Being a member of the BRIC [Brazil, Russia, India and China] group of emerging markets is “an important leverage point” for SA, Goldman Sachs SA MD Colin Coleman told an Economic Outlook 2011 conference on Wednesday.
The world's second-biggest economy, China, recently invited SA to become a member of the group of fastest growing economies in the world.
“SA being asked to form part of an alliance [with BRIC] is important for leverage. Our ability to leverage policy and speak loudly for Africa is enhanced,” said Coleman.
Goldman Sachs chief economist Jim O'Neill coined the term BRIC a few years ago. When recently asked if SA was fit to become a member of the group, O'Neill replied that it was not.
Coleman said he agreed with this statement, due to the economic disparities between SA and the four BRIC member states.
The BRIC economies have been growing at higher rates even during the recession, while SA has managed rates of about 3%. The size of their economies also varies significantly.
“SA is not a BRIC. Unemployment's a big issue. The biggest challenge is actually growth, and maintaining the pace [of it],” Coleman said.
Goldman Sachs forecasts global growth to average 4.7% in 2012. This growth, Coleman said, would be driven mainly by the BRIC economies, with China and India at the forefront. - I-Net Bridge