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Emerging Markets

Connecting pension funds with emerging market infrastructure

Joaquim Levy's picture

It might sound improbable to hear a CFO say this, but I consider one of my roles since joining the World Bank Group to be that of matchmaker. Let me explain.

As I have noted in other blogs over recent months, the world’s emerging market and developing economies—EMDEs for short—face an enormous gap in infrastructure investment. Certainly it is not the only big financing challenge that countries face as they work to reduce poverty and extend prosperity to more of their citizens. But infrastructure underpins many aspects of economic growth, getting people to jobs and schools, connecting goods to markets, reducing the isolation of the poorest areas in many countries.  And by some estimates, the sector’s funding gap is as high as a trillion dollars. 

Are capital flows fickle? And does the answer still depend on type?

Poonam Gupta's picture

According to conventional wisdom, capital flows are fickle. They are fickle more or less independent of time and place. But different flows exhibit different degrees of volatility: FDI is least volatile, while bank-intermediated flows are most volatile.  Other portfolio capital flows rank in between, and within this intermediate category debt flows are more volatile than equity-based flows. 

Media (R)evolutions: What’s the future of the sharing economy?

Darejani Markozashvili's picture
New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

Globally, more and more people are embracing the sharing or platform economy. Some estimate that the sector’s revenues will increase to $335 billion globally by 2025. According to the Future Jobs Survey, conducted by the World Economic Forum, among top technological drivers of industrial change by 2020, the sharing economy, crowdsourcing takes the fifth place, with mobile internet, cloud technology taking the lead.
 


So what will the impact of these drivers be on the industries? Will there be new industries born as a result of these transformations? If so, will we be able and ready to respond to those changes? Will we have necessary skill sets to compete in the work force? Future holds both opportunities and challenges for industries, corporations, governments, and others concerned with the technological advancements.
 
What exactly is the sharing economy? Are you using some of its platforms? Do you benefit from their services? 

Predicting success for infrastructure in emerging markets: Moving from art to science

Jyoti Bisbey's picture

with research contributions from Zichao Wei

At conferences, in meetings, and even during casual work conversations, I am asked the same two questions:  “Which countries are ideal for investments in infrastructure?  Where should the investors invest and what new opportunities should they look toward?” 

While sitting in the World Bank gives us a bird’s-eye view of emerging markets and developing economies (EMDEs), it doesn’t offer the up-close-and-personal perspective that investors demand in order to answer these questions in a succinct way.  Not that there’s any shortage of synoptic responses. Any number of “market gurus” can assess projects in a second, gathering all the low hanging fruits which are out there in EMDEs.  If there is a private deal to be made, then the deal is already done.

SMEs finance leapfrogs through fintech innovations

Gloria M. Grandolini's picture



Since more than 50% of small and medium-sized businesses (SMEs) worldwide lack adequate access to credit, the international community is proposing reforms that will help countries strengthen their financial infrastructure and make it easier for SMEs to borrow funds needed to operate and expand.

Is your ‘emerging market’ securely fashionable?

Sina Odugbemi's picture

Traders crowd the post that handles Morgan StanleySo-called ‘emerging markets’ might as well be styles of frocks and blouses in the world of haute couture; they are in and out of fashion with similar unpredictability. One moment a market is all the rage; the next moment it is in the pits of despond. It is an all too familiar if sorry tale. You know that an emerging market is in fashion via the global business press, especially when reporters, pundits, analysts as well as paid boosters and carnival barkers, all produce pieces on the market displaying breathless admiration: What a wonderful place to be this is! What astonishing prospects!

If the emerging market is particularly blessed it will feature in one of the fancy acronyms of the day: BRICS, MINTS, the Breakout Nations, etc. Investment bankers are proving fecund when it comes to dreaming up these meaningless acronyms (if they did not have such real-world consequences!). For once an emerging market is deemed ‘hot’, money flows into it. Investors and hustlers pile in. People who express doubt, urge caution or circumspection are drowned out by the frenzy of adoration and boosterism.

