Emerging economies
The BRIC and MINT groups
Simon Oakes
Emerging economies
Presentation outline
1.
What is an emerging economy?
2.
The BRIC group
3.
The MINT group
4.
More global groupings
5.
Controversial countries
6.
What happens next?
Emerging economies
The focus of this
presentation is
the BRIC and
MINT groups
BRIC and MINT
Their
combined
population
exceeds
3
billion:
that’s nearly
half the
world’s
population
Emerging economies
What is an emerging economy?
•
A nation with an economy that is progressing towards developed status.
•
An economy with a high annual growth rate, measured using gross domestic
product (GDP).
•
Growth may be taking place across a wide variety of economic sectors, including
services as well as manufacturing exports.
•
The BRIC and MINT nations are important emerging economies.
Emerging economies
The BRIC group
•
Jim O’Neill coined the phrase ‘BRIC’ in 2001: Brazil, Russia, India and China.
•
Significant emerging economies: in the early noughties, all were showing high
GDP growth of around 10% per annum (or higher in the case of China).
•
All four countries have large populations, with India and China in excess of 1
billion people each.
•
India and Brazil enjoy the demographic dividend of a large working population
made up of young adults with relatively fewer dependent children.
•
All four countries have global cultural and/or political influence.
Emerging economies
BRICS with an added ‘S’
•
The four BRIC countries have held annual summits since 2009.
•
In April 2011, the leaders of Brazil, Russia, India and China were joined by
South Africa (the world’s 12th largest emerging economy).
•
China had argued for South Africa’s inclusion at the meeting as an African
representative .
•
Their 2013 summit focus was the foundation of a BRICS Development Bank to
offer financial assistance to developing countries.
Emerging economies
The MINT group
•
In 2014, Jim O’Neill focused his attention on four more emerging economies:
Mexico, Indonesia, Nigeria and Turkey.
•
Nigeria is a major oil exporter.
•
Mexico belongs to NAFTA and the OECD, two important multi-governmental
organisations.
•
Indonesia has been a major beneficiary of global shift and the off-shoring of
manufacturing by developed countries (it also has the world’s fourth largest
population).
•
Turkey is a geopolitically important country which some people view as a
‘bridge’ nation between the west and the Islamic world.
Emerging economies
MINT statistics
Mexico
Indonesia
Nigeria
Turkey
GDP growth rate
2010–13 (%)
3.4
6.0
6.8
5.9
Population
(millions)
118
238
174
74
GDP per capita
($US)
11,200
3,500
2,700
10,700
Mexico and Turkey have
a per capita GDP that is
comfortably middle class
Indonesia, Nigeria and
Turkey grew faster than
India and Brazil in 2014
Emerging economies
Growth trends
The BRIC and MINT
nations are outperforming the
developed world
Global growth
was interrupted
by the ‘credit
crunch’ in 2008
Emerging economies
Controversial countries?
Economic
growth
•
China is not a democracy.
•
Nigeria and Indonesia have
both struggled with state
corruption
•
The
development
process
Political
progress
Turkey, China and Russia
have poor human rights
records.
•
Jim O’Neill believes strong
economic growth can be
achieved without political
reforms. This contradicts
what many students have
been taught about the
development process.
Emerging economies
Global groupings
There are other ‘middle income’ global groupings used by geographers to analyse
world development. These overlap with the BRIC and MINT groups.
Newly industrialised
countries have a high
growth rate for
manufacturing exports
Tiger economies have
had high growth rates in
the past, e.g. South
Korea and Ireland
OPEC countries have
gained wealth from oil and
petrodollar earnings
Middle-income countries
have a per capita GNI of
US$1,000 to US$12,000
Emerging economies
Global groups
Can you find or plot a location on the chart for: Brazil, Russia, India, China, South
Africa, Mexico, Indonesia, Nigeria and Turkey?
Emerging economies
What future for the BRIC nations?
High growth
•China continues to
grow at around 7% per
annum (although this
is half what it achieved
in 2007).
•Around half a billion
Chinese people have
escaped poverty.
•Many long-term
challenges remain,
including an ageing
population, lack of
democracy and
potential resource
shortages.
Medium growth
•Russia’s annexation of
Crimea in 2014 has
damaged its
relationship with
European neighbours.
•However, good
relations with China
provide Russia with a
market for oil and gas
well into the future
•Brazil faces an
uncertain future, with
widespread unrest in
2013–14.
Low growth
•Growth in India has
slowed down in recent
years.
•Some people view this
as a political failure
and say the
government has not
done enough to
encourage foreign
investment.
•Half a billion people in
India still live in
poverty. There is much
that still needs to be
done.