IV.

BRIC – THE NEW GROWTH MARKETS OF THE WORLD

The acronym BRIC, representing Brazil, Russia, India, and China, was introduced by Goldman
Sachs in 2001. These countries are considered rapidly growing economies with high growth
potential. In 2012, BRIC countries accounted for 42% of the world's population and about 20%
of global GDP. in 2010–2011, BRIC countries demonstrated an average GDP growth of 5.2%,
with China leading at 7.4%, while the U.S. grew by 2%, and the Eurozone was in recession.
The success of BRIC countries was also reflected in other indicators, such as the unemployment
rate and the number of billionaires. In Forbes' 2012 list, Russia was represented by 11
billionaires, China and India by four each, and Brazil by three. Moreover, BRIC countries held
summits to coordinate strategies and had a real influence on the global agenda. They also
recovered faster than other nations from the 2008–2009 financial crisis.
Despite their overall success, doubts about the appropriateness of grouping these countries
together existed from the start. China and India are major manufacturing economies and
importers, while Brazil and Russia are exporters of natural resources. China stands out in
particular, as its large-scale infrastructure investments have fueled its high growth, unlike other
emerging economies. Russia, on the other hand, differs from the rest of BRIC with its aging
population and reliance on oil and gas exports.
Critics also point to issues with democracy and human rights in China and Russia, which could
negatively impact their future. Furthermore, rapid economic growth creates a risk of overheating.
Inflation in BRIC countries reached around 5% in 2012 due to increasing demand and rising
agricultural commodity prices. Meanwhile, investors began searching for new promising
markets, such as South Africa, South Korea, Indonesia, and Mexico. In 2011, South Africa joined
BRIC, officially forming BRICS.
Although growth rates slowed in 2012, BRICS countries remain key players in the global
economy. Their growth contributes to poverty reduction and the emergence of a new middle
class, which will have a significant impact on global markets and politics. Despite the rise of
new economic centers, BRICS countries continue to play a crucial role in the world economy.
However, they will face challenges in the future, such as slowing global growth, capital
outflows, and declining investor confidence. Nevertheless, their governments have the resources
to stimulate their economies, and appropriate policy measures are expected to be implemented.
1. From your perspective what aspects can BRICS take to provide effective support for the
economic and social development of African countries and regions?
BRICS can play a significant role in supporting the economic and social development of African
countries and regions by leveraging their collective influence, resources, and experience in
development.
African countries face a major infrastructure gap that hampers economic growth. BRICS,
particularly China and India, have extensive experience in large-scale infrastructure projects.
They can invest in transportation networks, such as roads, railways, and ports, to improve trade
connectivity and expand access to electricity through investments in renewable energy, power
grids, and hydropower projects.
To ensure long-term economic sustainability, BRICS can focus on human capital development
by Increasing scholarships and educational partnerships between African and BRICS
universities, providing vocational training programs in areas like engineering, healthcare, and IT,
Supporting research collaboration in science, technology, and innovation.
And of course, stability is crucial for economic development. BRICS can support Africa by
enhancing cooperation on peacekeeping initiatives, strengthening diplomatic ties to help resolve
regional conflicts and supporting governance reforms to improve economic management.
2. What areas of cooperation can BRICS countries engage in the fields of economy and
trade?
BRICS countries can strengthen their cooperation in the fields of economy and trade through
various mechanisms that enhance mutual growth, improve trade flows, and foster economic
resilience. The key areas of cooperation include:
1. Trade Facilitation and Market Access
 Reducing trade barriers such as tariffs and non-tariff barriers to enhance intra-BRICS
trade.
 Harmonizing customs procedures and regulatory frameworks to streamline trade
processes.
 Developing preferential trade agreements to increase the volume of trade among BRICS
nations.
2. Investment and Industrial Cooperation
 Encouraging cross-border investments in strategic sectors such as manufacturing, energy,
and technology.
 Establishing joint ventures and industrial parks to promote production and technology
sharing.
 Supporting small and medium-sized enterprises (SMEs) through investment funds and
financial assistance.
3. Financial and Monetary Cooperation
 Strengthening the role of the New Development Bank (NDB) in funding infrastructure
and sustainable projects.
 Enhancing financial cooperation by promoting trade settlements in local currencies,
reducing dependency on the US dollar.
 Coordinating monetary policies to stabilize exchange rates and manage inflationary
pressures.
4. Digital Economy and E-Commerce
 Expanding cooperation in digital trade and cross-border e-commerce platforms.
 Developing joint regulations and frameworks for fintech and digital payment systems.
  Encouraging investments in digital infrastructure and cybersecurity.
5. Energy and Natural Resources
 Collaborating on energy security by fostering trade in oil, gas, and renewable energy.
 Joint investments in energy infrastructure, including power plants, pipelines, and smart
grids.
 Research and development in sustainable energy solutions to reduce carbon footprints.
6. Infrastructure and Connectivity
 Developing transport corridors and logistics networks to improve trade efficiency.
 Investing in port development, railway networks, and road connectivity among BRICS
nations.
 Enhancing cooperation in maritime trade and aviation services.
7. Innovation and Technology Transfer
 Promoting research and development (R&D) in emerging technologies such as artificial
intelligence, biotechnology, and space exploration.
 Strengthening collaboration in intellectual property rights protection and patent-sharing
agreements.
 Encouraging technology-driven startups and innovation hubs across BRICS nations.
8. Agricultural Trade and Food Security
 Strengthening agricultural trade by reducing barriers on food exports and imports.
 Enhancing cooperation in agricultural technology, irrigation systems, and sustainable
farming practices.
 Addressing food security challenges through joint initiatives in research and supply chain
management.
9. Tourism and Services Trade
 Promoting intra-BRICS tourism by easing visa restrictions and improving travel
infrastructure.
 Developing cultural exchange programs and tourism partnerships to boost service-sector
cooperation.
 Facilitating trade in education, healthcare, and professional services.
By engaging in these areas, BRICS countries can enhance economic integration, drive
sustainable growth, and strengthen their collective influence in global trade and finance.

