BRICS, E7 Economies, and IBSA

[santosh10]

California overtook Russia and Italy to be the World's 8th biggest economy in 2013, well before Russia's economic malaise due to sanctions and plunge in oil prices. Please read more.

i dont really believe in "exchange rate/Nominal GDP" comparison, which always vary with exchange rates. just because Euro has fallen by around 20%, we now find EU's economies low by a big margin too. its just because this doesn't state the "output' of a country, the Gross Domestic Product, which has not much to do with exchange rate variations in international market :ranger:

 

[alphacentury]

"‹Russia ratifies $100bn BRICS New Development Bank — RT Business

Russia ratifies $100bn BRICS New Development Bank

The Russian State Duma has ratified the $100 billion BRICS bank that'll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF.

Russia has agreed to provide $2 billion dollars from the federal budget for the bank over the next seven years.

The bank's board of directors will hold its first meeting in Ufa in Russia in April. Russian Finance Minister Anton Siluanov is likely to become the bank's first Chairman of the Board of Governors, according to Deputy Finance Minister Sergei Storchak talking on the Russia 24 TV channel.

The decision to establish the BRICS bank, along with a $100 billion reserve currency pool, was made in July 2014. Each of the five member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion.

The bank will be headquartered in Shanghai, India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will come from Brazil.

 

[pmaitra]

Get Ready for BRICS plus Germany

Just as much of Europe is stagnant German economic ties with Asia are growing rapidly. Eventually politics has to catch up with economics.

Pepe Escobar [SOURCE]

This article originally appeared at RT.

Room for one more

Winston Churchill once said, "I feel lonely without a war." He also badly missed the loss of empire. Churchill's successor – the 'Empire of Chaos' – now faces the same quandary. Some wars – as in Ukraine, by proxy – are not going so well.

And the loss of empire increasingly manifests itself in myriad moves by selected players aiming towards a multipolar world.

So no wonder US 'Think Tankland' is going bonkers, releasing wacky CIA-tinted "forecasts" where Russia is bound to disintegrate, and China is turning into a communist dictatorship. So much (imperial) wishful thinking, so little time to prolong hegemony.

The acronym that all these "forecasts" dare not reveal is BRICS (Brazil, Russia, India, China, and South Africa). BRICS is worse than the plague as far as the 'Masters of the Universe' that really control the current - rigged - world system are concerned. True, the BRICS are facing multiple problems. Brazil at the moment is totally paralyzed; a long, complex, self-defeating process, now coupled with intimations of regime change by local 'Empire of Chaos' minions. It will take time, but Brazil will rebound.

That leaves the "RIC" – Russia, India and China - in BRICS as the key drivers of change. For all their interlocking discrepancies, they all agree they don't need to challenge the hegemon directly while aiming for a new multipolar order.

The BRICS New Development Bank (NDB) – a key alternative to the IMF enabling developing nations to get rid of the US dollar as a reserve currency – will be operative by the end of this year. The NDB will finance infrastructure and sustainable development projects not only in the BRICS nations but other developing nations. Forget about the Western-controlled World Bank, whose capital and lending capacity are never increased by the so-called Western "powers." The NDB will be an open institution. BRICS nations will keep 55 percent of the voting power, and outside their domain no country will be allowed more than 7 percent of votes. But crucially, developing nations may also become partners and receive loans.

Damn those communists

A tripartite entente cordiale is also in the making. Indian Prime Minister Narendra Modi will be in China next May – and 'Chindia' will certainly engage in a breakthrough concerning their bitter territorial disputes. As much as Delhi has a lot to benefit from China's massive capital investment and exports, Beijing wants to profit from India's vast market and technology savvy. In parallel, Beijing has already volunteered economic help to Russia – if Moscow asks for it – on top of their evolving strategic partnership.

The US "pivoting to Asia" – launched at the Pentagon – is all dressed up with no place to go. Bullying Southeast Asia, South Asia and, for that matter, East Asia as a whole into becoming mere 'Empire of Chaos' vassals – and on top of it confronting China - was always a non-starter. Not to mention believing in the fairy tale of a remilitarized Japan able to "contain" China.

Isolating the "communist dictatorship" won't fly. Just watch, for instance, the imminent high-speed rail link between Kunming, in Yunnan province, and Singapore, traversing a key chunk of a Southeast Asia which for Washington would never qualify to be more than a bunch of client states. The emerging 21st century Asia is all about interconnection; and the inexorable sun in this galaxy is China.

As China has embarked in an extremely complex tweaking of its economic development model, as I outlined here, China's monopoly of low-end manufacturing – its previous industrial base – is migrating across the developing world, especially around the Indian Ocean basin. Good news for the Global South – and that includes everyone from African nations such as Kenya and Tanzania to parts of Southeast Asia and Latin America.

Of course the 'Empire of Chaos', business-wise, won't be thrown out of Asia. But its days as an Asian hegemon, or a geopolitical Mob offering "protection", are over.

The Chinese remix of Go West, Young Man – in fact go everywhere – started as early as 1999. Of the top 10 biggest container ports in the world, no less than 7 are in China (the others are Singapore, Rotterdam, and Pusan in South Korea). As far as the 12th Chinese 5-year plan – whose last year is 2015 – is concerned, most of the goals of the seven technology areas China wanted to be in the leading positions have been achieved, and in some cases even superseded.

The Bank of China will increasingly let the yuan move more freely against the US dollar. It will be dumping a lot of US dollars every once in a while. The 20-year old US dollar peg will gradually fade. The biggest trading nation on the planet, and the second largest economy simply cannot be anchored to a single currency. And Beijing knows very well how a dollar peg magnifies any external shocks to the Chinese economy.

Sykes-Picot is us

A parallel process in Southwest Asia will also be developing; the dismantling of the nation-state in the Middle East – as in remixing the Sykes-Picot agreement of a hundred years ago. What a stark contrast to the return of the nation-state in Europe.

There have been rumblings that the remixed Sykes is Obama and the remixed Picot is Putin. Not really. It's the 'Empire of Chaos' that is actually acting as the new Sykes-Picot, directly and indirectly reconfiguring the "Greater Middle East." Former NATO capo Gen. Wesley Clark has recently "revealed" what everyone already knew; the ISIS/ISIL/Daesh fake Caliphate is financed by "close allies of the United States," as in Saudi Arabia, Qatar, Turkey and Israel. Compare that with Israeli Defense Minister Moshe Yaalon admitting that ISIS "does not represent a threat to Israeli interests." Daesh does the unraveling of Sykes-Picot for the US.

The 'Empire of Chaos' actively sought the disintegration of Iraq, Syria and especially Libya. And now, leading the House of Saud, "our" bastard in charge King Salman is none other than the former, choice jihad recruiter for Abdul Rasul Sayyaf, the Afghan Salafist who was the brains behind both Osama bin Laden and alleged 9/11 mastermind Khalid Sheikh Mohammad.

