Global Macro Investing in the BRIC's
Brazil, Russia, India, and China are collectively known as the BRIC's. The paper in 2003 by Jim Oneil entitled The Path to 2050 brought the BRIC's to the forefront of emerging market investors. The idea is that by the year 2050 the BRIC nations will be as large and powerful if not more then existing super powers. Based on economic and demographic forces the paper might be right.
The basic thesis is that now that the economies of Brazil, Russia, India, and China have embraced capitalism in one form or another that by way of their vast populations and natural resources that they would become the growth drivers of the next 50 years. While we are obviously not there yet the argument can be made that for the most part we are well on the way.
Brazil has grown up a lot over the last 20 years. Having been called the next growth engine since the seventies it appears as though Brazil has finally figured it out and is building a legitimate economy that has a solid banking system, several industries, and a huge oil industry. Having gotten rid of the majority of its Latin American corruption Brazil is well on its way to becoming a major force in the world economy.
Russia is probably the biggest wildcard in this group as they are still trying to figure out how to fully embrace capitalism. Russia has solid hard working people, with many being very educated and competent engineers, computer programmers, etc. Their remaining major issue is that of their leadership. With a leader who is an ex KBG agent things run but do not always run well. If the leadership can figure a few things out then Russia will be able to become very strong in the coming years.
India has over a billion people. That in and of itself is not a big deal, except that they also have one of the largest bilingual populations on earth as well as a large educated segment. This has helped India to become first a humongous outsourcing giant and second to become a real and legitimate technology leader in its own right. They have scientists, engineers, and doctors who are rapidly becoming on par with their western brethren. The next ten and fifty years will be exciting as India continues to improve.
Finally we have China. China has the largest population on earth and has long been thought to be a huge eventual power. This idea is not a thought anymore as it is a complete reality. While they still have tons of challenges ahead of them, China is now a huge player in the marketplace. Previously only a maker of cheap goods, China is rapidly coming up so speed in most fields with a large educated population. Yes, they still have challenges ahead of them but they are improving every day as quality of life for their citizens continues to improve and corruption continues to decline. - 23210
The basic thesis is that now that the economies of Brazil, Russia, India, and China have embraced capitalism in one form or another that by way of their vast populations and natural resources that they would become the growth drivers of the next 50 years. While we are obviously not there yet the argument can be made that for the most part we are well on the way.
Brazil has grown up a lot over the last 20 years. Having been called the next growth engine since the seventies it appears as though Brazil has finally figured it out and is building a legitimate economy that has a solid banking system, several industries, and a huge oil industry. Having gotten rid of the majority of its Latin American corruption Brazil is well on its way to becoming a major force in the world economy.
Russia is probably the biggest wildcard in this group as they are still trying to figure out how to fully embrace capitalism. Russia has solid hard working people, with many being very educated and competent engineers, computer programmers, etc. Their remaining major issue is that of their leadership. With a leader who is an ex KBG agent things run but do not always run well. If the leadership can figure a few things out then Russia will be able to become very strong in the coming years.
India has over a billion people. That in and of itself is not a big deal, except that they also have one of the largest bilingual populations on earth as well as a large educated segment. This has helped India to become first a humongous outsourcing giant and second to become a real and legitimate technology leader in its own right. They have scientists, engineers, and doctors who are rapidly becoming on par with their western brethren. The next ten and fifty years will be exciting as India continues to improve.
Finally we have China. China has the largest population on earth and has long been thought to be a huge eventual power. This idea is not a thought anymore as it is a complete reality. While they still have tons of challenges ahead of them, China is now a huge player in the marketplace. Previously only a maker of cheap goods, China is rapidly coming up so speed in most fields with a large educated population. Yes, they still have challenges ahead of them but they are improving every day as quality of life for their citizens continues to improve and corruption continues to decline. - 23210
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posted by X - Men @ 5:47 AM
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