VIDEO
During the annual sessions of the National People's Congress (NPC) and the Chinese People's
Political Consultative Conference (CPPCC) in March 2025, key economic issues were discussed,
and strategies for the country's sustainable development were presented.
Main Economic Priorities Announced at the Sessions:
 GDP Growth Target: Set at around 5% for 2025, reflecting a cautious approach amid
global economic uncertainties and domestic challenges.
 Fiscal Policy: Plans include increasing the budget deficit to 4% to stimulate domestic
demand and support economic growth.
 Investment in Technology: Special emphasis is placed on the development of high
technology and achieving technological self-sufficiency, with significant increases in
research and development spending in areas such as artificial intelligence and new energy
vehicles.
 Real Estate Market: Measures are planned to stabilize the real estate sector, including
easing restrictions on property transactions and ensuring the timely completion of
construction projects.
 Defense Spending: The defense budget is set to increase by 7.2%, highlighting China’s
commitment to strengthening national security.
Amid ongoing trade tensions with the U.S. and global economic challenges, China aims to
balance development and security, focusing on domestic reforms and strengthening international
partnerships.
1. Based on the expert opinions in the video and yourunderstanding, what are your views
on thedevelopment of the Chinese economy over the next 35 years?
Over the next 3–5 years, China's economy is expected to grow at a stable rate of around 5%, with
a strong focus on technological innovation, green development, and domestic consumption. The
government aims to boost high-tech industries, achieve technological self-sufficiency, and
stabilize the real estate sector. Trade diversification, particularly through initiatives like the Belt
and Road and BRICS, will help counteract global uncertainties. However, challenges such as an
aging population, high debt levels, and geopolitical tensions could pose risks. Despite this,
China's strategic investments and policy measures are likely to sustain economic resilience and
long-term growth.
2. From your perspective, will a stable politicaenvironment in a country or region continue
to driveits economic and social growth? What is your opinion'
Yes, a stable political environment is crucial for driving economic and social growth in any
country or region. Political stability provides the foundation for long-term planning, investment,
and development. It ensures the continuity of policies, facilitates a favorable business climate,
and attracts both domestic and foreign investments. A stable political system also fosters
confidence among consumers and businesses, which is vital for social well-being and economic
prosperity.
Moreover, stable governance enables the effective implementation of social policies, such as
healthcare, education, and infrastructure development, which directly impact quality of life and
productivity. On the other hand, political instability can lead to uncertainty, economic volatility,
and reduced investor confidence, hindering both growth and social development.
In my opinion, while external factors such as global markets and technology also play a role, a
stable political environment remains one of the key drivers of sustainable economic and social
progress.