This is classic 'Empire of Chaos' in motion (exceptionalists don't do nation building, just nation splintering). And there will be plenty of nasty, nation-shattering sequels, from the Central Asian stans to Xinjiang in China, not to mention festering, Ukraine, a.k.a Nulandistan.

Parts of Af-Pak could well turn into a branch of ISIS/ISIL/Daesh right on the borders of Russia, India, China, and Iran. From an 'Empire of Chaos' perspective, this potential bloodbath in the "Eurasian Balkans" – to quote eminent Russophobe Dr. Zbig "Grand Chessboard" Brzezinski – is the famous "offer you can't refuse."

Russia and China, meanwhile, will keep betting on Eurasian integration; strengthening the Shanghai Cooperation Organization (SCO) and their own internal coordination inside the BRICS; and using plenty of intel resources to go after The Caliph's goons.

And as much as the Obama administration may be desperate for a final nuclear deal with Iran, Russia and China got to Tehran first. China's Foreign Minister Wang Yi was in Tehran two weeks ago; stressing Iran is one of China's "foreign policy priorities" and of great "strategic importance." Sooner rather than later Iran will be a member of the SCO. China already does plenty of roaring trade with Iran, and so does Russia, selling weapons and building nuclear plants.

Berlin-Moscow-Beijing?

And then there's the German question.

Germany now exports 50 percent of its GDP. It used to be only 24 percent in 1990. For the past 10 years, half of German growth depended on exports. Translation: this is a giant economy that badly needs global markets to keep expanding. An ailing EU, by definition, does not fit the bill.

German exports are changing their recipient address. Only 40 percent - and going down – now goes to the EU; the real growth is in Asia. So Germany, in practice, is moving away from the eurozone. That does not entail Germany breaking up the euro; that would be interpreted as a nasty betrayal of the much-lauded "European project."

What the trade picture unveils is the reason for Germany's hardball with Greece: either you surrender, completely, or you leave the euro. What Germany wants is to keep a partnership with France and dominate Eastern Europe as an economic satellite, relying on Poland. So expect Greece, Spain, Portugal and Italy to face a German wall of intransigence. So much for European "integration," it works as long as Germany dictates all the rules.

The spanner in the works is that the double fiasco Greece + Ukraine has been exposing. Berlin as an extremely flawed European hegemon – and that's quite an understatement. Berlin suddenly woke up to the real, nightmarish possibility of a full blown, American-instigated war in Europe's eastern borderlands against Russia. No wonder Angela Merkel had to fly to Moscow in a hurry.

Moscow – diplomatically – was the winner. And Russia won again when Turkey – fed up with trying to join the EU and being constantly blocked by, who else, Germany and France – decided to pivot to Eurasia for good, ignoring NATO and amplifying relations with both Russia and China.

That happened in the framework of a major 'Pipelineistan' game-changer. After Moscow cleverly negotiated the realignment of South Stream towards Turk Stream, right up to the Greek border, Putin and Greek Prime Minister Tsipras also agreed to a pipeline extension from the Turkish border across Greece to southern Europe. So Gazprom will be firmly implanted not only in Turkey but also Greece, which in itself will become mightily strategic in European 'Pipelineistan'.

So Germany, sooner or later, must answer a categorical imperative - how to keep running massive trade surpluses while dumping their euro trade partners. The only possible answer is more trade with Russia, China and East Asia. It will take quite a while, and there will be many bumps on the road, but a Berlin-Moscow-Beijing trade/commercial axis – or the "RC" in BRICS meet Germany - is all but inevitable.

And no, you won't read that in any wacky US 'Think Tankland' "forecast."

 

[santosh10]

You're assuming that most of these immigrants are hardworking productive people who look for jobs. Why have you made that assumption? Most Bangladeshi illegals are probably just begging in India and aren't contributing to the economy in any significant way, or even worse taking to a life of crime. The Indians who go to America are intelligent and industrious people. You're not getting that kind of immigration here. Bangladesh is not so much worse off than India that their cream would come to India looking for jobs. That's not how it works. You're just adding to your population which further puts strain on the economy and disadvantages the Indian citizens who you have more of an obligation to, in the first place. Even if they take up jobs, they're replacing Indians who need those jobs. India is not a developed nation like the US where you have expensive domestic labour and people not willing to work the hard jobs. India does not need Bangladeshi immigration to meet its needs. It might be able to handle legal immigration where you pick and choose who gets to immigrate. The precise terms and procedure would have to be fleshed out but sure I can see how legal immigration could benefit India. Right now you're scraping the bottom of the barrel as far as immigrants go and this isn't beneficial in any way.

I haven't even addressed the impact of illegal immigration on the social fabric of India, which is a whole different beast altogether. You're getting culture/religious clashes when those illegals reach a threshold and decide to make residence in cities all over India. They stick together like a cohesive unit, which gives them a good amount of power on the street to challenge the locals as they see fit. This creates a precarious situation on the streets where violence rules the day. Take the example of Assam and the impact that muslim illegals have had there. You're looking at large amounts of havoc here. At the end of the day, illegals just aren't worth it.

.
Standing of BRIC's Firms in World

we have an update of listing of firms of BRIC economies as below:

1st; The World's Most Innovative Companies - Forbes

forbes.com/innovative-companies/list/#page:1_sort:0_direction:asc_search:_filter:South%20Asia_filter:All%20industries

here we find 5 Indian firms having a place among the top 100 of world
.

2nd; Asia's Fab 50 Companies - Forbes

forbes.com/fab50/#page:5_sort:0_direction:asc_search:

here we find 12 Indian firms having a place in this above list of Asia's top 50
.

3rd; World's Largest 2000 Public Companies - Forbes

forbes.com/global2000/list/

here we find 54 Indian firms having a place in the above list. and yes, Pakistan too from South Asia having 2 companies in the above list.....
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=> Big Mouth of Bangladeshi Members, worth for nothing

There is no need to blame or fear Bangladesh. Bangladeshis are basically very nice, innocent people. Blame the Indians. The Hindu leaders in India today are no different from the Hindu kings a thousand years ago - constantly fighting among themselves, allowing other people to grab our land, etc. So blame Hindus for being greedy, so greedy that they're ready to give up our land for votes or other political benefits. Hindus have always been political prostitutes, will even compromise national security for the sake of power or money. Others, like the immigrants, are simply exploiting this tendency. So why blame others?

