How Can Developing Countries Attract Foreign Capital?
INTERVIEWER: We interviewed the head of the CalPERS pension fund, and he’s very concerned about questions of inequality, but he also said, “Look, for me, as an investor, most of the developing world is essentially uninvestable.” He can’t in good faith put the money of these pension funds in most of the developing world, even if he’d like to. And yet he also says that if you don’t find a way to invest in these countries, in the long run you could potentially have a backlash of the whole global economic system, and that could create a lot of problems. What’s your sense of the extent to which you need to bring developing countries into the global economic tent? MOISES NAIM: It’s indispensable that developing countries, the so-called emerging markets, become a more reliable investment site for investors around the world. It is very important that the volatility, that the changes in the fortunes of these countries become less pronounced and these countries become more stable and investors h
