Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
Trumponomics Stock Market 2018 - The Manchurian President (1/2) - 21st Jul 18
The Death of Japan's Real Estate Dream - 21st Jul 18
SMIGGLE Amazing Mega Shopping Haul, Pencil Cases, Smigglets and Giant Back Packs! - 21st Jul 18
Cayton Bay Beach Caravan Park Holiday - What's it Like? - 21st Jul 18
Gold Stocks Investment Wanes - 20th Jul 18
Diversifying Your Stock Investing Strategies is Smart Investing - 20th Jul 18
Custom Global Stock Market Indexes May Be Sounding Alarms - 20th Jul 18
S&P 500 Just 2% Below Record High, But There's More Stock Market Uncertainty - 19th Jul 18
Stock Market Technical Picture - 19th Jul 18
Gold Market Signal vs. Noise - 19th Jul 18
Don’t Get Too Bullish on Gold - 19th Jul 18
Bitcoin Price Rallies to Upper Channel – What Next? - 19th Jul 18
Trump Manchurian President Embarrasses Putin By Farcically Blowing his Russian Agent Cover - 19th Jul 18
The Fonzie–Ponzi Theory of Government Debt: An Update - 19th Jul 18
Will the Fed’s Interest Rate Tightening Trigger Another Financial Crisis? - 18th Jul 18
Stock Market Investor “Buy the Dip” Mentality is Still Strong, Which is Bullish for Stocks - 18th Jul 18
Stock Market Longer-Term Charts Show Incredible Potential - 18th Jul 18
A Better Yield Curve for Predicting the Stock Market is Bullish - 18th Jul 18
U.S. Stock Market Cycles Update - 18th Jul 18
Cayton Bay Hoseasons Caravan Park Holiday Summer 2018 Review - 18th Jul 18
What Did Crude Oil - Platinum Link Tell Us Last Week? - 17th Jul 18
Gold And The Elusive Chase For Profits - 17th Jul 18
Crude Oil May Not Find Support Above $60 This Time - 17th Jul 18
How Crazy It Is to Short Gold with RSI Close to 30 - 16th Jul 18
Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18
Stock Market Uptrend Continues, But... - 16th Jul 18
Emerging Markets Could Be Starting A Relief Rally - 16th Jul 18
(Only) a Near-term Stock Market Top? - 16th Jul 18
Trump Fee-Fi-Foe-Fum Declares European Union America's Enemy! - 16th Jul 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

BRIC Set for Name Change as it Prepares to Welcome New Members

Politics / Emerging Markets Aug 29, 2010 - 05:58 AM GMT

By: Pravda

Politics

BRIC - the organization that unites Brazil, Russia, India and China - may soon change its name as it prepares to welcome another member - the South African Republic, the most developed country on the African continent. The organization has accepted the bid from South Africa's President Jacob Zuma; most likely, the answer will be positive.


Russia's Dmitry Medvedev said during Jacob Zuma's recent visit to Moscow that it could be possible to develop relations with South Africa via BRIC.

It goes without saying that other countries' intentions to join the organization seem flattering to Russia, as well as to other BRIC members. However, it brings up a logic question: what does South African Republic need from the virtual organization and what can BRIC members gain from cooperating with South Africa? The meetings of BRIC leaders occur on rare occasions. More importantly, those meetings do not decide anything.

recession-american-empire.html" target="_blank">Russia Today: Economic recession to bring down American Empire?

The name of the organization was invented by Jim O'Neill, a leading economist with Goldman Sachs Group Inc., in 2001. The specialist predicted that by 2050 the volume of BRIC economies would exceed the economies of the leading countries in the West and Japan (the Group of Seven).

It is not ruled out that Jacob Zuma hopes to obtain commercial preferences through BRIC membership. As for Russia, it considers South Africa an important and perspective partner. Russian official believe that South Africa's membership in BRIC would be highly productive.

This virtual organization has been more relevant economically rather than politically: it represents cooperation between the world's dynamically developing economies. South Africa has a fast developing economy too, although it can not be compared to the economies of other BRIC members. According to Word Bank estimates, the GDP of BRIC's smallest member - India - quadruples the GDP of South Africa. There are other restrictions, which do not allow Africa's most powerful state reach the level of BRIC members. Human resources is a serious issue, for example. The population of South Africa is three times as less as that of the least populated BRIC member - Russia.

Experts of Russia's Supreme School of Economics believe that one additional member is not going to change anything in the structure of BRIC.

BRIC gathered for its latest session in April in Brazil. The leaders only released a number of meaningless statements and signed a memorandum of cooperation. The document stipulates joint efforts in the banking sphere regarding the issues of financial support in the field of high technologies, innovations and energy saving. The appeals from the BRIC leaders to find a new alternative to the US dollar as a reserve currency still look good only on paper.

The next summit of the organization will take place in China. It is not ruled out that South Africa will be invited for the event too. However, if a new member appears indeed, one may expect other countries to follow South Africa's example. International economists believe that Mexico and South Korea have very good chances to join the organization.

Sergey Balmasov

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules