The Close of the Western-centric Mindset: CIVETS & BRICs
Civets are long, slender nocturnal cats native to parts of Asia and Africa. The acronym CIVETS -- named after these big kitties -- stands for Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa. CIVETS are widely regarded to be the new emerging markets, while BRICs – Brazil, Russia, India, China – are the emerging markets of the last decade, most of which have come into their own as thriving, dynamic economies.
Michael Geoghegan, the Group Chief Executive of HSBC, gave a fascinating speech this spring to the American Chamber of Commerce in Hong Kong, in which he laid out what he believes will be the global economic framework of the next ten years. His takeaway:
The twenty-tens will bring about the close of the Western-centric mindset. Why? Because emerging markets are full of new ideas…[They] will change the way we all do business. The Western view of business has been turned on its head.
- We will see a new set of dynamic economies – the CIVETS joining the BRICs.
- We will see the rise of a new middle class and the emerging market millionaire.
- We will see trade routes continue to shift in direction.
- We will see emerging markets’ financial centres come of age.
All this spells the continuing decline of the Western-centric mindset. All this marks a new beginning for the way the world does business.
Can the United States and her Western siblings adapt to, and find a way to compete in, this new global economy? Or will we be left behind with our staggering debt and deficits, and our crippling taxation and regulations?
- Comment (5)
- · Quote
- · UnfollowFollow (1)
Comments :
May '10
Re: The Close of the Western-centric Mindset: CIVETS & BRICs
Speaking of Western-centric, would that be "Columbia" Maryland, South Carolina, or the gem of the ocean?
Re: The Close of the Western-centric Mindset: CIVETS & BRICs
Ah, Duane -- looks like even the lowly associate editor needs an editor. You are hereby dubbed Assistant to the Associate Editor! (Payment in brownie points.)
May '10
Re: The Close of the Western-centric Mindset: CIVETS & BRICs
Couldn't resist, didn't mean to be picky. Spelling is my passion, typos are my personal curse, because both fingers are klutzy. Feel free to point to my own. ;-)
May '10
Re: The Close of the Western-centric Mindset: CIVETS & BRICs
According to the Heritage Foundation Index of Economic Freedom, the US ranks 8 and the vast majority of Europe -- the UK is 11, the Netherlands is 15, Germany is 23, etc. -- also generally ranks fairly well. In contrast, see the CIVETS:
If the free market ideologues are correct and that 'economic freedom' is the prime determinant of prosperity, what have we to fear?
May '10
Re: The Close of the Western-centric Mindset: CIVETS & BRICs
Harlech, how does the Heritage index of economic freedom: 1) dispositively determine the size of emerging markets, or 2) dictate the economic future freedom of the CIVETS?
In 1989, no would have dreamed that China would 20 years later be economically free as they largely are now. The CIVETS countries will start out as all of the others (starting with Japan, then Korea, then China, etc.) have- not by winning economically through innovation, but by copying and using the cheap labor advantage. You can get by with that for a generation. Not for 100 years.
The problem is not those countries, it is that the US is losing both its economic freedom (regulation, capital availability) and its motivation (tax policy, sated populace).
What we have to fear most is ourselves, not CIVETS- the real enemy is us. Let us do what we have done in the past by capital formation, invesment, and innovation, instead of shutting down energy production, feeding Obamacare and bankrupt union pension plans, and we will triumph over China just as we have over Japan.