Bric nations become increasingly interdependent

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favorites14.04.2011, 10:22 BBC NewsBric nations become increasingly interdependent

BBC correspondents in China, Russia, India and Brazil assess the state of their economies

China plays host on Thursday to the third summit of Bric nations, as it and other emerging economies increasingly drive global growth.

The leaders of Brazil, Russia, India and China will meet on Hainan Island, along with potential new member, South Africa.

The term Bric was coined in 2001 by Goldman Sachs economist Jim O'Neill to group together the four fast-rising economies.

In recent months their economic might has been matched by their growing political influence.

The four are part of the G20, a grouping of the major economies in the world.

The Bric countries recovered quickly from the global financial crisis in 2008, proving they were not as vulnerable to a downturn in the US and Europe.

With the developed world not looking to do business, these countries are turning to each other, and smaller emerging economies.

Brazil's has traditionally exported commodities and minerals to the US and Europe, but Chinese demand is changing the equation for Brazil's agriculture.

The soybean industry in particular has shown rapid growth in order to meet the demand of China's population.

This week, China authorised some Brazilian pork producers to start exporting to the country for the first time.

"You can see the shift taking place in terms of re-orientation of the Brazilian agriculture towards China," said Benjamin Selwyn, from the International Relations and Development Studies department at the University of Sussex.

China is also hungry for Brazil's other commodities, such as iron ore to manufacture steel, which is being used in its huge construction boom.

Last year China overtook the US as Brazil's biggest trade partner with more than $56bn in trade.

Beyond commodities, Brazil has also found a market in China for some of its manufactured goods.

This week Brazilian President Dilma Rouseff signed a deal in China for Embraer, the third largest maker of commercial aircrafts in the world, to sell planes to Chinese airlines, cashing in on the mainland's fast expanding air travel market.

While China may be the world's biggest consumer, Russia is the largest global producer of many commodities.

Russia has traditionally been - and continues to be - a large natural resource exporter. However, where it exports to has changed dramatically in the past 10 years.

Trade with Asia has increased at the expense of business with the US and former Soviet Union countries.

Asia's economic growth, and the push within Russia to develop trade ties outside its traditional partners in Europe, have now made China Russia's largest trade partner, ahead of Germany.

"China is Russia's economic future," said Roland Nash, of Verno Investment Research in Moscow.

"Both require each other to fuel economic growth. China sets the price for many of the world's natural resources through demand and Russia through supply."

Bric nations become increasingly interdependent