Follow the Money

Follow the Money!

Now here’s an historic photograph for you to reflect on!

Taken in Sao Paolo last week at the Group of 20 finance ministers and showing the four leaders of the BRIC countries (from left to right: Prime Minister Manmohan Singh of India, President Dmitry Medvedev of Russia, President Hu Jintao of China and President Lula da Silva of Brazil) at the end of their meeting to plan their response to the global financial crisis, it shows a united group of leaders ready to play their part in this week’s G20 summit in Washington.

If you need any more evidence to convince you that the world has significantly changed in the last few months, then look no further than this photograph. The BRIC (Brazil, Russia, India, China) countries, an idea put forward by Jim O’Neill, the Head of Economic Research at Goldman Sachs (and sometimes referred to as “a dream” or even “a marketing gimmick” by some sceptics) now represent a significant and irresistible force in geo-politics and the new global economy.

Between them they represent:
* 42% of the world’s population
* Over 30% of global growth (and rising rapidly)
* US$2.5 trillion in foreign reserves
* Over US$3 trillion in consumer expenditure
* Nearly 100% of the world’s chances of surviving the current financial crisis!

Within days of this photograph being taken, China announced its US$586 billion stimulus package, an investment in global growth which dwarfs anything we’ve seen from the developed world so far, makes a mockery of the US response to their own economic crisis, and is the largest single contribution to global growth ever seen. And no doubt there will be more to come!

The “powerful” G7 countries (made up of the United States, Britain, France, Germany, Italy, Japan and Canada) which are now all in recession, have a lot to do to remain relevant as a geo-political, economic and industrial force in the next few years, and we can only assume that the traditional lines of power and influence will be re-drawn in the next few days in Washington. Expect to see the BRIC Leaders playing a prominent role in the announcements that follow the G20 Summit.

As we’ve often said in the BRIC+ Program, just as Britain grew to dominance in the 1800s during the Industrial Revolution, and the US followed in the 1900s, this century will see the BRIC countries emerge to become dominant economic players. The pace at which this has happened is beyond anyone’s wildest imagination, and you will only see further acceleration in the coming weeks and months.

So, my challenge to you is this – become as familiar with the BRIC countries as you are with the US, UK and Europe. Its not too late to play a part in the new world that we now live in. But the risk is that you will play it too safe!

We are currently taking bookings from individuals, companies and associations looking to learn more about the BRIC countries via short one hour presentations and/or half day interactive workshops. There are a few dates available between now and February 2009, so take advantage of the opportunity to re-focus your business planning for next year by contacting support@thinkglobal.com.au.