foreign investor in Brazil.
Since domestic savings are not sufficient to sustain long-term high growth rates, Brazil must continue to attract FDI, especially as the government plans to invest billions of dollars in off-shore oil, nuclear power, and other infrastructure sectors over the next few years.
The major international athletic competitions that Brazil will host every year until the 2016 Rio Olympics are also leading the government to invest in roads, airports, sports facilities, and other areas.
Russia
Russia is currently the 6th largest economy in the world in terms of purchasing power. They are the world's 2nd largest oil producing country with up to 14% of world proved oil in reserves and 36% of world gas reserves. A lot has happened in Russia in the last 10 to 20 years. The Russian economy underwent tremendous stress in the 1990s as it moved from a centrally planned economy to a free market system.
Difficulties in implementing fiscal reforms aimed at raising government revenues and a dependence on short-term borrowing to finance budget deficits led to a serious financial crisis in 1998. Lower prices for Russia's major export earners (oil and minerals) and a loss of investor confidence due to the Asian financial crisis exacerbated financial problems.
The result was a rapid and steep decline (60%) in the value of the ruble, flight of foreign investment, delayed payments on sovereign and private debts, a breakdown of commercial transactions through the banking system, and the threat of runaway inflation.
With oil prices low and the economy in a deep recession, the government was unable to collect taxes to cover its large expenditure commitments. The government embarked on a rapid privatisation of state-owned assets, in a struggle for control of the most valuable assets. After the collapse of the USSR in 1991, the world community supported a plan of economic reform.
However in 1992 Russia became plagued with serious poverty and political conflict. This hampered their efforts for global reform. Despite all the pitfalls, there has been significant growth in their economy in recent years.
In fact the Russian economy has been booming in the past decade Russian GDP growth exceeded 8% in 2007; even in 2008, when the global financial turmoil started to bite, GDP growth still reached 5.6%. During the past five years, real GDP increased by more than 40%. 2010 saw Russia's economy return to growth with a 3.8% increase in GDP.
Russia's Economic Development Ministry predicts that the nation's GDP will grow 4.2% in 2011. In 2007, a new long-term development programme and a new industrial policy, respectively, was launched, aiming at the diversification of the production structure towards (high-tech) manufacturing by improving the investment climate, promoting 'public private partnership' and investing more in infrastructure.
From essentially a government led and government controlled economy to something of a more free market base and international trading economy was the starting point towards the Russian economy which we see today. Russia is now an emerging market worthy of the same breath as the other BRIC nations.
The success in Russia can be seen through companies investing here. Examples of Russian investments include Novartis who have committed $500 million to be invested over a 5 year period. The centrepiece of t
