Written by David Cockburn-Price, Managing Director at Virtalis
Virtalis has jumped on a band wagon without even being aware such a bandwagon existed!
Radio 4 has gone MINT mad this week. For the uninitiated, this acronym stands for Mexico, Indonesia, Nigeria and Turkey and these are predicted to be the next emerging economic giants. What they really share beyond having a lot of people, is that at least for the next 20 years, they have really good “inner” demographics – they are all going to see a rise in the number of people eligible to work relative to those not working.
So, if Mexico, Indonesia, Nigeria and Turkey get their act together, some of them could match the double-digit growth rates managed by China between 2003 and 2008.
Everyone has heard of the BRIC, a grouping acronym which refers to Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. In 2010, this was replaced by BRICS when South Africa was included in the bloc.
Unknowingly and without the kind of labyrinthine economic strategies that are the preserve of much bigger and better known economic giants, Virtalis has been quietly following a policy of BRICS growth, building resellers and partners in Brazil, China and South Africa and completing several impressive projects in Russia and India. In fact, much of Virtalis’ growth has stemmed from our expansion into BRICS over the last few years.
The BRICS acronym was coined by Jim O’Neill in a 2001 as a symbol of the apparent shift in global economic power away from the developed G7 economies towards the developing world. Some sources suggest that they might overtake the G7 economies by 2027. More modestly, Goldman Sachs has argued that, although the BRICS countries are developing rapidly, it will only be by 2050 that their combined economies could eclipse the combined economies of the current richest countries of the world. This is incredible if you consider that using the latest figures available, while the BRICS countries account for over a quarter of the world’s land area and more than 40% of the world’s population, they currently account for just one quarter of the world gross national income.
Now Virtalis has just announced a new, go-getting reseller in Turkey – Azon. Possibly a bit random when we have the whole world to go at? Some might think so, but apparently not. For centuries, Turkish traders have exploited their location on the historic Silk Road between East and West, selling to merchants travelling in both directions. Jim O’Neill, who also invented the MINT theory, believes that Turkey’s geography remains important to this day as the country becomes an aviation hub, a conduit for gas and oil, and a visitor destination. Yet Turkish plans go much further: to combine its deep-rooted trading skills with ultra-modern technology to develop world-beating manufacturers. This is why we chose Turkey and Azon and without recourse to detailed and exhaustive economic study.
However, there is no question where we should be looking to expand next – Mexico, Indonesia and Nigeria, here we come! Mr. O’Neill, we salute you!