Definition
CIVETS
CIVETS is an acronym for six countries: Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa. These nations were identified around 2009-2010 as notable emerging markets with promising prospects for economic growth and investment opportunities. The primary factors leading to their designation include dynamic economies, young and growing populations, and relative political stability. These countries were seen as the next generation of significant economic players, following the initial success of the BRIC countries (Brazil, Russia, India, and China).
Examples
- Colombia: Known for its resource-rich economy and improving political stability, Colombia has seen considerable foreign investment in oil, mining, and tourism sectors.
- Indonesia: With a sizable population and a rapidly growing middle class, Indonesia provides a fertile environment for consumer goods, infrastructure development, and digital economy investments.
- Vietnam: Recognized for its rapid manufacturing growth and favorable trade agreements, Vietnam has become a key player in the global supply chain.
- Egypt: Egypt’s strategic location and diversified economy offer opportunities in tourism, telecommunications, and energy sectors.
- Turkey: Straddling Europe and Asia, Turkey enjoys a strategic economic position with diverse industrial and agricultural sectors.
- South Africa: As the most advanced economy in Africa, South Africa is pivotal in sectors such as mining, financial services, and telecommunications.
Frequently Asked Questions (FAQs)
What does CIVETS stand for?
CIVETS stands for Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa.
Why were these countries grouped together as CIVETS?
These countries were grouped based on their dynamic economies, young populations, potential for economic growth, and relative political stability, making them attractive destinations for international investments.
How does CIVETS compare to BRIC?
While BRIC (Brazil, Russia, India, and China) consists of large, rapidly growing economies that have become significant global economic players, CIVETS countries were considered emerging markets with potential to follow similar growth trajectories due to their favorable demographic and economic conditions.
Are CIVETS countries still considered emerging markets?
Yes, CIVETS countries are still classified as emerging markets, but their economic performance and attractiveness for investment can vary based on current political and economic conditions.
What industries are particularly promising in CIVETS countries?
Promising industries include natural resources (e.g., oil and mining in Colombia and South Africa), manufacturing (e.g., in Vietnam), consumer goods (e.g., in Indonesia), and infrastructure development (e.g., in Egypt and Turkey).
Related Terms
- BRIC: An acronym denoting the economically significant grouping of Brazil, Russia, India, and China.
- Emerging Markets: Nations with social or business activity in the process of rapid modernization and industrialization.
- Next Eleven (N-11): Countries identified by Goldman Sachs with potential to become among the world’s largest economies in the 21st century.
Online References
Suggested Books for Further Studies
- “Emerging Markets and the Global Economy: A Handbook” by Mohamed A. Ramady
- “The Next 11: How the World’s Economies Are Changing” by Morgan Stanley Research
- “Doing Business in Emerging Markets” by S. Tamer Cavusgil, Pervez N. Ghauri, and Ayse A. Akcal
Accounting Basics: CIVETS Fundamentals Quiz
Thank you for exploring the intricate dynamics of CIVETS economies and challenging yourself with our sample quiz! Keep enhancing your financial acumen and stay ahead in emerging markets.
