BRICs: Beyond Developing?

Abstract

The purpose of this chapter is to determine the factors behind the economic development of each one of the BRICs. Starting from a gross definition of development, as embodied by economic growth, the role of globalization in the economic growth of the four BRICs and South Korea will be examined. We outline five models of development, based on the degree of exposure to economic globalization and the degree of manipulation of globalization (i.e., a government’s ability to shape the conditions of entry of foreign goods and companies into a country) to serve a national development strategy. It will be shown that the degree of manipulation of globalization by each BRIC, as opposed to its degree of exposure to globalization per se, has determined its economic growth performance. We then move on to a narrow definition of economic development, one predicated on the view that innovation capability is the main source of sustainable growth.