Emerging market's future

2011

Emerging Market’s Future
Business, Innovation, Entrepreneurship and Financing
Abstract:
Ever accelerating pace of globalization has opened a window of opportunity for
innovative entrepreneurs to jump from spring board of their locally retained markets into
promise lands of globally acclaimed high ranking business heavens. The other name of
these business heavens is Emerging Markets. It is now a known fact that the growth
advantage in emerging markets, if other things remain the same, is expected to
translate into 62% of global growth. Multinationals expect about 70 percent of the
world‘s growth over the next few years to come from emerging markets, with 40 percent
emanating from just two countries: China and India. In addition to growth rate
advantage, expanding middle-class consumer base, impressive Doing Business
regulatory reforms, more than half of $55 billion of global middle -class spending will
come from Asia Pacific. Global financial and economic crisis has necessitated the
emphasis on business regulatory reforms. Through its indicators World Bank and IFC‘s
co-publication Doing Business Index 2011 has tracked changes to business regulation
around the world, recording more than 1,500 important impro vements since 2004.
―Long-term success,‖ according to Deloitte‘s report Innovation in Emerging Markets -
strategies for achieving commercial success, ―will take far more than simply making
minor adjustments to existing products, lowering prices, or replica ting existing sales
channels. Instead, a new set of competencies and organizational structures will be
required to generate a continuing stream of innovative products and services tailored to
the needs of consumers and industrial buyers in emerging markets .‖ Referring to
challenges ahead ILO / International Institute for Labour Studies in one of their Studies
on Growth with Equity titled Making Recovery Sustainable – Lessons from Country
Innovations maintain that unemployment and inefficient income inequali ties are the
principal factors explaining social unrest. ―The issue,‖ according to them, ―deserves
urgent attention.‖ How these unemployment and income inequalities can be addressed?
For that the global business entrepreneurs and financial institutions have to address a
Cycle of Nine Social and Economic Evils by creating a powerful independent apolitical
Entrepreneurial Platform for developing a genuine Global Natural and Human Resource
Vision and Index as a take-off base for a Global Entrepreneurial Initiative with a Fi ve-
Point Agenda. Why do I want the entrepreneurs and financial sector to focus their
attention on the first two rings, illiteracy / ignorance and unemployment, of the cycle of
social and economic evils? Is there room for any doubt that the fi rst casualty of social
unrest is always economic activity? The trul y genuine social unrest that is invisible at
present, if not addressed before it is visible, can and will surely turn all growth
projections upside down.

Tags:

Emerging Markets, Busine ss, Innovation, Entrepreneurship, Financing

Zahid Hussain Khalid
Bureau Chief & Country Manager – Pakistan, ASiAMONEY Magazine
12/16/2011

Contents
Introduction……………………………………..………………………………………………………………… …3
The keys to Emerging Mark et‘s future growth……………………………..………………………………….….4
Business Prospects and Growth Potential…………………………………………………………….………….9
Importance of emerging-market cities…………………………………………..………………..………………12
Starting and Doing B usiness…..…………..……………………………………………………..……………….13
Innovating the innovation…………………...……………………………………………………….…………….17
Entrepreneurship and Financing…..…………………………………………………………..………………….19

Tables
Income thres holds for establishing stages of developments………………………………..………..…………3
Across the board emerging-market economies grow faster
than those from developed ones…………………………………………………………………..……………….5
Annual wealth growt h rates by country, 2000 -09 and 2010-2011………………………………………………9
Good practices around the world in making it easy to start a business………………..……..………………14
Who made starting a business easier in 2009/10 -and what did they do………..……………………………15
Highlights of Doing Business Index 2011 reflecting positive developments…………..……………………..21

Figures
World government debt………………………………………………………………….……………………...…..6
Global distribution of net government debt……………………………………………..…………………………6
Foreign exchange reserves held by emerging markets………………………….……………………………...7
Foreign assets and liabilities……………………………………………………………..…………………………8
Current account imbalances……………………………………………………………………..…………………8
Global distribution of GDP ……………………………………………………………………..…………………..10

Maps
Financial and ec onomic hotspots around the world, 2010 and Q 1 2011………………………………………4
World Wealth Levels 2011………………………………………………………………….……………………..12

Graphs
Economic Int elligence Unit‘s growt h engines…………………..…………………………….…………………10
Global middle-class spending.………………………………………….…………..….....………………………11

Boxes
Three major areas of regulatory reforms……………..………………………………….………………………13

Illustrations
Three keys and twelve pillars of competitiveness…………………….……..………………….……………….5
Three drivers of growth………………………………………………..…………………….……………………...5
Dollarization of opportunities in emerging-market cities………………………….………….…………………12
Six imperatives for capturing growth opportunity presented by emerging-market cities…….…………..…13
Nine areas of regulatory reforms….………………..……………………………………………..……………...13
Cycle of nine social and economic evils………………………………………………………….……………...18
Five-point Agenda for proposed Entrepreneuri al Initiative……..………………………….…………………..20

