Tuesday, June 16, 2009

BRIC - Answer to Global Recession??!!



Yesterday, while enjoying my share of free time at my office, with a cup of piping hot coffee in one hand and a mouse in the other, I was browsing through various websites in search of a good read, when I got my eyes on this interesting article on one of the popular indian websites. It was a survey about How Chinese they India. It was quite an interesting read. The gist of it being that 90% of the Chinese hate us! Yes, you read it right the first time, they hate us! Infact, they are scared of us. They are scared of our entrepreneures who are teaching them new tricks of the trades, which the Chinese consider themselves as expert in. They are scared of the success stories of our entrepreneures like Azim Premji, Narayanmurthy, Ambanis, Tatas, Birlas et al.

And then again there was yet another article that I had read last week, wherein, it said that China had dethroned Japan to become the biggest trade partner of India in Asia.

The latest news to do the rounds is that Russia is hosting the first ever BRIC (A term coined by Goldman Sachs economist, jim O' Neill in 2001) conference. It is to be noted that these four nations together account for 15% of the $60.7 trillion global economy. The highlights of this meeting being to propose of ways by which dependency on the US $ can be reduced. There are also speculations of proposing a common currency to safeguard their economies from diverse conditions and also to put up a fight against the Global Recession.

This combined currency reserve will also be put to effect in reducing the US $ DEPENDENCY. The impact of this informal coalition on the already crumbling US economy will be phenomenal, as all these nations account for a major chunk of the US ExIm business. Until now US has been enjoying a regulator-like role in all Global Economic issues, but with the rise of this new front, it surely faces a herculean task to enjoy the same position in future also.

In the light of the aforementioned news pieces, it seems that all is not hunky dory among these four emerging powers and only time will be able to tell how successful this union is going to be. Still, hoping for the best, I am keeping my fingers crossed, urging you all to do the same


P.S. : Russian President Dmitry Medvedev said on Tuesday, the world needed new reserve currencies. "We have to consolidate the international monetary system, not only through the consolidation of the dollar but the creation of new reserve currencies," Medvedev said at a summit of the Shanghai Cooperation Organisation (SCO) in the Urals city of Yekaterinburg.
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1 comment:

Laghu Sikarwar said...

very informative! I for one did not know who coined the term BRIC!

As you rightly pointed out..this union still has a long way to go! Let's wait and watch and hope for the very best!