BRIICS in the global economy

February 29, 2008

No, not BRIC countries, the BRIICS: Brazil, Russia, India, Indonesia, China, South Africa. BRICs was a term coined by Goldman Sachs to name today’s new high-growth emerging economies. BRIICS is the term used by the OECD: the rich-country think tank adds Indonesia, probably for reasons of regional, and demographic representativity. Indonesia is a South-East Asian middle-income country with an enormous population (223 million). And South Africa is added there as well too: it’s the most dynamic African economy. ECIPE’s director Razeen Sally is currently working on trade and investment policy of the BRIICs. If you are into graphics and statistics, you might find the powerpoint presentation (link Here: briics.ppt) he used for a speech in Australia recently quite a gold mine. What sticks out is the following:

  • The most protectionist country is India. Across the board.
  • The most expensive country to trade across borders with is Russia.
  • The most complicated country to do business in is Indonesia.
  • The country which is least capable of controlling corruption is no, not Russia (although it does badly), but Indonesia.
  • The greatest foreign investor is Brazil.
  • And the best performer in trade and FDI is China – no surprise.
  • Interestingly, South Africa has the most FDI restrictive regime in the electricity sector – see slide number 14. Given the enormous electricity shortages South Africa is having, maybe it’s time to let investors in….?
  • Yet those giants remain small.: 12.7% of world trade in goods and services (if one adds up the figures on slide 28). China itself has 6.9% of it. These countries however represent almost 3 billion people, nearly half the world’s population.

8 Responses to “BRIICS in the global economy”

  1. Emmanuel Says:

    Very interesting slides, Iana. Thanks for uploading them.

    @ Emmanuel: A pleasure!

  2. Erik Says:

    Hello Iana, as I am the producer of these slides I would like to correct my own work.. (yes, I made a ‘copy’ mistake) Note that the figures for Slide 33 should be the following:

    Brazil 1.8%
    Russia 1.6%
    India 0.4%
    Indonesia 0.2%
    China 2.4%
    South-Africa 0.6%
    World 100%

    The careful reader might already have noticed that the figures resembled a bit to much with Slice 26! Now especially India and China is much lower for Inward FDI Stock.

    @ Erik ( Well, many thanks for these precisions! I am not too much of a thorough reader, so I didn’t notice…;-) Thanks too for the deep, thorough, precise and interesting work you do. And for all the hours that have been put into this presentation, eating into your precious time working on trade in services and health care!

  3. I think, Indonesia gained world recognition from 2007 onwards on their effort in fighting corruption. I think you should put more credit on that.

    • Thanks for your comment. The data I am basing the post on provides a snapshot of a particular situation in a particular moment in time, and it compares countries among each other. It doesn’t show much evolution in time. Let us see in a few years, if such an exercise is done again, whether Indonesia’s rankings in matters of corruption have improved. Fingers crossed!

  4. baskoro Says:

    thank you, now I want to read it more carefully and critically

    good job 😀

  5. mierha Says:

    It’s better you put Indonesia on BRIICS.Whether you aren’t sure whether this country will face the corruption,don’t forget that Indonesia has more interesting tourist places and better view overseas.

  6. Consolata Says:

    wow….i so like this. So informative and eye opening

  7. NC Mangang Says:

    What is the difference between BRICS and BRIICS?
    Or is it the same?

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