Globalization and

Competitiveness
Sandra Chicas Sierra
Magister of international commerce
 Beyond GDP

Although GDP forecasts offer a useful insight into

economic performance around the world, there are
increasing calls for other factors to be included, such as
well-being and quality of life.

https://www.youtube.com/watch?v=G4d_-zaJXuA
https://www.weforum.org/agenda/2016/04/worlds-fastest-growing-economies/
Competitiveness: BRIC- CIVETS OR MINTS?

https://www.youtube.com/watch?v=-2547RlpEIM
 BRICS

Brazil Russia India China South Africa

The BRICS club (Brazil, Russia, India, China and South Africa), which used to be
known for its tremendous growth potential, is today in the midst of severe
economic and political woes. Apart from the Federal rate increase which has
contributed to the mounting debt burden for these economies; falling global
commodity prices have affected these emerging markets which rely heavily on
export led growth.

https://www.weforum.org/agenda/2016/04/what-is-the-state-of-the-brics-economies/
 BRICS

The origin of the acronym BRIC, dating from 2001, is due to the
economist Goldman Sachs Jim O'Neill, who used the name for grouping
the major emerging markets ( BRAZIL, RUSSIA, INDIA, CHINA),although
countries not officially embraced the idea until 2008.

South Africa joined the block in 2011 on behalf of the African continent
and since then the group bid in major international organizations to be
recognized greater representation in decision-making.
 BRICS

https://www.weforum.org/agenda/2016/04/what-is-the-state-of-the-brics-economies/
 BRICS

https://www.weforum.org/agenda/2016/04/what-is-the-state-of-the-brics-economies/
 BRICS
India has the lowest GDP per capita of $5,238 among the other members of the
block and is also lagging behind the other BRICS economies in terms of quality
of life.

India’s ranking in the World Economic Forum’s, Global Competitiveness Report

improved from 71 in 2014 to 55 in 2015. Nevertheless, excluding Brazil, all the
other BRICS countries are still ranked higher than India in the report.

In terms of social development, BRICS economies have shown a mixed

performance. In the Social Progress Index (SPI) developed by the Social
Progress Imperative, a nonprofit organization based in Washington, Brazil
(70.89) surpasses all the other member countries, followed by South Africa
(65.64), Russia (63.64), China (59.07) and India (53.06).

https://www.weforum.org/agenda/2016/04/what-is-the-state-of-the-brics-economies/
 Challenges of the BRICS
• India: Needs to invest its resources in meeting its basic human needs

• China and Russia: need to bring about institutional changes that could protect
the rights and freedom of its people.

• The block needs to address environmental issues by building energy efficient

technologies that could lead to the path of sustainable development.

• South Africa, China and Russia: should lay greater emphasis on policy dialogues
to reduce the extent of their greenhouse gas emissions.

• South Africa and Brazil: should focus on ensuring personal safety to its people.

https://www.weforum.org/agenda/2016/04/what-is-the-state-of-the-brics-economies/
 CIVETS
The CIVETS is an economic block formed by six favored
emerging markets countries – Colombia, Indonesia,
Vietnam, Egypt, Turkey and South Africa.
Colombia Egypt
These countries are favored for several reasons, such as
"a diverse and dynamic economy" and "a young, growing
population“.

The economies that are part of this group are considered Turkey
Indonesia
to be very promising because they have reasonably
sophisticated financial systems, controlled inflation, and
soaring young populations

https://www.youtube.com/watch?v=KgNH4tBhp8o Vietnam South Africa

 CIVETS

Colombia: Although Colombia is the oldest democracy in Latin

America,it has suffered conflict for more than 40 years. This threatened
its stability, but has changed dramatically in recent years, improving
stability.

There are policies that favor the creation of new businesses, and
foreigners can integrate into this market without any major hurdles
 CIVETS
Indonesia: After emerging as the third-fastest-growing member of the
G20 in 2009, Indonesia has been a strong performer. Like China and
India, it is expanding rapidly. Investment growth was boosted by
infrastructure spending and high commodity prices.

Vietnam: After the death of its leader Lê Duẩn in 1986, Vietnam began
making the transition from a planned economy to a socialist-oriented market
economy, after suffering an inflation rate of 700% and a stagnant economy.
The Communist Party launched a broad economic reform package called Doi
Moi ("Renewal"), with similarities to the Chinese model (economic openness
mixed with communist politics), and achieving similar results.
 CIVETS
Egypt: In September 2011 the World Bank predicted growth of just 1%
for that year, compared with 5.2% in the previous year, but analysts
expected Egypt to regain its growth trajectory once political stability
returned.

