The BRIC economies have seen significant changes in the recent past in their socio-political-economic spheres. However, as discussed above they do suffer from various inadequacies to be able to reach the development levels of many advanced nations. These problems are complicated by the growing international competition as well the shrinking of global distances. Today, these economies must continue to outperform their competitors, as investors have an easy access to different alternatives.
Brazil wants to be recognized as an international political force and is therefore pushing for permanent membership of the UN Security Council. Brazil was the driving force behind the creation of MERCOSUR and is its dominant member. The country has been especially active in recent WTO discussions, leading a contingent of developing nations against the suggested policy changes of the G8.
The Russian political leadership has been accused of not fully subordinating itself to the law and the executive branch exercises considerable influence over judicial decisions. Executive and legal functions are marked by a lack of transparency and accountability and there are rising concerns that prosecutors have selectively targeted individuals for political reasons. In several high profile cases, for instance, Mikhail Khodorkovsky, the erstwhile owner of oil firm Yukos, was arrested and later sentenced to nine years imprisonment due to alleged involvement in tax evasion and fraud. There were serious allegations by his lawyers and other commentators that the government had conspired against him and had denied him a fair trial by interfering in it extensively. It has also been alleged that Khodorkovsky was targeted for opposing the Putin administration and secretly nurturing political ambitions. He had funded several political parties ahead of State Duma elections to be held in late 2003. Thus, he was looking to use his wealth to seize control of the Russian parliament. Moreover, he had also opposed the government's oil pipeline industry policies.
Although China has embarked on the free market policy, it still continues to protect its economy and many sectors are still not open to competition. For example, China still follows a controlled exchange rate system. On one hand, this has been responsible for low value of Yuan in spite of a burgeoning trade and current account surplus. On the other, this has had impacts on the trade deficit of countries like US. The US trade deficit (not seasonally adjusted) with China which stood at USD 162 billion in 2004 has increased to USD 202 billion in 2005. In order to prevent Yuan from rising, Chinese authorities had been investing huge trade surplus and capital inflows earnings in US Treasury securities. However, burgeoning trade surpluses with China and China's demand for US Treasury bills has forced US Federal Bank to keep interest rates at low level (despite record levels of indebtedness in the US). The global economy in general and Chinese economy faces the threat of any rapid upward correction in the US interest rates, as it would lead to massive asset revaluation, inflationary spikes and recessionary tendencies etc. It was only in July 2005 that China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that refers to a basket of currencies. However, it is alleged that Chinese authorities have not allowed the Yuan to appreciate to the appropriate level.
Local institutions continue to be plagued by high levels of corruption and its eradication has been one of the most important challenges for the communist regime. In order to tackle this problem extreme measures have also been taken. For example Hu Changqing, former deputy governor of South China's Jiangxi Province, was sentenced to death with immediate execution for embezzlement of 5.44 million yuan (US$ 672,028) in 2003, marking the death of the highest ranking official sentenced to death since the establishment of the country.
The Government tries to control and regulate religion to prevent the rise of groups that could constitute sources of authority outside of the control of the Government and the Chinese Communist Party (CCP). For example, despite objections from the Vatican, the Chinese Catholic Patriotic Association supported by the Chinese leadership arranged for the consecration of its senior officials as the bishops of Kunming in southwestern China and Wuhu in Anhui Province in eastern China. The Government has also detained some citizens for providing religious information to foreigners and prevented some religious figures from traveling abroad. For example, Henan Province Christian pastor Zhang Rongliang was arrested on 1st December 2004, and was put in prison on the charges of obtaining a passport through fraud and illegal border crossing later in June 2006; he was sentenced for 7-1/2 years of imprisonment.
