How Emerging Really Are Emerging Markets?

In this photo taken Tuesday, Nov. 17, 2009, children play in a rickshaw at a garbage dump in Hyderabad, India. Twenty years after the U.N. adopted a treaty guaranteeing children's rights, fewer youngsters are dying and more are going to school, but an estimated 1 billion still lack services essential to their survival and development, UNICEF said Thursday. (AP Photo/ Mahesh Kumar A.)

Posted By: Jayant Bhandari June 8, 2018

In this presentation at Capitalism & Morality 2017, I examine whether so-called emerging markets are truly emerging or whether much of the optimism about the Third World rests on illusions, demographics, and temporary gains from imported technology.

The presentation argues that, except for China and parts of East Asia, most emerging markets lack the cultural, institutional, and moral foundations needed for sustained development. Without reason, trust, discipline, and respect for capital, apparent growth can quickly decay into corruption, overpopulation, social disorder, and a return to subsistence.

Watch the full presentation below:

Key Takeaways:

Why so-called emerging markets are not truly emerging
Why China and East Asia are the major exceptions in the developing world
How imported technology can create temporary growth without civilizational transformation
Why culture, trust, and discipline matter more than demographics or GDP statistics
Why investors must distinguish real productivity from fashionable emerging-market narratives