THE LEAGUE OF WOMEN VOTERS OF SOUTHEASTERN CT
THE LEAGUE OF WOMEN VOTERS OF SOUTHEASTERN CT
BRIC: What’s That and Why Should We Care?
By Judy Dolphin and Julia Porter
Special to The Times
Which nation is highly courted by China for its huge iron resources? Along with Saudi Arabia, which nation is richest in world reserves of oil and natural gas? Which country has an extraordinarily young population, where 50 percent of the people are less than 25 years old? Which country sold the most cars in the world in March 2009?
If you identified, in order, Brazil, Russia, India and China, also known as BRIC, you would be right on the money.
Dr. Bharat B. Bhalla, professor of finance and director of global competitiveness at Fairfield University, predicts that BRIC will account for a larger Gross Domestic Product (GDP) than the current G6 nations by 2040. The G6 is comprised of the United States, the United Kingdom, Japan, Italy, Germany and France.
The League of Women Voters of Connecticut presented the program, “BRIC: Brazil, Russia, India and China – Giants on the Move” at its 40th Annual Symposium on International Relations in April. The panel discussion at Quinnipiac University in Hamden featured professionals from diverse perspectives on these four countries.
Along with Bhalla, the speakers were Zaida Arguedas, deputy executive director of the League of Women Voters of the United States and senior director of LWVUS Global Democracy Programs; Anne S. Evans, district director for the U.S. Department of Commerce Internal Trade Administration; and Alex Liu, vice-president for Global Prepayment Systems, MasterCard Worldwide.
These four countries make up 42 percent of the world’s population. Beyond vast geography and immense populations, they share other challenging characteristics. Their combined GDP represents 10 percent of the entire world and it is rapidly rising. They each have large domestic markets, low labor costs, skilled labor, internal growth, financial resources, technological access, natural resources and tremendous growth potential. They also struggle with poverty, corruption and a large economic divide between the very wealthy and the very poor.
Evans explained that the U.S. Department of Commerce offers commercial diplomacy in each of these (and other) countries. The department provides trade advice to U.S. companies doing international business. Companies are advised to engage in frequent and face-to-face contacts because e-mails and telephone calls do not allow for the relationship and trust building necessary for satisfactory business development.
It is important to cultivate local partners, to be prepared for an extended time frame and to recognize cultural differences, she said. The department informs businesses of the economic climate within a country, including facts about its informal economy, tariffs, lifestyles and marketing, among others. She said all four of the BRIC countries have enormous possibilities for business, as well as huge environmental issues and internal struggles.
Bhalla emphasized, and the other speakers agreed, that the United States should not craft a single policy toward the BRIC nations. Rather, U.S. responses should address the unique issues. He particularly advised the development of a Western Hemisphere market, modeled after the North American Free Trade Agreement (NAFTA), to engage Brazil and other Latin American countries.
He noted that the United States needs to work closely with Russia to help reduce the proliferation of nuclear weapons throughout the world. Our relationship with India also is very important, particularly because it can affect the volatile situation between Pakistan and India. Of course, China exerts vast economic influence in the world and holds the major portion of debt owed by the United States.
Americans often are unaware of the conditions and concerns in other countries, particularly those that don’t make the daily news. The symposium brought out some surprising facts and many concerns for the future. For example, Brazil is a rising giant and is vying for a position on the Security Council of the United Nations.
All of the BRIC nations face important internal and external challenges, ranging from degrading the environment to social and economic disparities to inadequate human rights. Countries around the globe, particularly the United States, must recognize relationships among the BRIC nations, as each is a rising giant and the group must be taken seriously.
Judy Dolphin of Gales Ferry is co-president of the League of Women Voters of Southeastern Connecticut and Julia Porter of Mystic is a League board member. The League is a non-partisan group open to men and women over 18 years old. Call Marilyn Mackay at 860-535-1192 to become a member of this organization that focuses on participating in democracy and advocating policy.