At the dawn of the 21st century, there were already clear signals of the economic decline the United States and Europe were facing. As opposed to it, countries that, in the course of history, have always been categorized as part of the developing world, have indeed in the last decades experienced a rapid economic development. In 2001 Goldman Sachs’ collaborator Jim O’Neill grouped these countries under the Acronym of BRIC, which stands for Brazil, China, India and Russia. Eventually the name became BRICS including South Africa among those countries.
Table of Contents
Introduction
1. The new emerging economies
1.1. China
1.2. eastern Asia
1.3. India
1.4. Brazil
1.5. South Africa
2. A challenge ahead for the U.S. and the E.U.?
Conclusion
Research Objectives and Core Themes
This paper examines the ongoing transformation of the global political economy, specifically analyzing the rise of the BRICS nations and the resulting consequences for the traditional hegemony of the United States and the European Union. The central research question investigates whether the shift in economic power and the emergence of these new market actors truly challenge the status quo or if they indicate a new phase of global development.
- Evolution of BRICS nations from emerging markets to key global players.
- Comparative analysis of development models in China, India, Brazil, and South Africa.
- Impact of the global financial crisis as a catalyst for shifting power dynamics.
- Assessment of the marginalization of European influence compared to American hegemony.
- The role of international institutions and the potential for a new global order.
Excerpt from the Book
1.1. China
China has been outcast from the world market until the end of the 1970s. In fact, from the 1950s to the mid-1970s, the Chinese communist leader Mao Zedong endeavored to transform China into a communist state with agricultural collectivization and as well as rural industrialization and then removing capitalist, traditional and cultural elements through movements as the Great Leap Forward (1958-1961) and the cultural revolution (1966-1971). The outcome was a disastrous setback for the whole country. Only with the subsequent new reforms issued by Deng Xiaoping, had China finally taken the path towards its rise in the world economy. From 1978 on, China slowly opened itself towards foreign investment, limited private competition, small private businesses and the world market.
China’s new direction taken in the last decade of the 20th century was one towards neoliberal-like politics. Privatization and deregulation as well as a strong orientation towards outer trends were key-points in the Chinese new track and the engine for China’s modernization. The public sector and the financial system remained, nevertheless, centralized and so, deeply state controlled. The highest point of Chinese neo-liberalism, over the years 1992-2001, was eventually marked by China’s WTO accession in December 2001.
Since the economic liberalization, and especially since the 1990s, China has been one of the fastest growing economies with an yearly growth rate of 10%. Its growth mainly leans on an efficient export strategy together with a vigorous investment. Tobias ten Brink, academic assistant at the University of Frankfurt, states, that the three main reasons of China’s economic growth are: firstly, the shifting of the global value towards the east Asian markets, and chiefly the Chinese market, which has brought to a modernization of production and the resultant export dependency of China. Secondly the low wages strategy which allowed an industrial enhancement vis-à-vis the agricultural field, and thirdly, the Chinese authoritarian political system and its control capacities, which, especially in the last decades, has reinforced the development of its market as well as entrepreneurial activities.
Summary of Chapters
Introduction: This section introduces the rise of the BRICS countries and highlights their increasing role in the global political economy while noting their relative strength during recent economic crises.
1. The new emerging economies: This chapter provides an in-depth analysis of the individual developmental paths of China, eastern Asia, India, Brazil, and South Africa, focusing on their respective market strategies and economic reforms.
1.1. China: Details China's transition from an isolated communist state to a global economic leader following the reforms of Deng Xiaoping and its subsequent WTO accession.
1.2. eastern Asia: Discusses the developmental state model in countries like Japan, South Korea, and Taiwan, and how these states evolved into entrepreneurial entities through regional cooperation.
1.3. India: Examines India's shift from protectionism to neoliberal policies since 1991 and its ongoing struggle with socio-economic disparities despite rapid growth.
1.4. Brazil: Analyzes Brazil's economic boom based on commodity exports and social policy improvements, while highlighting the challenges of sustainability and market dependence.
1.5. South Africa: Reviews South Africa's post-Apartheid search for a viable development model and its integration into the global economy through strategic trade.
2. A challenge ahead for the U.S. and the E.U.?: This chapter evaluates the potential marginalization of the West, particularly the EU, as the BRICS countries shift global power dynamics away from US-influenced institutions.
Conclusion: Summarizes the current state of the global economy, suggesting that while a power shift is occurring, the rules of the international system are still largely defined by the Global North.
Keywords
BRICS, Global Political Economy, Emerging Markets, Neoliberalism, Developmental State, Economic Growth, Financial Crisis, Trade Policy, Globalization, Power Dynamics, Hegemony, Infrastructure, Market Liberalization, Industrialization, Sustainable Development
Frequently Asked Questions
What is the primary focus of this research paper?
The paper focuses on the rise of the BRICS nations and how their economic transformation impacts the global political status of traditional powers like the U.S. and the European Union.
Which countries are analyzed as the core emerging economies?
The study analyzes China, the economies of eastern Asia, India, Brazil, and South Africa.
What is the central research question?
The central question is whether the current transformation of these emerging economies is effectively challenging the power and influence of the global north in the long term.
Which scientific methodology is primarily employed?
The paper employs a qualitative analysis of economic history, political developments, and contemporary literature regarding international relations and global governance.
What is covered in the main body of the work?
The main body provides individual country reports, an analysis of development models, and a critical look at how these nations interact with global institutions like the IMF and WTO.
Which keywords best describe the paper's scope?
Key terms include BRICS, global political economy, hegemony, market liberalization, and economic transformation.
How does the author characterize China's current economic status?
The author describes it as a "paradox of prosperity," where rapid growth and export success are accompanied by government heterogeneity and domestic structural challenges.
Does the author believe the EU is facing imminent decline?
The paper suggests that the EU risks being marginalized in regions like East Asia and the Middle East, noting that the EU's future influence is heavily tied to its engagement with the emerging BRICS powers.
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- Pablo Bernardino Sanchez Arias (Autor:in), 2014, Global political economy. Consequences of the current transformations, München, GRIN Verlag, https://www.grin.com/document/275719
