Abstract:
Brazil, Russia, India and China are known as the Bric nations. Their extremely rapid economic growth over the last twenty years has been surprising.
However, a recent report of the International Monetary Fund shows that there has been a fall in the per capita GDP of these countries and the forecasts for the next two years are not positive. The key question is the following: is this extraordinary growth going to last in the long term or not? The answer is that this economic development is sustainable for a long period only if the countries have inclusive economic and political institutions. This means that they should have a democratic government which ought to make reforms to deal with issues such as poverty, corruption and the lack of education. On one hand, Brazil and India have struggled a lot to establish the democratic government they now have. On the other hand, China and Russia still have extractive institutions which control not only the economy, but also politics.