Emerging Market’s Future Page 2

INTRODUCTION:
Local growth of and expansion in a business enterprise motivates a businessman, as an entrepreneur, to
come up with an innovative overseas business expansion plan that requires internal and / or external
financing. The companies in country focused pioneering and local competitive business cycles remain
confined to loc al / a single count ry market. Retentive business cycle encourages ambitious companies /
entrepreneurs to start thinking and planning for crossing the borders and ent ering into competition in
regional and global markets. However an extremely powerful innovative pioneering initiative breaks the
barriers of boundaries and local competitive / retentive business cycles to directly catapult a local brand
into a trans national brand in international markets, such as, Microsoft Windows, Apple appliances, Yahoo,
Face Book, Google, Twitter, 800 CC Suzuki cars and now pot entially Tat a‘s Nano etc. etc. A country‘s
economic development and growth is nothing but the cumulative growth and expansion of its
manufacturing, agriculture and service sectors.
The ―economicians‖ have divided the countries / markets into following three, widely used and accepted
but controversial, categories and two sub categories bas ed on income thresholds for establishing stages
of development: Under-developed, Developing and Developed. The transitory sub-categories fall between
the first and second and the second and third categories respectively upgrading consequently the
countries / markets from under-developed to developing and developing t o developed countries / markets
as illustrated below:
TABLE 1 : INCOME THRESHOLDS FOR ESTABLISHING STAGES OF DEVELOPMENT
STAGE OF DEVELOPMENT GDP PER CAPITA (IN US$)
Stage 1: Factor Driven > 2000
Transition from stage 1 to stage 2 2000 – 3000
Stage 2: Efficiency Driven 3000 – 9000
Transition from stage 2 to stage 3 9000 – 17000

Stage 3: Innovation Driven > 17000

SOURCE: WORLD ECONOM IC FORUM – THE GLO BAL C OMPETITIVENESS R EPO RT 2010-2011

Lynge Nielson in his working paper, ―Classifications of Count ries Based on Their Level of Development:
How it is Done and How it Could be Done?‖ has questioned the system developed by UNDP, the World
Bank and the IMF arguing that their ―…existing taxonomies suffer from lack of clarity with regard t o how
they distinguish among country groupings. The World Bank does not explain why the thres hold between
developed and developing countries is a per capit a income level of US $6,000 in 1987-prices and the
UNDP does not provide any rationale for why the ratio of developed and developing countries is one to
three. As for the IMF‘s classification system, it is not clear what threshold is used.‖ He proposes ―an
alternative transparent methodology where data —rat her than judgment or ad hoc rules—determine the
thresholds. In the dichotomous version of this system, the threshold bet ween developing and developed
countries—pitched at the average development outcome—lies well below existing thres holds used by
international organizations.‖ He propos es the replacement of dichotomous version with trichotomous
version arguing, ―…the group of higher development countries is broadly equal t o the group of developed

countries in existing systems and the two lower groups provide for the distinction among developing
countries that all three institutions find warranted. The taxonomy can be implement ed using a variety of
development proxies. Multivariate proxies—such as the UNDP‘s HDI or a lifetime income measure —can
easily be incorporated into t his framework.‖ Markus Jaeger of Deutsche Bank Research in his report
captioned, ―The Great Risk Shift – or why it may be the time to rethink the developed-/emerging-markets
distinction,‖ has also demanded, though in assessment of sovereign default risk context, justification for
―…the fact that until very recently Greece and China c arried pretty much the same long -term foreign
currency ratings. It looks odd that Greece with very limited macroec onomic flexibility due to EMU
membership and a public debt burden exceeding 100% of GDP should be rated at the same level as
China whose public debt amounts to a mere 25% of GDP and whose FX reserves exceed 45% of GDP.‖
MAP 1: FINANCI AL AND ECONOMIC HOT SPOTS AROUND THE WORLD, 2010 AND Q1 2011

SOURCE: Capgemini Analysis 2011
He has raised another point regarding emerging market credit metrics and qualitative improvement in
macroec onomic management. He argues ―… the distinction between Emerging Market-Developed market
obscures more than it enlightens. When the world‘s major economies were the largest ec onomies with
the highest degree of financial stability, the strongest external financial position (at least vis -à-vis less
developed countries) and the highest per capita incomes, this distinction may have made sense. B ut
following what may in the future be recalled as the ‗great risk shift‘ regarding ‗developed‘ and ‗emerging
economies‘, it may be time to re-think old labels and traditional distinctions – and established views of
economic and financial risk.‖


THE KEYS TO EMERGING MARKET’S FUTURE GROWTH
The following 4 pillars of factor-driven economies, six pillars of efficiency-driven economies and two pillars
of innovation-driven economies are the keys to and areas of emerging market‘s future growth:
ILLUSTRATION 1: THREE KEYS AND 12 PILLARS OF COMP ETITIV ENES

Factor-Driven Efficiency-Driven Economies
Economies Higher education and training Innovation-Driven
Institutions Goods market efficiency Economies
Infrastructure Labor market efficieny Business sophistication
Macroeconomic environment Fianancial market development
Innovation
Health and primary Technological readiness
education Market size

SOURC E: WORLD ECON OMIC FORUM – THE GLOB AL COMP ETITIVEN ESS REP OR T 2010-2011

A cursory look at 12 pillars of competitiveness and 3 keys indicates that the story of development and
growth begins with institutional excellence and efficient infrastructure networks / linkages and takes off in
real sense with innovation. Institutions, infrastructure and innovation with support and use of other pillars
trigger national and transnational market expansion.
Another equally import ant growth measure is Agility Emerging Mark ets Logistic Index 2011 that has been
built up through three sub-indices: ‗The Market Size and Growth Attractiveness‘; ‗Market Compatibility‘;
and ‗Connectedness‘. Sumit Dora, S ven Smit and Patrick Vigguerie have ―disaggregated growth ,‖ in
McKinsey Quart erly‘s strategy analysis Drawing a New Road Map for Growth, ―into three drivers: port folio
moment um, or the market growt h of the segments in a company‘s portfolio; M& A; and market share
gains.‖ They conclude: ―…c ompanies out -performing their peers on two or three of these drivers grow
faster and ac hieve better ret urns than those that outperform on just one.‖
ILLUSTRATION 2: THREE DRIV ERS OF GROWTH

1: Resilience
Multi-f aceted growers have withstood the test of
the f inancial crisis and the economic downturn---
and continued to outperf orm

2: Consistant Growth
Companies f rom emerging markets are outgrowing
competitors f rom developed ones at a startling pace

3: Expanding Market Share
The smallest companies, with revenues of less than $1 billion, are growing
by increasing their market share to a much greater extent than larger
companies are.


