Not another BRIC in the wall

The author critiques South Africa's proposed industrial strategy, which relies on state subsidies, selective import barriers, and 'infant industry' protection. Drawing on examples from East Asia, the paper argues that such policies often fail and that sustainable growth in the 21st century requires integrating into global production chains, attracting foreign investment, and improving basic infrastructure and education rather than relying on government intervention to 'pick winners'.

• The South African government's proposed industrial and trade policies, supported by COSATU and some businesses, rely on a weaker currency, state subsidies, and selective import barriers to create 'breathing space' for domestic producers. The author argues these are 'throwbacks to the past' that could 'slow or set back the country’s development'.
• The strategy of 'picking winners' through state support for 'infant industries' is described as hazardous and often unsuccessful. The document cites failed state-led projects in Japan (civil aerospace and pharmaceuticals), Indonesia (commercial aircraft), Malaysia (Proton car project), France (computers and consumer electronics), and Singapore (investments in China).
• The author contends that raising import tariffs to shelter indigenous producers reduces the incentive for companies to become competitive. In contrast, the document highlights that China's growth was driven by 'sweeping trade liberalisation' and the removal of import barriers in the 1990s to force domestic producers to modernise.
• Modern industrialisation for Newly Industrialising Economies (NIEs) now depends on integrating into global production chains and attracting multinational companies, which provide technology, training, and management skills. The author notes that more than half of China's exports are produced in plants that are wholly or partly foreign-owned.
• To achieve economic success, South Africa must address structural shortcomings beyond trade policy, specifically in basic education systems, labour market flexibility, modern infrastructure, and domestic savings rates.

APA

South African Institute of International Affairs (2010). Not another BRIC in the wall. https://saiia.org.za/research/not-another-bric-in-the-wall/

Chicago

South African Institute of International Affairs. Not another BRIC in the wall. 2010. https://saiia.org.za/research/not-another-bric-in-the-wall/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Not another BRIC in the wall |date=9 September 2010 |url=https://saiia.org.za/research/not-another-bric-in-the-wall/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2010not, author = {{South African Institute of International Affairs}}, title = {{Not another BRIC in the wall}}, institution = {South African Institute of International Affairs}, year = {2010}, month = sep, url = {https://saiia.org.za/research/not-another-bric-in-the-wall/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }