In the past few years, the BRICs – Brazil, Russia, India, and China – have become the favorites of emerging market investors and politicians, notes a Financial Times op-ed. But out of the four, China and India have the competitive edge. Those two countries are competing with the West for “intellectual capital,” investing in education and technology, and using their expatriate citizens to generate business in the home country.
But Russia and Brazil – two nations propped up by high commodity prices – haven’t invested in long-term economic development in the same way. Russia’s natural resources are increasingly concentrated in state hands, which puts off foreign investors. Brazil is slow to make changes that would positively affect the economic outlook across a broad range of sectors. Both countries have poor infrastructure systems.
As emerging economies change the face of the global political and economic order, business leaders should concentrate on China and India.