They substantiate their conclusions with the following data.
TABLE 2: ACROSS THE BOARD EMERGING-MARKET COMPANIES GROW FASTER THAT THOSE FROM DEVELOPED
ECONOMIES
Revenue growth rates segmented by geographic market *
Compound annual growth rate (CAGR)
By Location of Company Overall Growth Growth in Home Growth in Developed Market (for Growth in Emerging Markets (for
Headquarters Market developed, other than home) emerging markets other than
home)
Emerging Market
Companies 23.9% 17.9% 22.4% 30.7%

Developed Market 10.7% 7.5% 11.7% 12.6%
Companies
Growth Rate Advantage
in Emerging Markets 13.2% 10.4% 10.7% 18.1%

*Based on growth-decomposition analysis of 2229 ma rket segments for 720 companies, spanning a numbe r of time frames be tween 1999 and 2008
SOURCE: McKinsey Quarterly – “Drawing a new roa d map for growth.” April 2011

The growth rate advantage in emerging market economies is a planned outcome of emerging market
credit metrics and qualitative improvement in macroeconomic management , ―that,‖ according t o Markus
Jaeger ―…the agencies have insufficiently taken into account.‖ Substantiating his argument he explains
―…a typical, top-tier EM today has ‗excess‘ FX reserves and does not suffer anymore from ‗foreign
currency mismatches‘, which were at the epicenter of virtually every EM crisis of the past 15 years. Most
emerging markets are also net external creditors. This has allowed the EM to overcome the ‗fear of
floating‘ and adopt more flexible exchange rate arrangements, making them far less vulnerable to
balance-of-payments shocks. Meanwhile, the EM that do maintain rigid exchange rate regimes have
more than sufficient FX reserves to back them up (e.g. China). The EM, by and large, have also
strengthened their commitment to public debt sustainability – for the most part, they already have low
public debt ratios. Last but not least, many EM have independent central banks, which has instilled
greater confidenc e in economic stability and sharply diminished traditional concerns about ―fiscal
dominance‖.
___________________________________________________________________________________
FIGURE 1: WORLD GOVERNMENT DEBT
Aggregate Debt (in trillion of US dollars ) Rate of Aggregate Debt to Aggregate GDP (in %)

DATA SOURCES: IMF's Fiscal Monitor, International Financial Statistics and World Econom ic Outlook

Note s: This figure shows the aggregate level of general government debt (upper panel) and the ratio of this variable to
aggregate world GDP (low er panel) , with all variables converted to U.S. dollars at market exchange rates. In the upper panel, the
data for advanced and emerging market economies add up to the w orld aggregates. In the low er panel, aggregate debt is
expressed as a ratio of aggregate GDP for the respective group of countries. Net debt is used except for the following countries
that report only gross debt data: Advanced Economies -- Czech Republic, Greece, Hong Kong SAR, Singapore, Slovak Republic
and Slovenia; Emerging Market Economies -- Argentina, China, India, Indonesia, Malaysia, Pakistan, Peru, Philippines, Romania,
Russia and Thailand.


FIGURE 2: GLOBAL DISTRIBUTION OF NET GOVERNMENT DEBT


NOT ES: Other AE denotes other advanced econom ies and EM stands for emerging markets. Net debt is used except for
the following countries that report only gross debt data: Advanced Economies -- Czech Republic, Greece, Hong Kong
SAR, Singapore, Slovak Republic and Slovenia; Emerging Market Economies -- Argentina, China, India, Indonesia,
Malaysia, Pakistan, Peru, Philippines, Romania, Russia and Thailand.
________________________________________________________________________________________________________
During ―the past twenty years, especially the post-2000 era,‖ according to Alan M. Taylor in his CFR
report captioned The Future of International Liquidity and the Role of China, ―…demand for reserves has
seen an explosive growth. Most of this growth has taken the form of demand for international reserves
denominated in U. S. dollars, and most has occurred in emerging markets. ‖ ―External liabilities‖ of
emerging markets according to Eswar Prasad ―are no longer dominat ed by foreign-currency debt and
have shifted sharply towards direct investment and portfolio equity. Their external assets are
increasingly concentrat ed in foreign exchange reserves. Given the trajectories of reserve currency
FIGURE 3: FOREIGN EX CHANGE RES ERV ES HELD BY EMERGING MARKETS
A: Total Foreign Exchange Reserves (trillion USD) B: Currency Composition

C: Share of Reserve s for Which Currency Composi tion is Known

DATA SOURCES: IMF COFER Database, June 30, 2011; The People’s Bank of China


economic areas, the long-term risk on emerging markets‘ external balance sheets is shifting to the asset
side.‖ Going into further details Eswar Prasad ex plains, ―Among the emerging mark ets, China has a
large net asset position, Brazil has a significant net liability position and India has a small net liability
position. Large net liability positions are no longer the norm for emerging markets. More importantly,
there has been a dramatic shift in the external liability structure of emerging markets during the past
decade. Liabilities used to be dominated by debt but FDI and port folio equity have now become far more
important. These liabilities account for 70 percent of external liabilities for Brazil and China, 51 percent
for India and 56 percent for Russia (77 percent for South Africa). What is even more int eresting is that,
on the asset side, foreign exchange reserves account for a large share of total external assets —47
percent for Brazil, 69 perc ent for China, 68 percent for India and 37 percent for Russia (17 percent for
South Africa).‖
―Currency depreciations‖ another area of serious concern according to Eswar P rasad‘s assessment ―are
far less of a risk for emerging markets now than in the debt dominated era. First, the effects of such
currency devaluations are likely to be small since emerging markets no longer have large stocks of
foreign currency-denominated external debt, either sovereign or corporate. The devastating balance
sheet effects that brought some Asian economies to their knees during the Asian financial crisis of 1997-
98 are less of a c oncern. Indeed, with many emerging markets now able to issue international debt
denominated in their own c urrencies, even debt is no longer as fearsome as it once was.
Elaborating that further Alan M. Taylor maintains, ―…since 1990, the ratio of reserves to GDP in the
advanced count ries has held steady at about 4 percent, but the emerging markets‘ reserve ratio has
more than quintupled, going from 4 percent to more than 20% of GDP. Since 1990, global holding of
international res erve assets have risen fully sixty-fold, from $200 billion t o roughly $12 trillion.‖ He
deduces from the trend, ―…reserve accumulation seems to have been motivated by a desire for
insurance against capital flight in a world of semi -fixed exchange rates.
In particular, three main factors—financial openness, domestic financial depth (M2/GDP ), and the rigidity
of the exchange rate—have conspired to drive up demand for res erves relative to GDP. He concludes
that there is little sign that emerging economies will give up their ‗fear of floating‘ and embrace flexible
exchange rates.' In his working paper ―Role Reversal in Global Finance,‖ Eswar S. Parsad also
maintains, ―…emerging markets are looking for more insurance against balanc e of payments crises even
as advers e debt dynamics in advanc ed economies increase the potential costs of self-insurance through
reserve accumulation.‖
The liabilities of emerging markets have come to be dominated by FDI and portfolio equity flows, while
their assets are increasingly in the form of foreign exchange reserves. In tandem with the uphill flows of
capital characterized in other studies, this implies a sharp role reversal between emerging markets and
advanced economies. Emerging markets have not only become net exporters of capital to the advanced
economies but have also substantially reduced the risk emanating from the structure of their external
liabilities even as advanced economies‘ external liabilities continue to be dominated by debt .


FIGURE 4: Foreign Asse ts and Liabilities FIGURE 5: Current Account Imbalances

Source: Robert C. Feenstra and Alan M. Taylor, Inter- Source: IMF, RBNZ calculations
national Econom ics (New York: Worth Publishers,
2007), p. 411

The emerging economies have survived the Great Recession in rem arkable shape and headed off on a
more secure recovery track, which no one could have expected beforehand. Their gross asset to GDP
ratios are now far above anything seen during recorded history. Moreover, the process of cross -border
financial integration is potentially subject to a worrisome feedback. The larger these balance sheet
connections grow, the more vulnerable emerging economies are to a funding crisis. That vulnerability
drives emerging economies to accumulate more reserves, so expanding cross -border balance-sheet
linkages further and setting off t he next twist in the cycle. ―In light of the fiscal challenges,‖ Sebastian
Becker of Deutsche B ank Research seems hopeful in his paper, ‗Public Debt in 2020: A sustainability
Analysis for DM and EM countries,‘ ―many DM countries may introduce new or more effective national
debt limits, similar to those put in place by some EMs.‖
BUSINESS PROSPECTS AND GROWTH POTENTIAL
It is now a known fact that the growth advantage in emerging markets , if other things remain the same, is
expected to translate into 62% of global growth. Multinationals expect about 70 percent of the world‘s
growth over the next few years to come from emerging markets, with 40 perc ent emanating from just two
countries: China and India. According to Bloomberg Business week ‘s 2010 ranking of the ―50 Most
Innovative Companies,‖ 15 are Asian and, for the first time, 11 are from emerging economies.
TABLE 3: ANNUAL WEALTH GROWTH RATES BY COUNTRY, 2000-09 AND 2010-11
2010-2011 2010-2011 2010-2011
High (>10%) Medium (5%-10%) Low (>5%)

002-2009 Australia, Brazil, Chile, Colombia, India, Czech Republic, Poland
High (>10%) Indonesia, Malaysia, South Afric a Bulgaria, France, Hungary,
Romania, Russia, Turkey

2000-2009 Canada, Korea, Mexico, Philippines, Egypt Austria, Belgium, Germany,
Medium (5%-10%) Sw eden, Sw itzerland, Thailand Greece, Italy, Netherland,
Portugal, UK

2000-2009 Argentina, Hong Kong, Japan, Saudi Taiwan, USA
Low (>5%) Arabia
SOURCE: JAMES DAVIES, RODRIGO LLUBERAS AND ANTHONY SHORROCKS, CREDIT SUISSE WEALTH DATABOOK 2011


GRAPH 1: ECONOMIST INTELLIGENCE UNIT’S GROWTH ENGINES

SOURCE: Economist Intelligence Unit
FIGURE 6: GLOBAL DISTRIBUTION OF GDP

NOT ES: Other AE denotes other advanced economies and EM stands for emerging markets. GDP is measured at current prices
and converted to a common currency at market exchange rates.

If this growth rate remains unc hallenged by natural and man-made circumstances than according to an
rd
―estimate,‖ by Wayne G. Borchardt, Jill S. Dailey and Paul F. Nunes published in 3 issue of Accenture
Outlook in 2011: ―New global middle class will rise from approximately 1.8 billion househ olds in 2009 to
nearly 4.9 billion in 2030.‖ This new middle class at present has annual household incomes between
$5000 and $30,000 already representing ―…a surging mass market all by themselves, and these newly
empowered consumers shop eagerly for stylish and high quality goods.‖ The following graph from The
Emerging Middle Class in Developing Countries in a report by OECD Development Centre indicates that
in developing countries by 2030, global middle-class spending is expected to more than double,
reaching more than $55 billion---and over half of that spending will come from Asia Pacific. Over the next
five years,


GRAPH 2: GLOBAL MIDDLE-CLASS SP ENDING ($ million)

Source: The Emerging Middle Class in Developing Countries, OECD Development Centre, 2010

Wealth is one of the pillars of economic system - driving economic growth, the accumulation of capital,
trends in consumption, asset prices and specific industries such as pharmaceutical and banking. Credit
Suisse Research Institute estimates that global household wealt h totaled US D 231 trillion in mid -2011,
equivalent to USD 51,000 per adult. From the viewpoint of their estimate, the financial crisis would
appear to be more than a modest setback in a benign decade for household wealth accumulation, which
saw aggregate wealth double from USD 113 trillion recorded for 2000. Part of the rise may be attributed
to the rise in the adult population from 3.6 billion to 4.5 billion. The depreciation of the dollar against most
major currencies has also had a significant impact on dollar-denominated values. Nevertheless, since
the start of the millennium, net worth per adult had still risen by 67% as of mid-2011 when measured in
current dollars and by 36 percent when exchange rates are held constant.
Credit Suisse Research Institute expects to see a big improvement in the position of emerging market
economies. Wealth in both China and Africa as whole is projected to rise by over 90%, but India and
Brazil are forecast to do even better, with personal wealth more than d oubling by 2016. The case of
India is particularly striking. With total wealth of US D 4.1 trillion in 2011, India‘s household wealth is
comparable to the USA in 1916. But during the next five years India is projected to gain as much wealth
as the USA achieved over the course of thirty years beginning in 1916. This is due t o increase in wealth
per adult accompanied by a significant rise in the adult population. The case of Brazil is also noteworthy.
With household wealth expected to reach US D 9.2 trillion by 2016 – a level comparable to the USA in
1948 – the rise in wealth in the next five years should correspond to the gain in the USA over the 23-
year period from 1925 to 1948. Total household wealth in China is currently US D 20.1 trillion, equivalent
to that recorded for the USA in 1968. If recent trend continue, by 2016 China could reach the wealth
level that USA achieved in 1990 – a jump of 22 US years in just five years.


MAP 2: WORLD WEALTH LEV ELS 2011

Source: James Davies, Rodrigo Lluberas and Anthony Shorrocks, Credit Suisse Wealth Databook 2011

IMPORTANCE OF EMERGING MARKET CITI ES
The Boston Consulting Group in its report, Winning in Emerging -Market Cities – A guide to the World‘s
Largest Growth Opportunities, presents the following population, infrastructure, housing and
consumption scenario:
___________________________________________________________________________________
ILLUSTRATION 3: DOLLARI ZATION OF OPPORTUNITIES IN EMERGING-MARKET CITI ES

POPULATION INFRASTRUCTURE
One-third of the world’s population---2.6 billion The infrastructure investment in
HOUSING
people---live in mega cities, cluster capitals, these cities is forecast at $30 Emerging markets will
specialized hubs and horizon towns which are trillion to $40 trillion cumulatively require an estimated $13.8
located in the emerging markets. By 2030, the over the next 20 years. The trillion in housing
number of emerging-market urban dwellers shortfall between needed investments from 2010 to
will increase by another 1.3 billion. In contrast, infrastructure in emerging-market 2030, with a huge portion of
cities in developed markets will add only 100 cities and available public funds is the demand coming from
million new residents in the next 20 years. estimated to be in the Brazil, China, India and
neighborhood of $11 trillion to $14 Mexico
trillion through 2030

CONSUMPTION Emerging ma rket ci ties will a ccount for 30 percent of global pri va te consumption by
2015 a nd pri va te consumpti on is growi ng a t a ra te of 11 percent per yea r.

___________________________________________________________________________________
DATA SOURCE: WINNING IN EMERGING MARKET CITIES – A GUIDE TO THE WORL D’S LARGEST GROWTH
OPPORTUNITIES, BOSTON CONSULTING GROUP, 2008


___________________________________________________________________________________
ILLUSTRATION 4: SIX IMPERATIVES FOR CAPTURING OPPORTUNITY PRESENT ED BY EMERGING-MARKET CITIES

1 Define growth plans on the 2 Specify the necessary go-to- 3 Develop true expertise and
basis of specific target cities---the market models to enable profitable insight regarding consumer needs
portfolio of emerging-market cities expansion into more and smaller across a range of city environments
to be served now and in the future cities in emerging markets

4 Forge a game plan to profit 5 Develop talent and 6 Upgrade capabilities for
organization plans at a city-by-city
from infrastructure boom level over a five-to-ten-year time managing complexity and risk
frame

___________________________________________________________________________________
SOURCE: WINNING IN EMERGING MARKET CITIES – A GUIDE TO THE WORLD’S LARGEST GROWT H OPPORTUNITIES,
BOSTON CONSULTING GROUP, 2008

