BRICS or bust? : escaping the middle-income trap
BRICS or bust? : escaping the middle-income trap
Authors: Hartmut Elsenhans, Salvatore Babones
Publisher: Stanford University Press
Publication Year: 2017
Edition: 1st
About this Book
BRICS or Bust? explores why the BRICS countries—Brazil, Russia, India, China, and South Africa—have faced challenges in transitioning from middle- to high-income economies despite periods of rapid growth. Hartmut Elsenhans and Salvatore Babones argue that the key to escaping the “middle-income trap” lies in demand-driven development strategies that empower ordinary citizens and expand domestic consumption. The book emphasizes direct government investment in human infrastructure, policies that increase wages and labor bargaining power, and strategic use of exchange rates to boost export-led growth.
The authors highlight that while some BRICS countries have achieved remarkable economic feats, such as China’s coastal industrial expansion, these successes have often been geographically and socially uneven. Inequality, elite privilege, and weak mass consumption remain obstacles to broad-based growth. Drawing lessons from historical examples like Japan’s rise to high-income status, the book stresses the importance of mass employment, education, and social redistribution policies for sustainable development.
Through detailed analysis, the book examines the economic, political, and social trajectories of the BRICS nations, exploring the role of the state in promoting growth, fostering domestic demand, and selectively linking national economies to global markets. This concise and insightful volume is essential reading for economists, policymakers, and scholars interested in development economics, global political economy, and strategies for overcoming structural development barriers.
Contents
- Introduction: The Rise and Fall of the BRICS – Hartmut Elsenhans and Salvatore Babones
- The BRICS Trajectories: Economic, Political, and Social
- The Role of the State in Economic Development
- Mass Demand as the Basis of Growth
- Selective Links to the World Market
- Conclusion: Escaping the Middle-Income Trap