@Ray
@genius , a nation is made by its people, who altogether make the nation proud by their knowledge/talent/performance. in the above 3 lists of Forbes, a person like me would certainly be surprised to see 2 Pakistani firms also having a place in this top 2000 largest firms of world, true. but, i won't be surprised if i dont see any Bangladeshi firm having a place in any of the above list by the next 10-15 years

Bangladesh, a nation of 200 million people. except having False Indian-Hindu names and enter India, have got some position in government also by the bless of superpower US. here, do you have any credibility within Bangladesh????? something you may say here, as per your name as Genius??

so big mouth of Bangladeshi people, worth for nothing....... saying Indian works in Bangladesh, while we know them Bangladeshis having false Indian IDs, and working there. the Indian IDs, Bangladeshi government 'circulate' among them, after buying Indian IDs, as part of Bangladeshi annual Budget......

you yourself claims to be an Indian Hindu on this forum, working in Bangladesh as a software engineering, as per your claim. while we generally know Bangladesh as a member of LDCs, among the most poor countries of world, hence depends on the "Humanitarian aid" to run the government, similar to other LDC member countries. and their people crossing Indian border, work for the least paid job here in India. we generally talk, "it would take upto 20years+, for Bangladesh to come to the level of Pakistan type countries." :ranger:

//data.worldbank.org/region/LDC

so big mouth of these False Indian ID holders of Bangladesh keep on forums, any firm which may have a place in the above lists by even the next decade?

and yes, Indian firms, no matter who own it, got the above status by the people of India, raised them to this level by their knowledge-performance by the people of India. who sell their products to 400million+ strong middle class of India, and hence making profit within India to get a place in the above list. and my this statement is just concerning those False ID holders in India, "any wealth made within India belongs to the voters of India, and its tax payers, to the people of India based here."
as now even soul of people is transferred by the other nationals, we now have "occupied" bodies of people by other nations too, whoever impressed US in past. but we do hope US/UK to withdraw their support from the rogue nations in future

 

[santosh10]

@Ray @genius

if you try to find any firm from the very poor LDCs countries like Burma, Nepal, even Sri Lanka also, i dont think you would see them too. dont get upset having a look on the state of Bangladesh here....

and here, always remember my post about comparison of Bangladesh with Pakistan as below too. as, Pakistan as a nation, is also known to be a poor country, but its a country standing on its own, isn't part of LDC members too to receive humanitarian aid to run their government like Bangladesh. if we see 2 Pakistani firms in the largest 2000 of world, its because they do stand for something.

and its simply means, big mouth Bangladesh stand for just nothing, write down somewhere..... other than enter here on false Indian IDs, and get high position, by bless of super power US

sir, its really a joke of the day, Bangladeshi people cross borders and enter India in the same way as Indian Professionals migrate to US/West . is this how people get green card in US?

just to complete state of Bangladesh in world, few basics about the current state of Bangladesh as below:-

1st; Bangladesh 'qualify' among the most poor LDCs members as below, the Least Developed Countries, a list where even half of the African countries don't get a place, to receive humanitarian aids to run their country, as below. read it as below

nationsonline.org/oneworld/least_developed_countries.htm

2nd; one more to compare living standard of Bangladesh, the nation as whole. Bangladesh is generally used as a 'benchmark' to compare US with the least of the world, as below. its a good note for Bangladesh, in fact, but it does show them a real picture in world, how much energy do you use as compare to rest of world? comparison of living standard of a child born in US with the least of the world as below. in response to the above post :ranger:

The size of the carbon legacy is closely tied to consumption patterns. Under current conditions, a child born in the United States will be responsible for almost seven times the carbon emissions of a child born in China and 168 times the impact of a child born in Bangladesh. :thumb:

biologicaldiversity.org/programs/population_and_sustainability/climate/

3rd;- Pakistan, which doesn't fall among the LDCs, does so many missile tests, 300+ fighters aircraft they have, a proper military base, along with nuclear too. here, how many missiles Bangladesh have tested, as compare to Hatf series of Pakistan? just one????? they do have around 10-12 Mig29s to fly, can they face a 'face to face', like how Pakistan keep around 100 F16s with among the best pilots too, with 100+ Jf17s, 100+ old mirages too, with a pool of submarines and other military arms? their only strength is to get help from US/UK and enter here as false ID people, and get high positions, on false Hindu names, from back door...

4th; any list of infrastructure developments, like electricity production/world class ports/airport etc? too poor state, not to mention. here again they fall among the LDCs member of Africa, only

5th; whats the literacy rate of these people crossing the border? more than half of the population of Bangladesh are illiterates, only fight for religion, do any job they get here, the least paid people in the eastern region of India.....

US has a policy to keep these people hopeful in India. and as a so big population, they do are a 'people power' with closed to 200million+, a very united Muslim population on the name of Bangla language too. crushing Buddhist and Hindu population in numbers of tens of thousand in unity, is also discussed in this thread.... they have entered here from back door, trying for the wealth of this country somehow, with support from the US/UK too, and this is their only hope for a prosper future

 

[santosh10]

.
i tried to find information about the 'net' FDI outflow-inflow for India for the financial year 2013-14 as below. can someone help with the latest data's :thumb:


=> we have some statistics about Inward FDI and Outward FDI from India as below. here we find Outward FDI from India for the first 10 months of the financial year 2013-14, is higher than the total Inward FDI for the whole 2013-14 financial year :coffee:

total FDI investment made by domestic companies between April-January 2013-14 stand at $29.34 billion; investment declined had declined the previous two years :coffee:

India Inc snaps up overseas assets worth $29.3 billion

//profit.ndtv.com/news/economy/article-india-inc-snaps-up-29-3-billion-overseas-assets-so-far-in-fy14-383076

FDI inflows to India increased 17 per cent in 2013 to reach US$ 28 billion, as per a United Nations report.

//timesofindia.indiatimes.com/business/india-business/India-received-28bn-FDI-in-2013-UNCTAD/articleshow/29540063.cms

 

[sorcerer]

BRICS Сountries to Сooperate in Science, Technologies and Innovations

Russian Prime Minister Dmitry Medvedev has ordered to sign a memorandum on cooperation with BRICS countries in the sphere of science, technologies and innovations, the official website of the Russian government said on Sunday.

The memorandum aims at "forming a strategic system for cooperation in the sphere of science, technologies and innovations between countries-members of BRICS." Apart from Russia, the association also includes Brazil, India, China and South Africa.

The memorandum will be signed by Russia's Ministry of Education and Science on behalf of the Russian government.



BRICS Сountries to Сooperate in Science, Technologies and Innovations. / Sputnik India English - News, Opinion, Radio

 

[santosh10]

//twitter.com/deutschebank/status/575351800066408448

@pmaitra @Ray

how do you people see relation of Oil-Gas pumping by US, and its low prices in world market now? the largest oil importer-consumer of world, the US, whose oil import has been halved since 2008-09:ranger:

i would say, high oil -gas pumping by US since 2008-09 recession brought prosperity in whole world . a very truthful statement, as now after different budget expenditure cuts etc too, US's economy has emerged very strong now. Debt to GDP ratio of US is well maintained at around 100% for the last 1-2 years, as now we find debt borrowing has been reduced to below $500billion, hence coping with the growth rate+inflation this way. US's economy isn't going to face any problem in near future, i see...

and high oil gas pumping by US had a major role in it, which helped all the oil importing countries reduce their deficit, lower inflation we have just due to cheaper energy prices now. even if we find Euro down to 1.1 per dollar now, from its high of 1.4 to 1.0US$ it had just 5-6 months before, hence giving a Competitive Advantage to the EU's firms this way, then its all because US$ is standing firmly, hence supporting the whole world this way at present.....

