladium, platinum and titanium. Somewhat like the situation in Brazil, the biggest threat to the Russian economy lies in politics. Although the Putin government successfully increased the gross national product by 30% during its five-year term, and the disposable national income also increased significantly, the lack of democracy demonstrated by the government authorities in handling the Yukos Oil Company case has become a far-reaching issue. The poison of long-term investment is tantamount to an invisible sword of Damocles. Although Russia is vast and rich in resources and energy, if it lacks the necessary institutional reforms to effectively curb corruption, the government still cannot sit back and relax in the face of future development trends. If Russia is not satisfied with being just a gas station for the world economy from a long-term perspective, its top priority must be to commit to the modernization reform process and improve production efficiency. Investors should pay particularly close attention to current economic policy changes, which is another important factor affecting the Russian financial market in addition to raw material prices.

[Edit this paragraph] Economic Situation

2007

Based on statistics from international economic authorities, the current foreign exchange reserves of developing countries, especially emerging economies, It has increased rapidly and accounted for 3/4 of the world's foreign exchange reserves by 2007. China, Russia and India, the "BRIC" countries, are all "big players". The share of emerging countries' economies in the global economy has increased from 39.7% in 1990 to 48% in 2006. In terms of purchasing power parity, the BRIC countries have contributed 50% to world economic growth. Among the "BRIC" countries, in addition to the "China speed" development that has attracted worldwide attention, the average annual growth rate of India's economic development has remained at around 6% to 7% for more than ten years, reaching as high as 8.9% in 2007. China and India have become two of the three most attractive countries for investment in the world (the other is the United States, currently the most developed country). The Russian economy has also maintained rapid development in the past seven years, with an average annual GDP growth rate of 7.8%, gold foreign exchange reserves reaching US$404.8 billion, and more than US$200 billion in foreign debt left over from the collapse of the Soviet Union. It has entered the ranks of the world's top ten economies. Brazil's development is relatively slower, with economic growth reaching 4.4% in 2007.

The "World Wealth Report" published by Merrill Lynch and Capgemini Consulting pointed out that in 2004, there were 98,000 people in Brazil with financial assets exceeding US$1 million, an increase of 6.5% over the previous year; Russia There are 88,000 people, an increase of 4.8%; India has about 70,000 people, an increase of 14.8%; China has about 300,000 people, an increase of 4.5%. The rise of the wealthy class has increased the demand for high-end goods and various financial products.

BRIC Brazil: Purchasing high-end real estate

In Brazil, the rich only account for 1% of the population but own 50% of the national income. The income gap between the rich and the poor is as huge as World number one. Most of the rich are operators of large companies in related industries such as iron ore or crude oil. They own luxury homes in big cities such as Sao Paulo or Rio de Janeiro and drive high-end imported cars such as Jaguars or Volvos. Many of them also own two cars, and the trend of buying high-end real estate is noticeable.

But what is noteworthy is that the "car maintenance fee" in Brazil accounts for more than 10% of the annual income. For many Brazilians, especially the vast middle class, the financial burden of two cars is huge. It goes without saying.

Russia: Favoring Mercedes-Benz cars

Many wealthy people in Russia started their careers by acquiring energy-related companies during the privatization process of state-owned enterprises after the collapse of the former Soviet Union. The rich in Russia account for 4% to 5% of the total population. There are also many people who took advantage of the chaos after the collapse of the former Soviet Union to engage in trade or illegal economic transactions and gained huge wealth.

In addition, due to the sharp rise in crude oil and natural gas prices in recent years, new wealthy people are constantly emerging among those engaged in the energy industry. It is said that the new rich, whose living standards are equivalent to those in Europe and the United States, account for about 20% of the total population. Russia's rich and new rich are almost all concentrated in the two major cities of Moscow and St. Petersburg.

Among high-income people, the phenomenon of purchasing high-end products such as cars is eye-catching. They are particularly fond of Mercedes-Benz cars. More people buying homes have also boosted car sales. Russia is the only European market in Europe where demand for automobiles increased in 2008.

Russians’ demand for travel is also increasing. While domestic tourists are increasing, outbound tourists to neighboring countries such as Turkey and China are also increasing rapidly. According to statistics, the number of Russians traveling to China in 2004 increased by 29.8% compared with the previous year.

India: Join the Slimming Club

With the rapid economic development, the number of new rich people in India with an annual income of more than 180,000 rupees is increasing year by year. The proportion of the newly wealthy class in the total population has increased from 1.1% in 1985 to 7.3% in 2001.

