Cold Water on the BRICs

Nouriel Roubini has an article on Slate: What if the Emerging Markets Aren’t? He points out that the original BRIC markets, as well as other developing economies that have subsequently been linked to the BRIC concept, aren’t growing very much at the moment, and some of them are fundamentally very weak. Well, like every other framework in business theory, the BRIC concept was a useful tool; based on the data available at the time, it identified a group of countries with the potential for great economic development. Of course, that was ten years ago: things change. Did Jim O’Neill ever predict that the BRIC countries would become independent of Western markets, as Roubini suggests? I’m not sure that he did… Certainly, back in 2003, very few people were predicting the financial crisis that knocked those same Western markets for six in 2007/8 (some were; they were ignored). Mildly interesting, though.

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