Economy and Mauritius Growth Performance

Topics: Economy, Economics, Economic growth Pages: 11 (4093 words) Published: May 11, 2011
BRICS also known as the Big five is a grouping acronym that refers to the countries of Brazil, Russia, India, China and South Africa that are deemed to all be at a similar stage of newly advanced economic development over the next few decades Brazil, Russia, India, China and South Africa will become large, powerful players in the world economy. Regardless of their social, political, or environmental challenges, the BRICS will play an ever-increasing role in the world economy, China and India will remain the dominant pair of the five some thanks to their large and increasingly better-educated populations, their low-cost labour, and their increasing openness. The BRICS thesis posits that China and India will become the world's dominant suppliers of manufactured goods and services, respectively, while Brazil, Russia and South Africa will become similarly dominant as suppliers of raw materials. A significant part of the growth potential of the world economy for the coming decades resides mostly in some large less developed countries, BRICS Countries have such potential. More than just that, BRICS Countries are thought as having the capacity to change the world by the threats and opportunities they represent from the economic, social and political points of views.

Over the next 50 years, Brazil, Russia, India, China and South Africa—the BRICS economies—could become a much larger force in the world economy. Using the latest demographic projections and a model of capital accumulation and productivity growth, we map out GDP growth, income per capita and currency movements in the BRICS economies until 2050. South Africa's addition is a deft political move that further enhances BRICS’ power and status and India and China, the world’s two most populous countries, formed a strategic Partnership to end a border dispute and boost trade. In the meantime, the speed of the BRICS’ economic recovery has led some to see the global economic crisis as a pivotal milestone in the distribution of economic power. Inevitably, many speculate that the BRICS might turn into bricks in their march to miracle economies and the emergence of the BRICS signals that the next generation of economic development of the global economy will be a thrilling ride. Even if the BRICS come close to reaching their apparent potential, their success will redefine the structure of economic environments, patterns of growth, and dynamics of economic activity. It is important to note that the original BRICS grouping was not based on economic similarities. Indeed, the four original countries could not be more different. It is tempting, however, to divide the countries into two subgroups: India and China are peasant economies with relatively closed, state-controlled, regulated capital markets; Brazil and Russia are primarily natural resource– based economies that are open to foreign trade and financial flows, and have a mixture of state and private sector control of capital markets. Granted, their governments have developed economically sensible policies, opened trade and domestic markets, and begun building institutions that support economic freedom. And indeed, 20 years ago it would have been difficult to imagine Brazil as the new regional hegemon in Latin America, India as a major player in WTO negotiations, or China as the third largest economy in the world, and projected to overtake Japan.*

Mauritius is one country that has achieved successful economic with remarkable transformations since independence in 1968. In comparison to many other African countries, Mauritius is an economic success story. Mauritius benefited from the political vision and economic development strategy deftly implemented by its founder and first Prime Minister - Sir Seewoosagur Ramgoolam. From a poor country with high unemployment exporting mainly sugar and buffeted by the vagaries of world demand, Mauritius has become relatively prosperous and diverse. Our country has witnessed a massive...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • mauritius Essay
  • Malaysia Economy Growth Essay
  • the impact of agricultural growth on economy growth Essay
  • Indian Economy Growth Essay
  • FDI and Economic Growth in the Export-Oriented Economy of Fiji Essay
  • Economic Growth of Phillipines Impacting Indian Economy Essay
  • India’s Outstanding Growth in Economy Report Essay
  • Role of Insurnce in development & growth of economy Essay

Become a StudyMode Member

Sign Up - It's Free