i would like to see oil prices to be around $70-$80 per barrel during this decade, which would stabilize its price in international market for coming years, and hence helping the US's oil producers remain over Break Even Point of their oil production too :thumb:


=>

forbes.com/sites/jessecolombo/2014/06/09/9-reasons-why-oil-prices-may-be-headed-for-a-bust/2/

9 Reasons Why Oil Prices May Be Headed For A Bust - Forbes

Net U.S. oil imports fell to a 28-year low in 2013 as a result of the shale oil boom: :thumb:

//blogs-images.forbes.com/jessecolombo/files/2014/06/oilimports.jpg

U.S. oil production is expected to grow to 9.2 million barrels a day in 2015 and 9.6 million by 2016, which would make the U.S. the world's largest oil producer, ahead of even Saudi Arabia and Russia. Canada's oil sand boom is expected to boost the country's oil production by 500,000 barrels per day to achieve a total production of 3.9 million barrels per day in 2015, much of which will be exported to the United States.

As the world largest oil consumer, the United States' oil boom has significantly decreased the country's reliance on foreign sources of oil, particularly from the volatile Middle East. This is one of the main reasons why global oil prices have remained relatively flat for the past several years despite the Arab Spring revolutions that led to an 80 percent decrease of Libyan oil production and other disruptions, as well Russia's recent invasion of eastern Ukraine. According to oil analyst Lysle Brinker, oil prices may have soared to as high as$150 a barrel without the increase of U.S. oil production.

A glut of light, sweet crude oil is even forming in the United States as a result of rising domestic oil production as well as the U.S. crude oil export ban that dates back to 1975. Oil companies and oil-producing states such as Texas and North Dakota are pushing to have the export ban lifted so that the U.S. can export some of its newfound energy bounty to the global oil market. While shale oil deposits are found throughout the world, other countries face greater difficulties in their attempts to replicate the U.S. oil shale boom.

//blogs-images.forbes.com/jessecolombo/files/2014/06/ENRG-US-Crude-Oil-Production-at-25-Year-High-01102014-lg.gif

The same technologies that have enabled the oil shale boom – fracking and horizontal drilling – have also led to a nearly 40 percent increase in U.S. natural gas production since 2007. Now one of the lowest cost fuels, natural gas is expected to further reduce the United States' reliance on oil, particularly for electricity generation, heating, chemical manufacturing, and even transportation.

forbes.com/sites/jessecolombo/2014/06/09/9-reasons-why-oil-prices-may-be-headed-for-a-bust/2/

9 Reasons Why Oil Prices May Be Headed For A Bust - Forbes
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=>

//usatoday30.usatoday.com/money/industries/energy/story/2011-12-31/united-states-export/52298812/1

 

[santosh10]

Net U.S. oil imports fell to a 28-year low in 2013 as a result of the shale oil boom: :tup:

//blogs-images.forbes.com/jessecolombo/files/2014/06/oilimports.jpg

US economy since 2008-09 recession

U.S. oil production is expected to grow to 9.2 million barrels a day in 2015 and 9.6 million by 2016, which would make the U.S. the world's largest oil producer, ahead of even Saudi Arabia and Russia. Canada's oil sand boom is expected to boost the country's oil production by 500,000 barrels per day to achieve a total production of 3.9 million barrels per day in 2015, much of which will be exported to the United States. :cheers:

forbes.com/sites/jessecolombo/2014/06/09/9-reasons-why-oil-prices-may-be-headed-for-a-bust/2/

9 Reasons Why Oil Prices May Be Headed For A Bust - Forbes

AA, with the above trend of Oil Gas pumping by the US, a steep oil-gas pumping is seen since 2008-09 recession itself, we find a graph of "Employment Rate" on the US's government website as below too. even if we find most of the economic indicators of US having improved to date, :ranger:

PD, what im willing to discuss here that, Labor Force "Employment Ratio" of US is at its lowest since September 2008, since Lehman Brothers collapse, when it was maintained at around 66.2% during 2001 to September 2008, as below....
since 2008-09 recession, the least ratios of Labor force employment of US is seen at present, at below 63%, while it was maintained over 66.2% till September 2008, till Lehman Brothers collapse.....
hence, it then states, US's "Employment Rate" isn't better since any time 2008-09 recession :ranger:

(while this Labor Force "Employment Rate" excludes house wives, students, early retired people, below below age 16 etc too,...)

//data.bls.gov/generated_files/graphics/latest_numbers_LNS11300000_2005_2015_all_period_M02_data.gif

//data.bls.gov/timeseries/LNS11300000

//data.bls.gov/timeseries/LNS11300000

=> and this is how "Unemployment Rate" reduces in US, as below

"Though the unemployment rate fell in March and April, both drops reflected fewer people looking for work, not more employment,"

//rt.com/usa/160596-47-percent-unemployed-not-looking/

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=> @Ray @jouni

=> further to the above news, stating the lowest "Employment Ratio" of US since 2008-09 recession, we find the first reverse trend of Mexican immigrants of US since 1940-50, since WW2. a net decline in Mexican born population in US since 2008-09 recession itself, as below :ranger:

//cdn.theatlantic.com/static/mt/assets/business/immigration2.png

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[santosh10]

Russia only makes up 2 percent of the world economy, in the scheme of things they are not that important. :ranger:

Russia writes off $20 billion for African countries

Russia has written off the debt of over $20 billion to several African countries, the Head of the Department of International Organizations of the Ministry for Foreign Affairs of Russia, Vladimir Sergeyev, stated speaking at the UN General Assembly. The move seems to be strange and inappropriate under the conditions of the economic crisis. But the Russian authorities think strategically. Why did Russia do that? Why does Russia need Africa?

This write-off is not the first one. In 2008, Moscow wrote off $16 billion of debt of African countries. :coffee: The diplomat said that Russia transferred $50 million to the World Bank's foundation for poor countries. The funds of the organization are directed to the development of the African region to the south from the Sahara desert. To crown it all, Russia allocated $ 43 million to the World Bank program during the last four years. The funds were assigned to improve education in developing countries - especially in African countries. More than 8,000 students from Africa study at the Russian higher education institutions, and more than a half of them study for free. :coffee:

Russia has signed agreements with Tanzania and Zambia within the scope of the "debt-for-development" program. The agreements stipulate that the debt of those countries to Russia would be targeted for their development. The Russian government intends to sign similar agreements with Mozambique, Benin and Ethiopia.

