by Stephen McPhie, CA
Partner, RSD Solutions Inc.,
Something does not feel quite right with BRIC. The "R" in fact. This represents a country that has shunned the opportunity for reform that could have been afforded while high oil and gas revenues have been flowing in. One where corruption is rife, the rule of law inadequate at best, the demographics are unfavourable and floods of people are getting out or getting their money out or both. One where an increasingly oppressive regime seems destined to continue for many years to come. Why is it part of BRIC?
Perhaps the "R" should be removed and replaced with "T". Of course, many countries in the developing world have great promise and improving conditions for growth so BRIC represents the large powerhouses among them. T is for Turkey, which looks in a very good position to grow and prosper over the coming decades and which has good looking demographics. Only problem is that BTIC does not flow so easily off the tongue.
What does this mean at the company level for risk managers? Perhaps little but perhaps a lot, depending on sales, supply and investment flows and potential currency movements. Such things should at least be considered in an ERM context.
It would be interesting to hear any comments about my "R" for "T" substitution, especially among any ex-pat Turks!
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