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Comparison between the countries of
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G7 and GEA (BRIC)
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Indonesian Series
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16–23 MAY, Jakarta & Bali
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Analysis of the countries of the G7
(The ranking for each country will be the number written in blue)
What we realize from the country size is that it actually does not have any impact
on the richness of a country; however, if we join it with the numbers of inhabitants, then
we can know the density of population per country, which can actually be related to the
economical situation of the country. We can indeed observe that in the countries of the
G7, the density of population is not as important as in the countries of GEA.
We can also notice that the fact that a country has a big area does not mean that it
will necessarily have more inhabitants, like for example Canada. We can explain that due
to the fact that some areas are really difficult to live in, most of the time because of the
climate.
• GDP
The countries that form the G7 are the richest countries in the world. For that
reason, as we can see on the chart, they have a high GDP and they are at of the world
rank.
• Economic growth
The G7 countries have a percentage of real growth rate around the 3%. This
index shows how a country improves its economy, and those countries that are already
developed are at the end of the world ranking, because they don´t have as much margin
for improvement as developing countries.
Each country has more or less the same volume of imports and exports. But we
can see that all the countries have more imports than exports except of Germany, i.e.,
they have a deficit in their balance of payments. Due to the fact that Germany has an
outstandingly big industrial system, they have a remarkable volume of trades compared
to the rest of the group –only the USA has a higher volume of trades, but it is a much
bigger and much more populated country.
• Public debt
The richest countries that form the G7 have a Public debt around the 60% and
70% of the GDP. But two of those countries have a big public debt; those are Japan and
Italy, which have a public debt level over 100% of their GDP.
This entry gives the dollar value for the stock of all financial assets
that are available to the central monetary authority for use in meeting a
country's balance of payments needs as of the end-date of the period
specified. This category includes not only foreign currency and gold, but also
a country's holdings of Special Drawing Rights in the International Monetary
Fund, and its reserve position in the Fund.
The Commitment to Development Index (CDI) shows how much rich countries
are helping poor countries via seven key linkages: aid, trade, investment, migration,
environment, security, and technology. The CDI then takes the average for an overall
score. These Scores are on a standard scale and 5 averages.
As we can see, all the countries that form the G7 are around the average except of Japan.
Disaster risk index is not easy to calculate since it can be really different
disasters, such as floods, storms, earthquakes… The countries of G7 do not have a better
or worst disaster risk indexes, in some of them it is very low while others have a
noticeable risk. However, what is important here is not only the level of disaster risk,
given that this is a natural factor which, anyway, cannot be changed, but also the way
these countries are ready to react to such disasters, if they have some possibilities to
protect their population and what are the “B plans”. Sometimes, it is possible to prevent
a disaster, but not always, so it is important to be prepared for every possible scenario,
which is quite the case in the countries of the G7.
The primary energy mix varies from one country to another; however we can
observe that the fossil energies (oil, coal…) are the most common. Nuclear energy is
really used in different ways depending on the countries, and the renewable energies do
not play a really important roll, except of Canada where it represents one quarter of the
total energy used.
• Literacy rate
All the countries of G7 have an average literacy rate of 99%, which is, even if not
perfect, really high. This fact is really important in the explanation of the power of these
countries. Indeed, education is mandatory in these countries, so if people are educated,
they can have more important roles in their society and be part of it. It is also the way to
be open to the outside world and to help to globalism and exchange between
civilizations.
• Health
The health index shows us that the countries from the G7 group benefit of a high
quality of health care. The life expectancy is around 80 years old in these countries,
which is pretty old, and the number of physicians is high compared to other countries.
The water stress index is also very variable among the different countries of the
G7 since this is, once again, a natural factor which cannot be changed by humans. The
countries of this group are differently concerned with this issue. Nevertheless, northern
countries are more demanding of water due to the fact that they use it for several
reasons, as a need or even as a distraction, for example with swimming-pools, which are
not a primary need. As we said previously concerning disaster risk, what makes the
difference between G7 countries and less developed countries is the way to face this
threat, and how to prepare to possible upcoming events. The problem here is that sweet
water is not something really easy to find as a resource, and since we know that the
water stress index is growing because of the global warming, there is not much to do.
Nevertheless, experts still try to find some solutions to this problem.