LATE stands for Local Average Treatment Effect. It refers to the average effect of a treatment
(like education) on a specific group of individuals whose behavior is influenced by an
instrument (instrumental variable).

For example, if a law requires children to attend school until age 16, some students might stay
in school only because of this law. LATE estimates the effect of education only for those
students — not for everyone in the population.

“Local” in LATE means that the estimated effect is not for the entire population, but only for a
specific subgroup:

Those whose treatment status changes because of the instrument — called compliers.

So, if the instrument is a compulsory schooling law:

 LATE tells us the effect of education only for students who stayed in school because of
the law — not those who would’ve stayed anyway or left regardless.

✅ The Three Assumptions (Needed to Identify LATE)

 Substantial First Stage

The instrument must have a strong and significant effect on the treatment variable.

For example, the schooling law must actually increase years of education.

 Independence Assumption (a.k.a. Random Assignment)

The instrument must be independent of potential outcomes, meaning it is not correlated with
unobserved factors that affect the outcome (e.g., income).

Think of it like random assignment — the law should not be targeted at specific types of
students.

 Exclusion Restriction
The instrument affects the outcome only through the treatment, not through any other path.

The schooling law affects income only because it increases education, not because, for
example, it signals ability or changes job markets.
T h e acronym BRIC – which stands for Brazil, Russia, India and China – was coined in 2001 by
Goldman Sachs. Th ese are countries to watch, the emerging markets where we will see high
future growth. Th e BRIC term is also used by companies who consider these countries as key to
their emerging markets strategies. Th e term ‘Chindia’ (for China and India) is also oft en used.
Together, the four BRIC countries account for 42 per cent of the world’s population and
approximately 20 per cent of the world’s gross domestic product (GDP; World Bank, 2012).
Goldman Sachs predicted that it was only a matter of time before these countries as an aggre gate
overpowered the US as the world’s biggest economy. Ten years later, all of the indicators are
proving them right. China’s steady growth is noticeable. As a whole, the BRICs will catch up
with the US economy by 2018. While accounting for around 42 per cent of the world’s
population, the BRICs ‘only’ rep resent around 20 per cent of the world’s GDP (World Bank,
2012). However, this percentage is expected to increase in future as a result of the increasing
economic activity in the BRIC countries compared with the ‘old’ economies in Europe and
North America. As a whole, the BRIC countries presented an annual GDP growth of 5.2 per cent
from 2010 to 2011, with China showing the highest growth at 7.4 per cent. By comparison, the
US had a growth of 2.0 per cent and the Eurozone had a negative growth of 0.6 per cent over the
same period (see Table 6.3 ). Another indicator of economic activity is the unemployment rate,
and this key fi gure is also favourable for BRIC countries in comparison with the US and the
Eurozone. T he BRICs’ success also colours Forbes’ 2012 list of the world’s richest 100 people.
Russia has as many as 11 people on this list, China and India have four each, and Brazil has
three. No city in the world has more billionaires than Moscow (Forbes, 2012). T he BRIC
countries themselves have seemed quite happy with their status. For a couple of years, they have
been organizing summits to develop collective strategies and to weigh in more on the global
agenda. Their enthusiasm to work together seems genuine. All four coun tries also emerged
undamaged and fairly quickly from the financial crisis in 2008 to 2009. However, some have
questioned the BRIC categorization from the start. Fundamentally, the four countries have very
little in common. Two countries are manufacturingbased economies and big importers (China
and India), and two are huge exporters of natural resources (Brazil and Russia). Academics and
experts have suggested that China is in a league of its own compared with the other BRIC
