BRICS countries, A powerful group of the world : China Daily

[hamtaro]

They will still trade in Dollar mostly. Indian currency is just to unstable and the Chinese are bound to the Dollar anyway.

 

[SpArK]

South Africa positions itself as a local defence supply partner in Brazil
​

April 14, 2011 South Africa’s missile and UAVS house, Denel Dynamics, has relaunched its Denel do Brazil office against the backdrop of potential increased country to country cooperation. This week, for the first time, South Africa joined the summit of the BRICS group (formerly Brazil, Russia, India, and China as BRIC only). Officials and experts say that South Africa will become a gateway to the African continent for other BRICS countries and its membership of the group will enhance south-south cooperation. Speaking in Beijing, China on 13 April, South African President Jacob Zuma hailed his country's “historic” role in its first leaders' summit of the BRICS group of five major developing nations.

The main theme of the BRICS summit is "inclusive development" which is a point of interest at this year’s LAAD 2011 defence exhibition which is coincidently being held in the same period in Rio de Janeiro, Brazil from 12 – 15 April. Denel Dynamics, a high-technology business unit in the South African Denel Group, is using the opportunity to showcase how country to country support - whether it be systems integration or joint development can establish and grow indigenous expertise in both countries.

“Our integration capabilities are the key to our sustained presence in Brazil”, says Jan Wessels, CEO of Denel Dynamics. The Brazilian/South African A-Darter programme is a noteworthy example of a very successful joint development. The BRICS countries are seeking to assert themselves on the global stage and are set to invest in improving the capabilities of their armed forces.

As the successful A-Darter programme nears completion, it will result in a new 5th generation air-air missile ready for industrialisation and production with the same data pack available in both countries. This sets high expectations on both sides of the Atlantic for the next joint project. “Pending the RFP from Aeroelectronica, the F5 integration of A-Darter, could be the first project as part of a larger partnership for Denel do Brazil, in this instance as main subcontractor to Aeroelectronica.”

“Denel do Brazil intends to position itself to partner rather than compete with Brazil’s industrial players and internal expertise, to perform certain complex integration projects” says Wessels. “We are respectful of the Brazil industry and its players and we want to build on the professional relationships we have built since 2006. It is important to establish a reputation for being a trusted local defence supply partner of precision systems technology and services,” says Wessels.

Denel do Brazil will also benefit from the special deep and long-term strategic relationship that Denel has with the Armaments Corporation of South Africa (ARMSCOR), and will be able to make use of its years of experience and collaboration with the defence industry. ARMSCOR is the central point for the acquisition, maintenance and disposal needs of the South African Department of Defence which include systems and technology acquisition, procurement and product systems management. Importantly, it maintains strategic capabilities and technologies and promotes the local Defence Related Industry.

Denel do Brazil is being set up as a defence systems and programme management house, anchored around Denel Dynamics missile and UAV capabilities. It will start up as a small collaborative nucleus made up of a mix of experienced Denel Dynamics system engineers and a team of Brazilian engineers. The office, which is now located in São José dos Campos will provide enough space to act as a base for the interaction and execution of future system-level management programmes.

Denel Dynamics’ core business covers tactical missiles, precision-guided weapons and unmanned aerial vehicles (UAVs). World-class facilities, an excellent customer support record and a formalized quality control system, add up to an impressive capability in the design, development, manufacture, integration and supply of systems as well as the provision of related services.


defence.professionals | defpro.com

 

[below_freezing]

However, we must beware of challenges.

According to economic theory, there are some stages of development that some countries fall into and NEVER get out.

1.) the 0-1000 GDP/capita trap: the poverty trap. This is when the country is so poor, people starve to death, the best emigrate automatically given the chance, and the country will forever be stuck in absolute poverty without drastic government intervention. ALL BRICS countries have escaped this, India most recently. Congratulations to India.

2.) 1000-3000 GDP/capita: the takeoff. this is where stable, labor intensive growth pays off and real technological accumulation begins. Near the end of this stage, there will be MASSIVE SOCIAL PROBLEMS, SOCIAL UNREST, POLITICAL INSTABILITY AND A WIDENING OF INCOME GAP. China has just passed the 3000 GDP/capita stage. India will reach it in 10 years. Good luck India, thank god that China passed it without too much trouble.

