The Brics narrative is crumbling—the five countries need transparent institutions and lessons in self-relianceby George Magnus / March 21, 2016 / Leave a comment
The term “Brics” lives on as an acronym linking the world’s largest emerging economies, Brazil, Russia, India, China and South Africa, but the notion it was meant to convey about the development of a new world order, based around them, is dust. When Goldman Sachs closed its “Bric” investment fund after nine years at the end of 2015, a period in which assets under its management had fallen from a peak of $800bn to just under $100bn, it seemed to signify the end of an idea. Only India looks as though it has the potential to sustain high economic growth, but even then not without qualifications. Last week provided some good examples of why the Brics are in the news, mostly for the wrong reasons.
Brazil is in its worst recession on record. Against this backdrop, the country’s political crisis is gathering momentum: a full-blown constitutional crisis may be near as the executive, legislative and judicial bran…