Which country should be classified with bric nigeria or south africa – business – nigeria electricity bill nye

####

Reuters reports that Russia recently revealed that South Africa applied to be become a member of the BRICs (Brazil, Russia, India & China) meaning that BRICs could as a result morph from “BRICs” to “BRICS.” (N.B. – The definition of what form the said “application” was tabled in remains unclear).

As the continent’s largest economy, South Africa’s inclusion might seem to some like a no-brainer but Jim O’Neill, the Goldman Sachs executive who came up with the term BRICs in a 2001 paper titled: “The World Needs Better Economic BRICs” says he does not think South Africa should be a member of BRICs. When asked why by the Reuters news team he reminded them that not only does he not think that SA should not be included in BRICs but that Goldman Sachs also did not include SA as one of the N-11 or Next 11 emerging economies, a list that includes Nigeria and Egypt citing South Africa’s lack of a sizable working population as his main problem. Read the Reuters Africa blog entry, “Should South Africa be a BRIC?” here. “The country in Africa that has the real potential is Nigeria,” he said.

Despite SA’s weaknesses it is important to remember that it has still so far been able to come up ahead of Nigeria in many sectors even though Nigeria is easily three times its population size. SA is also currently a member of the G-20 nations, a group that Nigeria was not considered eligible for.

G-20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, Republic of Korea, Turkey, United Kingdom, and the United States of America. Re: Which Country Should Be classified with BRIC? Nigeria Or South Africa? by Afam4eva( m): 10:14am On Nov 23, 2010

The fact that SA has an already advanced economy, exporting cars and other sophisticated goods, an advanced agricultural economy et al, and yet its GDP is barely larger than Nigeria whose has just one advanced industry. Imagine the prospects in Agriculture, Entertainment, Manufacturing, IT, Solid Minerals and the likes. In the day we start harnessing just a minute portion of these resources SA would be left in the trenches!

Brazil exports aircraft and other sophisticated goods too, and they are one of the world leaders in offshore oil and gas technology. It even has astronauts on the ISS, so in terms of advancement, they are way up there as well. The likes of China and India also possess advanced technology as well, so in a sense, Nigeria doesn’t bring much to the table beyond ‘potential’ and economic size.

SA would be a more beneficial candidate because they will, by proxy, be driving the sub-Saharan African economy for a while to come. While not having the large population or growth capacity of the likes of Nigeria, they are able to achieve that growth through their companies expanding across the continent.

I don’t consider Nigeria’s potentials or current exports as insignificant, but there is too much institutional weakness – there is little or no long term vision or focus, and while you might have sporadic success like GLO or GTB, that is not sufficient to carry us through.

South Africa! Don’t let us deceive ourselves, Nigeria has a long way to go. Who are the major investors in Nigeria now: South Africans. In terms of infrastructure, technology, telecommunications, we are not at par with SA. Many investors in Brazil are not Brazilians. Investment is investment even if the owners are from different climes. The world is a global village. So, the argument about investors in SA being Europeans is not tenable. And, there is room for growth in SA, as well. South African economy is diversified (unlike Nigeria’s) and certainy not third world in terms of development, at least in the cities.

Jim Oneil of Goldman Sachs coined the phrase to represent countries with newly advanced economic development. If it weren’t so, more established economies such as Singapore, South Korea and Mexico would be in there. But those countries were excluded on the basis that there economies were already at an advanced stage. Besides, some of these other countries are all members of the OECD. South Africa‘s economy has been developed for a while and it can even be argued that it’s economy has been on the decline since the 90s. Whereas BRIC countries have been on the up for the better part of the last 10 years. On that basis, Nigeria may qualify. So the criteria is not current development but more on size, room for growth, etc. Re: Which Country Should Be classified with BRIC? Nigeria Or South Africa? by DapoBear( m): 4:16pm On Nov 23, 2010