The BRIC countries have assumed a more prominent position in the world during the financial crisis, which originated in developed economies. Since they were less affected by the crisis, they are expected to recover earlier than other economies and then make efforts to push forward global economic development. The financial crisis is actually a good opportunity for the BRIC countries and upgrades them to a higher level. For example, both China and India have maintained clear economic growth and are stabilizing forces in the world economy. With its 4-trillion-yuan ($586 billion) economic stimulus package, China will become the first country to recover from the global financial crisis, leading Asia out of the financial turmoil. Economists estimate that China's contribution to world economic growth in 2009 will be 50 percent to 70 percent.

The BRIC countries also face common challenges in the post-financial crisis era. Although economic recession in the United States and Europe gives growing markets a chance, it is still very difficult for the BRIC members to become leaders in the world economy, because their economic structure remains flawed. The U.S. economic development can still seriously influence their recovery from the financial crisis and their future prosperity. The solution for the BRIC countries is to encourage domestic consumption. The financial crisis has accelerated the opening of the four economies, but their ability to withstand the impact of external forces has not increased. Both Russia and Brazil have failed in this respect. China's ability to resist outside pressure is also very limited because it is still in the process of reforming its currency policy and financial systems. Even though India's marketization has made some progress, the sustainability of its industrial development cannot be guaranteed, because its investment environment is not satisfying enough. Besides, many foreign investors suddenly pulled out of the four economies due to the impact of the financial crisis, causing a sharp decrease in foreign trade, investment and economic growth rates, as well as an increase in employment pressure. Therefore, the BRIC countries also face the risks of lower confidence and social unrest.

Differences

The differences among the BRIC countries are mainly in their economic structure and level of development.

First, there are huge differences in their economic structure. Chinese economic growth is based on the manufacturing industry. As the world's most populous country, China possesses ample and inexpensive labor, which helps to drive the country's economic prosperity. In addition to unmatched labor costs, Chinese labor is also growing in quality. Therefore, China has adopted an investment-driven and export-oriented economic development strategy. By attracting foreign capital, developing the processing and manufacturing industry, and exporting labor-intensive products, China has become the world factory and a large trading country. The country's high savings rate leads to high investment. During the past 20 years, China's savings rate has always been twice that of India, Brazil and Russia. Therefore, the biggest difference between development in China and development in the three other BRIC countries is the former's economic growth comes mainly from investment and exports, while the other three rely on domestic consumption. But China's competitive advantage of low-cost labor now faces a huge challenge. Compared with India and Brazil, China has a serious aging problem. In addition, its rapid economic development has caused a series of problems like insufficient raw materials and energy shortages, creating a bottleneck in the country's economic development.

The Indian economy, by contrast, is based on the service industry. The country has a lower savings rate and a higher illiteracy rate than China. It faces coal and oil shortages, and is heavily dependent on energy imports. Its investment in infrastructure and ability to attract foreign investment lag far behind China. On the other hand, India's economic growth comes mainly from domestic demand, meaning the country has fewer problems related to overseas markets. Besides, the Indian financial market plays a bigger role in allocating resources than that of China. India's service industry has seen rapid progress, which not only pushes forward all-round economic growth, but also decreases the country's energy demand. The service industry, which is based on the IT industry, is the engine of Indian economic growth, accounting for more than half of India's GDP. One quarter of the 1,000 biggest enterprises in the United States are using software developed in India. But the Indian economy also has serious shortcomings, such as faulty infrastructure, a high fiscal deficit and excessive reliance on foreign energy and raw materials.

Russia's economy is built on energy. The country possesses abundant oil, natural gas and coal resources, and established an economic growth mode based on exploring and exporting oil and natural gas. Currently, 30 percent of Russia's revenue and 45 percent of its foreign exchange earnings are from oil and natural gas products. The energy industry also dominates its exports and foreign investment. But excessive reliance on energy makes Russia's economic growth unstable. Economists generally believe that economic growth based on high energy prices is short-term and unreliable. Only by adjusting its economic structure can Russia guarantee its long-term and stable economic growth. Its economic growth based on energy has also had a negative influence on the environment. Statistics show that geological exploitation and mineral resource exploration have caused environmental damage that costs the country more than $7 billion annually.

The Brazilian economy is based mainly on agriculture and natural resources. Its agricultural production and exports both top the world, with agricultural products accounting for 35 percent of Brazil's total export volume. Brazil is also the largest mineral products manufacturer and the world's 10th biggest manufacturer overall. Its iron, aluminium and manganese production is very influential. Brazilian Companhia Vale do Rio Doce is the biggest iron ore producer in the world. From 2005 to 2007, the company's iron ore output increased 26.5 percent, and its exports to China grew 78.5 percent. Brazil's telecommunications and financial sectors have also shown strong performance. The Brazilian economy's negative elements are the instability caused by fluctuating prices of world commodities, high government debt and low national investment and savings rates.

The second difference is in level of development. Goldman Sachs economist Jim O'Neill, who introduced the BRIC concept, pointed out that, according to development level, China should top the BRIC, and India and Brazil should share second place, followed by Russia. This is because China's economic scale and growth rate have advantages over the other three, and China is expected to be an "economic giant" whose economy will make up 8.8 percent of the global economy in 2009. The other three economies are only about 2 percent of the world economy each. In addition, among the 53 enterprises from the BRIC countries that are on the list of the world's top 500 companies, 29 are from China, 10 from India, nine from Brazil and six from Russia.