countries. The ‘growth gap’ between China and other large emerging eco nomies such as Brazil,
Russia and India can be attributed, to a large extent, to China’s early focus on ambitious
infrastructure projects: while China invested roughly 9 per cent of its GDP on infrastructure in
the 1990s and 2000s, most emerging economies invested only 2–5 per cent of their GDP (World
Bank, 2012). This considerable spending gap allowed the Chinese economy to have high growth
while many South American and South Asian economies suffered from various development
barriers, e.g. poor transportation networks. Russia, in particular, is sometimes said to be the odd
one among the four countries – its characteristics are completely different from the other three.
Brazil, China and India all have a demographic boom, counting on a populous young generation
for innovation. Russia tends to resemble Europe with its ageing population and a decreasing birth
rate. It owes its economic success mainly to its oil and gas reserves, while the other three thrive
on services and manufacturing. Some commentators state that China’s and Russia’s disregard for
human rights and democracy could be a problem in the future. T he recent success also feeds into
the fear of overheating. The BRICs withstood the finan cial crisis so well that they have been
used as a safe haven for capital. Yet as history has shown many times and in many places, an
economic bubble is quickly made. Inflation has been surging in the emerging market world over
recent years, driven by a strong runup in agri cultural commodities, thanks to supply shocks
paired with the steady increase in demand due to rising wealth in places like the BRIC
economies. At the end of 2012 the inflation rate in the four BRIC countries was fluctuating
around 5 per cent on a year toyear base (World Bank, 2012) In the meantime, the financial
markets are already on the lookout for the next emerging countries. South Africa, South Korea,
Indonesia and Mexico have sometimes been added to the list. Others advise that a close eye
should be kept on Africa. In 2009, the BRIC political leaders met for the first BRIC summit.
Following a meeting in Brasilia in 2010, to which South Africa was invited as a guest, the group
invited South Africa to join as a full member in 2011 and the group formerly called BRIC
officially became BRICS. Despite the search for the next new emerging economy, indicators
suggest that the BRICs are more relevant than ever. Further growth promises to lift hundreds of
millions of people out of poverty. This emerging middle class will probably have an enormous
influence on the remainder of the world. Not only will their demand for consumer goods
change everything from energy consumption to export opportunities, but they will weigh in
more and more heavily on global decisionmaking. New players may arrive, but the original four
BRICs remain the four to watch. T he BRICs have witnessed robust growth in 2010 and 2011.
Recently they have been faced with slowing demand growth, raising concerns over their ability
to support a weak global economy this year (2013) as many have hoped. In the future, BRIC
economies will face challenges from: ● a slowgrowing global economy, particularly in Europe; ●
a reversal of investor risk appetite moving capital from the BRICs (and other emerging markets)
to safe havens; ● a loss of confidence in the BRICs. As a result, a slowdown of growth in the
BRICs happened in 2012. However, the authorities and governments in these economies have
plenty of scope to loosen monetary policy and provide fi scal support, so it is expected that
policy measures will provide an economic boost in 2013. For example, the Chinese economy
experienced a moderation in growth to 9.2 per cent in 2011 on account of slowing services and
a slowing manufacturing sector. Th e ‘low’ growth continued in 2012 with 7.8 per cent, growth
falling below 9 per cent for the fi rst time since 2001. However, the growth in the Chinese GDP is
expected to increase again in 2013 to 8.1 per cent (Jiabao, 2013). T h e key risks to China’s
economic outlook are from its trade exposure to the slowing growth in Europe and a sharp
correction in property prices, but the Chinese government has plenty of fi nancial ammunition
with which to respond if a sharper slowdown becomes evident.

