Professor and Head of the Department
The BRICS economies were founded as a group with comparable qualities, such as a large population and a fast growth rate, and are known as the world’s developing economies. Jim O’Neill, a former Goldman Sachs head economist, was the one who originated the phrase BRICs. In his paper “Building Better Global Economic BRICs” (O’Neill2001), he invented the phrase over 20 years ago. South Africa joined the organization in late 2010, adding a ‘S’ to the abbreviation. Despite the fact that the BRICS are growing world powers, the developing world’s interests remain underrepresented in the international system. Furthermore, economies claim to have more representation in global institutions, such as the IMF, World Bank, and World Trade Organization (WTO).
These economies have all grown more significant in defining the location, organization, and distribution of global production, even though they are at different degrees of integration with the global economy and have progressed along different paths. India is one of the world’s fastest growing economies and a member of the BRICS group of countries. These countries have been linked to improve collaboration in a variety of economic and financial areas. However, due to their related demographics, prospects, and capabilities, these burgeoning economies share several commonalities as well as differences.
“China is the world’s workshop,” according to one source, “Russia is considered as a petrol station,” “India is the Office,” and “Brazil and South Africa offer raw materials.” However, the key question is how connected these economies are in the global economy to understand the degree of integration of BRIC economies. Furthermore, as compared to the wealthy countries of the globe, developing economies have a very high growth rate. It is critical to have a thorough understanding of the business environment.
World Bank has announced overall rankings for the year 2020 towards ease of doing business in which Brazil ranks at 124, Russia at 28, India stands at 63, China at 31 and South Africa at 84. As a result, a comparison of the ease of doing business in the BRICS is necessary to fully comprehend the business climate. Doing business is a critical component of assessing business rules and their implications for operations and company formation.According to the statistics, Russia ranks 28th among the BRICS countries for launching a new firm, followed by China at number 93. Brazil is ranked 176th, making it the most challenging country in which to establish a new firm. According to the extensive study, the number of processes required to start a new firm in Russia is just 04, compared to 07 in China, South Africa, and 11 in Brazil. China has streamlined pre-registration procedures and registration facilities, including publishing, notarization, inspection, and other criteria, according to reports. The progress in offering these services has had an impact on China’s ranking in terms of launching a business.
On the other hand, India not only reduced or simplified post-registration procedures such as tax registration, social security registration, and licensing procedures, but it also recently established online platforms for completing these operations, all of which have helped India raise its ranking. Starting a business is inextricably linked to government authorities’ disclosure of information to the public. New rules have been enacted to increase openness, notably in the area of corporation data sharing.
The driving point here is that greater transparency in the business registration reduces the cost of starting a new business as well as reduces the number of days required to start the given business. The OECD group of countries provide all the information online after charging the nominal subscription fee which increases the efficiency of the whole economy. Better transparency in registry also leads to decrease in bribery. Technological advancement also helps in promoting the transparency like India introduced the online gateways for the completion of commencement of business formalities and procedures.
Further, it is observed that the ease of starting a new business is linked to the least number of procedures required and completing them in the least number of days. Transparency in the registration process also helps in the building the trust among the public and provides the required information to the potential investors on time reducing the cost of the starting a business and hence enhancing the overall efficiency of the system and thereby improving the ranks of the countries in the index of starting a new business. India has been constantly improving upon ease of doing business rankings to restore investor confidence in India as a preferred corporate location.
Professor and Head of the Department
JIMS, Kalkaji
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