3.) 3000-10000 GDP/capita: the middle income trap. This is the most critical time, and this is where China is right now. This is when labor costs are too high to support labor intensive industries, but technology is not enough to support capital intensive industries. Political unrest is frequent, crime rises, inequality rises, urban slums form, growth rates slow down or zero, and the country is stuck forever. The examples of Argentina and Malaysia come to mind.

Argentina in the 1970's pursued a strategy of import substitution. At first, the strategy was wildly successful and increased GDP and consumption. However, Argentinan companies did not change their strategy, content to copy imported goods. As wages rose, the cost advantage enjoyed by these companies disappeared, their goods became uncompetitive, and the strategy fell apart by the 80's. The government attempted to prop these companies with subsidies, which caused massive deficiets, forcing them to borrow from the World Bank and IMF, effectively ending national sovereignty. Argentina in 1950 had a GDP/capita of 800 USD, a middle-high income nation at the time. Argentina today has a GDP/capita of 8000 USD, still a middle income nation.

Malaysia took a different story. It went on the path of export driven growth in the 1970's and 1980's. At first, it was again highly successful, winning numerous export markets in textiles and electronics (sounds familiar) at the same time as South Korea. However, it stayed as an export processor for others due to low rate of graduates in science and engineering, high Gini index reducing internal consumption, brain drain to Singapore, and finally, capital flight in 1997 from which it never recovered.

It seems that once a country passes the 10k USD GDP/capita mark, the country is safe. The most dangerous times are 0-1000 and 3000-10000.

For interest, you can read this article (In Chinese, use google translator). It discusses the problems of the middle income trap, how Japan and South Korea escaped, how Malaysia, Argentina and Brazil got trapped, and where China is, how China may get trapped, and how we can escape.

?_???

Off the top of my head, only 1 country currently that was not developed before WW2 and became developed after WW2 to escape the middle income trap is South Korea.

All of East Asia except Cambodia, Laos and Burma have escaped the poverty trap.

 

[BJP*]

They will still trade in Dollar mostly. Indian currency is just to unstable and the Chinese are bound to the Dollar anyway.

this prooves you have no idea about indian currency...

go and do the homework..

 

[below_freezing]

I predict India will enjoy 10 more years of stable growth before the political instability and social unrest of the takeoff period's end begin. In 2021, if current growth rates are linear, India will just enter where China was in 2007. That is when India should beware, and learn from China's achievements and mistakes. Hopefully, by that time, China will be a developed country with 10K+ USD/capita. If we become stuck, we have no one to blame but ourselves.

India has many things to watch out for.

1.) Formation of urban slums - this MUST BE AVOIDED. If rate of urbanization > rate of growth, slums will form, reduce effectiveness of cities, cause capital flight, increase crime and become a major burden.

2.) Increase of Inequality - the absolute largest 绊脚石 for middle income nations. Argentina has a Gini index over 0.5, this is its tragedy. Without this, the internal market can never be developed and fair services can never be distributed.

3.) Low technology skill - this is also crucial. As India leaves the takeoff stage, it will be in a position much like China is now: labor too expensive to compete with Africa/Bangladesh/Vietnam, technology can't compete with West (civil technology, overall. China has spots of domestic excellence in nanotech, aerospace, heavy industry, telecom and metallurgy, but overall we are behind, especially in agriculture, pharmaceuticals, luxury goods, instrumentation and finance.)

 

[Developereo]

Expected from a Pakistani,u people every time sounds like wherever China is involved it is trying to create a bloc to rival the American camp.

It's not just me; BRICS is basically G20 minus (West and allies).

And it's not just China. Almost every non-Western country or ally wants to see a multi-polar world and putting a check on American dominance is a Good Thing. I am not questioning BRICS' motives, only its long term effectiveness.

Finally something about BRIC,this is not some EU styled cooperation or some military organization to parallel the west hence ur argument about Russian military importance does not stand here, this organization is just created for some mutual understanding on economic cooperation and to act as a level playing ground in front of US in IMF and world bank and not in UN or Libyan war front.

Looks like the BRICS chief executives didn't get your memo:

REGIONAL TURBULENCE

On the situation in the Middle East and north and west Africa, the declaration says that force should be avoided in resolving regional turbulence.

"We are deeply concerned with the turbulence in the Middle East, the North African and West African regions and sincerely wish that the countries affected achieve peace, stability, prosperity and progress and enjoy their due standing and dignity in the world according to legitimate aspirations of their peoples," reads the Sanya Declaration.

"We share the principle that the use of force should be avoided," says the declaration.

