Emerging markets
Encyclopedia
Emerging markets are nations with social or business activity in the process of rapid growth
and industrialization. Based on data from 2006, there are around 28 emerging markets in the world (data from 2010 says there are 40 emerging markets). The economies of China
and India
are considered to be the largest. According to The Economist
many people find the term outdated, but no new term has yet to gain much traction. Emerging market hedge fund capital reached a record new level in the first quarter of 2011 of $121 billion.
The ASEAN–China Free Trade Area
, launched on January 1, 2010, is the largest regional
emerging market in the world.
Originally brought into fashion in the 1980s by then World Bank
economist Antoine van Agtmael, the term is sometimes loosely used as a replacement for emerging economies, but really signifies a business phenomenon that is not fully described by or constrained to geography or economic strength; such countries are considered to be in a transitional phase between developing
and developed
status. Examples of emerging markets include Indonesia
, Iran
, some countries of Latin America
, some countries in Southeast Asia
, most countries in Eastern Europe
, Russia
, some countries in the Middle East
, and parts of Africa
. Emphasizing the fluid nature of the category, political scientist Ian Bremmer
defines an emerging market as "a country where politics matters at least as much as economics to the markets".
The research on emerging markets is diffused within management
literature. While researchers including C. K. Prahalad
, George Haley
, Hernando de Soto
, Usha Haley
, and several professors from Harvard Business School
and Yale School of Management
have described activity in countries such as India and China, how a market emerges is little understood.
In the 2008 Emerging Economy Report, the Center for Knowledge Societies
defines Emerging Economies as those "regions of the world that are experiencing rapid informationalization under conditions of limited or partial industrialization." It appears that emerging markets lie at the intersection of non-traditional user behavior, the rise of new user groups and community adoption of products and services, and innovations in product technologies and platforms.
The term "rapidly developing economies" is being used to denote emerging markets such as The United Arab Emirates
, Chile
and Malaysia that are undergoing rapid growth.
In recent years, new terms have emerged to describe the largest developing countries such as BRIC
that stands for Brazil
, Russia
, India
, and China
, along with BRICET (BRIC + Eastern Europe and Turkey), BRICS (BRIC + South Africa), BRICM (BRIC + Mexico), BRICK (BRIC + South Korea), Next Eleven
(Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam) and CIVETS
(Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa). These countries do not share any common agenda, but some experts believe that they are enjoying an increasing role in the world economy and on political platforms.
It is difficult to make an exact list of emerging (or developed) markets; the best guides tend to be investment information sources like ISI Emerging Markets
and The Economist
or market index makers (such as Morgan Stanley Capital International
). These sources are well-informed, but the nature of investment information sources leads to two potential problems. One is an element of historicity; markets may be maintained in an index for continuity, even if the countries have since developed past the emerging market phase. Possible examples of this are South Korea
and Taiwan
. A second is the simplification inherent in making an index; small countries, or countries with limited market liquidity are often not considered, with their larger neighbours considered an appropriate stand-in.
In an Opalesque.TV video, hedge fund manager Jonathan Binder discusses the current and future relevance of the term "emerging markets" in the financial world. Binder says that in the future investors will not necessarily think of the traditional classifications of "G10" (or G7) versus "emerging markets". Instead, people should look at the world as countries that are fiscally responsible and countries that are not. Whether that country is in Europe or in South America should make no difference, making the traditional "blocs" of categorization irrelevant.
The Big Emerging Market (BEM) economies are (alphabetically ordered): Brazil
, China
, Egypt
, India
, Indonesia
, Mexico
, Philippines
, Poland
, Russia
, South Africa
, South Korea
and Turkey
.
Newly industrialized countries are emerging markets whose economies have not yet reached first world status but have, in a macroeconomic sense, outpaced their developing counterparts.
Individual investors can invest in emerging markets either through ADRs (American depositor Receipts - stocks of foreign companies that trade on US stock exchanges) or through exchange traded funds (exchange traded funds or ETFs hold basket of stocks). The exchange traded funds can be focused on a particular country (e.g., China, India) or region (e.g., Asia-Pacific, Latin America).
distinguishes between Advanced and Secondary Emerging markets on the basis of their national income and the development of their market infrastructure. The Advanced Emerging markets are classified as such because they are upper or lower middle income GNI countries with advanced market infrastructures or high income GNI countries with lesser developed market infrastructures.
