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Financial Analytics: Science and Experience
 

Prospects for integration of SADC, SACU and BRICS in terms of Russia's economic development

Vol. 9, Iss. 21, JUNE 2016

PDF  Article PDF Version

Received: 8 April 2016

Received in revised form: 25 April 2016

Accepted: 11 May 2016

Available online: 15 June 2016

Subject Heading: Economic policy

JEL Classification: E60, E61, F01, F02

Pages: 53-60

Medvedev I.V. Tver State University, Tver, Russian Federation
ilya13092@yandex.ru

Importance The article examines trends in the economic development of China, Russia, Republic of South Africa, India, considering probable combination of such regional associations as Southern African Development Community (SADC) and Southern African Customs Union (SACU) and BRICS.
Objectives The research examines and analyzes the current economic situation and interests of Russia, India, China, RSA in case of merger of BRICS, SADC and SACU, and implications of this merger for BRICS countries. I also review the prospects of developing and strengthening trade relations between the above countries and possible benefits for the Russian real sector.
Methods The research is based on fundamentals of a systems analysis and formal logic.
Results I revealed the need, and it is especially acute for Russia, to combine SADC, SACU and BRICS as they pursue common interests. I analyzed the worst case scenario implying the competition among Russia, China and India in the SADC and SACU markets.
Conclusions and Relevance The association of BRICS, SADC and SACU countries is a logic step in the BRICS development, being one of the possible scenarios for Russia to occupy its niche in the African market, considering strong competition with India and China. If the Russian producers face the competition in the African market, the situation will imply risks and undermine investment projects due to weaknesses of the domestic economy.

Keywords: BRICS, South African Customs Union, South African Development Community, common market

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