The five countries vowed continuous cooperation in the UN Security Council on the issue of Libya and urged parties concerned to resolve their differences through peaceful means and dialogue, according to the document.

They expressed their support for the African Union High-Level Panel Initiative on Libya, saying the UN and regional organizations should play their role appropriately.

The countries also reaffirmed the need for a comprehensive reform of the UN, including its Security Council, to make it "more effective, efficient and representative" in order to better deal with current global challenges, the declaration says.

Or perhaps, they are as confused as everyone else as to what exactly is their purpose.

Incidentally, if you read the BRICS communique in that post, it is utterly vacuous. Strip away the diplobabble, and there is not one single sentence of substance in the entire communique.

Not surprised but was laughing,this guys claim SCO is some dream team organization and unintentionally he proved SCO is another redundant organization,he should have thought about it before calling BRIC a group of attention seeking wannabes,oh yes excluding Russia and China.

I made no comment on the SCO. Countries are part of several alliances concurrently; joining an alliance doesn't invalidate existing alliances.

 

[Mirza Jatt]

BRICS members warn of financial volatility

 

[Developereo]

I think Germany is now trying hard to change its status after WWII.

It seems they are planning to ally with France to contain the Anglo World Order.

They already did. The EU started out as a Franco-German attempt to counter American dominance -- at least in Europe. Britain only joined slowly and reluctantly.

Even now, the EU is basically a Franco-German show. If there is ever a serious falling out between France and Germany, the EU won't survive.

 

[SpArK]

Big five emerging powers urge end to Libya fighting - World - DNA

 

[Developereo]

Agreed. Before, we were ruled and fooled by racists on both sides, like Speeder2 and JayATL, who are neither Chinese or Indian citizens, but stirring up hatred between real Chinese citizens and real Indian citizens, in order for their white countries to remain rich. It is in their best interests for their white countries to remain relatively better, so they may enjoy their sense of superiority. The developed world was divided, and played off one another on tiny minor issues to separate us and make us weaker.

Finally, we're awake, and decide to compromise to each other, instead of compromise each other.

So, India forming defence partnerships with the evil white man and holding joint military exercises is just for show, eh? The real brotherhood lies within the BRICS alliance?

So, really, which alliance is for show and which one is real?

 

[hamtaro]

No offense but many indians really have a slave mentality to western peoples. When i am in india every second dude tells me that they are aryan aswell. They have a strong desire to become a western state and therefore they are being played like cards by the west.

 

[Mech]

No offense but many indians really have a slave mentality to western peoples. When i am in india every second dude tells me that they are aryan aswell. They have a strong desire to become a western state and therefore they are being played like cards by the west.

Every second?! you have never been to india for even a second you silly liar! I bet you are one of those visa rejects. You are a special breed of moron though, i'll give you that

 

[xTra]

No offense but many indians really have a slave mentality to western peoples. When i am in india every second dude tells me that they are aryan aswell. They have a strong desire to become a western state and therefore they are being played like cards by the west.

No need to hide behind German flag.

 

[hembo]

So, India forming defence partnerships with the evil white man and holding joint military exercises is just for show, eh? The real brotherhood lies within the BRICS alliance?

So, really, which alliance is for show and which one is real?

Hi,

First of all Pakistan managed have rock solid defence tie-up wit US for 60+ years and yet so close to China. Does that tell you something.

Secondly, if you have even the slightest of incination towards a opinion that India will form ANY kind of defence alliance with US (aka Pakistan), you cannot be more wrong. The emphasis on a multi-polar world from all the emerging economics is very evident and very relevant in today's world. The world order is slowly changing, in case you have not noticed. The age old notion of geo-politics is not going to be the norm of 21st century and it is really great news that all who are concerned have realized the same, sooner then later.

It is upto the other aspiring nations and its Govt/citizens to decide whether they are going to stick to the old guns or they want to ride the change, lest be left behind. As below_freezing had pointed out, all and sundry are welcome to gain from our combined new found wisdom, our experiences, our successes and our failures.

Cheers.

 

[below_freezing]

What I'm worried about is if BRIC stops being a fast growing entity.

If both India and China's economies and populations continue growing at current rates, China wll be a developed nation in 2020 and India will be one in 2035 (10K+ per capita).

However, if we fall into the middle income trap due to high inequality, corruption and lack of indigenous technology, we'll be stuck forever on the level of Iran and Belarus.