The BRICS

Second India blackout in two days cuts power to 670 million | Reuters.

Whenever I am at a dinner party, someone always talks about how the BRICs are going to surpass the US soon. They cite all of these useless statistics, but they never discuss what it is really like to live in an economy still in the throes of a failed ideology.

India subsidizes and controls the price of electricity in the entire country. Since nothing is free, the money lost from low rates has to come from somewhere. The utilities simply neglect to invest in their own infrastructure. Then, artificially cheap electricity leads to overusage which when  combined with a faltering grid leads to blackouts.

The biggest problem that the BRICs have is their own entrenched interests. Until they address them and free their economies, they will never be able to move up in economic weight class.

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