• Number of prisoners
• Suicide rate
• Transparency index
The transparency index is relatively high (more than 70%) in all countries of G7
except of Italy. The governments of these countries really want to work together with
their citizens. Moreover, since the citizens are highly educated, they want to know what
happens in their countries and are more likely to ask for it. This is part of the policy of
the G7 countries. Italy is totally different because it is famous for its mafia and we all
know that the corruption is pretty high there. Despite that, Italian people are not likely
to complain about it since it has always been like that and this is part of their culture.
Inhabitants per
Country Country size (km2) inhabitants km2
Brazil 8.514.877 (5) 193.364000 (5) 22 (192)
China 9.596.961 (4) 1.339.190.000 (1) 140(79)
India 3.287.263 (7) 1.184.639.000 (2) 382 (30)
Indonesia 1.904.569 (16) 234.181.400 (4) 124 (87)
Mexico 1.964.375 (15) 108.396.211 (11) 57 (148)
Russia 17.098.242 (1) 141.927.297 (9) 8(220)
South Africa 1.219.090 (25) 49.991.300 (25) 41 (168)
Turkey 783.562 (37) 72.561.312 (18) 95 (111)
We can observe that all of these countries have a large population and a large country
size. We notice there is no clear relation between country size and population. For
example Russia has almost double the size of China but the population of China is more
than ten times bigger.
• GDP
This shows that this group of countries is a critical participant in the world's major
political, economic, and social affairs. They are seeking a larger voice in international
politics and a bigger slice of the global economic pie. However, there is a huge gap within
the group: on one hand we have South Africa and Turkey with the lowest GDP of the
group and on the other hand China with a much higher GDP than the rest.
Economic
Growth
Brazil 7.5% (18)
China 10,30% (7)
India 8,30% (12)
Indonesia 6% (46)
Mexico 5% (64)
Russia 3,80% (94)
South Africa 3% (124)
Turkey 7,30% (20)
All of these countries are restructuring their economies along market oriented
lines and offer a wealth of opportunities in trade, technology transfers, and
foreign direct investment. According to the World Bank, the five biggest emerging
markets are China, India, Indonesia, Brazil and Russia.
They are the world's fastest growing economies, contributing to a great deal of the
world's explosive growth of trade.
All countries of the GEA group have a rather well-balanced balance of payments. India,
Mexico and South Africa have deficit (higher imports than exports), while the rest have
surplus.
GEA countries have a public debt below 50% of the GDP except of India and Brazil, and,
as a group, they are much less indebted than the G7 countries. Russia has an
outstandingly low level of debt within the group.
Foreign currency
reserves (in billion)
Brazil 290,9 (6)
China 2622 (1)
India 284,1 (7)
Indonesia 96,21 (22)
Mexico 116,4 (18)
Russia 483,1 (3)
South Africa 45,52 (32)
Turkey 78 (23)
It is remarkable the difference between China’s level of foreign currency reserves and
the rest of countries in the group.
This index shows the amount of money given to the developing countries by the richest
countries in the world, and none of these is neither among the richest countries in the
world nor developing countries (anymore).
Brazil 11th
China 133rd
India 101st
Indonesia 75th
Mexico 95th
Russia 33rd
South Africa 93rd
Turkey 91rd
The Environmental Sustainability Index (ESI) was a composite index published from
1999 to 2005 that tracked 21 elements of environmental sustainability covering natural
resource endowments, past and present pollution levels, environmental management
efforts, contributions to protection of the global commons, and a society's capacity to
improve its environmental performance over time.
Except of Brazil (which is rather high in the ranking) and Russia (which is more or less
like the G7 countries in this regard), all of them have way lower rankings in
environmental sustainability than the G7 group.
All of these countries have, at least medium risk, being either high or extreme in more
than half of them. However, most of them are so big that this risk is may not be
representative for all the area of the country.
Brazil China
Coal Nuclear OilOthers
Nuclear
Natural gas 7% 2% 3% 1%
Hydropower
1%
8% 17%
Oil
Hydropower 0%
42%
14%
Coal
Biomass 78%
27%
India
Nuclear Indonesia
1%
Oil
Coal
24%
27%
Coal
40%
Oil
50%
Nuclear
2%Mexico South Africa
Nuclear
Oil Renewable &
Coal 2%
13% waste
5%
10%
Hydropower
0%
Natural gas
Natural gas
33%
Oil 3%
54%
Coal
Hydropower 72%
Others
3%
3%
Russia
Nuclear
Turkey
Nuclear
5% Oil 0%
Coal 18%
14% Coal Oil
29% 31%
Others
0%
Hydropower
6%
Others
1%
Hydropower
8%
Natural gas Natural gas
57% 31%
Indonesian Series – Prof. Anis
In general, these countries use much more coal than the G7 countries, which is a
relatively abundant and cheap source, but extremely polluting, and they use much less
nuclear energy.
