BRICS

There is a new proposed tax increase for South Africans.  The rampant government spending in South Africa is forcing the government to increase their taxes while the effectiveness is remaining the same.  This increase is going to put increased pressure on a already poor country, in which 1% of the population pays 60% of the total taxes.  This increase is going to put more people out jobs and casue significant decreases in wages and investment. For more information follow the link https://businesstech.co.za/news/finance/214459/this-proposed-tax-increase-could-spell-big-trouble-for-south-africa/

China has been one of the largest economies in the world and the largest emerging economy in Asia.  However, India is living in the shadow of China's economy and stratagizing how they can come out of China's shadow and balance out the power in Asia.  India has six different options to balance the power between them and China: staying unaligned, hedging, building an indigenous military power, forming regional partnerships, aligning with China or aligning with United States.  If India were to align with the US they could counter China's power and if  they go the regional and domestic route they could compliment China's power.  China poses many threats to India such as a far stronger military force, their influence in new and established organizations like the UN, China's alignment with Pakistan and other south Asian countries and China's economic power that allows them to spread their influence.  Rajagopalan, R. (n.d.). India's Strategic Choices: China and ...

At their last meeting one of the largest issues the BRICS nations talked about was how to stay relevant in the marketplace today and what they need to do to adapt.  Originally there was only Brazil, Russia, India and China in the group and they added South Africa in 2010.  In more recent years they have invited other emerging market countries to their summits.  The issue with BRICS right now is that Brazil is not the strong emerging market it used to be, Russia is struggling economically and the only reason South America is in is to have influence in Africa.  China and India are the only ones that are not struggling because of their size and are the two most important emerging markets in the world.  The BRICS nations have been overrun by events rather than helping their emerging economies grow and become stronger.  The BRICS nations have transitioned into the CHIPs nations, which stands for China India Plus.  China and India have become the most powerf...

India and Japan are partnering up to construct India’s first ‘Bullet Train’ by August of 2022. During India 2014 election Mr Modi made vast promises to improve the network, and the Bullet Train was one of his key promises.  The project is being funded by a $17 Billion loan from Japan with hopes strengthening ties. Over the next 5 years the project is expected to create up to 20,000 jobs. 4,000 of these jobs will be direct employment and 16,000 will be indirect employment opportunities. With this being first train of its kind in India this project will create new skills opportunities within the employees that will up the worker value within India.  -India launches first bullet train project. (2017, September 14). Retrieved [online] October 11, 2017, from http://www.bbc.com/news/world-asia-india-41251210 -Nayak, G. (2017, September 14). India's bullet train might create 20,000 employment opportunities: SBI. Retrieved October 11, 2017, [online] http://economictimes.indiatimes.com...

As of Thursday October 5th, Russia sells their second S-400 Triumf missile-defense system this year. In September, Turkey finalized their deal with Russia by putting a deposit on a $2.5 billion deal for the S-400 system. Following this deal; October 5th, Saudi Arabia agreed to also purchase the S-400 system. Two deals for $2.5 billion dollars can significantly affect the Russian economy in a positive way, but barely put a dent in the total of 11 sold in 2016 (to China-6 and India-5).  This is also creating tension between the US and the two allies (Turkey and Saudi Arabia), making the US question their long-term loyalty to the Allied Nations.  Brown, D. (2017, October 07). This is the advanced missile-defense system Russia is selling to US allies. Retrieved October 11, 2017, [online] http://www.businessinsider.com/russia-s-400-missile-defense-system-sold-to-us-allies-2017-10/#the-csis-map-below-shows-where-russias-and-natos-air-defense-systems-are-deployed-the-interactive-map-...

As Brazil solidly exits its 4+ year recession their interest rates are expected to drop yet again. Currently, interest rates have dropped from 14% to 8.25%. Inflation rates have fallen from nearly 10% to 2.54% which is well below the Central Banks ideal rate of 4.5%. In addition to lower Inflation and lower interest rates Brazil’s economy will be getting a nice boost from a strong August harvest which will increase their exports and bring more money into Brazil. A revised estimate expects 2018 GDP growth to 1.7% with a potential high of 3% by the end of Quarter 1, 2018.  The BRICS Post. (07 Oct. 2017). Decline in Brazil’s inflation rate nears bottom. [online] http://thebricspost.com/decline-in-brazils-inflation-rate-nears-bottom/#.WduJlmhSyM8

Brazil, possibly the worst faring economy in the BRICS nation for the past four years is finally seeing light on the other side of the tunnel. Just a year after Brazilian President Michel Temer took office the inflation rates dropped from 9% to 2.46% leading to an increase in the Countries GDP. President Temer said “we have just left a very strong recession.”  The BRICS Post. (13 Sep. 2017). Brazil gov't says GDP growth could hit 3% in 2018. [online] Available at: http://thebricspost.com/brazil-govt-says-gdp-growth-could-hit-3-in-2018/#.WdFSNsiGOM8