STARTI NG AND DOING BUSINESS
Regionally and globally resilient growth indicators and carefully assessed growth potential, therefore,
attract the investors and before starting overs eas business operations they cautiously weigh the merits
and demerits of the available options in terms of business regulatory regimes in the countries under
th
consideration. In their co-publication, 8 Annual Report Doing Business Index 2011: Making a
Difference for Entrepreneurs, the World Bank and International Finance Corporation have ranked
economies on the basis of the following 9 areas of regulation:
ILLUSTRATION 5: NI NE AREAS OF BUSI NESS REGULATION

Dealing
Trading
Starting a with Registering Getting Enforcing Paying Protecting Closing a
constructio across
Business property credit borders contracts taxes investors business
n permits

Global financial and economic crisis has necessitated t he emphasis on business regulatory reforms.
―Through its indicators,‖ according to Janamitra Devan, Vice President and Head of Network, Financial
and Privat e Sector Development, The World Bank and IFC, ― Doing Business has tracked changes to
business regulation around the world, recording more than 1,500 important improvements since 2004.‖
It is comparatively much easier to start business in OE CD economies than Sub-S aharan Africa and
South Asia where starting business and property protections are weak est. In Finland and Si ngapore,
efficient e-government systems have left less room for improvement in property law protection by law.
Long-term judicial or insolvency reforms, as in Italy, shy away the cautious potential investors.


BOX 1: THREE MAJOR AREAS OF REFORMS FOR STARTI NG BUSI NESS, GETTI NG CREDIT AND
OBTAINING ELECTRICIT Y CONNECTION

•In the past year about 66% of •Today only 1.3% of adults in •According to World Bank
developing economies made it low-income economies are surveys of businesses,
easier to do business, up from covered by a credit bureau. managers in 108 economies
only 34% of this group 6 years Many micro, small and consider the availability and
before. Compelling results are medium size enterprises, reliability of electricity to be
starting to show, as illustrated which typically have 95% of the second most important
by Rwanda and Ghana, and their assets in movable constraint to their business
these results have inspired property rather than real activity, after access to
others. Exporting, for example, estate, cannot use those finance.
requires 11 documents in the assets to raise funds to •The new data allow objective
Republic of Congo but only 2 in expand their business. But comparison of the procedures,
France. Starting a business still this is not so everywhere. time and cost to obtain a new
costs 18 times as much in Sub- While only 35% of Sub- electricity connection across a
Saharan Africa as in OECD Saharan African economies wide range of economies.
high-income economies have laws encouraging the Some, such as Germany,
(relative to income per capita). use of all types of assets as Iceland and Thailand, perform
Many businesses in developing collateral, 71% of East Asian well: a business with
economies might simply opt out and Pacific and 68% of OECD moderate electricity demand
and remain in the informal high-income economies do. can get a connection in 40
sector. There they lack access Seventy low and lower- days or less. But in the Czech
to formal business credit and middle-income economies Republic it can take 279 days,
markets, and their employees lack centralized collateral in Ukraine 309 and in the
receive fewer benefits and no registries that tell creditors Kyrgyz Republic 337. In 100
protections. Globally, 1.8 billion whether assets are already of 176 economies connection
people are estimated to be subject to the security right of costs are insufficiently
employed in the informal another creditor. All this transparent.
sector, more than the 1.2 billion presents an opportunity for •These and other findings
in the formal sector. changes that can promote the suggest that many
growth of firms and governments and regulators
employment. could ease a critical bottleneck
for businesses by encouraging
reforms around the electricity
Getting Credit connection process. rdination
could be a start.
Obtaining
Starting Business Electricity
Connection

DATA SOURCE: Doing Business Index 2011, World Bank/IFC
Since 1990s Australia, Singapore and the United States hold public servants and judiciary account able
through performance-based systems. Case disposal rates in Malaysia have improved after the
introduction of performance index for judges in 2009.
The detailed background research on size and growth prospects of economies / markets, number of
consumers and dept h of their pockets, business environment and gradually but impressively improving
regulatory regimes provide a bas e for innovative national and transnational business growth and
TABLE 4 : GOOD PRACTICES AROUND THE WORLD IN MAKING IT EASY TO START A BUSINESS
PRACTICE ECONOMIES* EXAMPLES
Putting Procedures online 105 Cape Verde, FYR Macedonia, Maldives, New
Zealand, Puerto Rico, Saudi Arabia,
Singapore
Having no minimum capital requirement 80 Bangladesh, Belarus, Canada, Colombia,
Mauritius, Tunisia, Vietnam
Having a one-stop shop 72 Afghanistan, Azerbaijan, Italy, Jordan, Peru,
Philippines, Riwanda
*Among 183 countries surveyed Source: Doing Business Database, World Bank (2009f)


