HAS THE GLOBAL ECONOMY HIT A BRIC WALL?

Submitted by ub on

(BRIC) Brazil-Russia-India-China have symbolized the rise of once-poor countries developing into global economic powerhouses.

It was originall thought that the rapid expansion of emerging-market countries would rescue Europe, the United States and Japan from international economic turmoil.

BRIC was believed to prop up the global demand for industrial goods, oil, foodstuffs and minerals. But that optimism may never be realized, according to some economists who argue that this was once a possibility, but no longer.

It was tempting to think that BRIC would act as a shock absorber. They would buy more European and American exports, send many tourists to Disney World, Big Ben and the Eiffel Tower, thereby buying more time foe the old world to make economic adjustments.

However, the opposite has now occurred. The weakness of advanced economies transmitted itself, through export markets, to the BRICs. The world economy is truly interconnected. What was hoped would actually occur was simply wishful thinking.