Just as we all got used to the idea that BRIC is where it is all happening and must figure in any self-respecting supply chain strategy, it turns out that BRIC is now last year’s thing and we must all now refocus on CIVETS.
BRIC, of course, stands for Brazil, Russia, India and China – four huge countries with rapidly developing economies. However, it transpires that they are not the fastest growing economies. That accolade goes to the CIVETS.
The CIVETS are Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa, and they have been highlighted for the speed of their economic growth, which is far outstripping the BRIC countries.
Turkey, for example, saw a growth rate of 10.2 per cent in the first half of 2011. Not surprisingly, these countries are attracting a lot of attention from investors.
For most organisations, there is still plenty of room to take advantage of the opportunities in the BRIC economies – both as sources of products and as markets.
But at the moment, there is no denying that economic globalisation has gone off the boil. In fact, there is clear evidence of a decline in global trade levels.
Capgemini’s latest Global Trade Flow Index for the third quarter reveals a fall of 1.3 per cent quarter on quarter. At the same time, local domestic consumption around the world is still growing slowly.
Perhaps the emergence of the CIVETS will give the process of globalisation added impetus. It will certainly have an impact of the shape and structure of supply chains in the future.