With the rise of the high-income class, valuable durable consumer goods such as cars and home appliances are extremely popular. In addition, due to Indians' sweet tooth and the affluent class beginning to prefer European and American eating habits (preferring high-calorie foods), lack of exercise and excessive calorie intake have led to an increase in obesity. In order to lose weight, some wealthy people join slimming clubs and pay high monthly membership fees.

China: Increased demand for luxury goods

The number of wealthy people in China is rapidly increasing, centered on coastal areas with rapid economic development. Judging from the list of China's 400 richest people in 2005 published by the American "Forbes" magazine, most of them are concentrated in coastal cities.

In terms of industry types, 7 of the top 10 people on the rich list are operators in real estate-related industries. It can be seen that the rise in real estate prices has given birth to many wealthy people. In addition, wealthy people engaged in emerging information technology-related industries have also moved to the top of the rankings.

Among China’s richest people, a large proportion have purchased high-end residences. They are also passionate about personal and family travel. It is said that many wealthy people buy goldware, designer clothes, digital home appliances and high-end cosmetics in Hong Kong, and some even buy expensive high-end golf clubs.

China's richest people go to Hong Kong to buy luxury goods because they will be charged higher taxes and may buy counterfeit products when buying in the mainland. According to a survey by the Hong Kong Tourism Board, the average consumption of mainland Chinese tourists to Hong Kong is HK$5,639, which is much higher than the average level of other regions.

People’s demand for dining out is also increasing. Chinese people have always been particular about their diet, but now more and more families are dining out at high-end restaurants during holidays. In addition, women are becoming more and more obsessed with beauty, and their demand for beauty salons, cosmetics, brand-name clothing, jewelry, etc. is also increasing.

The four countries contain huge business opportunities

Among the rich and new rich in the "BRIC countries", it is very common for them to use their surplus funds to invest in the stock market. As each country's stock prices rise, its financial assets are rapidly accumulating. Large financial institutions in Japan, the United States and Europe have begun to enter these four countries, hoping to absorb the financial assets of the rich and new rich. In the populous BRIC countries, there is room for the rich and new rich to further grow, and because their capital markets are not developed enough, these four countries contain huge business opportunities for financial institutions in developed countries.

The BRICs represent the future economic scale and importance. According to this report, in 2050, the gross domestic product of the four BRIC countries will exceed that of the six major industrial countries, and the market value of the stock market will increase 66 times. They will have a middle class population of 800 million, exceeding the middle class of the United States, Western Europe and Japan combined. They will play leading roles in the three major markets of energy, natural resources and capital, becoming the most important consumer market in the world.

About the inventor of the word "BRIC"--------Jim O'Neill

Jim O'Neill 2001 Since 2006, he has served as chief economist of Goldman Sachs. Graduated from Sheffield University and University of Surrey in the UK.

His main research interest is in the foreign exchange market. Former BBC chairman Gavyn Davies (2001-2004) rated him as the world's top foreign exchange economist in the past 10 years.

Personal aspect: Married, has 2 children, is a fan of Manchester United F.C., and served as a non-executive director of the club from 2004 to 2005.

The current situation of the BRIC countries (2008/2009)

The "BRIC" summit will be held in Yekaterinburg, Russia, in mid-June 2009. They all have a clear understanding of issues such as getting rid of dependence on a single currency.

The "BRIC" countries support "super-sovereign" currencies

The People's Bank of China proposes to establish a "super-sovereign international currency" Currency" has received support and response from the World Monetary Organization and the United Nations, especially the "BRIC" countries as emerging economies. Russia submitted a proposal to the G20 Summit, hoping that the IMF would consider the possibility of establishing a super-sovereign reserve currency. sex.

Frequent internationalization of the RMB

While China is advocating a "super-sovereign" currency, it is also moving towards internationalization of the RMB very frequently. China has already cooperated with Argentina, South Korea and , five countries including Indonesia, Malaysia, Belarus, and Hong Kong have signed currency swap agreements, totaling 650 billion yuan. Previously, China had signed bilateral currency settlements with eight neighboring trading partners, including Russia. In addition, On April 8, 2009, the State Council of China decided to launch cross-border trade RMB settlement pilot projects in five cities: Shanghai, Guangzhou, Shenzhen, Zhuhai, and Dongguan.

The status of the "BRIC" countries is bullish

According to a survey by Goldman Sachs, which first coined the term "BRIC" in 2003, it is estimated that by 2027, the combined GDP of the "BRIC" countries will exceed that of the seven major industrial countries (G7), which is faster than the original forecast. The estimate is nearly 10 years in advance. Western countries suffered severe setbacks in the financial turmoil that began in 2008. The GDP of the "BRIC" countries has increased relatively quickly as a proportion of the world economy, and the status of the four countries has also become increasingly bullish. China, Russia, and India , the four countries of Brazil are all major emerging market countries, playing an increasingly important role in the international community, sharing common interests and concerns, and promoting common development.

