An interesting article from the UK Guardian…
China and the other Brics will rebuild a new world economic order
As the past decade slips away, it is easy to remember it economically as one which began with the dotcom boom and ended with the “Great Implosion” that left Britain, the US and other industrialised nations struggling with the most painful recession in the postwar period.
But a deeper shift has been going on – the rise and rise of China and other key economies grouped under the banner of “emerging”. Indeed, the growing political and economic muscle of China was highlighted by its recent intransigence at the Copenhagen climate talks, where it refused to be forced into any binding agreement to reduce its emissions.
While many economists have grown used to the idea that the US economy – still the world’s biggest – is the locomotive of the global economy, it is China, helped by a huge fiscal stimulus from Beijing last year, which is roaring ahead and helping to drag the rest of Asia and countries such as Germany, which exports a lot of machine tools to China, out of recession too. China is one of the key reasons the world did not experience an even worse 2009 than it actually did.
China is not alone; other Asian countries that are booming include Thailand, South Korea, Malaysia and Taiwan. But in terms of sheer size and importance, key emerging economies now include Brazil, Russia and India. Together with China, these are known as the Brics, a term coined by Jim O’Neill at Goldman Sachs early in the Noughties to denote their growing economic importance.
Their rising power stands in sharp contrast to struggling European economies such as Portugal, Ireland, Greece and Spain, known collectively, if unkindly, as the Pigs…