Russia regularly writes off the debts of its debtors worldwide. The debts were formed during the Soviet period, when those countries were buying weapons from the Soviet Union. In September of this year, the Russian Federation "forgave" the debt of $11 billion to North Korea. In the summer of 2010, Russia wrote off 12 billion dollars to Afghanistan, and in the winter of 2008 - nearly 8 billion dollars to Iraq. Over the last 11 years, Russia has written off foreign debts in the total amount of $80 billion and paid $124 billion to its creditors. Here is the list of the largest debts that were written off by Russia:

Afghanistan - $12 billion, Iraq - $11.9 billion, Mongolia - $11 billion, North Korea - $11 billion, Syria - $9.8 billion, Ethiopia - $4.8 billion, Libya - $4.5 billion, Algeria - $4.3 billion, Nicaragua - $4.3 billion, Angola - $3.5 billion.

The figures are not small at all. :disagree: :smoking1: This generosity hides balanced and prudent pragmatism.

Today, major powers are fighting for the African continent, which plays an increasingly important role in the policies of developed countries for their influence in Africa. The United States, China, England, France and India are increasing their political and economic influence in Africa. Russia does not want to be an exception. The interest in Africa is first of all based on its raw materials. In addition, Africa is a huge sales market.

The African continent is abundant with resources. It ranks first in the world in terms of reserves of chrome, manganese ore, gold, platinum, diamonds, vanadium, and phosphate. Africa comes second on the reserves of uranium and copper ores. The black continent takes third place in the world on the reserves of iron ores, gas and oil. Which country would not want a piece of this pie?

Russian business also has its economic interests in Africa. Lukoil, Rusal, Gazprom, Norilsk Nickel, Renova, Alrosa, Rosoboronexport, Rosatom, financial and telecommunications companies - this is not the complete list of companies that operate in today's Africa. Russian companies used to invest in the mining industry. Nowadays, the range of economic cooperation has expanded. However, it should be noted that Africa accounts for only 1.5 percent of all of Russia's investments in foreign countries. This is the reason that makes Russia write off the debts of African countries.

Some experts believe that Russia in its relations with Africa seeks to return to the kind of cooperation that existed during the Soviet Union. This is not true to fact. Moscow understands that the use of previous models of cooperation does not make sense at present time. Africa represents an actual economic interest for the Russian Federation.

Russia's major economic interests on the African continent include:

- gaining access to certain categories of strategic exploitation of mineral resources (diamonds, PGM, gas);

- conducting the joint development of resources to increase the impact of exporting countries in the world economic system;

- the sales of its industrial products,

- exports of services and capital.

Indeed, unlike U.S., China and India, Russia is not very interested in the imports of raw mineral resources from Africa. This is what distinguishes our country from its competitors. It should be clarified that the Russian industry has a certain lack of certain minerals (manganese, chromium, bauxite), which could be imported from Africa. But the Russian economy is deprived of critical dependence on African resources.

The cooperation in the field of raw materials, production, processing and marketing is much more interesting because Russia has an opportunity to become a world leader at this point. In addition to the above-mentioned gas, platinum metals and diamonds, one may add uranium and oil. It is these markets that Russian companies are mostly interested in.

Russia is also interested in the development on the African continent of such sectors of economy as energy, metals and petrochemicals. Russia actively exports weapons and technology introduction equipment to Africa that other countries are not interested in developing in Africa. Thus, the export potential of the Russian industry directly depends on the active state support of the project to modernize the objects that were built on the continent during the Soviet times.

Russia intends to restore its former influence in Africa and gain new areas of capital investment. In September 2006, Putin visited South Africa and Morocco. In June 2009, Medvedev visited four African countries - Egypt, Nigeria, Namibia and Angola. The visits outlined Russia's interest in the resumption of economic and political relations with African countries.

Russian banks also show their interest in Africa's financial sector. VTB Bank (Russia's Foreign Economic Bank) opened branches in Namibia and Angola. Telecommunications companies evince interest in Africa too. Such telecom companies as AFK System, Altimo, MegaFon, Russian concern Sitronics consider the African continent a promising market for their expansion.

To increase its influence on the continent, Russia has to make certain concessions. Writing off billions of dollars in debt is an option, taking into consideration the fact that chances for those debts to return are slim. Most of those debts are the debts of the USSR. It is very difficult for any state to get such old debts back. Therefore, a creditor country looks for best ways to write off debts in exchange for certain privileges.

Former Economy Minister Andrei Nechayev said that any write-off was based on several constituents. First of all, a creditor may resort to this practice when it is almost impossible to have the debt paid back. In this case, creditors try to get something else in return. Secondly, it is political influence, and finally - the financial image of the country. When a country writes off somebody else's debt, it means that the financial situation in this country is stable. Russia intends to enter international capital markets in the near future, so it is necessary to show the strengths of its economy. Therefore Russia acts strategically correct.

//english.pravda.ru/russia/economics/19-10-2012/122511-russia_africa-0/

Russia writes off $20 billion for African countries - English pravda.ru
.

 

[santosh10]

....................

@pmaitra @Ray

UK's economic growth for 2014 revised up

The UK's economy grew at a faster pace than initially estimated last year, revised official figures show.

The economy grew by 0.6% in the final three months of 2014, up from the previous estimate of 0.5%, the Office for National Statistics said.

The unexpected increase meant growth for the year was 2.8%, higher than the earlier estimate of 2.6%.

The revised rate marks the highest pace of annual growth since 2006, when the economy grew by 3%.

An expansion in both production and services as well as household spending helped to drive the increase, the official data suggested.

But the biggest contribution to the revised figure was a strong performance of exports, the ONS said.

'Vulnerable'
The revised figure was revealed alongside data showing that the UK's current account deficit - the gap between the income paid to, and received from, the rest of the world - narrowed in the final quarter of last year.

The deficit in the three months to December was £25.3bn, down from the record-high of £27.7bn recorded in the previous quarter. :ranger:

But for the year as a whole, the deficit widened to 5.5% of GDP, marking the largest annual deficit since records began in 1948.

UBS economist David Tinsley said the large deficit largely reflected weakness in UK overseas earnings "which may turn around if the eurozone recovery heats up".

"Still, regardless of the cause, funding a deficit of this size makes the UK vulnerable in a year when political uncertainty is relatively high," he added.

'Touch pessimistic'
Separately, UK consumer confidence rose to its highest level in more than 12 years in March, a survey from researchers GfK showed.

And separate figures from the ONS showed that the financial well-being of UK households improved last year.

Overall, economists suggested the figures boded well for the UK economy this year.

Analysis: Robert Peston, BBC economics editor

The UK's economic performance, in the round and as it touches people, is definitely improving - and looks good compared with competitor nations, especially those across the Channel.

GDP or national income per capita is 4.8% above where it was at the election - although it is still 1.2% below its peak at the start of 2008, before the Great Recession and financial crisis.

And if we measure our well-being by how much we spend, then things are definitely better - since household consumption per head is 3% higher than it was in the middle of 2010.

That said, many would argue that our recovery remains unbalanced and far too dependent on consumer spending: that we are experiencing "same-as-it-ever-was" growth, of the boom-and-bust variety.

"Given the outlook for consumer spending, the Office for Budgetary Responsibility's forecast of 2.5% for 2015 looks a touch pessimistic, and could come under some upward pressure in the coming months," said Ben Brettell, senior economist at Hargreaves Lansdown.

