BRIC: China 's golden opportunity By Century Weekly The economicorganization comprised of Brazil , Russia , India and China , known as BRIC, was originallya concept fashioned by economic theorists. Now it's a bold reality, and thetime for using this powerful but imperfect platform for China 'sadvantage has arrived. The first BRICsummit was held last year in Moscowamid the financial crisis. Member countries held another, one-day summitrecently in Brazil 's capitalBrasilia. A2011 meeting in Beijinghas been scheduled. As BrazilianPresident Luiz Inácio Lula da Silva wrote in a recent article , BRIC has moved far beyondthe level of economic acronym . It'snow a political reality set against the backdrop of the financial crisis, and its members are taking action at a crucial timewhen the world economic fabric isbeing rewoven . BRIC countrieslead the world's emerging market. They account for 42% of the world'spopulation, 14.6% of the global GDP, and 12.8% of global trade. They alsocontribute more than 50% to world economic growth, based on purchasing power parity. If these four countriesmaintain the huge head of steam they've churned over the past 10 years oflively economic growth, some predict they will surpass the six, largest Westerneconomic powers -- excluding Canada -- by 2050 to become the world's strongest economic force. There are threemajor reasons for cohesion amongBRIC members: complementary tradepatterns, similar political views, and their bloc 's openness. Over the past 10years, trade between these four nations alone has grown faster than totalglobal trade growth. China is currently the No. 1 trade partner for Brazil . It's also the No. 3 partnerfor India and Russia . An "openconcept" means BRIC will open to any developing nation with a total GDPexceeding 5% of the global total. Such potential expansion gives the group evenmore vitality. Russia has pushedhardest for the institutionalization of summits. The Russian government hopesall members will forge a single, economic community. This structure would notrule out the possibility of a political alliance. Russian PresidentDmitry Medvedev has said BRIC can create conditions for enhancing globalsecurity by creating a multi-polar, global economy. The trend of connectingthis economic association to security issues began at last year's summit, whichincluded a high-level security meeting. At this year's summit, top diplomatsexchanged ideas on world situations and strengthening cooperation. The mostimportant trade and financial issue discussed at the summit -- and supported byall four nations -- centered on creating a more diverse international monetarysystem. Bloc members also repeated an appeal for structural reforms tointernational financial institutions such as the International Monetary Fundand the World Bank. Gaps andopportunities Unlike other governmentand social organizations, BRIC was conceived amid a crisis and grew up during changing times. Vast differences in governancesystems, cultural divides and immense geographical differences separate thefour members. These raise numerous questions, such as how to position and builda platform for cooperation. Although all fournations claim to be working toward common goals, their aspirations reflect wide discrepancies . Differences ineconomic structures have led to a variety of reactions toward the financialcrisis, for example. Russia especially hastaken an unhealthy tilt by relying too heavily on natural resources to stay afloat during hard times. Its economyslid 8% in 2009, raising questions about its economic competitiveness. BRIC countries alsodiffer in trade policies. As resource exporters, Brazil and Russia seek high prices for their commodities. India and China ,on the other hand, benefit from low prices for raw materials. They also differin their opinion of the U.S. dollar. Although all claim an interest in astable, predictable, and more diverse international monetary system, theChinese have taken heat for not wanting to weaken the dollar in the short term,since they keep one eye on their huge dollar reserves. To boot, China and India are still dancing around along-standing border conflict. Economic and trade ties between Brazil , India and Russia are relatively light, making cooperation among the four countries even moredifficult. China should neitherignore nor blindly exaggerate the potential of the BRIC platform. Since aglobal restructuring in the post-financial crisis era is now taking shape, China shouldgrab this opportunity by exerting the influence it might not get as anindividual nation and raise its voice while helping increase the clout ofdeveloping countries around the world. BRIC -- as wellas another national grouping called BASIC (a climate-change coalition comprised of Brazil , South Africa , India and China ) -- are the kindsof popular concepts that enhance China 's ties with other developingnations. At the same time, China should avoid at all costs becoming caught up in the gears of a machine, orshouldering all the responsibilities. Many say Chinesediplomats now have a duty to create an international environment that benefits China 'sdomestic development. BRIC is an opportunity to do just that. (826 words) (Caixin Online April 28, 2010) Questions: 1. What are the major reasons for cohesion among BRICmembers? 2. Will the economic interactions of BRIC result in thepolitical alliances? Why? 3. What are the differences among the four countries? 4. What are the negative factors which may weaken theeconomic ties among the four countries? 5. How would China make use of the platform toreach the maximum of benefits? Trueor False? 1. The first BRICsummit was held last year in Beijing. ( ) 2. BRIC countriesdiffer in their opinion of the U.S. dollar. ( ) 3. China is currently the No. 2 trade partner for Brazil . ( ) 4. Russia haspushed hardest for the institutionalization of summits. ( ) 5. India and China seek high prices for theircommodities. ( )