Despite this, South Africa’s economy is considered the most diverse and advanced in Africa, and its position as one of the most politically stable countries in the region is viewed as the reason for its inclusion in the BRICS. Similarly, while the four original BRIC countries are among the 12 largest economies in the world in terms of GDP, whereas South Africa is outside of the top 40, and is only the third largest in Africa. Additionally, Russia, China, Brazil, and India rank among the seven largest countries in the world by area, whereas South Africa is 25 th. In contrast, the other three countries have a combined population of just over 0.4 billion people. It is now a possible outcome, for the first time in roughly a century, but not yet a preordained outcome.China and India have the largest populations of the BRICS countries, with approximately 1.4 billion inhabitants each. Then everyone will slide into economic abyss as corruption will engulf everyone, the West and the BRICS. To an extent to which western societies can keep it together, they will come ahead all over again. Innovation requires robust societies with functioning markets and the rule of law. This is an example of what needs to happen to save the industrial society from sliding into chaos. An electric car, combined with nuclear power, might still save American suburb from economic extinction. The answer to this predicament, if there is one but let's stay optimistic, lies in innovation. This scarcity imposes downward pressure on living standards in the West (in addition to misguided return of market fundamentalism) ,and it is simultaneously imposing an invisible lid on the development that is available to the poorer nations. This is the consequence of XXth century explosive population growth which is abating, but still continuing. The key fact of the modern world is return of scarcity. This outcome is not preordained, but it is likely. In general, the future of BRICS is likely to be similar to the previous incarnation. Anti Western alliance, once led by the Soviet Union, now calls itself BRICS. More things change, more they stay the same. Growth in the BRICs was outpacing that of the advanced economies so significantly that O’Neill predicted in 2003 that their collective GDP could overtake the then-Group of 6 largest developed economies by 2040. At a time when the world was dealing with the fallout of the dot-com bust and the September 11, 2001, terrorist attacks, O’Neill highlighted the BRICs’ vast potential, noting that their GDP growth was likely to accelerate considerably in the ensuing decades.Īt the time, China and India were experiencing rapid economic growth, and Russia, aided by booming commodity prices, was recovering from the post-Soviet meltdown of the 1990s. The story of the BRICS begins with a November 2001 paper by Jim O’Neill, then the head of global economic research at Goldman Sachs Asset Management, called “The World Needs Better Economic BRICs” (the original grouping did not include South Africa). But the BRICS – Brazil, Russia, India, China, and South Africa – struggled to transform themselves from a promising asset class into a unified real-world diplomatic and financial player. WASHINGTON, DC – There was a time when everyone was talking about a group of fast-growing emerging economies with huge potential.
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