The Policy BRICs in Business and Economics

0 Comment

The reason that matters underneath is the economic power shift from the leading western countries to the emerging eastern countries. The BRIC received its name from Goldman chief Jim O’Neil in 2001 and since then it has continuously been in the bull’s-eye category of economists in predicting future changes and suggesting remedies to the suffering economies. Most economists and analysts have already stated that by 2050, the BRIC economy especially China is going to be the biggest economy in the world (Economy Watch. 2010). This makes the reason for the UK economy to consider the growth of BRIC economies and rethink its future perspective to face this global challenge. To work as a fuel to the matter, the GDP rate of UK was recorded to be $1.5, while on the context the GDP ratings for BRIC economies were standing at a height of $5.2, $4.3, $8.5 and $6.8 respectively in 2007 and is estimated to be $2.0 for the UK, $3.1 for Brazil, $3.2 for Russia, $5.0 for India and $4.6 for China. Therefore it can be seen, in both, the period’s figures are in favor of BRIC nations and certainly at a high volume compared to the UK. As such, the concern regarding BRIC economies are quite justified (Hawksworth amp. Cookson, 2008). The world economic power for a long period of time had been concentrated upon three powerful economic regions i.e. the USA, Japan, and the European Union. These three are recognized as Triad Region. The power of the economy has with time been spread across the world and has transpired in the hands of the BRIC countries. The power shift of economies to be noted is not only affecting the UK economy but it is also changing the prospects of other developed western economies like the USA, Canada, and Australia. But the reason why only UK economy is under so much pressure is because of the fact that at the initial stage when all the other economies were on a mindset to enjoy the mounting opportunities served by theseeconomies, UK was writing its own Death Warrant by ignoring the reality about BRICs.