The Advanced Emerging markets are:
The Secondary Emerging markets include some low income, lower middle, upper middle and high income GNI countries with reasonable market infrastructures and significant size and some upper middle income GNI countries with lesser developed market infrastructures. The secondary emerging markets are:
The list tracked by The Economist is the same, except with Hong Kong
, Singapore
and Saudi Arabia
included (MSCI
classifies the first two as developed markets and the third one is unclassified due to foreign ownership restrictions).
The
United Arab Emirates, 
Qatar, and 
Jordan are currently under review for being upgraded to the status of emerging market by S&P.
The F-10 emerging market list is as follows:
This classification is divided in two set of developing economies.
EAGLEs (Emerging and Growth-Leading Economies
): Expected Incremental GDP in the next 10 years to be larger than the average of the G7 economies, excluding the US.
NEST: Expected Incremental GDP in the next decade to be lower than the average of the G6 economies(G7 excluding the US) but higher than Italy’s.
is a list of the top 65 cities in emerging markets. The following countries had cities featured on the list (as of 2008):
, Turkey
, and Egypt
.
Indonesia and Turkey, which have been categorized as four emerging markets. Egypt, since January 25, 2011, has been affected by protests and is now in a transition process. There are also several countries to only appear on one list. They are Iran (Next 11), Hong Kong, Singapore, Saudi Arabia (The Economist), Bahrain, Bulgaria, Estonia, Jordan, Kuwait, Latvia, Lithuania, Mauritius, Oman, Qatar, Romania, Slovakia and Sri Lanka (Dow Jones).
, is an alternative classification determined by Citigroup
analysts as being countries with the most promising growth prospects for 2010-2050. These consist of Indonesia, Egypt (but not Turkey), seven other emerging countries, and two countries not previously listed before, specifically Iraq
and Mongolia
. The only country to appear in all emerging market lists or groups is Indonesia.
issued at May 2011, BRIC
countries plus South Korea
and Indonesia
will lead the world's economy with more than a half of all global growth by 2025.
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
and industrialization. Based on data from 2006, there are around 28 emerging markets in the world (data from 2010 says there are 40 emerging markets). The economies of China
Economy of the People's Republic of China
The People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...
and India
Economy of India
The Economy of India is the ninth largest in the world by nominal GDP and the fourth largest by purchasing power parity . The country is a part of the G-20 major economies and the BRICS, in addition to being partners of the ASEAN. India has a per capita GDP of $3,608 as per 2010 figures, making it...
are considered to be the largest. According to The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
many people find the term outdated, but no new term has yet to gain much traction. Emerging market hedge fund capital reached a record new level in the first quarter of 2011 of $121 billion.
The ASEAN–China Free Trade Area
ASEAN–China Free Trade Area
The ASEAN–China Free Trade Area , also known as the China–ASEAN Free Trade Area is a free trade area among the ten member states of the Association of Southeast Asian Nations and the People's Republic of China...
, launched on January 1, 2010, is the largest regional
Economic integration
Economic integration refers to trade unification between different states by the partial or full abolishing of customs tariffs on trade taking place within the borders of each state...
emerging market in the world.
Terminology
In the 1970s, "less economically developed countries" (LEDCs) was the common term for markets that were less "developed" (by objective or subjective measures) than the developed countries such as the United States, Western Europe, and Japan. These markets were supposed to provide greater potential for profit, but also more risk from various factors. This term was felt by some to be not positive enough so the emerging market label was born. This term is misleading in that there is no guarantee that a country will move from "less developed" to "more developed"; although that is the general trend in the world, countries can also move from "more developed" to "less developed".Originally brought into fashion in the 1980s by then World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
economist Antoine van Agtmael, the term is sometimes loosely used as a replacement for emerging economies, but really signifies a business phenomenon that is not fully described by or constrained to geography or economic strength; such countries are considered to be in a transitional phase between developing
Developing country
A developing country, also known as a less-developed country, is a nation with a low level of material well-being. Since no single definition of the term developing country is recognized internationally, the levels of development may vary widely within so-called developing countries...
and developed
Developed country
A developed country is a country that has a high level of development according to some criteria. Which criteria, and which countries are classified as being developed, is a contentious issue...
status. Examples of emerging markets include Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
, some countries of Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
, some countries in Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
, most countries in Eastern Europe
Eastern Europe
Eastern Europe is the eastern part of Europe. The term has widely disparate geopolitical, geographical, cultural and socioeconomic readings, which makes it highly context-dependent and even volatile, and there are "almost as many definitions of Eastern Europe as there are scholars of the region"...
, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, some countries in the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
, and parts of Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
. Emphasizing the fluid nature of the category, political scientist Ian Bremmer
Ian Bremmer
Ian Bremmer is an American political scientist specializing in US foreign policy, states in transition, and global political risk. He is the president and founder of Eurasia Group, a leading global political risk research and consulting firm...
defines an emerging market as "a country where politics matters at least as much as economics to the markets".
The research on emerging markets is diffused within management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
literature. While researchers including C. K. Prahalad
C. K. Prahalad
Coimbatore Krishnarao Prahalad was the Paul and Ruth McCracken Distinguished University Professor of Corporate Strategy at the Stephen M...
, George Haley
George Haley
George T. Haley is an American author and academic, currently a tenured Professor of Industrial and International Marketing at the University of New Haven, Connecticut, USA. He is also the Director of the Center for International Industry Competitiveness. His influential research covers Industrial...
, Hernando de Soto
Hernando de Soto (economist)
Hernando de Soto is a Peruvian economist known for his work on the informal economy and on the importance of business and property rights. He is the president of the Institute for Liberty and Democracy , located in Lima, Peru.-Childhood and education:Hernando de Soto was born in 1941 in Arequipa,...
, Usha Haley
Usha Haley
Usha C. V. Haley is an influential American author and academic, currently Chaired Professor of International Business at Massey University in New Zealand, Distinguished Guest Professor in International Business at ITESM in Mexico and associated with the Economic Policy Institute in Washington, DC....
, and several professors from Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
and Yale School of Management
Yale School of Management
The Yale School of Management is the graduate business school of Yale University and is located on Hillhouse Avenue in New Haven, Connecticut, United States. The School offers Master of Business Administration and Ph.D. degree programs. As of January 2011, 454 students were enrolled in its MBA...
have described activity in countries such as India and China, how a market emerges is little understood.
In the 2008 Emerging Economy Report, the Center for Knowledge Societies
Center for knowledge societies
The Center for Knowledge Societies is a design and innovation consultancy headquartered in Bangalore, India with offices in Delhi...
defines Emerging Economies as those "regions of the world that are experiencing rapid informationalization under conditions of limited or partial industrialization." It appears that emerging markets lie at the intersection of non-traditional user behavior, the rise of new user groups and community adoption of products and services, and innovations in product technologies and platforms.
The term "rapidly developing economies" is being used to denote emerging markets such as The United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
, Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
and Malaysia that are undergoing rapid growth.
In recent years, new terms have emerged to describe the largest developing countries such as BRIC
BRIC
In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development...
that stands for Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, and China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
, along with BRICET (BRIC + Eastern Europe and Turkey), BRICS (BRIC + South Africa), BRICM (BRIC + Mexico), BRICK (BRIC + South Korea), Next Eleven
Next Eleven
The Next Eleven are eleven countries—Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam — identified by Goldman Sachs investment bank and Jim O'Neill as having a high potential of becoming, along with the BRICS, the world's largest...
(Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam) and CIVETS
CIVETS
The CIVETS is an acronym for favored emerging markets coined in late 2009 by Robert Ward, Global Forecasting Director for the Economist Intelligence Unit . The term has also been used by HSBC's chief executive Michael Geoghegan...
(Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa). These countries do not share any common agenda, but some experts believe that they are enjoying an increasing role in the world economy and on political platforms.
It is difficult to make an exact list of emerging (or developed) markets; the best guides tend to be investment information sources like ISI Emerging Markets
ISI Emerging Markets
Internet Securities, Inc., which trades as ISI Emerging Markets, is an information company that provides electronic subscription based data and information on emerging market economies....
and The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
or market index makers (such as Morgan Stanley Capital International
Morgan Stanley Capital International
MSCI Inc. is a provider of investment decision support tools to investment institutions. Products include indices, portfolio risk and performance analytics - for use in managing equity, fixed income and multi-asset class portfolios - and governance tools....
