29.03.2012 13:30

BRICS nations economically stronger

This week BRICS nations have a meeting in India to create closer economical relationships. The nations believe that they can do more business together in the future. I just happened to be here in Delhi to meet our customers and was personally surprised to notice that so called western world has not provided much media coverage for this event.

Brazil, Russia, India, China and South Africa now account for 18 per cent of the world's GDP, 40 per cent of its population, 15 per cent of global trade and hold 40 per cent of global currency reserves. Their economies accounted for 30 per cent of global economic growth in 2011. Intra BRICS trade now amounts to 8 per cent of the global trade. China and India get access to the huge minerals, energy and farm resources of Russia, Brazil and South Africa to meet the needs of their people and fast-growing economies. And China supplies inexpensive consumer goods for the expanding middle class of partner countries.

Finnair Cargo has cargo operations in Russia, India and China, and with our services would like to support these nations to be successful in the future. 

Pertti from India

P.S. Yesterday evening Russia's president Mr. Medvedev took the next elevator to his floor in our hotel in New Delhi. 

Another update from the BRICS meeting in India...

BRICS agreed to develop a bank

On Thursday, 29 March 2012, BRICS nations decided to examine the possibility of founding a development bank for developing countries. The five countries signed a master agreement to ensure that purchases from the other members of the group shall be settled in local currency. Once the agreement is in place payments can be made in local currencies instead of converting currencies first into US dollars and reconverting again into trading partner's currency. Obviously this will make trading easier and shows that BRICS nations are stepping out from old trading models. They also blamed the US and Europe for generating excessive liquidity in the global financial system.

These nations will now take major steps to deepen cooperation and break trading barriers. This will obviously increase transportation needs between the countries and air transportation is one vital element in properly planned supply chains.

Finnair Cargo will also take into account these actions when planning its cargo network. Currently we have daily passenger flight connections to Russia, India and China. We also provide full freighter connections to the countries involved.

Pertti from India

PS. On Wednesday four Indian pharmaceutical producers gained approval from the US Food and Drug Administration (USFDA) to sell generic equivalents (copy versions) of certain well-known pharmaceutical products as some patents expired in the US on Monday.