Martin Beck, senior economic advisor to the Ernst & Young economic forecaster ITEM Club, said he remained confident about its prediction that GDP would expand by close to 3% in 2015.

bbc.com/news/business-32126975

UK's economic growth for 2014 revised up - BBC News

@pmaitra @Ray @jouni

Any more 2008-09 type recession may make changes in world

we may see many funny things in coming years

how do you people see the news of article of last post#115? UK claims to be the second best performing economy of EU, after Germany. while its Public Debt is 80%+ to GDP right now, as compare to its low of around 38% to GDP in early 2008. while Government Debt of UK would be well over 95% to GDP. i generally know UK's and France's national debt is almost equal, around 95% to GDP by end 2014...

while Per Capita Income of UK adjusting inflation, is still 1.2% below to its early 2008 level, as in this article, even after so much debt borrowing since early 2008,?

while in case of Total Debt, which includes, Household Debt+Government Debt+Business Debt, UK find itself to be in match with Japan as below too.....

how you people would analyze this news of UK. i would still consider UK doing reasonably good as compare to its other EU's partners :ranger:

Ray sir, with my knowledge of economy, once i even predicted that UK won't ever achieve its Per Capita Income of Early 2008. as even right now, its more than 7 years have gone since then, isn't it?..... because when you have Debt to GDP ratio above 90%, you then have to do hefty budget cuts, which then undermine growth rate further. as, after hefty cuts on the side of investments, as we saw in case of EU since 2008, what exactly will drive the growth??? more budget cuts and further downgrade of growth prospects.....

a developing country like India achieved around 6.4%+ growth rate per year since early 2008, which was similar to other emerging economies like Philippines-Indonesia-Vietnam etc too, as compare to over 8%+ growth rate of China since then... and then it means that even if a developing country like ASEAN+India etc have high debt, for example, then with passage of time, the Debt to GDP ratio would be further reduced. while in case of OECD economies, considering the hefty cuts in budget expenditure since early 2008 due to having over 90% Debt to GDP ratio, they won't be able to achieve their last 25 years average of 1.5% growth rate too, i dont think so.....
(as, in case of India, its Public Debt is hovering at around 50% to GDP and its 'nominal' GDP increases by around 15% to 20% per year due to high inflation and other value added factors.....)
.

=> also, its worth mentioning that the issues of 2008-09 recession are still present, and if we see any more recession, the current OECD economies won't be able to borrow debt in the way they did during the 2008-12 period :no:. and it may be the case when it may then help these so called industrialized nations get their industries back from China, its good, in fact....... and it will be the case when their per capita income would fall below to that of CHina, hence making manufacturing products cheap in US/EU this way....

but there are some other issues too. if OECD economies gets their industries back from the emerging economies like China+ASEAN+India etc, it would first result in very high inflation in beginning. and as, "high inflation means for high interest payments on the debt they have borrowed to date", they may then have to withdraw their most of the social security expanses to pay interests on the debt they have already borrowed to date, not sure...... hope, we won't see any "social unrest" type thing there, in case of any more recession like 2008-09. as the issues of 2008-09 recession is still present, while more visible now as we saw further movements of industries to developing countries during the 2008-15 period too....

we may see many funny things in coming days, in fact. only the economies like Australia, Canada, Russia, Norway etc look comfortable in such case, whose minerals/resource export accounts for more than 70%+ of their total export. and yes, hefty oil-gas-resource pumping by US too would keep them standing as it is, i sincerely believe :thumb:

//cdn.static-economist.com/sites/default/files/imagecache/original-size/t1-overall_0.png

.

 

[santosh10]

Report on other economies are frequently worrying but not accurate. People in west are 20 time richer than in India if we loss 10 %(which never happen ) we continue to be 18 time richer than India so it doesn't matter. In fact services are cheaper in India so in PPP we are only 5 time richer than India. But when we loss 10% in real terms, we loss only 1% in PPP. If you consider only variation of money it is like make measure of a lenth with an elastic. So don't worry for us!

@Ray @jouni

PD-AA, in 'exchange rates terms', people of US have 25 time higher salaries than Indians, and 80 times higher debt they have, the 'Total Debt' which includes government debt+household debt+business debt.

and the prices of products there would be around 8 to 10 times higher than their prices in India, as per my own experience of buying products in Australia and India...

im just going to buy a coffee here in Delhi, which would required around 20 rupees (30 cents), while for the same type of Medium size flat white in Sydney, i used to pay $3.2. whats the price of coffee in US and France? :ranger:

//cdn.static-economist.com/sites/default/files/imagecache/original-size/t1-overall_0.png

 

[santosh10]

@Ray @jouni

As I said Services are cheaper in India : in a coffee taken in a shop there is 0.15 cents for the service and 0.15 cents for cafee material. And in US service is roughly 20 time more expensive so the price is (20 x 0.15) + 0.2= 3.2
This is for services on which you cannot make effort of productivity.
If now you buy a BMW car, it will cost the same in India and in US (except for taxes etc.. which could be different). You will say yes but it's a foreign car, if I buy an Indian car it will cost less.
But it's not the same car, if India would try to make the same car it will cost the same, because productivity is not the same in India and in the west and it's why the west people are 20 time richer, they are also 20 time more productive. An exemple : when we ask HAL to build Rafale our expectation was that it will be cheaper, but in fact it cost more than in France!

PD-AA, i discuss this issue in details as below :tup:

=>
Income-Debt-Buying Power comparison of Indians, British and Americans
(in exchange rates terms)

Per Capita income of US = $50,000 (around)
Per Capita Income of UK = $38,000 (around)
Per Capita Income of India = $2,000 (around)

25 times difference
.

=> Government Debt
Government Debt per Capita in US = $18.5trillion for 310 million population = $60,000

Government Debt per Capita in India = $1.2trillion for 1.25billion population = $1,000

Government Debt per Capita in UK = $2.2trillion for 64million population = $34,000


=> "Total Debt" Per Capita of US = $60.5trillion for 310million population = $190,00 per person (around)

"Total Debt" Per Capita of India = $2.8trillion for 1.25billion population = $2,500 per person (around)

Total Debt Per Capita on UK = $12.0trillion for 64 million population = $190,000 per person (around)

around 80 times higher


=> buying products in Market, would be around 8 to 10 times difference, as per my experience.

coffee in India at 30 cents and in Sydney its $3.2 (10 times difference)

something we usual buy, a mineral water for Rs15 (30cents) in Delhi, while it was around $2.4, the cheapest one, for a similar one liter mineral water in Sydney.....

the cheapest Chinese take away food at $12 plus $2.0 for water, as compare to i pay around Rs90 ($1.5) a time here in Delhi

renting flat in Sydney starts with around $350 per week, the cheapest, means around $1,500 per month, plus other charges. as compare to renting a flat in my city, Lucknow, at around Rs 20,000 a month ($300).

parking in city, as you first drive to a shopping complex and then buy food whose prices isn't much different than India, for example. and similarly, even if you watch a movie, you pay dollar as compare to rupees in India.

even mobile charge at around 30 paisa per minute in India, less than 0.5 cent, while its around 20 cents per minute in Australia....

even for transportation, its around Rs 20 rupees(30 cents) in Delhi metro, as compare to minimum $3.5 one way in Perth-Sydney metro.....

i would put "on ground" purchasing power difference at around 8 to 10 times between India and US. the prices which matters us, the prices of driving, renting, food, travelling, mobile etc.... :tup:

hence, $2,000 'exchange rate term' per capita income of India would stand at around $15,000, using the factor of '7.5', as per its prices in US, for the what we buy-use the money on the ground, which affect the buying power of people.
hence this way, we find per capita income of India at around $15,000, as compare to per capita income of around $50,000 and $38,000 in case fo US and UK respectively....

