Reasons for India and China Making more Economic News than Brazil
Name:Hu Shouyong Student ID:B07036
Research paper supervisor:Dr.Seku Conde
Minzu University of China
2007-2008 Academic Year
[abstract] China,India and brazil are three important developing countries. As three new emerging markets ,they have many same characters as well as different characters. As many scholars found,China and India always made more economic news than Brazil .In this essay , I will try my best to present a study to answer this difficult question.That is why India and China always make more economic news than Brazil .firstly,I will give you a glance about China,India and brazil.Secondly, we will discuss the common character of the three powers. Thirdly, we will discuss the different character 0f the three powers. At last but the most important, we will found the reasons for that India and China make more economic news than Brazil. In the last department,I will explain the reasons from the influence,the consumer market to the sustainable development ability of the three powers.
[keywords] Emerging market China India brazil economic news
Introduce
1.What is Emerging market?
Emerging market, originally brought into fashion in the 1980s by the World Bank economist Antoine van Agtmael, The term is commonly used to describe business and market activity in industrializing or emerging regions of the world. the term is sometimes loosely used as a replacement for emerging economies, but really signifies a business phenomenon that is not fully described by or constrained to geography or economic strength. [1] Another scholar named Chuan Li defined the term as “Emerging markets are countries that are restructuring their economies along market-oriented lines and offer a wealth of opportunities in trade, technology transfers, and foreign direct investment.” [2]
2.What is the attracting phenomenon among the three emerging markets, China, India and brazil?
According to the two different definitions, we can find a thing what the two agreed in. China, India, and Brazil are classic emerging markets. The three countries become more and more important in all kinds of international affairs. Eyes from the world are being attracted by them. However, as many people said ,India and China make more economic news .
3.What is the aim of this essay?
In this essay,I will focus in this phenomenon in economic field ,and try my best to analyze the reasons behind the phenomenon .
Body
1. Introduce to China ,India and Brazil
Basic Information about China
China is situated in eastern Asia, bounded by the Pacific in the east. The third largest country in the world, next to Canada and Russia, it has an area of 9.6 million square kilometers, or one-fifteenth of the world's land mass. It begins from the confluence of the Heilong and Wusuli rivers (135 degrees and 5 minutes east longitude) in the east to the Pamirs west of Wuqia County in Xinjiang Uygur Autonomous Region (73 degrees and 40 minutes east longitude) in the west, about 5,200 kilometers apart; and from the midstream of the Heilong River north of Mohe (53 degrees and 31 minutes north latitude) in the north to the southernmost island Zengmu'ansha in the South China Sea (4 degrees and 15 minutes north latitude), about 5,500 kilometers apart.[3]
In the fifty years since the founding of the People's Republic of China, especially in the two decades since the initiation of reform and opening to the outside world, China's socialist construction has scored great achievements that have attracted world attention. The national economy showed a rapid and sustained growth, the overall strength of the country expanded noticeably, the standard of living of the people improved with the passage of time and unprecedented results have been achieved in such undertakings as science and technology, education, culture, health and physical culture.
In the three decades after the initiation of reform and opening to the outside world, China's economy has undergone a fundamental change from planned economy to market economy. The economic strength of the country was intensified constantly. The standard of living of the people improved gradually. The annual growth rate of GDP averaged around 10 percent and the target of quadrupling the annual industrial and agricultural output vale of the year 1980 by the end of the century was fulfilled ahead of schedule.
According to the data provided by State Statistical Bureau, China's gross domestic product (GDP) grew 11.4 percent year-on-year to 24.6619 trillion yuan (3.43 trillion U.S. dollars) in 2007.[4]China has played an most important role in the world economic systerm.
Basic Information about India
The Indian peninsula is separated from mainland Asia by the Himalayas. The Country is surrounded by the Bay of Bengal in the east, the Arabian Sea in the west, and the Indian Ocean to the south. The Area of the country is 3.3 Million sq km .It occupies a major portion of the south Asian subcontinent. India's population, as on 1 March 2001 stood at 1,028 million (532.1 million males and 496.4 million females).
The average annual exponential growth rate stands at 1.93 per cent during 1991-2001.[5]
Half a Century after gaining its independence, India has overcome all odds and achieved phenomenal standards of economic stability, courtesy the indomitable contributions of various sectors such as agriculture, tourism, commerce, power, communications, science & technology, etc., which have acted as the pillars of the Indian economy. India is today one of the six fastest growing economies of the world. The country is ranked fourth in terms of Purchasing Power Parity (PPP) in 2001. The business and regulatory environment is evolving and moving towards constant improvement.
The International Monetary Fund (IMF) has projected an 8.75-per cent GDP growth for India during the current fiscal, which is 25 basis points higher compared to Reserve Bank of India's projected GDP peg of 8.5 per cent in 2007-08. [6]As IMF said , prospects for India's growth and macroeconomic stability remain good and a higher growth path could be achieved by accelerating key reforms.
Basic Information about Brazil
Brazil is in east-central South America and occupies nearly 50% of the South American continent.Around 58% of Brazil is covered with forests, which include the largest rainforest in the world, located in the Amazon River basin. The country has eight river systems, which carry approximately 20% of the world's fresh water. Official Name: Federative Republic of Brazil It is a federative republic with a multi-party political system. Brazil holds democratic elections for president, senators, representatives, state governors and legislators, mayors and municipal counsels. Brazil is the world leader in electronic online voting (100 million voters.) The area of the country is 3,286,470 square miles The population is about 170 million [7]
Brazil has a moderate free market and export-oriented economy. Measured nominally, its Gross Domestic Product surpasses a trillion dollars, the tenth in the world and the third in the Americas; measured by purchasing power parity, $1.8 trillion, making it the eighth largest economy in the world and the second largest in the Americas, after the United States. Its nominal per capita GDP has surpassed USD9,000 in 2007, due to the strong and continued appreciation of the Real for the first time this decade. Its industrial sector accounts for three fifths of the South American economy's industrial production. The country’s scientific and technological development is argued to be attractive to foreign direct investment, which has averaged US$ 20 billion per year the last years, compared to only US$ 2 billion/year last decade, thus showing a remarkable growth. The agricultural sector, locally called the agronegócio sector, has also been remarkably dynamic: for two decades this sector has kept Brazil amongst the most highly productive countries in areas related to the rural sector. The agricultural sector and the mining sector also supported trade surpluses which allowed for massive currency gains (rebound) and external debt paydown.
2.0 The common character of the three powers.
Firstly, they are regional economic powerhouses with large populations, large resource bases, and large markets. Their economic success will spur development in the countries around them; but if they experience an economic crisis, they can bring their neighbors down with them. Secondly, they are transitional societies that are undertaking domestic economic and political reforms. They adopt open door policies to replace their traditional state interventionist policies that failed to produce sustainable economic growth. Thirdly, they are the world's fastest growing economies, contributing to a great deal of the world's explosive growth of trade. According to the study of Chuan Li, By 2020, the three emerging markets' share of world output will be a big percent. They will also become more significant buyers of goods and services than industrialized countries. Fourthly, they are critical participants in the world's major political, economic, and social affairs. They are seeking a larger voice in international politics and a bigger slice of the global economic pie.[8] As you know, China is one of UN Security Council permanent members. India and Brazil want to be it eagerly.
The similarities are obvious, and can't be missed. To repeat the obvious, for China and India, these are:
(1) Both India and China have population of 1 billion-plus, India at 1.1 billion and China at 1.3 billion. However with present trends, India will exceed China between 2030 and 2050, maybe even earlier. And [...]
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