BRAZIL, Russia, India, China and South Africa recently concluded the fifth annual meeting of the countries known collectively as the BRICs. Or should that be the BRICS? The confusion arises from the fact that South Africa has sneaked into the group, which claims to represent the world’s emerging markets and act as a counterweight to the G8 and G20, which are dominated by rich-world economies. The BRIC countries were the constituent members of an acronym coined by Jim O’Neill, then of Goldman Sachs, in 2001. Mr O’Neill was looking for a way to convey the fact that much of the world’s economic growth would soon come from Brazil, Russia, India and China. There was much debate about whether this grouping made sense: at the time Brazil’s growth seemed too sluggish to warrant inclusion; now Russia looks like it doesn’t deserve to be placed with the others. China has a much higher economic growth rate than the rest. Even so, the label proved so catchy that the foreign ministers of the BRIC countries decided to hold a summit in New York in 2006. What began as a hook for an investment bank's research note became a real political institution.

There was just one problem with the BRICs: no African countries were included. This was a little embarrassing. Overlooking Africa suggested that the continent was an economic irrelevance, good only for providing raw materials to the rest. It also cast doubt on the group’s claim to speak for the emerging world. Two African countries might have been candidates, Nigeria and South Africa. But only one would keep the acronym intact. And so, in 2010, the club of BRICs became the BRICS.

The strange etymology of the BRICS has real-world consequences. Though the inter-governmental meetings have not amounted to much yet, these countries do have ambitions to set up a joint investment bank. It is easier to reach agreements in small groups than in big ones. China and Brazil struck a currency-swap deal to facilitate trade at this year's meeting. South Africa has thus gained some real political advantage—at least until someone invents a better acronym.

(Photo: AFP)