A comprehensive coverage behind the countries of BRIC’s present and future, economically and politically. By Ruchir Sharma: Broken BRICs, Why the Rest Stopped Rising.
Briefly, emerging economies are facing a challenge to boost their so-called shining GDP growth, with its slowing figures their stars are fading while investors are looking for the next cycle of investments. The article is worth 30 mins reading, however, here are few points:
- As growth slows in China and in the advanced industrial world, these countries will buy less from their export-driven counterparts, such as Brazil, Malaysia, Mexico, Russia, and Taiwan.
- The uneven rise of the emerging markets will impact global politics in a number of ways. For starters, it will revive the self-confidence of the West and dim the economic and diplomatic glow of recent stars, such as Brazil and Russia (not to mention the petro-dictatorships in Africa, Latin America, and the Middle East).
- The crisis of 2008 has undermined the credibility of all role models (US for west, Euro-zone of Europe, and Japan as Asia leader).
- Tokyo’s recent mistakes have made South Korea, which is still rising as a manufacturing powerhouse, a much more appealing Asian model than Japan.