Dreaming with BRICs: The Path to 2050
BRIC is an acronym which means the fast growing developing economies of Brazil, Russia, India and China.
The BRIC concept was developed by Wilson and Purushothaman in Goldman Sachs’ Dreaming with BRICs: The Path to 2050.
Goldman and Sachs suggest that that if Brazil, Russian, India and China follow some of the recommended conditions for growth (macro stability, institutions, openness and education), they will be better prepared to achieve economic hegemony by 2050.
According to Goldman Sachs (2003), In 2050, Brazil, Russia, India and China will become a larger force in the world economy than they were in 2003. Goldman Sachs used the latest demographic projections, model of capital accumulation, and productivity growth to map GDP growth for each of these countries.
- The BRICs economies together could be larger than the G6 in US dollar terms
- About two-thirds of the increase in US dollar GDP from the BRICs should come from higher real growth
-The key assumption underlying our projections is that the BRICs maintain policies and develop institutions that are supportive of growth
- Higher growth may lead to higher returns and increased demand for capital
- Rising incomes may also see these economies move through the ‘sweet spot’ of growth for different kinds of products, as local spending patterns change
WILSON, D. and R. PURUSHOTHAMAN (2003), “Dreaming with BRICs: The Path to 2050”, Global Economics Paper 99, Goldman Sachs, New York. Accessed: June 20, 2020. https://www.goldmansachs.com/insights/archive/archive-pdfs/brics-dream.pdf