World's emerging economies Brazil, Russia, India and China continue to remain susceptible to potential global troubles, a survey by risk consultancy Maplecroft showed Monday.
The firm said that the capacity of the BRIC countries to withstand shocks from global risks has not improved over the course of the last four years, despite recording strong economic performance.
Poor governance and societal resilience, combined with systemic corruption, have limited the BRIC nations' ability to adapt and counter potential shocks from pandemics, terrorism, conflict, resource security, economic contagion and the impacts of climate change, the survey showed.
Lack of efficient governance and poor societal resilience have undermined the investment potential of Brazil, Russia and the Asian economies of China and India, which are central to the fortunes of the global economy due to their increased economic strength and integration with individual economies.
India, Russia and China are identified to have been more susceptible to global risks, while Brazil performs markedly better, due, in part, to its strong democratic governance and regime stability.
In India and Russia, the political process is undermined by an inability to tackle corruption. In China, security issues exist due to localized protests and unrest relating to a lack of political freedom and social gains, though an upheaval on a national scale remains unlikely, the survey revealed.
by RTT Staff Writer
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