Posted in Finance, Accounting and Economics Terms, Total Reads: 362
The civets connotes to the six emerging nations– Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. They have high potential to drive the world economy in line with the BRICS nations. They have a diverse and dynamic economy with huge demographic potential. This list is comparable to the Next Eleven, devised by Jim O'Neill of Goldman Sachs.
The acronym was framed by Robert ward , director of the global forecasting team of the Economist intelligence unit in late 2009 and was further elaborated upon by Michael Geoghegan ,president of Anglo Chinese HSBC. Michael compared them to a carnivorous mammal that eats and partially digests coffee cherries ,and passing a transformed coffee bean that fetches high prices.
Michael Geoghegan has called these countries "the new BRICS" because of their potential as second-generation emerging economies. They have strong fundamentals, with a robust financial system, modest inflationary pressure and vibrant young population. Their advantage stems from internal political stability and dynamic potential for growth. However all the CIVETS nation are not parable in all respect and future success will depend on the coherence of political and economic decision moving forward.
Indonesia, South Africa and turkey are also part of the G-20.They are already perceived as "strategic partners at the G-20 ,investing in peer to peer learning and collaborative partnership forming the linchpin to global growth.”In view of this, during the 2011 annual meetings of the International Monetary Fund and the World Bank, the economy and finance ministers of the CIVETS countries established a formal mechanism for communication and coordination. All the nation except South Africa and Columbia are also part of the “next eleven”