Share

Brics vulnerable to global risks - survey

London - Bric countries have not become less vulnerable to global shocks despite their strong economic growth over the past four years, a survey showed on Monday.

Risk consultancy Maplecroft said its Global Risk Atlas, which highlights potentially destabilising factors in the world's key growth economies, found that Brazil, Russia, India and China were no less susceptible to potential security or economic shocks than in previous years.

"With hopes for a global economic recovery resting with the Brics, investors and business seeking new high-growth, high-risk markets need to be aware of their limited resilience to global risks," said Maplecroft CEO Alyson Warhurst in the report.

"A country's resilience to external and internal shocks is built up over time, so as the Brics' political risk environment improves we might see resilience strengthen, but our results reveal this is yet to happen."

The term Bric is used to describe the four biggest developing economies - Brazil, Russia, India and China. South Africa was included last year but its economy is much smaller that the rest.

For some of them governance and reform have not kept pace with economic growth, leaving them vulnerable to potential risks such as terrorism or climate change, the survey found.

According to the report, India and Russia are among 41 countries classified as "high risk", with poor governance, systemic corruption and terrorism identified as particular risks.

China, meanwhile, is also exposed to security issues, but is classified as "medium risk" due to the unlikelihood of social or political upheaval on a national scale, the report said.

Brazil, also ranked "medium risk", is considered the least susceptible to global risks of the four Brics, due in part to the stability of its political structure and record of strong governance.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
+0.1%
Rand - Pound
23.87
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.13
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders