New tigers burn bright on world economic stage economies
Friday 28 February 1997
It says that a group of "near tigers" have emerged over the past 10 years, showing economic success on a par with the first group of developing economies to emerge as economic powerhouses. Indonesia, the Philippines, the Czech Republic, Argentina, Chile and Vietnam are all making progress, it says.
Amex has rated each emerging economy with reference to its macroeconomic stability, human capital, market orientation, export orientation and developmental orientation. Taking a 10-year period, it says the biggest improvements have been in Argentina, Bolivia, Chile, Mexico, China, the Philippines and Vietnam. "Latin America has been lagging, but has been improving particularly fast," says the report. Peru and the Dominican Republic are also becoming attractive propositions.
The assessment is based on a decade when financial and economic liberalisation, privatisation and the introduction of free-market reform came to most developing countries and to the former communist states of Europe. International bankers suddenly discovered an interest in investing in countries as diverse as Dominican Republic, Thailand and Morocco. The so-called "emerging markets" have become an investment sector in themselves.
The fact that an international bank finds these countries interesting may not necessarily be good news. Much of the evidence suggests that rapid economic development in East Asia, while reducing poverty sharply, has not always reduced inequality. Equally, growth and democracy have not always been partners. And Taiwan, one of the original tigers, has actually slipped a little in terms of economic performance since its heyday in the mid 1980s.
Several eastern European countries have actually slipped backwards over the last decade, Amex says. In particular, Ukraine, Romania and Bulgaria are all less appealing investment prospects. However, Poland, the Czech Republic, and Hungary have all improved.
In the Middle East, Israel and Jordan are both making progress, Amex says. The most depressing news is that Africa is still a slough of despond, economically at least. Only Ghana and Kenya show progress.
In general, however, Amex is optimistic about the developing world. "The current emerging market enthusiasm, characterised by tight lending spreads, the strong performance of Brady and other debt instruments and long-term bond issues by emerging market issuers reflects this positive outlook," the report says.
Tight lending spreads means that developing countries can increasingly borrow at more advantageous rates; Brady bonds, named after former US Treasury Secretary Nicholas Brady, were developed to help debtor countries escape from the circle of debt and poverty.
Ready to pounce
Source: American Express Bank
- 1 Moscow voted the world's unfriendliest city
- 2 The excuses your boss is most likely to believe when you call in sick
- 3 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 4 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
- 5 If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
Negotiable: Recruitment Genius: This recognized leader in providing software s...
£40000 - £42000 per annum: Recruitment Genius: This is an exciting opportunity...
£35000 - £40000 per annum: Recruitment Genius: This IT support company has a n...
Negotiable: Recruitment Genius: A works engineer is required in a progressive ...