Last week the leaders of the BRIC nations – Brazil, Russia, India and China – held a summit meeting in Durban. The addition of their host, South African President Jacob Zuma, turned BRIC to BRICS and at last gave Africa a deserved inclusion in the now famous Goldman Sachs acronym that has become not only an established part of the investment lexicon but is synonymous with the growing power and influence of emerging markets.
More recently, Jim O’Neill of Goldmans who coined the phrase over a decade ago has suggested that the acronym be re-ordered to reflect what he now regards as the relative investment potential of the original four. BRIC has become CRBI. This not only overstates the prospects for Russia it is also wholly forgettable. BRIC resonated because it sounded like something that is used to build new structures. Had Kazakhstan not South Africa made the grade then it would have had the added potency of being correctly spelt. [Read more...]