Reframing the ‘BRICS’ paradigm

BRIC’s or Brazil, Russia, India and China coined by Goldman Sachs as an acronym for the emerging markets has been institutionalized in the public imagination by the CNBC-ization of the discourse on emerging markets, where market graphs create so called value and represent the real economy more than people. I recently completed Ruchir Sharma’s book ‘ The Breakout Nations’ and it is very much a lucidly written book with crisp anecdotes, and correlated with what i had read in Parag Khanna’s ‘Second World’ and ‘How to Rule the World’ series of books again on the governance of emerging ‘breakout’ markets and a couple of insights got squeezed out of the thesis.

Russia and India do not deserve their place in the emerging economies group, Indonesia can replace India in the place of the I in the acronym.  Smaller countries in Africa and Central Asia will create more investor value than Russia which is turning in to a petro state and India is an elephantine entity which grows at its own pace bogged down by inefficiency in governance  and political log jams, India seems to be following the Filipino model sadly. I take objection with Ruchir Sharma’s analogy that stock market performance is an indicator of economic performance. In a country like India where retail investors are a tiny entity, it is an illusion of an indicator. We should be paying more emphasis on Human Development Indicators rather than Stock Market Valuations.

I would like to know how much poverty and under utilization of human talent which prevails in the emerging economies. The truth is a large proportion of the populace miss the reforms bus, because they do not have the right skill sets for the information economy,

Can someone care about building a school first rather than a convention center ?


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