BRIC versus PIGS

Welcome to the world of acronyms. For many years, business world has been focusing on the new economic power houses, BRIC or better known as Brazil, Russia, India and China. These countries were the next super growth area, based on the population, industries and potential. Now I find out that there is a new set of countries which are the opposite of BRIC, PIGS or Portugal, Italy, Greece and Spain.

For years, EU had a two tiered power structure. Those with higher economy, such as Britain, Germany and France controlled much of the EU’s economical policies. Some of the mid tiered, the PIGS, yielded some power but not enough to influence the EU as much as those at the top.

Now it seems that their power will decline further. At least before the global economical slow down, their economy was growing at a decent pace and was able to contribute to the EU economy with very few issues. Now, the economy has been declining, the economic health at these countries has dipped even further compared to the rest of the world. They are sagged with slower than expected economy, high unemployment, debt and trade deficits.

While other EU counties have focused their economy on future looking industries, PIGS countries have focused mostly on current industries. That probably is the primary reason for their deep economical problems. They should decide on which industries they can focus in order to recover faster from the current conditions, and that should be the high tech industry. I believe that none of the traditional industries will be the leader the economic recovery. The world is so embedded with the high tech, this ubiquitous technology will be the first thing the consumers will embrace, which will drive other industries to recovery.