Unstructure

The Emerging Markets have emerged…..so says Simon Johnson of IMF and Marccus Jaeger of Deutsche Bank Research agrees.

Does it come as a surprise? Yes and No.

Yes, because despite what everyone said about growth potential of the emerging markets most of the times the term itself implies that “the country is not strong enough …therefore it is emerging” This belief was strengthened when many of the Asian Tigers folded like a pack of cards in the late 90’s.

No, because we hoped against hope that the emerging market story would hold up when the first hints of the American slowdown started emerging.

The emerging markets seem to have weathered the storm remarkably well. No one disagrees that there is bound to be an impact but the ability of the emerging markets to provide stability in the financial Tsunami is being seen as an incredible strength and leading many to believe that these markets have more or less emerged and will be the growth channels of the future. This belief is mired in some basic fundamentals which reflect both financial prudence and strong domestic markets.

• The strong domestic market in most of these economies has ensured that an external slowdown will impact them but not significantly
• The strength of the domestic financial management has been displayed through their management of sufficient forex reserves, liquidity management and financial prudence

So what are the next steps for a corporation with global ambitions?