In recent debates: lastweek we published several summaries of the renowned annual COFACE conference on our website, one of which was devoted to economic growth in emerging countries and its impact on global growth. Here we provide an explanation of the main acronyms used to refer to certain emerging countries.
The term « emerging countries » currently covers around 60 countries. However, these countries remain very heterogeneous in terms of traditional differentiation criteria such as real GDP growth, GDP per capita, degree of economic openness, etc. This is why, over the years, some economists and analysts have sought to group together emerging countries that share certain characteristics. We provide a comprehensive timeline of the various acronyms used to refer to homogeneous groups of emerging countries.
BRIC(S): In 2001, Jim O’Neill, then an economist at Goldman Sachs, proposed grouping Brazil, Russia, India, and China under the acronym « BRIC. » He highlighted the rapid development and financial attractiveness of these emerging economies. Subsequently, the leaders of these four emerging countries decided to meet at the first annual BRIC summit. This first summit was evidence of a certain institutionalization and thus contributed to the formation of a « new geopolitical reality. » In 2011, at the third BRIC summit held in China, the acronym became « BRICS » with the official accession of South Africa.
Next 11: In 2005, Jim O’Neill brought together eleven emerging economies (Bangladesh, South Korea, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, Turkey, and Vietnam) that he believed would be important in the coming years. He particularly highlights the microeconomic stability, the maturity of the political institutions, and the quality of the education systems in these emerging countries.
CIVETS: In 2009, the British bank HSBC published the acronym coined by an analyst atthe Economist Intelligence Unit. « CIVETS » refers to Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa, emerging economies whose average annual growth rate is estimated at 5% for the next two decades.
MIST: In 2010, Goldman Sachs presented a new quartet of emerging countries whose growth is accelerating (Mexico, Indonesia, South Korea, and Turkey).
EAGLES and NEST: Also in 2010, the research team at Spanish bank BBVA created the acronym « EAGLES » (Emerging and Growth Leading Economies), which includes the emerging countries of the « BRIC » and « MIST » groups, plus Taiwan. At the same time, a group of around fifteen promising emerging economies was formed under the name « NEST. » BBVA highlighted the ability of these emerging countries to catch up with the « Eagles » in the coming decade.
BENIVM: In 2013, Laurence Daziano, senior lecturer in economics at the IEP in Paris, introduced the new acronym « BENIVM, » which includes Bangladesh, Ethiopia, Nigeria, Indonesia, Vietnam, and Mexico. To the four countries often cited (Nigeria, Indonesia, Vietnam, and Mexico), she added Bangladesh and Ethiopia, which, according to this economist, have strong growth potential, sustained population growth, rapid urbanization, and diversified economies.
BRIICSSAMT or BRICS+: In 2013, economist Alexandre Kateb created a new grouping of emerging countries called « BRIICSSAMT » or « BRICS+. » This acronym brings together the traditional « BRICS » countries, to which Indonesia, Saudi Arabia, Argentina, Mexico, and Turkey are added. The economist points out that these are all emerging economies represented in the G20 and that their GDP has exceeded $1 trillion (except for Argentina).
Julien M.
Notes:
For further information, see this article from Le Monde, which provides a clear explanation of the terminology used to describe « emerging countries »: http://www.lemonde.fr/economie/article/2010/01/25/les-pays-emergents-dans-le-monde_1296196_3234.html
