In 2001, economist Jim O’Neill wrote a report for Goldman Sachs’ Global Economic Paper series titled “The World Needs Better Economic BRICs”, where he identified four countries — Brazil, Russia, India, and China — as potential powerhouses of the world economy (South Africa was added in 2010 after being invited to a summit of the original four countries).
These developing or newly industrialized nations were (and remain) distinguished by their large, often fast-growing economies and increasing influence on global affairs. As of 2014, the BRICS together comprise nearly 3 billion people (40 percent of the world population), a combined nominal GDP of $16.039 trillion (20 percent of world GDP), an estimate$4 trillion in combined foreign reserves, and 18 percent of the world economy.
By 2050, it is estimated that their economies will completely eclipse those of the G7, an association of the world’s current richest countries. Well aware of their rising status, the BRICS have been holding annual summits since 2009 (their sixth meeting just concluded in Brazil this past July) and they have invited other developing nations as an exercise of solidarity and influence. They have essentially become a household name among policymakers, political scientists, and economists across the world (not to mention investors and business people).
Now, the man that has brought us this catchy and game-changing acronym as a symbol of shifting global paradigms has presented four other contenders — the so-called “MINT” countries of Mexico, Indonesia, Nigeria, and Turkey (nearly all of which had been invited to previous BRICS summits).
As BBC News reported, these countries are not only as fast-growing and increasingly influential as the BRICS, but they each have a healthier demographic outlook: whereas China and Russia in particular are projected to experience stagnation and even decline in their working-age populations, all MINT countries are beginning to enter a demographic “sweet-spot” where there are more working-age people than dependents (by they very young, as is the case in most developing countries, or very old, as is typical in most developed nations).
As the following chart shows, their projected growth rates will be no less impressive either:
Nigeria’s potential for growth is especially impressive: to jump from the 39th to 13th richest economy in less than four decades is, as far as I know, virtually unprecedented for such a large nation. Mexico and Indonesia close the gap by nearly half, and Turkey’s growth — although not as dramatic given that it already had a head start industrializing — nonetheless puts it near equal footing to established economies like Germany, France, and the U.K.
Moreover, these nations enjoy the fruits of geography:
Something else three of them share, which Mexican Foreign Minister Jose Antonio Meade Kuribrena pointed out to me, is that they all have geographical positions that should be an advantage as patterns of world trade change.For example, Mexico is next door to the US, but also Latin America. Indonesia is in the heart of South-east Asia but also has deep connections with China.
And as we all know, Turkey is in both the West and East. Nigeria is not really similar in this regard for now, partly because of Africa’s lack of development, but it could be in the future if African countries stop fighting and trade with each other.
This might in fact be the basis for the Mint countries developing their own economic-political club just as the Bric countries did – one of the biggest surprises of the whole Bric thing for me. I can smell the possibility of a Mint club already.
If not a distinct MINT club, then certainly some sort of union of the two; this has already somewhat occurred with certain informal BRICS gatherings, which have involved few MINT members, in addition to other rising economies.
Of the four MINTs, only Turkey has a fairly diversified economy (hence, as mentioned earlier, its slower projected growth), while the remainder specialize primarily in commodities — namely agricultural products and/or natural resources — though efforts are underway to move into manufacturing and services (Mexico, for example, is already set to become one of the world’s top automobile producers).
For comparison, Brazil and Russia are the major commodity producers of the BRICS, while China, India, and South Africa have a broader economic base that includes greater developments in manufacturing and services.
What about wealth per individual citizen of these countries? Large and fast-growing economies are all well and good, but how does it break down?
Well, Mexico and Turkey are at about the same level in per capita earnings, with about $10,000 annually, while Indonesia — with a much larger population — has about $3,500 per person and Nigeria earns $1,500 per head (on a par with India). The head of the pack is Russia with $14,000 per head, Brazil with $11,300 and China with $6,000.
Here’s what in store for the MINTs if growth rates continue:
Granted, like the BRICS — and for that matter most rapidly-developing countries — inequality remains a persistent problem for each member, albeit to varying degrees: according to the 2014 Gini Index, India, Indonesia, and Turkey have fairly low rates of inequality (lower than even the United States), China and Russia are in the mid-range, while Mexico, Brazil, and especially South Africa are among the top brackets.As these countries become wealthier, there will no doubt be increasing pressure to see more of that wealth amount to something for the average person, whether through investment in public services or better-paying and more secure jobs. Already, nearly all the BRICS and MINT countries have seen some protests and civil unrest related wholly or in part to socioeconomic issues (by my recollection, Brazil and Turkey have seen the most pronounced demonstrations, though nearly all members have dealt with strikes).
As the BBC piece goes on to observe, the average person in these countries expresses a palpable sense of hope and optimism, even if there is much work to be done. Aside from inequality, corruption remains a huge issue in all these nations, as our infrastructural and institutional deficiencies (lack of good schooling, reliable roads and ports, etc). Things are largely in a flux, with lots of potential and forward-thinking, but plenty of causes for doubt and concern.
Whatever the future holds, there is little doubt that there will be interesting times ahead, both for these individual nations and the world at large. Few people in the West could ever imagine any of these countries being major actors on the world stage, given the decades of poverty and instability with which we associate them. It is strange to imagine that in my lifetime, countries like Mexico and Brazil — seen as dysfunctional and miserable places by the likes of most fellow Americans — may become economic and even political competitors.
Of course, I am getting ahead of myself. But as the developing world catches up to the more established industrialized nations (situated largely in the West), it is very likely that we will see a more multi-polar world, with global influence diffused across a larger number of actors. Such a paradigm is difficult for me to conceive given how long the international system has operated in a unipolar or bipolar fashion (the latter being the norm since World War II and the former for the last two-and-a-half decades). Will it be unstable? Will the world better address global challenges with more nations exercising influence? What of all the vast cultural and political differences between them? Won’t that get in the way?
Well, setting aside the political implications, I for one am encouraged to see half the world’s population potentially being lifted out of poverty (not to say that hundreds of millions won’t be left behind within their increasingly wealthy nations). Going back to the first chart I shared, it is worth pointing out that other populous countries like Egypt, Iran, Pakistan, and the Philippines are also slated to be among the top twenty economies. Plenty of other nations will see relatively large growth even if they do not reach the cream of the crop.
But we must not be complacent. There is still much work to be done, on both individual national levels and globally. From climate change to worsening global inequality, profound existential challenges remain. But at least there is plenty of untapped potential that is starting to be released, and that will hopefully amount to greater prosperity for all — BRICS, MINT, and beyond.