). These sources are well-informed, but the nature of investment information sources leads to two potential problems. One is an element of historicity; markets may be maintained in an index for continuity, even if the countries have since developed past the emerging market phase. Possible examples of this are South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
and Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
. A second is the simplification inherent in making an index; small countries, or countries with limited market liquidity are often not considered, with their larger neighbours considered an appropriate stand-in.
In an Opalesque.TV video, hedge fund manager Jonathan Binder discusses the current and future relevance of the term "emerging markets" in the financial world. Binder says that in the future investors will not necessarily think of the traditional classifications of "G10" (or G7) versus "emerging markets". Instead, people should look at the world as countries that are fiscally responsible and countries that are not. Whether that country is in Europe or in South America should make no difference, making the traditional "blocs" of categorization irrelevant.
The Big Emerging Market (BEM) economies are (alphabetically ordered): Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
and Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
.
Newly industrialized countries are emerging markets whose economies have not yet reached first world status but have, in a macroeconomic sense, outpaced their developing counterparts.
Individual investors can invest in emerging markets either through ADRs (American depositor Receipts - stocks of foreign companies that trade on US stock exchanges) or through exchange traded funds (exchange traded funds or ETFs hold basket of stocks). The exchange traded funds can be focused on a particular country (e.g., China, India) or region (e.g., Asia-Pacific, Latin America).
FTSE list
The FTSE GroupFTSE Group
FTSE Group is a world-leader in the provision of global index and analytical solutions. FTSE calculates indices across a wide range of asset classes, on both a standard and custom basis...
distinguishes between Advanced and Secondary Emerging markets on the basis of their national income and the development of their market infrastructure. The Advanced Emerging markets are classified as such because they are upper or lower middle income GNI countries with advanced market infrastructures or high income GNI countries with lesser developed market infrastructures.
The Advanced Emerging markets are:
 Brazil |
 Czech Republic |
 Hungary |
 Malaysia |
 Mexico |
 Poland |
 South Africa |
 Republic of China |
 Turkey |
The Secondary Emerging markets include some low income, lower middle, upper middle and high income GNI countries with reasonable market infrastructures and significant size and some upper middle income GNI countries with lesser developed market infrastructures. The secondary emerging markets are:
 Chile |
 Mainland China |
 Colombia |
 Egypt |
 India |
 Indonesia |
 Morocco |
 Pakistan |
 Peru |
 Philippines |
 Russia |
 Thailand |
United Arab Emirates |
MSCI list
As of May 2010, MSCI Barra classified the following 21 countries as emerging markets:The list tracked by The Economist is the same, except with Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
and Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
included (MSCI
Morgan Stanley Capital International
MSCI Inc. is a provider of investment decision support tools to investment institutions. Products include indices, portfolio risk and performance analytics - for use in managing equity, fixed income and multi-asset class portfolios - and governance tools....
classifies the first two as developed markets and the third one is unclassified due to foreign ownership restrictions).
S&P list
As of 31 December 2010, Standard and Poor's classified the following 19 countries as emerging markets:The
United Arab Emirates, Qatar, and Jordan are currently under review for being upgraded to the status of emerging market by S&P.Dow Jones list
As of May 2010, Dow Jones classified the following 35 countries as emerging markets:Frontier Strategy Group (F10) list
In July 2011, Frontier Strategy Group released the F-10, a list of the top 10 emerging markets Western multinational senior executives at Fortune 500 companies are tracking globally.The F-10 emerging market list is as follows:
BBVA Research
In November 2010, BBVA Research introduced a new economic concept, to identify a key emerging markets.This classification is divided in two set of developing economies.
EAGLEs (Emerging and Growth-Leading Economies
Emerging and Growth-Leading Economies
Emerging and growth-leading economies are the key emerging economies that are expected to lead global growth in the next decade.-The EAGLEs concept:...
): Expected Incremental GDP in the next 10 years to be larger than the average of the G7 economies, excluding the US.
NEST: Expected Incremental GDP in the next decade to be lower than the average of the G6 economies(G7 excluding the US) but higher than Italy’s.
