Global Macro Investing in the BRIC's

By Paul Soros

Brazil, Russia, India, and China are collectively known as the BRIC nations. This name came from a 2003 paper from Jim Oneil at Goldman Sachs titled Dreaming With BRIC's the Path to 2050 and Beyond. Not a call to Buzz Light year but instead a legitimate economic theory that these four nations would go from emerging markets to huge economic growth engines that would possibly become the largest economies in the world.

Now that these nations have embraced capitalism and started to throw out corruption they are able to better compete for investment capital with other nations. Due to this and the fact that they have huge and growing populations along with large natural resources and you have a good chance for a big move on their way to power and influence.

Brazil has grown up a lot over the last 20 years. Having been called the next growth engine since the seventies it appears as though Brazil has finally figured it out and is building a legitimate economy that has a solid banking system, several industries, and a huge oil industry. Having gotten rid of the majority of its Latin American corruption Brazil is well on its way to becoming a major force in the world economy.

Russia is next and like Brazil has huge oil and gas reserves and resources. In addition to natural resources Russia also has a very educated population with many scientists. The only thing that Russia needs in order to further progress is to fully purge itself of corruption that is fairly rampant in the government, But hey when your leader is a former KGB agent what do you expect? Anyways if they can get past the Putin issue then they will become one of the most powerful economic forces in the world.

India has over a billion people. That in and of itself is not a big deal, except that they also have one of the largest bilingual populations on earth as well as a large educated segment. This has helped India to become first a humongous outsourcing giant and second to become a real and legitimate technology leader in its own right. They have scientists, engineers, and doctors who are rapidly becoming on par with their western brethren. The next ten and fifty years will be exciting as India continues to improve.

Finally we have China. China has the largest population on earth and has long been thought to be a huge eventual power. This idea is not a thought anymore as it is a complete reality. While they still have tons of challenges ahead of them, China is now a huge player in the marketplace. Previously only a maker of cheap goods, China is rapidly coming up so speed in most fields with a large educated population. Yes, they still have challenges ahead of them but they are improving every day as quality of life for their citizens continues to improve and corruption continues to decline. - 23204

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