//cdn.static-economist.com/sites/default/files/imagecache/original-size/t1-overall_0.png

 

[santosh10]

Where is the problem? if you have an income of $50 000 and a debt of $190,000 you can get a loan at 4% for 20 year and reimburse 1500 by year for your debt it's better than to have 2000 x 10 = 20 000 (taking into accompte the price in India) because you get $ 48 500

Even for England 38 000 - 19000 = 19 000 but after 20 years they will return to 38 000 and in fact they will never reimburse because the debt will disappear with inflation.

@Ray @jouni

Comparing an emerging economy with matured economies

sir, i was mainly responding you about your comment on difference of per capita income of US and India, in 'exchange rates' term. and then i tried to calculate that, $2,000 exchange rates term per capita income of India would stand at around $15,000, considering the on ground prices of product-services we buy. (i have revised post#118, please check it again.)

and it then means that, if government debt on Indians stand at around $1,000 per person in exchange rates term, it then means for around $7,500 per head when we use the same factor of '7.5', as i used in post#118, please check it again. while the government debt on Americans stands at around $60,000 per person and its around $35,000 in Britain.

and it then means to say, the "exchange rate" comparison of per capita income of India and US/UK doesn't show the true picture. if we laugh as per capita income of US and UK is around 25 and 19 times higher than that of India. then we also have enough reasons to laugh as average government debt on the Americans is around 60 times to Indians. while the total debt on Americans and British is around 85 times to that of Indians.....

and as India is a growing economy, similar to other ASEAN+China, we find things keep getting better here. for example, GDP of India would stand at around $2.1 trillion by end 2014, but it would be around $2.4trillion by this year, by the end of 2015. and thats why i considered per capita income of India at $2,000 as its 'nominal' value would keep increasing due to high inflation too. while in case of UK, for example, with reference of BBC's news we discussing here too, we would consider their per capita income unchanged by even 2020, or with only little difference...

and here we discuss this issue. even if 'on ground' per capita income of India would be around $15,000 as compare to $38,000 of UK. we see India rising to $25,000 by 2025 in today's prices, while the UK would hardly achieve $40,000 by 2025 in today's prices. 'if' we dont see any more recession like 2008-09 during this period :ranger:

 

[sorcerer]

BRICS May Create Alternative to Western Ratings Agencies

MOSCOW, April 3 (Sputnik) — Experts from BRICS countries are discussing the creation of a new independent rating agency to counter the geopolitically-biased economic assessment by Western ratings agencies, the Russian sous-sherpa for BRICS said Friday.

China's rating agency Dagong is currently holding talks with economic experts in Russia regarding the creation of a new independent agency, the Russian official said.

After sanctions had been imposed on Moscow by the West over Russia's alleged role in the internal conflict in Ukraine, the Big Three credit rating agencies — Fitch, Moody's and Standard & Poor's – downgraded their rating regarding Russia's credit worthiness.

"After the recent cases with Big Three rating agencies issuing politicized and biased assessments of the state and development prospects of Russian economy, this issue is of particular relevance," sous-sherpa Vadim Lukov told journalists, adding that Russia is not the first country to suffer from "rating aggression and rating dumping."

The Big Three have also published negative outlooks for Mercosur countries for 2015. Mercosur is a sub-regional economic bloc comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela alongside associate countries Bolivia, Chile, Colombia, Ecuador and Peru.


These steps and other questionable actions have prompted criticism from numerous experts and lawmakers worldwide, who believe that the proprietary ratings by the three primary western credit rating agencies are largely based on their interpretation of geopolitics and do not reflect reality.

BRICS May Create Alternative to Western Ratings Agencies
==

If it is..its a good move.
We see the rating agencies being used as a tool in economic warfare .

 

[sorcerer]

BRICS May Create Unbiased Credit Rating Agency

Experts from BRICS countries are discussing the creation of a new independent rating agency to counter the geopolitically-biased economic assessment by Western ratings agencies, the Russian sous-sherpa for BRICS said Friday.


MOSCOW (Sputnik) — China's rating agency Dagong is currently holding talks with economic experts in Russia regarding the creation of a new independent agency, the Russian official said.

After sanctions had been imposed on Moscow by the West over Russia's alleged role in the internal conflict in Ukraine, the Big Three credit rating agencies — Fitch, Moody's and Standard & Poor's – downgraded their rating regarding Russia's creditworthiness.

"After the recent cases with Big Three rating agencies issuing politicized and biased assessments of the state and development prospects of Russian economy, this issue is of particular relevance," sous-sherpa Vadim Lukov told journalists, adding that Russia is not the first country to suffer from "rating aggression and rating dumping."

The Big Three have also published negative outlooks for Mercosur countries for 2015. Mercosur is a sub-regional economic bloc comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela alongside associate countries Bolivia, Chile, Colombia, Ecuador and Peru.

These steps and other questionable actions have prompted criticism from numerous experts and lawmakers worldwide, who believe that the proprietary ratings by the three primary western credit rating agencies are largely based on their interpretation of geopolitics and do not reflect reality.

Read more: BRICS May Create Unbiased Credit Rating Agency / Sputnik International

 

[cobra commando]

BRICS May Engage in New Int'l Orbital Station Project – Russian Space Chief

MOSCOW (Sputnik) – Speaking in an interview with Russian newspaper "Rossiyskaya Gazeta" due to be released on Friday, Komarov said that a new orbital station is under discussion to replace the International Space Station (ISS). "The discussion framework should not be limited exclusively to current ISS participants. We have to consider a possible participation of BRICS countries in the future projects," Komarov said. In late March, Komarov said that Russia and the United States planned to jointly establish a new space station after 2024, when the ISS operation service comes to an end. BRICS group includes Brazil, Russia, India, China and South Africa, which make up about 40 percent of the world's population and command a combined economy of about $16 trillion.
BRICS May Engage in New Int'l Orbital Station Project – Russian Space Chief / Sputnik International

 

[santosh10]

At 7.4%, India is the world's fastest growing big economy

hindustantimes.com/Images/popup/2015/2/10_02_15-metro13a.jpg

India's economy will likely grow at 7.4% in 2014-15, the government forecast on Monday, under a new formula that covers a raft of activities from farm-level livestock to mega infrastructure projects and trendy smart-phone sales.

