The BRICs, Not the First World, Spearhead Global Recovery: Although the World Is Well on Its Way to Recovery Following the Global Economic Crisis, Poorer Nations in Africa, and Elsewhere, Can Expect a Rough Ride as Donor Commitments Reduce. Africa's Best Strategy in the near Future Is to Look to the Emerging Markets, Rather Than Their Traditional Trading Partners, for Essential Growth

Siddiqi, Moin, African Business

Emerging economies, led by Brazil, Russia, India and China, are reviving economic activity and trade after a dreadful 2009 when world merchandise trade volumes plunged 18%, the steepest drop since the 1930s' Great Depression. This demonstrates the rapid transition of economic power from the North to the South. The brighter prospects spearheaded by the emerging economies is good news for commodities and investors recovering from deep global recession.

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Africa can benefit from stronger ties, in particular, with Developing Asia, where real GDP growth in 2010 is forecast by the IMF at a robust 8.4%, compared to the sluggish 2.1% for the Organisation for Economic Cooperation and Development (OECD) economies, which are troubled by high unemployment, swelling public debt and weak financial sectors. However, in 2008 (the latest year for which figures are available), African exports to advanced economies were worth $300bn against $61bn to Asia, of which China accounted for almost $50bn.

Dominique Strauss-Kahn, managing director of the IMF says the global economy is rebounding faster than expected, but that the recovery is fragile. "Domestic demand, mostly in advanced countries, is still driven by the public sector stimulus." The world economy is witnessing a …

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Publication information: Article title: The BRICs, Not the First World, Spearhead Global Recovery: Although the World Is Well on Its Way to Recovery Following the Global Economic Crisis, Poorer Nations in Africa, and Elsewhere, Can Expect a Rough Ride as Donor Commitments Reduce. Africa's Best Strategy in the near Future Is to Look to the Emerging Markets, Rather Than Their Traditional Trading Partners, for Essential Growth. Contributors: Siddiqi, Moin - Author. Magazine title: African Business. Issue: 363 Publication date: April 2010. Page number: 52+. © 2009 IC Publications Ltd. COPYRIGHT 2010 Gale Group.

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