Will the US be out Dueled and Dethroned by Emerging Economic Powers?
Harrisburg, Pa- January 20, 2011- In 2003, Goldman Sachs, a cutting edge consulting firm prophesized about economic growth in Brazil, Russia, India and China. This report suggested that these countries would harness the fastest growing economies over the next 50 years and could perhaps surpass the US in organic generated revenue that would propel them to overtake the US as global economic leader.
With these countries well developed strategies of manufacturing, agriculture and service sectors, as well as their government’s leadership and handle on inflation, surpassing current global titans could very well be eminent.
The BRIC (name given to these four emerging countries when they agreed upon an alliance) has transcended from underprivileged, uncertain economic third world countries, to major players on a global scope. This is largely the result of current financial leading countries outsourcing operations in these areas to cut cost. Many experts believe that these mechanisms have now caused uncertain futures in the leading economies and monumental growth in these surging countries.
The US needs to truly ride the wave in which the emerging international market is shaping itself to become, and make sure alliances are set in place with these future titans in order to ensure the well-being of the State. Currently, China stands as the benefactor and debt collector of the majority of the US trillion dollar tabs, which the treasury continues to run up. Many of these concerns front lined the open discussion which President Obama and President Hu discussed in their most recent talks at the White House.
As global citizens, we must understand that even though some countries have a) been seeing an influx in capital dumped into their economy and/or b) surging markets look promising; these countries are still far too immature be able to handle the constant ups and downs felt by the market flow. This means countries such as India, although looking promising to the on-looker, are still not set-up with complete economic overrides incase an imbalance happens in the market, such as the recent recession that happened in the US and was felt by the world. “Being ill-equipped for these sudden fluctuations could result in these countries becoming oversaturated, under prepared and ultimately could be economic death to investors. We need to continue to develop these areas by investing, but tread lightly and diversify our investments in more than just one of these emerging markets, Andre Doyle CEO, FF10 Partners.”
