BRIC by BRIC: The harsh Realities of Global Competition
It’s been more than a decade since the BRIC countries—Brazil, Russia, India and China—were hailed as the Next Big Thing.
But global economics can be a fickle game, and a slew of negative headlines are casting doubt on the quartet’s glorious future.
- Brazil is struggling to finish—or in some cases even start—the BRL65 billion in construction and infrastructure projects it ordered to host the 2014 World Cup and 2016 Olympics.
- Russia has seen a drastic slump in its exports of crude oil, which together with natural gas accounted for about 50 percent of its budget revenue in 2011.
- India’s economic growth slowed to 5.3 percent, its lowest rate in nearly a decade; in June, Standard and Poor’s warned that the country may lose its investment grade rating.
- China scaled back its economic growth target to 7.5 percent, the lowest point in two decades.
Despite the setbacks, it’s clear the BRIC countries will retain a powerful influence on the global economic—and, in turn, project—scene for years to come. Consulting firm PwC predicts that by 2050, China and India will surpass the United States to become the world’s largest economies, with Brazil rising to fourth and Russia holding its current sixth position. Goldman Sachs predicts the four countries will account for almost 40 percent …
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