In this discussion with Jason Burack of Wall St for Main St, I examine the grim future of many so-called emerging markets and why much of the optimism surrounding them is misplaced.

The discussion looks at how imported Western technology created the illusion of development in much of the Third World. Except for China and a few parts of East Asia, many emerging markets lack the rational, cultural, and institutional foundations needed to sustain real growth. What appears to be progress may instead be a temporary phase before stagnation, conflict, and institutional collapse.

Watch the full discussion below:

Key Takeaways:

• Why many so-called emerging markets are unlikely to emerge
• How imported Western technology can create the illusion of development
• Why China and parts of East Asia remain the major exceptions
• How hollowed-out institutions, tribal conflict, and cultural dysfunction threaten many developing countries
• Why investors must distinguish genuine productivity from fashionable emerging-market narratives