engleski

Newly industrialized countries : the moving force of economic growth

During the first decade of the 21st century, the newly industrialized countries have been the focal point of economic activities. In the last several years, the growth of these “21st century tigers” has been spectacular. The developed countries no longer dominate in international economy which raises their concern while observing the success of these newly industrialized countries and especially the way of their development. The spectacular accumulation of the newly industrialized countries’ current account balance surplus has greatly modified the allocation of monetary reserves in the world: three quarters of the foreign reserves are held by these countries. This new situation has caused a change in the internal balance of world finance. These big newly industrialized countries are, varying in degree, engaged in trade liberalization and multilateral negotiations: e.g. China joined WTO in 2001 ; many of them have become the regional leaders and the porte-paroles of the South. The power of economic “giants” such as Brazil, Russia, India, China, South Africa i.e. the “BRICS” is inevitable. However, these countries are giants with feet of clay resulting in a dangerous impact in times of global economic crisis. Therefore, the vulnerability of these countries is manifested through a number of negative externalities in the world. This should convince the rich countries to fully join in the creation of new mechanisms of international governance in the future. This paper analyzes the newly industrialized countries and their impact on economic growth through the prism of international governance and the creation of a new international economic order.

newly industrialized countries, BRICS, economic growth

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