Emerging Economies

A presentation was arranged on the above issue in the Prime Minister Secretariat. The speakers were Economists from Goldman Sachs who covered the growth prospects of BRIC and N 11. BRIC is acronym for Brazil, Russia, India and China and N11 cover other 11 emerging markets including Pakistan. The strike theme that came out of the presentation was that Pakistan is a laggard and is non doing enough to be considered a high growth economy. BRICS scrawny term growth of an economy is driven by use up and Long term sustainable growth is driven by Supply of factors of production. The Goldman Sachs Model is based on two main(prenominal) factors, Labor Force and Physical Infrastructure.

They have developed an sparing Growth Scores that covers, · Macro Stability: Inflation, Fiscal shortfall and External Debt · Macro Conditions Openness, Investments, Savings · Technology · Human Capital · political Conditions Their conclusions are, · China will become second largest economy in the world in the next 25 years and largest by 2050 and will be followed by India and USA · China will not be able to sustain its 10% growth ascribable to ageing population · Today, the largest economies (in size) are also the richest (per capita income). This will not be the case in 2050 as per capita incomes of China and India will even so be less than half of USA. · Large but not so rich population of China and India will hold back demand for Consumer Goods and Commodities very high. The threshold income after which demand explodes is US$3000/annum. Almost 2bn people will join this income threshold in the next few years. · As Per Capita Income rises, Exchange Rate converges to get Power Parity (PPP). For e.g., per capita income of Pakistan on exchange rate seat is close to US$900 but on PPP earth is US$3000. This gap will narrow with rise in per capita income on exchange rate... If you want to get a well(p) essay, order it on our website: Orderessay

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