Introduction: Canada and the BRIC states
CANADA AND THE BRIC STATES The BRIC states, or the BRICs, referring to Brazil, Russia, India and China, were first identified as a group in a 2003 Goldman Sachs publication anticipating the character of the global economy in 2050. (Wilson and Purushothaman) Analysts at the Centre for International Governance Innovation at the University of Waterloo refer to the BRISCAM states, adding Mexico, South Africa and the states of the Association of South East Asian Nations (ASEAN) to the original quartet. (Whalley and Antkiewicz 2005: 137-149) Does the grouping have any inherent logic? Some of participants at the “Canada and the BRIC States” conference, held at Carleton University March 28-29, 2006, argued that it did not – that Brazil, in particular, was not an obvious member of the group. Others suggested that Russia, with its weak economic growth and relatively less success in attracting foreign direct investment (FDI) may be the odd country out in a group of “breakout industrializing countries”. Still, the appellation BRICs has stuck, at least in terms of identifying key new players in an evolving global system. However they are grouped, individually and collectively these are significant global actors to which Canada must pay attention and about which Canadians must know more. This thematic issue of Canadian Foreign Policy on the BRIC states, with papers from the conference mentioned above, is intended to contribute to our knowledge and to the debate on Canadian policy positions on issues of importance to Canada and to these states. The topics chosen, beyond the alwaysimportant one of trade, address priority subjects for Canada: energy security, the environment, and fragile states. What first captures the attention of analysts are the size and populations of the BRIC states. Russia, China, Brazil and India rank first, third, fifth and seventh respectively in terms of size of countries worldwide. In terms of population the lineup is: China and India first and second, Brazil fifth, and Russia eighth. Collectively, the BRICs account for close to 45 percent of the world’s population. Going beyond geography and demography is the speed of economic growth, particularly in China and India, and the potential for continuing development and growing global economic clout. All BRIC states have deregulated their economies to varying extents, and have adopted at least some of the principles of capitalism. China has become the dominant global supplier of a range of manufactured goods, as well as, increasingly, components and intermediate goods that constitute a critical part of global supply chains. (Evans 2005:153) China now stands as the world’s third largest trader. (Lardy 2007) India, too, is increasing its manufacturing output.1 Moreover, companies located in BRIC states are becoming dominant players in the global market share for their products: China’s Lennovo purchased IBM’s PC business in 2006 and, as discussed below, China is investing heavily in natural resources around the world. Indian companies in steel, information technology, pharmaceuticals among others, have been purchasing firms in Europe and North America (The Economist 2006: 69-70). Two Brazilian firms2 and Russia’s Gazprom are cited as major players in the sectors in which they operate. (Foreign Policy 2007: 44) If the BRICs continue to grow at their current pace, by 2025 together 11