5/11/11

BRICS vs BRIC

South Africa is suggested as a new member of the BRIC with the extension of the abbreviation to BRICS. We have a working model to estimate the SA’s economic performance relative to other BRICS countries. As in the previous post, we calculate the difference between real GDP per capita in the USA and that in South Africa. Figure 1 shows all differences (1990 US dollars at Geary-Khamis PPPs, as published by the Conference Board). Four of the five were already analysed. What can we say about the new member? Honestly, its performance is far from standard, when the difference does not change over time. South Africa underperforms as India and Brazil did during the past 20 years. These BRIC members are really big (in top ten worldwide) what makes their membership justified by the size of economy. It is not valid for SA.

Figure 1. The differences between real GDP per capita in the USA and the BRICS countries

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