Global Initiatives


	Emerging Markets According to economist Larry Summers, the rise of China, India, other Asian economies and other emerging market economies is the most important event in human history in the last 1,000 years after the Renaissance and the Industrial Revolution. The term was coined in the 1980s by the Antoine W.van Agtmael of the International Finance Corporation of the World Bank, to refer to an economy with low-to-middle per capita income. Developments and reform within such economics earn them the title of "emerging", and they are considered to have strong prospects for sustainable growth. They include countries like Brazil, India, Mexico, South Korea and Taiwan, and remain an important destination for global capital flows. Right now, they account for some 25 percent of the global capitalisation and this is only expected to go up. But as these countries throw open their doors to the world, there are deeper social and political issues need to be considered beyond prescribing a one-size-fits-all strategy of adjusting macro-economic policy, privatising state- owned enterprises and opening up domestic markets. Among them is financial stability to ensure growth, and to ensure growth, and to ensure that the poor do not get left behind. Indeed, poverty alleviation is considered a priority for socio-economic development in many emerging countries, including Russia. Reduction of extreme poverty is also defined of primary among the development goals of the Millennium Declaration. Growth, by itself, may not help those at the lowest rungs. On the contrary, some policies designed to boost growth could worsen their situations. In Vietnam, for instance, where the transition to a market economy has stimulated strong growth, there are still many who remain poor, requiring reliable and effective safety nets to catch those who were previously dependent on local cooperatives which provided for members welfare under the command economy. It prompts the need for a more focused pro-poor strategy. Issues like ethnic group, gender and class may also translate into further structural inequalities. Unless policies are put into place to address them, long-term poverty reduction may remain out of reach. Beyond economic inequality, other crucial considerations include balancing issues like economy and environmental sustainability, protecting local cultures and communities, strengthening human capabilities, as well as striving to bring about human rights, peace and justice. Without addressing these issues, development may not be sustainable.