expansion initiative and to deliver the jobs, goods, services, consumer choices and general prosperity
that are expected from ethical innovative democratic capitalism. Here I desire a special mention of
Business Ethics, a manual for managing a responsible business enterprise in emerging market
economies published by Good Governance Program of U. S. Department of Commerce, International
Trade Administration in 2004. The report expects businesses around the world, ―to design and
implement business ethics programs to address the legal, ethical, social responsibility, and
environmental issues they face. By addressing these issues in a systematic way, enterprises can
improve their own business performance, expand opportunities for growth, and contribute to the
development of social capital in their markets. They can realize specific business benefits, such as:
enhanced reputations and good will, reduc ed risks and costs, protection from their own employees and
agents, stronger competitive positions, expanded access to capital, credit, and foreign investment,
increased profits, sustained long -term growth, international respect for enterprises and emerging
markets.‖
The manual builds on three essential concepts: responsible business conduct, res ponsible business
enterprise and business ethics program based on business and professional ethics, organizational
ethics, corporat e social responsibility and corporate governance.
TABLE 5: WHO MADE STARTING A BUSINESS EASI ER IN 2009/10—AND WHAT DID THEY DO?
Feature Economies Some Highlights
Simplified registration formalities Bangladesh, Brunei Darussalam, Chile, DR of Haiti, before the earthquake, eliminated the
(seal, publication, notarization, inspection, Congo, Croatia, Grenada, Guyana, Haiti, requirement that the office of the president
other requirements) India, Kazakhstan, Kenya, Kyrgyz Republic, or prime minister authorize publication of
Lithuania, Luxemburg, Panama, Syrian AR, company statutes in the official gazette.
Tajikistan, Zimbabwe Entrepreneurs can now publish them directly
in the gazette. This cut start-up time by 90
days. Bangladesh replaced the requirement
for buying a physical stamp with payment of
stamp fees at a designated bank. It also
enhanced its electronic registration system.
Start-up time fell by 25 days.

Introduced or improved online procedures Brazil, Brunei Darussalam, Chile, Croatia, Croatia made it possible for limited liability
Ecuador, Germany, India, Indonesia, Islamic companies to file registration applications
Republic of Iran, Italy, Malaysia, Mexico, electronically through the notary public. This
Peru cut 1 procedure and 15 days from the start-
up process.

Cut or simplified post registration Brazil, Cape Verde, Arab Republic of Egypt, The Philippines introduced a one-stop shop
procedures (tax registration, social security Montenegro, Mozambique, Peru, for the municipal license and cut the
registration, licensing) Philippines, inspection by the mayor’s office, reducing
Taiwan (China) start-up time by 15 days.

Created or improved one-stop shop Cameroon, FYR Macedonia, Mexico, Peru, Peru created an online one-stop shop
Slovenia, Tajikistan, Vietnam allowing an entrepreneur to receive
confirmation of business registration and the
tax registration number at the same time.
This cut 3 procedures and 14 days from
start-up.
Abolished or reduced minimum capital Bulgaria, Denmark, Kazakhstan, Sweden, Zambia eliminated its minimum capital
requirement Syrian Arab Republic, Ukraine, Zambia requirement. Syria reduced its requirement
by two thirds.
SOURCE: Doing Business Database


INNOV ATING THE INNOV ATION:
Like 12 Pillars ―determinants‖ used by World Economic Forum‘s Global Competitiveness Report 2011,
Global Innovation Index 2011‘s ―…Innovation Input Sub-Index gauges elements of the national economy
that enable innovative activities, grouped in five pillars: (1) Institutions, (2) Human capital and research,
(3) Infrastructure, (4) Market sophistication, and (5) Business sophistication (almost same as in WEF‘s
Global Competitiveness Report 2011). The Innovation Output Sub-Index captures actual evidenc e of
innovation outputs, divided in two pillars: (6) Scientific outputs and (7) Creative outputs. ‖ I am sure that
everyone in this conference has thoroughly studied the GII 2011. Without going int o details, therefore, I
just want to share an interesting observation of the authors of GII 2011 with you that convincingly points
out that, ―…innovations are no longer restricted to R&D laboratories and to published scientific papers;
these days, knowledge production is centered mostly around the firm where res earch is increasingly
context-driven, problem-foc used, application-oriented, and interdisciplinary. New or signific antly improved
product, processes and methods in the provision of services; in business and organizational models; in
low-t ech industries; through creative imitation and technological catch-up; at the public level or at the level
of society, all constitute innovations.‖
―Global manufacturers,‖ according to Deloitte‘s report Innovation in Emerging Markets - strategies for
achieving commercial success, ―are focused intently on the opportunities to source, develop,
manufacture, sell, and service their products in emerging markets. But long-term success will take far
more than simply making minor adjustments to existing products, lowering prices, or replicating existing
sales channels. Instead, a new set of competencies and organizational structures will be required to
generate a continuing stream of inno vative products and servic es tailored to the needs of consumers
and industrial buyers in emerging mark ets.‖ Deloitte‘s report has listed the following five challenges:
rethinking value propositions, globalizing research, tailoring talent management , mastering the
complexity of global value chains and managing risks. Accenture‘s report New pat hs to growth – The
Age of Aggregation maintains that technological developments are driving three shifts in the competitive
landscape that are ushering in the New Age o f Aggregation: converging business activities and players
are blurring industry boundaries, rising incomes and the desire for affordable luxury are melding to
create a new global middle class and Savvy new emerging -market players are redrawing the competitive
map. Authors of the report suggest ―…the c ompanies must first redefine their business strategies to
include the new markets and segments. They must then redraw their product/market matrix with an eye
toward refining existing offerings and creating new ones, and work out the issues that surround
expanded retail channels, logistics requirements and supply chain management considerations.‖ They
further propose that ―Companies must also redraw positioning maps to take into account the entry of
new c ompetitors from emerging markets and other industries and to incorporate the newly expanded set
of customer values and demands that are surfacing as companies bring scattered market segments
together.‖ Anot her as pect of the challenges ahead is pointed out by International Labour Organization /
International Institute for Labour Studies in one of the Studies on Growth with Equity titled Making


