Earlier we reported that Jim O'Neill has finally capitulated on his China uberalles prediction. Not a few hours pass, and Goldman is already back to spinning the great illusory strawman of the next growth "dynamo" - enter the N-11, or the "the ‘next 11’ emerging economies that—after the BRICs—have the potential to rival the G7 as a source of global demand and sustained growth." Because Goldman knows all too well that two wrongs make a much bigger right. As to which bottom dwellers are supposed to pull America and the insolvent developed world, prepare to be regaled with the following brilliant selection of N-11 participants: Bangladesh, Vietnam, Egypt, Iran, Pakistan, Indonesia, Nigeria, Philippines, Mexico, Turkey, Korea. Good luck with that Jim: we cant wait for the Non-Ch 11 200 next, or all the countries in the world that don't have a debt/GDP ratio of over 100%. We are sure that the entire world, ex the developed and BRIC countries, will pretty soon serve as the economic dynamo to push the world forward, and beyond the bankruptcy of your heretofore favorites. We promise that the bears you so enjoy taunting are rolling in fear at the N-11 onslaught.
From the report:
The N-11 economies vary significantly in terms of financial development. Hence, we have constructed a simple ‘financial development’ score, made up of seven financial indicators, which suggests a positive relation with income per capita. Vietnam and Egypt show high levels of financial development given their income per capita, whereas Mexico and Turkey (although financially more developed than the smaller N-11 economies) have the potential to become even stronger in terms of the size, depth and efficiency of their financial markets. There are important caveats to bear in mind when interpreting these results, in the form of the many country-specific factors that have contributed to where these economies find themselves today compared with their peers.
The N-11 have a great deal of potential, both collectively and individually. Their pace of development over the previous decades suggests that they are in a strong position to capitalise on both market-based and bank based systems of finance.
For all who have too much free time on their hands, and can't wait to get their hands on some hot Iranian assets (and no, no Geiger counter pun here), feel free to read the full report.