Exploring Inclusive Growth and Poverty Reduction Strategies in the BRICS Economies: A Multi-Country Study Of Brazil, China and South Africa

Abstract

The acronym BRICS stands for Brazil, Russia, India, China and South Africa. A grouping of some of the world's most dynamic economies, the BRICS countries have emerged as an economic block, which has shaped the direction of the global economy, particularly in the past decade. The positive trend has transformed the development profile of the BRICS countries, lifting millions out of the vicious cycle of poverty. Inclusive growth in China has spawned large-scale poverty reduction, with the head-count poverty ratio declining from 30.7 % or 250 million people in 1978 to 13.4% or 179.9 million in 2012. In the case of Brazil, which features one of the world's most severe inequality ratios, the nation has improved the rate of impoverishment amongst its population in the last decade, reinforced by sustained economic growth. While the nation's poverty ratio escalated from 17.4 % in 1990 to 22 % in 1998 and 31 % in 2005; it has reduced to 26 % in 2008 and 21.4% in 2013 (World factbook, 2013). South Africa presents a different scenario, with the obnoxious apartheid system excluding the majority Black population from the nation's wealth until its emergence as a multi-racial democracy. While the nation continues to struggle against endemic poverty, particularly amongst the Black population; strong economic performance in the last decade has led to poverty reduction. Therefore, the major objective of this paper is to elaborate the nexus of inclusive growth and poverty reduction in the BRICS countries, particularly in the last decade. The paper employs empirical data to analyze economic performance in the countries and finds that inclusive growth has contributed to poverty reduction. Brazil, China and South Africa were examined as case studies, revealing the positive effects of inclusive growth on poverty reduction. The paper also presents a policy framework underpinned by macroeconomic policies, characterized by economic diversification, export-driven industrialization, foreign direct investment, as well as mainstreaming poverty reduction strategies in development policy.