Egypt has many assets, including fast-growing ports on the

Mediterranean and Red Sea linked by the Suez Canal, a growing tourism
network, and vast untapped natural gas reserves. Egypt's 82 million
population has a median age of 25.
 CIVETS
Turkey: In 2011 Turkey had the world's 15th largest GDP-PPP and 18th largest
Nominal GDP. The country is a founding member of the OECD (1961) and the G-20
major economies (1999).

Since December 31, 1995, it has been part of the EU Customs Union. Turkey has
made significant improvements in economic freedoms. It has expanded monetary
freedom, freedom from corruption, and fiscal freedom; these advancements
have, nevertheless, been undermined by Turkey's deteriorating property rights
and financial freedom.

According to a survey by Forbes magazine, Istanbul, Turkey's financial capital, In

2012, ranked 5th in the world with 30 billionaires, behind Moscow (78
billionaires), New York City (57 billionaires), London (39 billionaires), and Hong
Kong (38 billionaires).
 CIVETS
South Africa: South Africa is Africa's second largest economy and represents 25% of
its GDP, making it important to the development of the whole region. The South
African economy has a large volume of capital (public and private) in close
relation to the global economic grids.

The currency of South Africa is the rand, which is also used in other countries of
Southern Africa. The Johannesburg Stock Exchange is the biggest in Africa and
tenth globally.

Major sectors of the economy are mining (especially coal extraction), diamonds,
gold and platinum. It among the countries with the greatest reserves and
diversity of mineral wealth. It has the most powerful and diversified industry in
Africa, from processing of agricultural goods and minerals to the automotive,
aerospace and energy industries.

South Africa's national parks, which attract visitors from around the world, play a
significant role in its economy.
 MINT

Mexico Indonesia Nigeria Turkey

This term refers to Mexico, Indonesia, Nigeria and Turkey, which are bound by a few
key themes: young populations, useful geographical placement, and (Turkey
excepted) by being commodity producers.

Mexico and Nigeria have some of the best prospects in all emerging markets.
Nigeria, in particular, is thought to be in an economic sweet spot and has gathered
increasing attention from world investors over the last year.

http://www.forbes.com/sites/chriswright/2014/01/06/after-the-brics-the-mints-catchy-acronym-but-can-you-make-any-money-from-it/#4ff3d58b4ba9

https://www.youtube.com/watch?v=-UbT2aLm9ps
 MINT

http://www.bbc.com/news/magazine-25548060
Which are the world’s fastest-growing economies?
Myanmar is the world’s fastest-growing economy, according to the IMF’s latest World
Economic Outlook. The country’s GDP is projected to grow by 8.6% this year.

Political and economic reforms, which have made headlines around the world, have
supported this economic growth. Increased consumer and investor confidence, and rising
exports, have boosted the economy, argues the World Bank.

However, inequality and poverty remain a significant problem across the country.

This is true for many of the world’s fast-expanding economies, which are typically not the
biggest or most developed.

The Ivory Coast follows Myanmar in second place, with projected GDP growth of
8.5% this year. Third on the list is Bhutan, with 8.4%.

Other countries predicted to return high growth figures include India, Laos and
Tanzania

https://www.weforum.org/agenda/2016/04/worlds-fastest-growing-economies/
Which are the world’s fastest-growing economies?

https://www.weforum.org/agenda/2016/04/worlds-fastest-growing-economies/
Which are the world’s fastest-growing economies?

https://www.weforum.org/agenda/2016/04/worlds-fastest-growing-economies/
Which are the world’s fastest-growing economies?

https://www.weforum.org/agenda/2016/04/worlds-fastest-growing-economies/
MSCI EMERGING MARKETS INDEX (MORGAN STANLEY CAPITAL INTERNATIONAL)

In 1988, MSCI launched the Emerging Markets Index, which consisted of just 10
countries representing less than 1% of world market capitalization.

Today the MSCI Emerging Markets Index consists of 23 countries representing 10% of
world market capitalization.

The Index is available for a number of regions, market segments/sizes and covers
approximately 85% of the free float-adjusted market capitalization in each of the 23
countries.

https://www.msci.com/emerging-markets
MSCI EMERGING MARKETS INDEX (MORGAN STANLEY CAPITAL INTERNATIONAL)

https://www.msci.com/emerging-markets
MSCI EMERGING MARKETS INDEX (MORGAN STANLEY CAPITAL INTERNATIONAL)

https://www.msci.com/emerging-markets