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.
Now that these nations have embraced capitalism and started to throw out corruption they are able to better compete for investment capital with other nations. Due to this and the fact that they have huge and growing populations along with large natural resources and you have a good chance for a big move on their way to power and influence.
Long called the next great growth story it looks like this time Brazil might actually pull it off. It has a large and stable financial system as well as some huge oil and gas reserves. In fact it is one of the largest non OPEC oil nations in the world. Brazil is also one of the larger natural resource countries with millions of acres of farmland and forest. Basically Brazil now has the infrastructure to pull off the great feat of leaving the emerging markets for the developed ones.
Russia is next and like Brazil has huge oil and gas reserves and resources. In addition to natural resources Russia also has a very educated population with many scientists. The only thing that Russia needs in order to further progress is to fully purge itself of corruption that is fairly rampant in the government, But hey when your leader is a former KGB agent what do you expect? Anyways if they can get past the Putin issue then they will become one of the most powerful economic forces in the world.
India has one of the largest populations in the world and has a large educated populations that speaks English. Because of this they are the kings of outsourcing. Have you ever called up customer service and gotten an Indian for Dell, Apple, Etc? Due to their educated population they are also quickly becoming legitimate leaders in technology. After having been laggards in the tech space the last ten years has seen India become a major player in the global markets.
China is last but not least having recently passed up Japan as having the second largest stock market in the world behind the United States. Long a communist nation China now takes the soft line in politics and instead is focused on improving their economy and the standard of living for its citizens. There are obviously still may challenges that lay ahead of China and the rest of the BRIC nations but they appear to be overcoming them and getting rid of the old guard of corruption and instead becoming huge economic powerhouses. - 23305
Now that these nations have embraced capitalism and started to throw out corruption they are able to better compete for investment capital with other nations. Due to this and the fact that they have huge and growing populations along with large natural resources and you have a good chance for a big move on their way to power and influence.
Long called the next great growth story it looks like this time Brazil might actually pull it off. It has a large and stable financial system as well as some huge oil and gas reserves. In fact it is one of the largest non OPEC oil nations in the world. Brazil is also one of the larger natural resource countries with millions of acres of farmland and forest. Basically Brazil now has the infrastructure to pull off the great feat of leaving the emerging markets for the developed ones.
Russia is next and like Brazil has huge oil and gas reserves and resources. In addition to natural resources Russia also has a very educated population with many scientists. The only thing that Russia needs in order to further progress is to fully purge itself of corruption that is fairly rampant in the government, But hey when your leader is a former KGB agent what do you expect? Anyways if they can get past the Putin issue then they will become one of the most powerful economic forces in the world.
India has one of the largest populations in the world and has a large educated populations that speaks English. Because of this they are the kings of outsourcing. Have you ever called up customer service and gotten an Indian for Dell, Apple, Etc? Due to their educated population they are also quickly becoming legitimate leaders in technology. After having been laggards in the tech space the last ten years has seen India become a major player in the global markets.
China is last but not least having recently passed up Japan as having the second largest stock market in the world behind the United States. Long a communist nation China now takes the soft line in politics and instead is focused on improving their economy and the standard of living for its citizens. There are obviously still may challenges that lay ahead of China and the rest of the BRIC nations but they appear to be overcoming them and getting rid of the old guard of corruption and instead becoming huge economic powerhouses. - 23305
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posted by Mr. Forex at
12:54 AM
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