Emerging Markets Index
The Emerging Markets IndexEmerging Markets Index
Emerging Markets Index is a ranking of the 65 most influential cities in emerging economies, compiled by Mastercard.-Emerging Markets Index 2008 top 65:# Shanghai# Beijing# Budapest# Kuala Lumpur# Santiago# Guangzhou# Mexico City# Warsaw# Bangkok...
is a list of the top 65 cities in emerging markets. The following countries had cities featured on the list (as of 2008):
Among the lists
If we plot the lists above to table below, there are only 3 countries always appear in every list (Next Eleven/BRIC, CIVETS, FTSE, MSCI, The Economist, S&P, Dow Jones). They are IndonesiaIndonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
, and Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
.
Indonesia and Turkey, which have been categorized as four emerging markets. Egypt, since January 25, 2011, has been affected by protests and is now in a transition process. There are also several countries to only appear on one list. They are Iran (Next 11), Hong Kong, Singapore, Saudi Arabia (The Economist), Bahrain, Bulgaria, Estonia, Jordan, Kuwait, Latvia, Lithuania, Mauritius, Oman, Qatar, Romania, Slovakia and Sri Lanka (Dow Jones).
| Country | Next-11/BRIC | CIVETS | FTSE | MSCI | THE ECONOMIST | S&P | DOW JONES | EAGLEs/Nest |
|---|---|---|---|---|---|---|---|---|
 Argentina |
. | . | ||||||
 Bahrain |
. | |||||||
 Bangladesh |
. | . | ||||||
| Brazil |
. | |. | . | . | . | . | . | . |
 Kingdom of Bulgaria |
. | |||||||
| Chile |
. | . | . | . | . | |||
| Mainland China |
. | . | . | . | . | . | . | . |
| Colombia |
. | . | . | . | . | . | ||
| Czech Republic |
. | . | . | . | . | |||
| Egypt |
. | . | . | . | . | . | . | . |
 Estonia |
. | |||||||
 Hong Kong |
. | |||||||
| Hungary |
. | . | . | . | . | |||
| India |
. | . | . | . | . | . | . | . |
| Indonesia |
. | . | . | . | . | . | . | . |
 Iran |
. | |||||||
| Jordan |
. | |||||||
 Kuwait |
. | |||||||
 Latvia |
. | |||||||
 Lithuania |
. | |||||||
| Malaysia |
. | . | . | . | . | . | ||
 Mauritius |
. | |||||||
| Mexico |
. | . | . | . | . | . | . | |
| Morocco |
. | . | . | . | . | |||
 Nigeria |
. | . | ||||||
 Oman |
. | |||||||
| Pakistan |
. | . | . | . | ||||
| Peru |
. | . | . | . | . | . | ||
| Philippines |
. | . | . | . | . | . | . | |
| Poland |
. | . | . | . | . | . | ||
| Qatar |
. | |||||||
 Kingdom of Romania |
. | |||||||
| Russia |
. | . | . | . | . | . | . | . |
 Saudi Arabia |
. | |||||||
 Singapore |
. | |||||||
 Slovakia |
. | |||||||
| South Africa |
. | . | . | . | . | . | . | |
 Sri Lanka |
. | |||||||
 South Korea |
. | . | . | . | ||||
| Republic of China |
. | . | . | . | . | |||
| Thailand |
. | . | . | . | . | . | ||
| Turkey |
. | . | . | . | . | . | . | . |
| United Arab Emirates |
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Global Growth Generators
"Global Growth Generators", or 3G (countries)3G (countries)
3G countries or Global Growth Generators countries are 11 countries economies which have been identified as sources of growth potential and of profitable investment opportunities.-Background:...
, is an alternative classification determined by Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
analysts as being countries with the most promising growth prospects for 2010-2050. These consist of Indonesia, Egypt (but not Turkey), seven other emerging countries, and two countries not previously listed before, specifically Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
and Mongolia
Mongolia
Mongolia is a landlocked country in East and Central Asia. It is bordered by Russia to the north and China to the south, east and west. Although Mongolia does not share a border with Kazakhstan, its western-most point is only from Kazakhstan's eastern tip. Ulan Bator, the capital and largest...
. The only country to appear in all emerging market lists or groups is Indonesia.
Six major emerging economies
According to World BankWorld Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
issued at May 2011, BRIC
BRIC
In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development...
countries plus South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
and Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
will lead the world's economy with more than a half of all global growth by 2025.