В контексте международного маркетинга и глобального экономического развития можно

выделить ряд направлений, по которым страны БРИКС способны оказать эффективную
поддержку экономическому и социальному прогрессу африканских стран и регионов.
Учитывая потенциал этих стран, их опыт быстрого роста, а также нарастающую роль в
мировой экономике, взаимодействие с Африкой может быть выстроено на принципах
взаимной выгоды, устойчивости и стратегического партнёрства.

Во-первых, страны БРИКС могут опираться на принцип сравнительных преимуществ,

активно применяемый в международной торговле. Например, Китай, обладающий
колоссальным опытом в развитии инфраструктуры, может делиться технологиями,
инвестициями и управленческими практиками с африканскими странами, которые по-
прежнему сталкиваются с нехваткой качественных транспортных, энергетических и
коммуникационных сетей. Индия, обладающая развитым сектором IT и здравоохранения,
может внести вклад в цифровизацию и доступ к недорогим медицинским услугам.
Бразилия и Россия, как крупнейшие экспортёры сельскохозяйственной продукции и
энергоресурсов соответственно, могут помогать в обеспечении продовольственной и
энергетической безопасности континента, развивая при этом совместные проекты по
переработке и локальному производству. Это создаёт основу для так называемой
стратегии создания ценности (value innovation), когда новые рынки развиваются не за счёт
конкуренции, а путём переосмысления потребностей и предложений.
Во-вторых, БРИКС могут способствовать развитию промышленности и человеческого
капитала в Африке. Одна из ключевых проблем региона — это экспорт сырья без
добавленной стоимости. Страны БРИКС могут инвестировать в совместные предприятия,
создание производственных кластеров, проведение образовательных и
профессиональных программ в сфере инженерии, технологий и предпринимательства.
Это будет способствовать формированию квалифицированной рабочей силы и развитию
среднего класса, что в перспективе откроет новые потребительские рынки и создаст
прочную базу для органического роста. С точки зрения маркетинга, это позволит
компаниям БРИКС осуществлять стратегии проникновения на рынок (market penetration),
адаптируя продукты и услуги под реальные потребности населения.

Третьим направлением может стать развитие инфраструктуры и цифровой экономики. Как

показал кейс, успех Китая в значительной степени обусловлен его инвестициями в
инфраструктуру, которые составляли до 9% ВВП, в то время как другие развивающиеся
страны тратили лишь 2–5%. Аналогичный подход БРИКС в Африке может включать
строительство дорог, портов, электросетей, а также поддержку цифровых платформ,
интернета и мобильных сетей. Это обеспечит не только улучшение логистики, но и более
широкую интеграцию региональных рынков. Кроме того, развитие инфраструктуры
создаёт условия для стратегий расширения рынка (market development), когда компании
могут выходить в новые регионы и сегменты.

Кроме того, БРИКС могут сыграть важную роль в интеграции Африки в глобальную
торговую систему. Это включает поддержку инициатив Африканской континентальной
зоны свободной торговли (AfCFTA), снижение тарифных и нетарифных барьеров, создание
совместных торговых платформ и форумов, развитие банковского и инвестиционного
сотрудничества. С точки зрения международного маркетинга, это создаёт условия для
стандартизации бизнес-процессов и укрепления доверия между рынками.

Наконец, экономическое развитие должно сопровождаться поддержкой социальных

проектов. Страны БРИКС могут инвестировать в здравоохранение, образование, борьбу с
бедностью и цифровое равенство. Важно также привлекать к проектам местные НПО и
сообщества, чтобы обеспечить устойчивость и релевантность программ. Это не только
формирует положительный имидж стран БРИКС как ответственных партнёров, но и
открывает возможности для развития бренда через ценности, что особенно важно в
условиях возрастающей глобальной конкуренции.

Таким образом, потенциал стран БРИКС в поддержке африканского развития заключается

в комплексном, стратегическом подходе, основанном на международных теориях
маркетинга, взаимовыгодных партнёрствах и адаптации к местным условиям. Такой
подход позволит не только стимулировать рост на африканском континенте, но и укрепить
позиции самих стран БРИКС на международной арене, превратив их из просто
быстрорастущих экономик в устойчивых глобальных лидеров.