• Literacy rate
The literacy rate in this group of countries has experienced a remarkable increase over
the last years, yet despite this, it is still noticeably lower compared to the countries in
the G7 group, especially in India, where still more than one quarter of the population
does not have basic education.
• Health index
Health index(infant
mortality rate) Health index (doctors per
(deaths/1000births) 1000 inhabitants) Health index (life expectancy)
Brazil 21,17 (93) 2,06 72,53 (124)
China 16,06 (112) 1,51 74,68 (95)
India 47,57 (51) 0,6 66,8 (161)
Indonesia 27,95 (72) 0,13 71,33 (137)
Mexico 17,29 (104) 1,5 77,47 (72)
Russia 10,08 (147) 4,25 66,29 (162)
South
Africa 43,2 (57) 0,77 49,33 (216)
Turkey 23,94 (84) 1,3 72,5 (126)
This index shows that although these countries’ standard of living has improved over
the last years –and is higher than in developing countries- it is still nowhere near as
good as in the G7 countries, specially in the case of South Africa, where life expectancy is
not even fifty years.
It is a criticality ratio, which implies that water stress depends on the variability of
resources. Water stress causes deterioration of fresh water resources in terms of
quantity (aquifer over-exploitation, dry rivers, etc.) and quality (organic matter
pollution, saline intrusion, etc.)
As the resource is becoming scarce, tensions among different users may intensify, both
at the national and international level.
• Number of prisoners
Number of
prisoners
Brazil 308.304 (5)
China 1.549.000 (2)
India 313.635 (4)
Indonesia 84.357 (13)
Mexico 172.888 (9)
Russia 846.967 (3)
South Africa 181.944 (8)
Turkey 64.051 (20)
In every country in this group the rate is remarkably higher among men than women
(except in China, where it’s higher among women than men).
We also notice a clear and inverse relation between the hours of light in the country and
the suicide rate.
• Transparency index
Transparency Index
Brazil 37% (69)
China 35% (78)
India 33% (87)
Indonesia 28% (110)
Mexico 31% (98)
Russia 21% (154)
South Africa 45% (54)
Turkey 44% (56)
The transparency index is below 50% in all countries of this group, being especially low
in the case of Russia. This means that the governments of these countries are not
transparent with their citizens.
In both the G7 and the GEA groups we find countries with high population density –
Japan or Germany in the G7, and India or China in the GEA- and countries with average
or low population density.
Regarding the country size, countries in the GEA group are, in average, bigger than in the
G7.
• GDP
Despite being the G7 countries more developed than GEA countries, in this group the
average GDP is slightly higher than in the G7. However, we find big differences within
the GEA countries –China ranks 2nd while South Africa ranks 25th- while in the G7 all 7
countries rank in the top 15.
• Economic Growth
Countries in the G7 group are growing around 3% in average –which means they all
rank between 100th and 173rd in economic growth rate- , while GEA countries have in
general a much higher growth rate -10.3% China, 8.3% India, 7.5% Brazil etc.-, except of
South Africa (3%) and Russia (3.8%)
In both imports and exports, countries of the G7 rank on the top 11 countries in the
world, while GEA countries -except of China, which ranks 1st in exports and 2nd in
imports- are spread in both cases between the 14th and the 37th position.
Regarding the balance of payments, in the G7 3 of them have surplus and 4 have deficit,
and in the GEA 3 have deficit and 5 have surplus.
• Public Debt
We notice a clear trend to higher public debt among G7 countries compared to GEA
countries, given that (except of Canada), the less indebted country in the G7 has a
similar level of debt to the most indebted country in the GEA. However, in GEA the
figures are much more spread.
In the GEA group we find four countries-China, Russia, Brazil and India- in the top 7
world foreign currency reserve while the rest of the group is spread below the 20th
position. On the other hand, in the G7 group all countries –except of Japan, which ranks
2nd- are grouped around 15th position.