Revised statistics showed "real" or inflation-adjusted economic growth rate for October-December 2014 was at 7.5% making India the fastest growing major economy in the world, overtaking China's 7.3% growth. :coffee:

According to the new method, real growth rate of India's gross domestic product (GDP)—the measure of the total value of goods and services produced in the country—was 6.9% in 2013-14, higher than the earlier estimate on the basis of old series was 4.7% after factoring in new data on output and spending of under-represented items such as LED televisions.

The growth rate for 2012-13 has also been revised upwards to 5.1% according to the new series which uses 2011-12 as the new "base year" from 4.5% estimated using 2004-05 as the base year.

The base year of the national accounts is changed periodically to factor in structural changes in the economy and present a more realistic picture of macroeconomic aggregates.

The new series, which has been in the works for a couple of years, includes data on unorganised manufacturing and services and income from public private partnership (PPP) projects, among others.

Experts were, however, cautious in reading the new data as signs of definite turnaround. There are anomalies as manufacturing shows an estimated growth of 6.8% for 2014-15, which under the index of industrial production data for factory output will probably be between 2-3%.

"The difference may be attributed to the GDP being based on value added concept while IIP is on production – though the two should ideally converge," CARE, a credit ratings and research firm, said in a report.

Likewise, the finance sector growth will likely expand 13.7% while growth in deposits and credit appears to be tardy.

"While these numbers reinforce the view of the earlier series of improvement, the numbers get magnified significantly. Therefore, overall perception on economy should not be changing," CARE said.

GDP in market prices for 2014-15 has been pegged at Rs. 126 lakh crore, somewhat lower than the level assumed in the budget. "This would make the task of restricting the fiscal deficit at 4.1% of GDP slightly more stringent," said Aditi Nayar, senior economist, at credit rating and research firm ICRA.

hindustantimes.com/business-news/gdp-expected-to-grow-7-4-in-2014-15-based-on-new-formula/article1-1315159.aspx

At 7.4%, India is the world's fastest growing big economy

 

[santosh10]

The Undocumented Part of GDP

also, here its worth mentioning that around 30% to upto 40% GDP of India type developing countries remains "undocumented". in a more clear way, we generally talk about "taxable" income subject to Tax File Number, and also "non-taxable"/illegal income in US/Australia, which is meant for not paying tax on the money you earning. we see this type of earning mainly in small Chinese shops in Sydney, farm houses in regional Australia etc, where you generally dont show your income. just work and get the money on hands...the "cash in hands" jobs ...

while the taxable income, subject to Tax File number, which is known as "documented" part of GDP. the GDP of India, which was around $2.1trillion for the last financial year, and would be around $2.4trillion for the current financial year, considering 6.0% growth rate + 6.0% inflation and other value added factors. hence resulting in around $2,000 per capita income, in exchange rates term, as discussed in the post#113
(GDP:- the Gross Domestic Product.)

and in case of a developing country like India, and similar one like Philippines, Vietnam, Indonesia, China etc, have you heard Indian labors doing usual labor jobs show their income on tax file number? its joke,in fact..... half of the population of India is based on agriculture, in villages, and there would be 'none' of those labors working in those farm lands, who would be aware of paying tax on the money on their salary. in fact, the agriculture is a tax free business in India....

and not only about the labors of farm lands of India, but even in the cities of India, i dont think there might be any of the local labors working in shops etc, who even know paying tax on their income, so that their earning may be 'documented'. in fact, only 2% to 5% people pay tax in India....

hence I would say, the Nominal/exchange rate GDP of India at around $2.4 trillion by end of the financial year 2015, belongs to only upto 70% of people, without documenting the earning of rest of over 30% people... i would say 30%, as this is the number of people below poverty in India, with below $2.0 a day income....

hence we find, 70% of 1.25billion population, means fro around 850million people with per capita income around $3,000 this way :thumb:

the nominal GDP of India at $2.4trillion by the financial year 2015, which doesn't include "undocumented" part of GDP.

but here again, my own experience of buying products/services in US/Australia, i would say $1.0 means for Rs 10, $10 i consider worth Rs100 "on ground". hence this way we find the factor comes down to '6.0' only, as compare to how i used the factor '7.5' in my last post#113 . (considering 1.0US$ = 63 INR at present.)

this way, by using a very competent factor of just '6.0', we find per capita income of 850million people of India, comes at around $3,000*6.0 = $18,000 in terms of "on ground" purchasing power comparison, as compare to per capita income at around $50,000 in US and around $38,000 in UK :thumb:

 

[santosh10]

Don't you think the same thing applies to every country. PPP of India is between 5 and 6000. US runs between 50 and 60,000. That is about as close as you can come


The gross domestic product (GDP) per capita figures on this page are derived from PPP calculations. Such calculations are prepared by various organizations, including the International Monetary Fund and the World Bank. As estimates and assumptions have to be made, the results produced by different organizations for the same country are not hard facts and tend to differ, sometimes substantially, so they should be used with caution.
Comparisons of national wealth are frequently made on the basis of nominal GDP and savings (not just income), which do not reflect differences in the cost of living in different countries (See List of countries by GDP (nominal) per capita); hence, using a PPP basis is arguably more useful when comparing generalized differences in living standards between nations because PPP takes into account the relative cost of living and the inflation rates of the countries, rather than using only exchange rates, which may distort the real differences in income. This is why GDP (PPP) per capita is often considered one of the indicators of a country's standard of living,[1][2] although this can be problematic because GDP per capita is not a measure of personal income. (See Standard of living and GDP)
Several economies, which are not considered to be sovereign states (i.e. the world, the European Union and some dependent territories), are included in the list because they appear in the sources. These economies are not ranked in the charts here, but are listed in sequence by GDP for comparison. Non-sovereign entities, former countries or other special groupings are marked in italics.

AA, im just trying to find out, how much $1.0 worth in India, "on ground". whether you say it PPP or whatever

in a more clear way, how much $30,000 a year salary would worth in India, in terms of paying rent, paying for transport/metro, buying food, mobile phone/usual tea/coffee, mineral water, movie ticket, car repair, and similar other things. the money we use "on ground", which affect our buying power within a country :thumb:

World Bank/IMF etc have many other concerns, other than how much we pay for food, rent, transport and other services. many resource prices, like oil/gas/minerals/gold etc, have same prices. hence we find then considering half of the GDP almost same, because of their same international price. hence overall they hardly use a factor of 2 to 4 in case of a country like India, while buying power of a civilian mainly depends on what we find "on ground", which affect our daily life :ranger:


=>

That's what PPP is for.

what do you understand about PPP?

as per what i know, "PPP or Purchasing Power Parity term is used for measuring the value of goods+services in US$ term in another country, where we dont use US$ as the main currency."