The term BRICS relate to some of the fastest growing emerging economies in the world: Brazil, Russia, India, China and South Africa. The term was coined by a Goldman Sachs investor and was so catchy that it stuck and was adopted by international organizations and the countries themselves. The use of BRICS to describe general attributes of fast growing emerging economies is questionable because although these economies represent a diverse group, their experiences do not necessarily reflect those of other emerging market economies.
This article questions South Africa's inclusion as a member of the BRICS. It questions the validity of South Africa's growth and whether based on its current economic situation it should be included as one of the fast growing economies. Although the grouping of BRICS was arbitrarily chosen, the group has come to represent a lot more for the developing world and the best country to represent Africa within this group might not be South Africa. Ghana or Nigeria might be a suitable alternative.
http://www.economist.com/blogs/economist-explains/2013/03/economist-explains-why-south-africa-brics
I believe that South Africa's inclusion in the BRICS category is completely appropriate. It has the second fastest growing GDP in the world right now at 5.5 % per year behind India. It also has two incredible cities which play a large part in the global economy. Johannesburg and Cape Town are global players in the global economy. With many businesses succeeding in these two cities the country is attracting a lot of foreign investment. Nigeria with all the new oil found in the country could come into play with the future. I believe Nigeria will encounter problems as the country decides what to do with all the oil.
ReplyDeleteOverall I believe South Africa is deserving of a spot among other BRICS countries.