The Rise of BRICS: An Economic Shift from West to East?

BRICS G7 MAnt RISE OF BRICS: AN ECONOMIC SHIFT FROM WEST TO EAST ? RUSSIA OII & Gas, Shipping,Defence CANADA Food Products, Chemical & Natural Gas UK AZ Aerospace „Agriculture ZN Automotive & Tourism GERMANY, Vehicles, Trains, Machine tools,Iron & steel, Coal FRANCE Machinery,Automobiles, Metallurgy, Aircrafts ITALY Tourism,Pharma,Steel „Clothing, Fashion JAPAN USA Aerospace,Electronics, Telecommunications, Petroleum Motor vehicles, Electronic equipment, Machine tools CHINA Transportation & Telecommunications equipment INDIA Agriculture Software BRAZIL Iron ore, Lumber, Cement SOUTH AFRICA Mining.Textile & Machinery BRICS 42% of the world population is in BRICS G7 * The pin on each country points the industries that contributes the most to the economy Population by age group (as percentage of total population) Total 200 Mil 143 Mil 1,252 Mil 1,357 Mil 52 Mil 35 Mil 66 Mil 80 Mil 60 Mil 127 Mil 64 Mil 316 Mil Population 0-14 yrs 24% 16% 29% 18% 29% 16% 18% 13% 14% 13% 18% 20% (15-64 yrs TITT TITT TTTT TIT TTTT TTIT TTTI TIT TTT TTIT TIT TTIT 68% 71% 66% 73% 65% 68% 64% 66% 65% 62% 65% 66% Above 65 yrs 8% 13% 5% 9% 6% 16% 18% 21% 21% 25% 17% 14% WHERE DOES TOMORROW'S WORKFORCE LIE? 37% OF THE WORLD'S POPULATION AGED 0-14 LIVES IÎN BRICS, AND ONLY 7% LIVE IN G7 Gross Domestic Product valued at Purchasing Power Parity (PPP), 2013 $ 12,405 bn $ 3,197 bn $ 4,627 bn $ 15,684 bn $ 2,356 $ 2,513 bn $ 4,684 bn ($ 582 bn $1,488 bn $ 2,254 bn $ 1,832 bn $ 2,366 bn bn World GDP share (2009-2014) BRICS 2009 16.2% 30.6% 53.2% OTHERS G7 2011 18.2% 31.3% 50.5% FROM 2009-2014 THE SHARE IN WORLD GDP DECREASED BY 11% FOR G7 WHEREAS THE SAME INCREASED BY 33% FOR BRICS 2012 19.7% 31.8% 48.4% 2013 20.4% 31.8% 47.8% 2014 21.6% 31.2% 47.2% Areas of Strength Areas to focus Regulations of Securities Exchanges, 1-7 (best) No. of procedures to start a business BRICS BRICS G7 G7 BRZ 5.81 RUS 3.61 IND 5.13 CHN | 4.27 14 SAF 6.56 12- CAN 5.38 10- FRA 4.91 GER 4.85 ITA 3.7 4 JAP 5.02 UK | 5.2 US 14.97 JAPAN SOUTH CANADA FRANCE GERMANY ITALY AFRICA BRAZIL RUSSIA INDIA CHINA UK USA 5 6 Soundness of Banks, 1-7 (best) [2008 vs 2009] No. of days to start a business BRICS 2008 G7 2008 BRICS BRICS 2009 G7 2009 G7 BRZ 1% 120 RUS 17% IND 1% CHN 8% 35 SAF 2% 30 CAN 2% 25 FRA 12% 20 GER 22% 15 ITA 4% 10 JAP UK 36% US 23% 3 4 SOUTH CANADA FRANCE GERMANY ITALY AFRICA BRAZIL RUSSIA INDIA CHINA JAPAN UK USA *The above percentages show the decrease/increase in soundness of the bank ratings from 2008-2009 ALTHOUGH THE RECESSION OF 2008 HAD SEVERE IMPACT ON G7 SOUND BANKING & SECURITIES REGULATIONS SHIELDED THE BRICS NEW BUSINESSES ARE KEY TO ECONOMIC GROWTH & DEVELOPMENT Aswin Sreenivas Mathew George Vishnu Raj National University of Singapore %24