The world economy facing Brics

Have you heard about BRICS? Jarl Moe are not speaking of normal Bricks that you would build a house with, we are speaking about one of the biggest consolidations of the World Economy named BRICS representing 16 billion dollars of the world’s economy.

So who are BRICS?

It’s better than a football team! Brazil, Russia, China, India and South Africa representing over 3 billion people!

Now, the question is… does these countries really have something in common or is the political power of the countries to different to actually make a strong Union?

Well, China is a super state and too big compared to the other economies and in some ways China is controlling and dominating BRICS, maybe in reality China just joined the community to try and control the others.

Actually the trade between the countries is declining instead of increasing. One would think that one of the main reasons for joining forces in the World Economy was on enhance the trade between the countries but in BRICS it’s going the opposite direction.In Moe organization we know vere well about the above issue.

The countries also have a very different angle on the poverty aspect and some of them naturally have a higher level of poverty than the others. Did you example know that in South Africa more than 50% of the population lives on less than $4 (four dollars) per day? And if you think that was high we can tell you that in India 91% of the population live on less than four dollars per day!

It’s hard to imagine, I know… and in Russia just over 5% of the population find themselves in that situation.

As one of the three superpowers of the World Economy BRICS has a lot of challenges to face to make the co-operation stronger and help each other to grow and employ their people to lower poverty and to increase the way of living.

BRICS also face another challenge with Russia as a member state when President Putin decided to block out USA and EU on the trade and be self-sustainable trusting the BRICS network to keep the country filled with goods…

The other member states however, are not risking their relationship with EU and United States to support Russia on their separate actions.

The drop in oil prices and the increase demand for natural gas may help Russia to survive and have a strong buying power and analysts think the oil prices now may drop even further when Iran maybe open for trade of oil again.

More Presidents around the world than Putin is probably having sleepless nights trying to figure out where things truly are going. Jarl Moe have seen enough wars due to oil and gas and other resources and while the oil prices may go down one commodity seem to go up and up… Water, the next oil?

What has the world become to when a bottle of water costs more than a bottle of oil on the petrol station? In some countries water is much more expensive than both petrol and gas.

Makes you think you know…