The Breakup of BRIC

In 2015 Rana Foroohar published an article in TIME “Why the Mighty BRIC Nations Have Finally Broken”. The author starts from the fact that foundation of BRIC was regarded a prosperous opportunity to emerging markets, while this union seems to be exhausted today. She notes that this outcome was predictable since 2012 when most scholars including Ruchir Sharma discussed breakout of the nations. Foroohar (2015) stresses that the reduction of the inflow of foreign financing into emerging markets should be regarded as one of the reasons of short – fall in BRIC countries. In the meantime, there is a dramatical difference in economical patterns between all countries of the union where Brazil experiences recession, the Philippines are rising and etc.

Furthermore, there is a tendency for diverge from each other within one group, while BRIC was founded as a group of the emerging countries that should have provided necessary economic and political assistance in case of necessity. The main point of the author to the article lies in the statement that ”no nation can sustain double digit growth” (Foroohar 2015). BRIC countries have exhausted the formation because they achieved desired threshold in development and it should be substituted by new emerging markets. However, Foroohar (2015) specifies that any fluctuation in the emerging markets in BRIC group will have a direct effect on the financial system in China. This fact reminds role of the globalization in the modern community.

The connection between globalization and current transformation of the emerging markets was established by Shumir in the article ”Broken BRICs”. The author notes that BRIC should finally broke as it is hard to sustain rapid growth for more than a decade. Moreover, he specifies that only 35 countries have status of the developed nations, while the rest are referred to the developing countries (approximately 150 states). With that, the twenty – first century is featured by the resolution of the affairs of the developing countries in a manner that there is no evidence border between all countries in view of the fact that all global problems are applied to all states without exclusion. In conclusion, Sharma aligns in findings with Foroohar that the BRIC is falling, while globalization will only add some new features to the old global economic order, where countries should coexist and assist each other regardless the fact that some of them are more developed. The point is that developed countries will anyway experience recession, while developing countries will grow within certain period of time.

References

Foroohar, R. (2015). Why the Mighty BRIC Nations Have Finally Broken. Retrieved from http://time.com/4106094/goldman-sachs-brics/

Sharma, R. (2012). Broken BRICs. Retrieved from https://www.foreignaffairs.com/articles/brazil/2012-10-22/broken-brics