What happens in emerging markets matter. Together, they account for more than half of the world's GDP. The group of countries known as Bric _ Brazil, Russia, India and China _ has powered global economic growth since the early 2000s [now known as Brics with the inclusion of South Africa in 2010]. By mid-2009, these economies were growing 7 percentage points faster than the G7 economies and contributed around two-thirds of world output growth.
With growth slowing sharply, the crux of the debate is whether the slowdown is temporary or long-lasting. In order to see these countries through the current transition, I will focus on domestic factors.
Growth depends primarily on what happens at home _ endowment of resources. But the long-run prosperity of nations is not bound by their endowments. Holland, despite its cold climate and little sunshine, is Europe's largest tomato exporter. The Dutch can produce 70kg of tomatoes per year in a square metre of a temperature-controlled greenhouse, whilst Greek and other Mediterranean growers get approximately 7kg from traditional open-air plantations.
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