As we can appreciate from the data shown below, countries included in the G7 group
have a much higher awareness for environmental sustainability than GEA countries,
given that all G7 countries rank above the 69th position in this index (we even find one of
them in the 6th position: Canada), while GEA countries are all –except of Russia (33) and
Brazil (11)- spread between the 75th and the 133rd positions.
We can notice a huge difference between both groups, while in the G7 half of the
countries have either medium or low risk, in the GEA group all of the countries have at
least medium risk, being either high or extreme in more than half of them.
The main difference between these two groups´ primary energy mix is the higher level
of fossil sources like oil and coal –specially coal- among GEA compared to G7 countries,
which on the other hand tend to use much more renewable and nuclear energy sources.
This means GEA countries are much more polluting than the G7 group, that has a higher
awareness of sustainable development as we have seen in the environmental
sustainability index.
• Literacy rate
The literacy rate is really high in the countries of the G7, while, even if it is improving the
past few years, in the countries of the GEA, there is still around 10% of the population
which does not know how to read or write. These figures are changing, but it takes some
times. However, education brings a better level of life and helps the country to globalize,
• Health index
We can observe a real difference about health between the two groups. While in the G7
countries, the infant mortality is low, the life expectancy is high and the number of
physicians is also high, this is the opposite for the countries of GEA, especially for India
and South Africa. What we can conclude about it is that these countries prefer to focus
on business and globalization than on improving their medical care system. However,
the emergence of these countries could be an opportunity for them to develop better
health care.
As we already said it previously, water stress index cannot really be compared between
the two groups of countries because it depends on natural resources and does not have
anything to do with the personal involvement of the countries. So, as we can see it in the
charts, it is really variable between all countries that we are talking about.
• Number of prisoners
Once again, the figures here do not say a lot of things since in both groups, there are
countries with lots of prisoners. However, on the ranking, the countries of GEA seem to
have a higher rate of prisoners. How to explain it ? Well, first of all, the laws are not the
same, and some of these countries are really more strict. Thus, for the same reason, one
person of a country of the GEA could go to prison while in a country of the G7, this
person would remain free.
• Suicide rate
Except for Russia, the suicide rate is relatively lower in the groups of GEA than G7. This
can seem difficult to understand due to the fact that the citizens of these countries do
not have the same level of life, however we can mention the fact that in these countries,
the religion is quite important and suicide is resented.
• Transparency index
We can observe a real difference between the overall transparency index of G7 and GEA.
While it is quite high in the countries of G7, the countries of GEA do not have a
transparency index over 45%, which is already pretty low. This is not a good point when
a country wants to globalize because it can be a cause of refusal for joining
organizations, or other exchanges with countries with a higher level of transparency.
Before closing this brief overview, let us mention two recently inaugurated
informal forums, both based on the external calls for a burden sharing. One, with a
jingoistic-coined name by the Wall Street bankers1 - BRI(I)C/S, so far includes two
important Asian economic, demographic and political powerhouses (India and
China), and one peripheral (Russia). Indonesia, Turkey, Saudi Arabia, Pakistan,
Kazakhstan, Iran are few additional Asian countries whose national pride and
pragmatic interests are advocating the BRIC membership.
The G–20, the other informal forum, is also assembled on the Ad hoc (pro bono)
bases following the need of the G–7 to achieve a larger approval and support for
its monetary (currency exchange accord) and financial (austerity) action
introduced in aftermath of (still unsettled) financial crises.
Nevertheless, the BRIC and G-20 have not provided the Asian participating states
neither with the more leverage in the Bretton Woods institutions (besides a
burden sharing), nor have they helped to tackle the indigenous Asian security
problems. Appealing for the national pride, however, both informal gatherings
may divert the necessary resources and attention of Asian states from their
pressing domestic, pan-continental issues.
1
The acronym was originally coined by Jim O'Neill, a chief global economist of Goldman Sachs, in his 2001 document
report: “Building Better Global Economic BRICs”. This document was elaborating on countries which may provide the West
with the socially, economically and politically cheap primary commodities and undemanding labor force, finally suggesting
to the West to balance such trade by exporting its high-prized final products in return. The paper did not foresee either
creation of any BRIC grouping or the nomadic change of venue places of its periodic meetings. O’Neill initially grouped
Brazil, Russia, India and China, although at the recent meetings South Africa was invited (BRICS) with the pending
Indonesia (BRIICS).