See also
- Next ElevenNext ElevenThe Next Eleven are eleven countries—Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam — identified by Goldman Sachs investment bank and Jim O'Neill as having a high potential of becoming, along with the BRICS, the world's largest...
- Emerging market debtEmerging Market DebtEmerging market debt is a term used to encompass bonds issued by less developed countries. It does not include borrowing from government, supranational organizations such as the IMF or private sources, though loans that are securitized and issued to the markets would be included...
- Pre-emerging marketsPre-emerging marketsThe term, pre-emerging markets is a standard term for the smaller, and/or less-developed — yet still investable — equity markets of the developing world. The term is a synonym for what have become known as the Frontier markets. The countries comprising the list of pre-emerging, or frontier equity...
- Developed marketDeveloped marketIn investing, developed markets are those countries that are thought to be the most developed and therefore less risky.-FTSE Group's list:FTSE Group, a provider of economic and financial data, assigns the market status of countries as Developed, Advanced Emerging, Secondary Emerging or Frontier on...
- Frontier marketsFrontier marketsFrontier Markets is an economic term which was coined by International Finance Corporation’s Farida Khambata in 1992. It is commonly used to describe a subset of emerging markets ....
- North-South divideNorth-South divideThe north–south divide is a socio-economic and political division that exists between the wealthy developed countries, known collectively as "the north", and the poorer developing countries , or "the south." Although most nations comprising the "North" are in fact located in the Northern Hemisphere ,...
- Emerging Markets IndexEmerging Markets IndexEmerging Markets Index is a ranking of the 65 most influential cities in emerging economies, compiled by Mastercard.-Emerging Markets Index 2008 top 65:# Shanghai# Beijing# Budapest# Kuala Lumpur# Santiago# Guangzhou# Mexico City# Warsaw# Bangkok...
- Tehran Stock ExchangeTehran Stock ExchangeThe Tehran Stock Exchange is Iran's largest stock exchange, which first opened in 1967. The TSE is based in Tehran. As of July 2010, 337 companies with a market capitalization of US$72 billion were listed on TSE...
- Emerging and Growth-Leading EconomiesEmerging and Growth-Leading EconomiesEmerging and growth-leading economies are the key emerging economies that are expected to lead global growth in the next decade.-The EAGLEs concept:...
Sources
- Goldman Sachs Paper No.134 BRIMC
- CIVETS countries - Colombia Official Investment Portal
- Michael Pettis, The Volatility Machine: Emerging Economies and the Threat of Financial Collapse (2001) ISBN 0-19-514330-2
- Julien Vercueil, Les pays émergents. Brésil Russie Inde Chine... mutations économiques et nouveaux défis ('Emerging Countries. Brazil Russia India China... : economic transformations and new challenges', in French). Paris : Bréal, 2010, 207 p. ISBN 978-2-7495-0957-0
External links
- What Are Emerging Markets? University of Iowa Center for International Finance and Development
- Emerging Markets Review Emerging Markets: A Review of Business and Legal Issues
- Emerging Markets & Hedge Funds Hedge Fund Strategy - Emerging Markets Fund
- Emerging Market Economies, Global Trade Imbalances, and the U.S. Dollar, Q&A with Pieter Bottelier (Johns-Hopkins-SAIS) on emerging markets and global imbalances
- Antoine Van Agtmael speaker biography and session description for the 2009 World Business ForumWorld Business ForumThe World Business Forum is an annual global business summit held in New York City. A 2008 Burson-Marsteller survey ranks the World Business Forum among the world's top five most influential venues for CEO's and C-Suite executives...
where Agtmael leads a panel discussion on Emerging MarketsEmerging marketsEmerging markets are nations with social or business activity in the process of rapid growth and industrialization. Based on data from 2006, there are around 28 emerging markets in the world . The economies of China and India are considered to be the largest... - Emerging markets: leading the way to recovery Grant Thornton International Business Report
- Winning in Emerging Markets: Five Key Supply Chain Capabilities by Edgar E. Blanco. MIT Center for Transportation & Logistics.
- Emerging Money Education, trading analysis, and comprehensive views of global emerging markets.
- How multinationals and local companies can win in emerging markets