Bric Countries and Their Role in the World Economy
BRIC Countries and Their Role in the World Economy
Brazil, Russia, India and China are increasingly becoming significant economies and sources of power in the global world order, and it does not make sense to put them on the same level as other developing countries, such as South Africa or Mexico. These four countries have made important investments in multiple areas, such as infrastructure, governance, domestic institutions, social programs, and production that put them at an advantage compared to emerging countries that are at the beginning stages of development and forward progressiveness. Even at the basic level, the absolute size of these four economies is advantageous and outweighs the others by a considerable amount. Renard argues in his paper that “The difference between emergence of BRICs and the rise of the next economies is that BRICs have had a much greater impact on the global economy,” (Renard, 2009). Between 2000 and 2007, the BRICs contributed 27% of the global growth, though this is due in large part to China (Renard). By 2050, the BRIC economies could be as large as or even larger than the G6 countries, resulting in a shift of power, wealth and agenda (Goldman Sachs, 2003). No other developing countries will be nearly this globalized or command influence like the BRIC countries.
As a bloc, they have been able to form a political entity and work together, but as time goes on and their economies grow, each country may become more autonomous and independent of the bloc. Armijo argues that the BRIC bloc is not an obvious set and has neither the same strengths nor similar developmental challenges. He states that “The category of ‘the BRICs’ is thus, strictly speaking, a mirage,” (Armijo, 2007). No matter what, as a bloc or as independent countries, they are still dominant engines of the world economy, surpassing other developing countries.
Although important as a bloc, two of the countries stand out with the greatest growth
Brazil, Russia, India and China are increasingly becoming significant economies and sources of power in the global world order, and it does not make sense to put them on the same level as other developing countries, such as South Africa or Mexico. These four countries have made important investments in multiple areas, such as infrastructure, governance, domestic institutions, social programs, and production that put them at an advantage compared to emerging countries that are at the beginning stages of development and forward progressiveness. Even at the basic level, the absolute size of these four economies is advantageous and outweighs the others by a considerable amount. Renard argues in his paper that “The difference between emergence of BRICs and the rise of the next economies is that BRICs have had a much greater impact on the global economy,” (Renard, 2009). Between 2000 and 2007, the BRICs contributed 27% of the global growth, though this is due in large part to China (Renard). By 2050, the BRIC economies could be as large as or even larger than the G6 countries, resulting in a shift of power, wealth and agenda (Goldman Sachs, 2003). No other developing countries will be nearly this globalized or command influence like the BRIC countries.
As a bloc, they have been able to form a political entity and work together, but as time goes on and their economies grow, each country may become more autonomous and independent of the bloc. Armijo argues that the BRIC bloc is not an obvious set and has neither the same strengths nor similar developmental challenges. He states that “The category of ‘the BRICs’ is thus, strictly speaking, a mirage,” (Armijo, 2007). No matter what, as a bloc or as independent countries, they are still dominant engines of the world economy, surpassing other developing countries.
Although important as a bloc, two of the countries stand out with the greatest growth