What is an Emerging Market?
As in the case of many good questions, this one lacks a precise answer. Be that as it may, “Emerging Market” is a term generally used to describe the group of low- and middle-income nations (previously referred to as “lesser developed countries” (“LDCs”)) that, in general, are pursuing substantial political and economic reforms and a more complete integration into the global economy. It is, however, a somewhat imprecise and enigmatic term and is, perhaps, at times aspirational. Perhaps the best answer was given by one of EMTA’s founding Directors, who thought that the Emerging Markets were best described as a ‘state of mind’. Many international agencies consider all non-high income countries to be “Emerging Markets”, stressing the potential of all nations to develop. Others include only those countries that meet certain levels of economic development and in which local equity and debt markets are operating. In general, Emerging Markets countries are characterized by an underdeveloped o
