Comparing the most industrialized countries - where the financial crisis has begun, the BRICS´ productivity could have been more or less affected, since the China, Brazil, and Russia were considered less affected financially.
Dear Hess
You need to clarify which areas you are mentioning. This will depend on the degree of financial integration of each country with G-7.
Dear Aurelio Hess
Off course BRICS quickly stand after WFC compared to G-7 and it is also true that there is a huge difference in both groups in terms of financial integration . BRICs nations have abundant resources like oil, metals and minerals, which are readily imported by other nations. This means that these nations remain prosperous as long as commodity prices remain high, thereby bringing in significant export revenues. However, when prices hit the bottom and demand becomes scarce, these economies become very weak.
Dear Benugopal and Muhammad,
You´re both right. I am, however, talking about Total-Factor productivity, that is productivity in a broad sense. I am researching the drivers behind productivity - a key factor for improvings in living standards.
Dear Prof. Hess
The answer, I guess, is not pretty straight- forward. There are instances where the countries have not done well despite the abundance of natural resources like oils, minerals etc.And there are other extremes which have done very well and it has improved in living standards of people. The quality of institutions, governance and the rent-seeking attitudes of the ruling elites are also important determinants apart from simple input and output parameters. The book by Daron Acemoglu and James A. Robinson -Why Nations Fail , captures this phenomenon very well.
Dear Benugopal,
You are right. There are instances where the countries have not done well despite the abundance of natural resources and there are other extremes which have done very well and it has improved in living standards of people.
I agree that the quality of institutions, governance and the attitudes of the ruling elites are important, and indeed determinants. Thanks for the tip of the book by Daron Acemoglu and James A. Robinson -Why Nations Fail , I will by it as soon as possible.
All the best for you.
Aurelio Hess
Dear Muhammad,
I agree with you that there is a huge difference in both groups in terms of financial integration.
When you say "BRICs nations have abundant resources like oil, metals, and minerals, which are readily imported by other nations. This means that these nations remain prosperous as long as commodity prices remain high, thereby bringing in significant export revenues. However, when prices hit the bottom and demand become scarce, these economies become very weak." , although I agree that it´s true, I don´t believe that it affects directly the productivity of the country. Maybe it has an interference - even maybe a strong one - but is it enough to be one of the "DRIVERS BEHIND PRODUCTIVITY LOSSES", in your opinion?
I´d like to know!
Thank you.
Certainly, because the economies of BRICS are comparable to those of the G7 countries, BRICS have many resources, but unfortunately there is not enough infrastructure to convert the state of potential to the actual, and the comparison of both inequality in the general and from one country to another requires intra-group study. . In my view, in the current economic crisis of the BRICS, crisis segmentation and coordinated planning are needed.
Ok. But the question is:
Compared to G7, the BRICS´ productivity was more or less affected by the world financial crisis?
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