Import Substitution

Import Substitution became popular in the 1950s and 60s this policy came into effect to help bring economic independence to many underdeveloped countries and nations.  This concept helped countries in producing products domestically instead of opting for external goods and services.  Examples, of these basic necessities are food, water, and energy, which if they were to be produced domestically this would save money and more jobs would be available.  When spending is done locally this helps the economy, purchases made outside can have a negative impact on the Countries' GDP.  Also, economists can't predict that the money earned locally will be spent locally.  The country has to have capital saved just for external expenditures, this in turn would help the economy. 

Another, possible negative effect about this policy is that if the economy in said country is stable they might not have the incentive or drive to implement better technology and thus help nation become more prosperous.

A good example is BRICS:  The acronym BRIC was coined in 2001 by Goldman Sachs, for the benefit of their investors, to describe a grouping of large emerging economies.  There is no binding agreement between them and the term is thus merely a form of classification. (tmagazine.ey.com/insights/building-brics-in-africa/)

The BRICS leaders at the summit venue; (from left) Rousseff, Medvedev, Singh, Hu and Zumahttp://en.wikipedia.org/wiki/2012_BRICS_summit

"BRICS is a global alliance of regional powers." (valdaiclub.com/asia/26980.html)  Even though BRICS' economies are so different they have decided to join forces to help each other bring better technology and to help raise the economy.  Since they have big ties with South Africa it was in their best interest to join forces to make sure that the bond wouldn't be broken.  The members give other developing economies the chance to meet with them and discuss issues to better design new plans for helping these nations become more technologically and economically advanced.  As these plans develop and these countries grow, their power and leadership will continue to increase.

Russia has connections with Eupore and South Africa has trading connections with Africa, Asia and South America which this will help with developing these countries further.
 

Some facts about BRIC nations:
These nations host 40% of the world populations
According to the IMF, the combined GDP of the G8 in 2010 was $33.36 trillion; for BRICS, it was $11.33 trillion.

In conclusion,  all these countries forming an alliance will help other developing countries grow and will open many doors for the actual members now to implement having their own currency, banks and their own agreements for trade between all the countries connected.  At this moment they are working on their regional trade agreements and how to better the economy for all the underdeveloped countries.

File:Top five largest economies in 2050.jpg

http://en.wikipedia.org/wiki/File:Top_five_largest_economies_in_2050.jpg