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How Should the BRIC Economies Perform in the Future to Level Themselves with the Mature Economies

The unprecedented metamorphosis of Japan from a defeated nation to an economic superpower in the past fifty years and an annual increase in the gross domestic product (GDP) of about 10% per annum until the 1990s represent a stunning achievement for the Japanese (Anderson et al. 2000, p.42). In stark contrast to the position in the United States, the Japanese economic ‘miracle’ has been founded on principles completely alien to classic economic theory. Where the free play of market forces dictates vigorous competition, the Japanese economy is managed on the basis of consensus. where the Anglo-American model prescribes minimal government intervention, the Japanese economy flourished precisely because the state has intervened massively to safeguard domestic markets from foreign competition and to support the establishment, growth and export potential of key industry sectors, including the advanced technology sectors.
If the break-up of the Soviet Union constitutes the most dramatic development of the post—Second World war era, arguably the most significant has been the gradual but steady evolution of the European integration. The establishment of the European single market in January 1993 superseded the laws of the first 12 member states and it has been estimated that 60 million border-crossing regulations were abolished. As of 1996, the total 15 country GDP had increased by some $150 billion and employment rose by some 300,000-900,000.
Unfortunately, as Goldman Sachs put it, these three of the world’s largest economies may look quite different in 2050. The largest economies in the world (by GDP) may no longer be the richest (in terms of income per capita), making strategic choices for firms more complex. &nbsp.Over the next 50 years, Brazil, Russia, India, and China—the BRICs economies—could become a much larger force in the world economy. If things go right, in less than 40 years, the BRICs economies together could be larger than the G6 in US dollar terms. By 2025 they could account for over half the size of the G6. Of the current G6, only the US and Japan may be among the six largest economies in US dollar terms in 2050.
This article briefly presents the implications BRIC countries have to face if they are to realize Goldman Sachs’ prediction by 2050. this article will also deal on some of the BRICs’ potential that would aid them to be the next economic superpowers.