BRICS countries on the fast track to economic development

However, its inclusion is justified by the fact that it is a leading Africa’s economy. The BRICS countries have been very instrumental in spurring economic development in the thirds world. This has been made possible through their foreign policy programs on financial aid to the developing countries. Each of the member country has had historical challenges but then acted behold historical impendent to achieve their status of becoming a super economic giant. For instance, Russia had to heal from the world war skirmishes. Their expertise in manufacturing has also been noted to be a contributor towards high economic status. According to studies, some of these countries have developed gradually from low economies to transitional economies and eventually to very big world economies.

Literature review According to the World Bank report, the emerging economies of this group of countries have played a key role in global business and the monetary economic systems. The policies and framework made by these countries continue to influence the international market. ("AFRICAN DEVELOPMENT BANK: Supporting Inclusive Growth" 21752B-21753C) The economic up growth of the BRIC countries characterizes the economies of the developing countries which have a large proportion of the population employed in the agricultural sector and a small percentage working for the shared service. China has become well known because of their manufacturing ranging from office machines and telecommunication apparatus. This makes China be well known for their high-tech goods from their technology and skills experts. There are arguments that most of the Chinese finished goods come from imported intermediates, China only refines to finished products.

However, their economy is accelerating and changing the world economies due to the high level of competitive goods. Methodology For the purpose of this study, varius research methodologies have been used. These include many macroeconomic results to the developing countries which have resulted to decrease of unemployment in countries such as Dutch courtesy of import; Dutch re-exports their export from BRICs countries elsewhere to earn more foreign currency. In particular, Dutch creates a hundred thousand job opportunities which translate to 40%; this is attributed to its good relations with China. Most of the developing countries are doing so through the indirect export from BRICs countries, BRIC is known for around 2% value addition due to the final demand. This means that the economies of many developing countries lie on the mercy of economic developments in the BRICs countries.

These economies are vulnerable to economic development in the BRICs countries (Bosch and Ottens) It’s important to note that the benefits to the smaller economies are much smaller due to an imbalance of trade. On the policy issues, the BRICs countries have continued to pose threats to the developing economies. Research so far has indicated that it is not as easy to attempt to get sustainable access to BRIC countries. It is revealed that there are many cultural and institutional barriers impending any low economy from reaching close to the BRICs. The trade barriers with these said counties remain higher. There have been attempts to slash this tariff though it has not been fully realized. In terms of population, for instance, India is known to have 80 times larger in comparison to the Netherlands.

Russia has 8-9 times more population than the Netherlands too. While Brazil and Russia are seen to be relatively bigger economies, India has remained poor due to the high population. China has been known for its growing economy characterized by its increasing GDP. This is because the economy is fully export-oriented. The BRIC countries have remained committed to intensifying economic relations with the developing countries. These are three key points that place the BRICs countries as a protagonist in the development agenda of the developing countries. These include: Their increased demand for political voices in the international government structures of the third world countries. Policies have been set in accordance with their (BRICs) policies about what each nation has to follow suit (Gupta and Bhatt 119) Their increased growth rates which have led to their significance in the world economic space.

This has been made possible by the outstanding sizes of their (BRICs) economies. The BRICS has continued to face a lot of criticism pertains its role in the global economic development. In a meeting held to form the outlook, key agenda was more democratic and multi-polar global community based on cooperation, coordination as well as collective decision. This emergence of BRICS was interpreted as a forum to challenge the mushrooming US (western). Here, arguments are that BRICS is out to counter the poor blocs. In its inception, BRICS did not have developed as a major issue. Such policies as trade and financing have been key to boost the economic development in the weaker country’s economies (Beylis and Cunha) The technical dimension has also not been left behind.

BRICS countries have shown a measure of commitment is assisting the weaker countries. Methods for the exchange of technicians and expertise have been key to boosting the third world economy. Through their many strategies, the BRICS have assisted the neighboring countries in their cooperation in the social issues such as post-earthquake cooperation, education programs, health sector (HIV/AIDS). Notably, Brazil is the greatest stakeholder in the regional organization. However, in comparison to other BRICS countries Russia is not traditionally developed, it is one of the so-called transitional economies. This could be because of what was noted earlier in this paper about the historical orientation of Russia. Russia has imparted to other countries through their exports mainly on energy resources and minerals.

Most importantly, Russia has emerged to be on the leading line in boosting the international economy of the third world countries. Statistics reveal that her foreign aid amounts to almost 50%. Chart I: showing Indian’s aid to African and other Asian and Latin American developing countries in the year 2010. Amount USD China is a key player in the development initiative by the BRICS countries. In fact, arguments pose it that without China, BRICS would be a toothless tiger. China is noted to be the second biggest world economy. This is determined in terms of the GDP and the real growth rate that is currently estimated at 8-12%. China has been noted for their economic boost to the developing countries besieging debt relief contracts to over 50 countries from Africa, Asia, and Latin America.

Table I: amount in USD Year ending 2009/2010 DRC Sudan Angola Somes Asian countries Total 14 billion 21 billion 40billion 52 billion 110 billion Examples of Chinese aid to selected African countries Last on the BRICS countries is South Africa. As noted earlier, South Africa has been included in the list because it is Africa’s leading economic giant. The Department of International Relations and cooperation is responsible for formulating South African’s policy on foreign development and aids. Notably, in 2011, South Africa emphasized their stand on foreign sectorial development by focusing on food security, peacekeeping missions as well as conflict resolution. The demand for manufactured goods in the developing countries has led to the increased manufacturing sector in these (BRICS) countries. The danger that is coupled with this is developing dependency in the third world countries.