[edit] This paragraph] Comparative analysis of the economic operations of the "BRIC" countries in 2008

In 2008, preliminary data on the GDP of the four BRIC countries have been released. The total GDP of the four countries was US$8.79028 billion, of which China It accounts for 49.25%, followed by Russia at 19.06%, Brazil at third at 17.89%, and India at the bottom with only 13.79%.

In terms of per capita GDP, the average per capita GDP of the four countries is US$3,087.56. Due to the long-term historical high of international oil prices in 2008, Russia's double-digit inflation rate and the average annual appreciation of the ruble, it exceeded 10,000 US dollars, reaching 11,796.92 US dollars, ranking first among the four countries, followed by Brazil with 8,235.49 US dollars. , China ranked third with $3,312, and India exceeded $1,000 for the first time, ranking last with $1,022.34.

China continues to have the largest population in the world, with a total of 1.328 billion, followed by India with 1.186 billion, Brazil with 191 million, and Russia with a population of 142 million in 2008.

In terms of economic growth, China topped the list with 9.0%, followed by India with 6.0%, Russia with 5.6%, and Brazil with only 5.1%.

[Edit this paragraph] Criticism and controversy

In the topic of "BRIC", there are many uncertainties and assumptions, indicating that one or all of the four countries may The predicted development cannot be achieved. Some commentators believe that the lack of complete democratic systems in China and Russia may cause problems in the future, but the efficiency of resource allocation and productivity improvement under China's current political system has been widely recognized, and China's democratization process is also proceeding slowly. . Possible conflict between China and Taiwan is one of the concerns. Likewise, Russia's population is steadily declining, which may have an impact on it. Finally, economic forecasts for Brazil have been going on for decades, but have so far failed to meet investor expectations.

The BRIC countries have a large number of poor people. It would also be a hindrance to the economy as it would affect government finances, increase social unrest, and limit domestic economic demand. International conflicts, domestic instability, political policies, outbreaks of disease and terrorism are all possible reasons that may hinder the economic development of these countries. Finally, the economic development of the BRIC countries may bring unpredictable consequences to the global environment.

Those who believe that the earth’s carrying capacity is limited believe that with today’s technology, the development of the BRIC countries will have its limits.

[Edit this paragraph] The first summit summit

Nearly eight years after it was proposed as a concept, the "BRIC" includes the world's four largest emerging market countries: China , Russia, India, and Brazil finally joined hands and officially appeared on the international stage. On June 16, 2009, the leaders of China, Brazil, Russia, and India held their first formal meeting in Yekaterinburg.

In a statement issued after the meeting on Tuesday (June 16), the BRIC leaders said that the second BRIC summit will be held in Brazil next year.

The document stated: "Russia, India and China welcome Brazil's warm invitation to hold the BRIC summit in that country in 2010."

The status of the four members in the BRIC countries

p>

International public opinion believes that among the "BRIC" countries, China has the most outstanding economic development. Since China's reform and opening up, its economy has grown at an average annual rate of more than 9% in the past 30 years. Since the 1990s, India, and Russia and Brazil since entering the new century, have carried out economic reforms based on their respective national conditions. The economic growth rates of Russia and India have been around 6% in recent years, and Brazil has been between 3% and 4.9%. are higher than the average levels of Western countries and the world. [1]

The main topics of this meeting

During the meeting, the leaders of the four countries focused on responding to the impact of the international financial crisis, the process of the Group of Twenty (G20) Summit, and international financial institutions They exchanged views on major pressing issues such as reform, food security, and climate change, and further discussed the prospects for future dialogue and cooperation among the "BRIC" countries.

Brazilian President Lula said at the press conference that it was a historic moment for the "BRIC" countries to sit together for a meeting. "The cooperation between the 'BRIC' countries should be gradual, and the focus is to 'make a good start,'" In fact, at the briefing the day before the summit, Wu Hailong, director of the International Department of the Chinese Ministry of Foreign Affairs, had already pointed out the key points of the first summit. value.

According to the "Joint Statement" issued after the meeting, Brazil is willing to host the next "BRIC" leaders' meeting in 2010.

The BRIC summit may not be just a temporary tool to send a strong signal to the United States." Singapore's "Lianhe Zaobao" is full of optimism about the future of the "BRICs". "The BRICs are not only concerned about overcoming financial problems. crisis strategy, and planning for a new world order in the 'post-crisis era'.

”[2]