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Re-shuffling alliances for the new (economic) world order

April 17, 2011 1:35 by Arab News

It was Goldman Sachs economist Jim O’Neill who came up with the acronym BRIC (Brazil, Russia, India and China) 11 years ago, prophesying that the four countries will turn into a big economic player on the world stage.

Now with South Africa joining the club, BRIC has become BRICS. O’Neill’s prediction has proved prophetic and the five emerging economies, have transformed the profile of the world economy.

China and its other big neighbour India have been a phenomenon with a growth rate that’s the envy of the world. Indeed, it’s not possible to ignore the growing clout of these new players on the global stage, especially when the big boys haven’t been in such a great shape lately.

The recession may be behind us but its disastrous effects continue to haunt the world especially the US and Europe. As Prime Minister Manmohan Singh of India argued after the BRICS summit in Chinese city of Sanya, the recent developments in the Middle East and the tragedy that befell Japan have introduced fresh uncertainties in the global recovery process.

The BRICS nations have demanded a bigger role for themselves in the world economy to make it more diverse and broad-based than it is right now, excessively dominated by the US and its Western cohorts. After all, BRICS nations form nearly 50 percent of the world population and a fifth of its growth.

The world has changed dramatically over the past decade or so, since the BRICS nations came together.

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Tags: BRIC, BRICS, China, Economy, Europe, recession, US