Top 5 Emerging Economies In The World - A Perspective

PERSPECTIVE
November 19, 2011

ECONOMY NEWS - Antoine W Van Agtmael of the International Finance Corporation of World Bank coined the word 'emerging market economy' in 1981 for the first time and defined it as such economy that has low to middle per capita income. About eighty percent of countries across world constitute the status representing twenty percent of the global economy.

Over the years it has been seen such countries are most sought after by investors. Below are list of top 5 emerging economies of the world:

China

In year 1978 the economic liberalization started. Since then the investment- and export-led economy of China grown 90 times bigger. Today, it's economy is also counted as the fastest growing major economy. The growth was 10.3% last year and according to International Monetary Fund in 2011 the growth is declining a bit to 9.5%. China's currency Yuan is appreciating on average 5.5% annually. It is now 6.5 yuan to US dollar.

India

By 2012 India's economy may surpass that of Japan, says a report by consultant PwC. The reason behind this is the devastating earthquakes and tsunami in Japan this year in March. Another report by senior economist in Crisil rating agency comments this should happen in 2011 itself and India to become third-largest economy in the world in terms of purchasing power parity (PPP). Japan's economy was $4.31 in 2010 where as that of India was $4.06 trillion.

As per 2010 figures, India's per capita GDP (PPP) was $3,586 and is the 9th largest economy in the world.

Russia

The Russian economy growth was is expected to 4.8% in 2011. According to International Monetary Fund, the inflation rate has reached to 8% in the country.

After the collapse of Soviet Union, Russia has undergone significant changes. Earlier it was centrally planned economy and now it is more to market-based.

The country is the 11th largest economy in the world by nominal value with abundance of natural gas, coal, oil and precious metals.

Brazil

In 2011 Brazil is suppose to become the sixth largest economy in the world. The recent global financial crisis is affecting its main economic powers, said International Monetary Fund.

Brazil is moderately a free market country with inward-oriented economy. Its average annual GDP growth rate is over 5%. In Latin America its economy is the largest.

Turkey

The economy of Turkey is mostly driven by the industry and service sectors. Privatization program in the country has reduced the involvement of state in basic industry, transport, banking and communication. Its has 17th largest nominal GDP in the world and 15th largest GDP-PPP.

Shenzhen - China Economy Test City

Moscow (Russia)

Metro Train - New Delhi (India)

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November 19, 2011 | 1 comments

ANZ: New Global Bank Rules Could Have Choking Effects On Economy

By STAFF Writer
October 28, 2011

NEW ZEALAND NEWS - ANZ slams the new Basel III rules for banks worldwide to increase capital adequacy and liquidity within the banks to withstand global financial shocks. Its chief executive Michael Smith told recently to the Commonwealth Business Forum in Perth that the new rules could have a 'chocking effect' on the economic recovery across the world.

Mr. Smith noted the rules were moving way far ahead of big uncertainty. He told to the delegates, "Far from increasing access to finance and improving economic resilience, I am concerned that in the current environment, there is a real possibility overly conservative rules with an aggressive implementation timetable are likely to have a choking effect on global recovery."

He also pointed to last week's International Monetary Fund (IMF) warning, which said the forces were again at work now that caused 1930s Great Depression, as businesses, governments and households simultaneously have started cutting back spending and de-leveraging balance sheets.

Mr. Smith added, leading economies' banks need to raise capital of $US1.3 trillion for complete transition to the new regulatory requirements.

He said, as per the IMF the economic cost of new regulations could raise lending of global banks by 3.5 per cent points in next five years. The regulations also include Basel III.

He also said that Basel III had been moderated earlier, but there was nothing. It is broken in Australia which needs fixing.

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October 28, 2011 | 0 comments

Christine Lagarde Becomes First Lady Of World Finance

By ONE Liners Agency
SUNDAY, July 03, 2011

The French Finance Minister Christine Lagarde has been appointed as the new managing director of the International Monetary Fund defeating Augustin Carstens, the head of the central bank of Mexico, after a month long fight. Christine Lagarde has been appointed to the position despite of the concerns regarding her non-economic educational background. She has been appointed as the 11th managing director of the IM, making history as the first woman director of the IMF. Lagarde, who is a retired lawyer, is 55 years of age.

Many analysts are of the opinion that Lagarde's win is the reflection of the western dominance over the leadership of the IMF. This shows that the world does not desire a non-European leadership at the IMF, a key financial organization, especially when the global economy is still being haunted by the debt crisis in Europe.

The IMF has traditionally been under European leadership, since its establishment as the aftermath of the Second World War, to protect the world economy from major disasters.

Lagarde was hugely supported by the major Asian powers such as the China and the India, after she pledged that the influence of the developing countries would be increased at the fund.

The People's Bank of China has welcomed the appointment of Lagarde as the new MD of IMF, saying that it expects her to bring about further reformation in the IMF. Carstens, the only rival of Lagarde, has also supported her. He said that the new chief is "very capable" and the IMF governance is going to progress under her. Lagarde is hugely reputed for her political experience and her formidable negotiating skills.

Christine Lagarde Quote

"...bring all my expertise as a lawyer, a minister, a manager and a woman."


FYi

Full Name - Christine Madeleine Odette Lagarde (née Lallouette)
Born - 1 January 1956, Paris
Father - Robert Lallouette, a Professor of English at the Faculty of Rouen
Mother - Nicole worked, a teacher
Graduation - From Lycée François 1er in Le Havre in 1974
Law - Law school at University Paris X, France
Master's Degree in political science - Institut d'études politiques d'Aix-en-Provence (Sciences Po Aix)
Intern - United States Capitol, as William Cohen's congressional assistant
Schooling - Holton-Arms School, a girls' school in Bethesda, Maryland, USA (with scholarship)
IMF - First woman to ever head
G8 Economy - First woman ever to become minister of Economic Affairs
Baker & McKenzie - First female chair of International Law firm
The Financial Times - Ranked her best minister of finance of the Eurozone (16 November 2009)
Forbes Magazine - Ranked her 17th most powerful woman in the world (2009)

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July 03, 2011 | 0 comments

Strauss-Kahn Resigns: Sex Seems Too Expensive For Him

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By STAFF Writer
THURSDAY, May 19, 2011

Maintaining his innocence while battling with sexual charges, International Monetary Fund Chairman has resigned from his post, saying he served the post with “honor and devotion”.

He sent a letter to the IMF board, denying any involvement in sexual assault with a hotel maid. In his letter he said with “greatest possible firmness” that he was not involved in any sexual transgression, giving his resignation to protect the institution, which he (said) served with dedication and honor. He further emphasized on proving his innocence, devoting his time, strength and energy.

Mr. Strauss-Kahn said that he forced to resign with “infinite sadness.”

It was earlier reported that Mr. Strauss-Kahn was placed on a suicide watch, but one of his attorneys, William Taylor, said his client was in acceptable mental condition.

“It was serious, but good," said Taylor. "He is a strong man and he is committed to seeing this through."

The resignation suddenly bewildered IMF board, igniting dispute over a successor. Presently his deputy, John Lipsky, an American, will serve as acting managing director. There are many contenders already lined up where fast growing economic nations like China, Brazil and South Africa want to break Europe’s monopoly over the post.

German Chancellor Angela Merkel says developing economies can have their rights to fight for the post, but seeing the present turmoil in the eurozone demands a European IMF leader. On the other hand, Brazil's finance minister, Guido Mantega says the post should be filled on the basis on merit.

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May 19, 2011 | 0 comments