Economists have long suggested various sub-groupings of emerging markets. One of the most commonly used in geography is BRIC, an acronym formed from the initial letters of Brazil, Russia, India and China. The term BRIC was first coined by Jim O’Neill in a 2001 paper entitled “The World Needs Better Economic BRICs”. The concept of BRICs has become outdated as the four countries’ economies have diverged over the past decade.
Next on the scene was the term EAGLEs to cover the world’s Emerging and Growth-Leading Economies. The advantage of this acronym is that it is not tied to specific countries. Any term comprised of country names is likely to date fairly quickly, and become much less useful. The members of the EAGLEs club are currently:
- South Korea
Combined, these ten EAGLEs are expected to account for 50% of all global growth that occurs over the next 10 years.
Jim O’Neill has recently popularized another contribution to the terminology of countries believed to be emerging market giants: MINTs. The term was originally coined by Fidelity Investments. The four members of this exclusive grouping are:
In proposing the new grouping, O’Neill makes a compelling case for Mexico’s future economic success. First, its large population ensures a viable domestic market. It also has a growing middle class and a steadily improving dependency ratio (the number of working age people compared to those not working). In addition, Mexico has a privileged position in world trade, linking North America to Asian markets. O’Neill believes that Mexico could experience double-digit rates of economic growth in the coming years, with GDP/person rising from its current figure of about 11,000 dollars to 48,000 dollars by 2050.