Eventually, inconvenient facts that are too significant to ignore begin to emerge regarding the much-fancied emerging market.

Weekly wire: The global forum

Roxanne Bauer's picture
World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.
 

A simple solution for better economic performance - empower women
The Nation
Christine Lagarde, the managing director of the International Monetary Fund and one of the world's most influential women, made an interesting remark last weekend.  "We have estimates that, if the number of female workers were to increase to the same level as the number of men, GDP in the United States would expand by 5 per cent, by 9 per cent in Japan, and by 27 per cent in India," she told the inaugural summit of the Women's 20 (W-20), a new grouping launched by the G20, in Turkey.  She said that aside from boosting gross domestic product, getting more women into secure and well-paid jobs raises overall per-capita income.

Dealing with digital in media development —7 things to consider
Deutsche Welle Akademie
When colleagues from DW Akademie asked me to contribute some reflections on media development, I found myself in the difficult position of having to find a common ground for the term. Between regular Facebook updates sent by a friend working with a local radio station in Southern Sudan, a conversation I had here in Malmö/Sweden with a recently arrived Syrian refugee who used to work for state television, or the daily discussions about media, globalization and development that we have in our academic environment, it is difficult to find common ground.   But then again, when all these impressions and reflections sink in, some broader issues emerge. I have summarized them under the following seven points:
 

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

What Future For Emerging Markets?
Foreign Policy
Long before the current market debacle, I was confronted with a fundamental question about emerging markets. As I was finishing off my course at the Yale School of Management on “The Future of Global Finance” this past May, a student came up to me. “You have gone to great lengths to emphasize the role of emerging markets in a changing monetary system, “ he said, “ but everything I have been reading says that the era of the Brazils, the Indias, the Turkeys, the Indonesias as up-and-comers is history. Even China seems to have lost its luster. Have you been looking backwards and not forward?”

How Africa can benefit from the data revolution
The Guardian
The UN has estimated that across the world more people have access to mobile phones than to toilets. It is of course distressing to imagine what this means for many people’s exposure to disease and access to clean water, but the choice of mobile phone for the comparative statistic actually offers a great deal of hope. The mobile phone is part of a phenomenon where a new infrastructure is emerging, one that could bring the economic changes that enable those toilets to be built.  Our modern infrastructure is based on information. Since the 1950s, investment in data storage and distribution by companies and countries has been massive. Historically, data was centralised a single database. Perhaps one for representing the health of a nation, and another database for monitoring social security. However, the advent of the internet is showing that many of our existing data systems are no longer fit for purpose.
 

How to Reverse the Post-Crisis Slowdown of Growth in Emerging Economies?

Aristomene Varoudakis's picture
Growth in emerging economies has slowed over the past three years, something being discussed with urgency at the G20 meetings in Istanbul, Turkey. Part of the slowdown is cyclical, but a significant part reflects sluggish potential growth. Using new empirical evidence, this column argues that ambitious structural reforms can fully offset the slowdown of potential growth in emerging economies. Reforms that remove barriers to open markets and improve access to finance play a key role in revitalizing total factor productivity growth and boosting private investment.

New Voices in Investment: How Emerging Market Multinationals Decide Where, Why, and Why Not to Invest

Gonzalo Varela's picture

Emerging market multinationals (EMMs) have become increasingly salient players in global markets. In 2013, one out of every three dollars invested abroad originated from multinationals in emerging economies.

Up until now, we have had a limited understanding of the characteristics, motivations, and strategies of these firms. Why do EMMs decide to invest abroad? In which markets do they concentrate their investments and why? And how do their strategies and needs compare to those of traditional multinationals from developed countries?

In a book we will launch tomorrow at the World Bank, “New Voices in Investment,” we address these questions using a World Bank and UNIDO-funded survey of 713 firms from four emerging economies: Brazil, India, Korea, and South Africa.


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