Nobody wants to be one of the PIIGS, but membership of the BRICS is highly valued. Both acronyms were devised in the City of London, the former by analysts describing a group of crisis-hit euro countries, the latter by Goldman Sachs in a 2001 paper that identified several countries that had come to prominence in the global economy. The Goldmans formulation came at an opportune time: slower growth in the major capitalist powers was being outpaced by developing countries that also appeared to have brighter economic prospects. Its author called for including Brazil, Russia, India and China more formally in global economic decision-making (South Africa was added later), and this was an adept investment bank marketing tool to attract business both from and into the relevant emerging powers, ones that craved recognition.
The BRICS are evidently diverse countries, geographically, socially, economically, politically and in terms of their potential power in the world economy. However, they share some common interests that the original Goldmans formulation did not anticipate. Rather than them all simply wanting to be included in the current hegemonic structure of global decision-making – being included in forums like the G7, for example – what has happened over the past decade is that they have Read the rest of this entry »