Fin24

SA acts on BRIC club ambitions

2010-11-12 13:00

Seoul - South Africa has "applied" to join the four-member Bric grouping of fast-growing emerging markets, Russian President Dmitry Medvedev said at the Group of 20 meeting on Friday.

South Africa is the world's 31st-largest economy, according to World Bank data for 2009. It is less than a quarter the size of the smallest Bric economy, Russia, in the informal grouping that also numbers Brazil, India and China.

"There are a number of requests to join Bric, in particular an application by the South African Republic," Medvedev told a news conference, saying other members agreed.

Some economists have already dubbed fast-growing Indonesia the next Bric, a term invented in 2001 by Goldman Sachs Asset Management chairperson Jim O'Neill.

When contacted by Reuters for his view on whether South Africa should be included, O'Neill issued a terse reply: "No."

South Africa's economy is projected to grow just 2.3% this year, hardly the blistering pace seen in other Bric countries.

The four countries have sought greater clout for their grouping, holding a summit in Russia in 2009.

Some investors make asset allocations based on the Bric classification, and all countries that currently make up the grouping have seen their global financial influence increase substantially in recent years.

Comments
  • LOuis - 2010-11-12 14:21

    You bloody agents!

  • gcr - 2010-11-12 14:24

    How can the ANC believe that they can play in the same league as BRIC - more chance of becoming part of PIGGS - our economy is stagnant and no amount of nationalisation will improve the situation - regrettably RSA will remain prone to the influx and flight of capital. Free up the economy and the people and the country will fly

  • Jaws - 2010-11-12 14:31

    South Korea is more likely to give BRIC it's S

  • Nasdaq7 - 2010-11-12 15:29

    If you want to join BRIC, you need high economic growth. Indonesia is and has been growing at 7% per year. Come depression, recession, whatever, their economy keeps growing very quickly year after year. People ask: how can South Africa grow at 7% per year? What can it do? I can give you a very long answer: .... or I can just give you a very simple answer: a tiny government, 17% corporate tax, 17% personal income tax - the way Russia is going about it. It doesn't need foreign investment. Its economy saves enough and taxes are low enough for its businesses to grow at 7% a year. It has oil. it has minerals, metals. It has everything - it can just develop its own country without much foreign investment - just low taxes.

  • Economist - 2010-11-12 16:07

    South Africa's economy is projected to grow just 2.3% this year, hardly the blistering pace seen in other Bric countries. ANC will have to up their game to 5% if they want to join the major league - this will mean some tough descisions ....

  • Spyker May - 2010-11-12 17:09

    Even more laughable is SA's ambitions to be a developed country by 2040..!

  • Miner In SA - 2010-12-28 13:49

    Now that SA has been invited to the BRIC group of countries we should ask ourselves the question: How can such an internationally renowned economist whom is also credited with coining the letters "BRIC" could have missed that South Africa will be the next country to be invited to join this league???? my answer will be it is eithr it was never his wish that SA be invited because all facts where pointing at SA being the next to join the league. Which world news was he reading ???

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