News, events, analysis, opportunities and developing strategy on "How African Nations Could Bridge the Developing Gap" http://businessafrica.net/africabiz/graphs2.php Sat, 14 Apr 2012 17:08:54 +0200 Sat, 14 Apr 2012 17:07:51 +0200 FeedForAll v2.0 (2.0.3.1) http://www.feedforall.com
It started with the four first listed (BRIC) which head of states gathered at Yekaterinburg/Russia on June 16, 2009, to formally endorse the creation of the international political entity.

The summit's focus was on improving the global economic situation - after the financial crisis of year 2008's fall, and reforming financial institutions.

South Africa officially became a member nation on December 24, 2010, after being formally invited by the BRIC countries to join the group. The group was renamed BRICS – with the "S" standing for South Africa.

- The BRICS are an economic and political powerhouse in the making

Brics entity does not have territorial continuity, it represents, however, a new political and economic force on the world stage.

Indeed, two of Brics members, Russia and China have each a permanent seat at the United Nations Security Council; and together, in current year 2012, the five BRICS countries represent half of the world's population, a combined nominal GDP of US$13.6 trillion, and an estimated US$4 trillion in foreign reserves.

This year 2012, the Brics countries provided 56 percent of world GDP growth, while the share of the richest nations of the West - the U.S. and Germany, is only 9.5. Further, the volume of trade within the Brics grew from US$27 billion in 2002 to US$250 billion in 2011.

And most important, the global wealth of the new entity is based on a productive economy, abundant natural resources - oil and other mineral resources, gold, platinum, coal, and hydro-power. Etc.

As we all know there is an ongoing financial crisis that officially started in 2008, which is not global but mostly centered in the western part of the world.

The successive quantitative easing monetary policy followed by the American Reserve Bank since 2010, that injected trillion of US$ fiat-money into the international monetary system, backed by legislation passed by the Congress, to increase the United States debt ceiling by US$1 trillion every - year, starting from 2011, raised the alarm bell amongst the Brics countries's leadership.

The Brics has therefore decided to accelerate the pace to searching for an alternative monetary system, to save their economy from huge inflation imported from abroad, and to stop predatory economic strategy/tactic to purchasing their national assets with fiat-money fresh from the printing press. ]]> http://businessafrica.net/africabiz/arcvol2/email126.php#for Sat, 14 Apr 2012 17:07:02 +0200