Recovery Sustainable – Lessons from Count ry Innovations. ―To sustain recovery,‖ study cautions,
―several emerging and developing countries need to consolidate the gains made in boosting domestic
sources of growth in order to compens ate for weaker export markets in advanced economies. Well -
designed employment and social policies can be instrumental in this respect. There is no o ne-size-fits-all
strategy for achieving this. Indeed, the obstacles to domestic growth vary across countries, requiring a
different mix of infrastructure investment, wage and social protection policies and rural development
initiatives, including facilitating enterprise creation and expansion. ‖ The study refers ―to recent events in
certain count ries in the Middle East and North African region that have highlighted the centrality of
employment and balanced income developments for social cohesion – itself a key ingredient of
sustainable growth. Empirical evidence shows that unemployment and inefficient income inequalities are
the principal factors explaining social unrest. The issue deserves urgent attention, especially since the
trend rise in food prices is likely to exacerbate income inequalities.‖
ENTREP RENEURS HIP AND FINANCI NG
In 2010, Global Entrepreneurship Monitor (GEM) surveyed 175, 000 people in 59 economies covering
over 52% of the world‘s population and 84% of the world‘s GDP. ―Some 110 million people bet ween 18
and 64 years old,‖ according to the findings of the survey, ―were actively engaged in starting a business.
Another 140 million were running new businesses they started less than 3⅟2 years earlier. Taken
together, some 250 million were involved in what GEM defines as early stage entrepreneurial activity.
Out of these individuals an estimated 63 million people expected to hire at least five employees over the
next five years, and 27 million of these individuals anticipate hiring twenty or more employees in five
years. This illustrates the contribution of entrepreneurship to job growth across the globe.‖
Entrepreneurship and financing are two areas that can be looked at for employment creation and
balanced inc ome developments for social cohesion. Governments, in present global economic and fiscal
scenarios, can not go beyond facilitating policy support. There are two specific initiatives that need to be
focused by entrepreneurs and financial institutions: creation of institutions for work integrated learning
and subsequent employment creation in professional career corridors and re-packaging and heavily
advertised global introduction of financial products for self-employment avenues. First is successfully
done in Germany with excellent res ults and being attempted in dozens of other countries. The second is
scarcely available and rarely advertised. Investment in these t wo areas will equip the entrepreneurs with
the quality human resource that is an essential pre-requisite for success of and expansion in any
business any where in the world. But prior to that, it is necessary, first of all to address a vicious Cycle of
Nine S ocial and Economic E vils: Illiteracy and Ignorance; Unemployment; Po verty; Deprivation; Disease;
Crime and Corruption; Injustice and Violation of Human Rights; Political, Religious and Ethnic
Prejudices; Sectarianism and Terrorism.
If one carefully looks at the formation of the cycle of social and economic evils he will note that the last
seven social and economic evils are nothing but the direct outcome of the first two evils, i.e. illiteracy /
ignorance and unemployment. These social and economic evils are inter-connected and that connection


needs to be clearly understood before any remedial plan or process is initiated.
ILLUSTRATION 6: CYCLE OF NINE SOCIAL AND ECONOMIC EVILS

Illiteracy and Ignorance

Sectarianism and
Terrorism Unemployment

Political, Religious and
Cycle of Nine
Ethnic Prejudices
Social and Poverty

Economic Evils

Injustice and Violation of Deprivation
Human Rights

Crime and Corruption Disease

Why do I want the entrepreneurs and financial sector to focus their attention on the first two rings of the
cycle of social and economic evils? Is there room for any doubt that the first casualty of social unrest is
always economic activity? When crime and corruption, injustice and violation of human rights, political,
ethnic and religious prejudices and sectarianism and terrorism paralyze cities and countries, the first
casualty of that unrest is always business activity resulting in daily business losses of hundreds of
millions of dollars per hour and per day in both developed and developing countries. Who suffers the
most? The business community suffers the most excluding those who sell arms and ammunition and
also those who provide financial back up for such activities. If you look at the rarely discussed genuine
reasons for pres ent economic crisis you will surely see the same evils working behind the scene. The
situation in and around Iraq, the ongoing war on terror in and around A fghanistan, the unrest and armed
conflicts across Africa, the real and artificial political upheaval in the middle-east are all directly or
indirectly influencing the supply and prices of the commodities, products and services. This situation,
wars, unrest and upheavals or engineered changes in political landscapes all are caused by the illiteracy
/ ignoranc e and unemployment and other evils that follow the two. You may also add the inward looking
and self-centered educated strategists and policy makers into the list of culprits at the delivering end who
are taking undue advantage of the illiteracy / ignorance and unemployment of socially and economically


deprived peopl e who are at the receiving end across the globe. Consequently, creating artificial hurdles
in the flow of natural and human resourc es and making them expansive to the extent that a large
number of people around the world are economically pushed below poverty line every day. There is a
very import ant aspect of an emerging business survival philosophy that needs to be explored and
seriously discussed further at platforms like these. And that philosophy necessitates the focus on those
―economically (di s)advantaged consumers (too) who (cannot) shop eagerly for stylish and high quality
goods.‖ In this I see a window of opportunity for innovative ent repreneurs to create a range of products,
plan financial packages and show case low-cost services for socially and economically deprived people
by consciously and scientifically addressing social and ec onomic exclusion that is the main reason for
unrest both in the developing and the developed ec onomies. The message is to create room at
considerably low-cost through innovative entrepreneurship and financial assistance for that socially and
economic ally handicapped / deprived segment of t he consumer mix that has the potential to disturb
economic progress, growth and development in emerging markets and geo-politically sensitive resource-
rich economic zones. As a business rule, the entrepreneurs and financial institutions have to make sure
that all market segments are taken into consideration at a planning stage so that the intentionally or
unintentionally excluded segment does not resort to violent agitation at a later stage hindering the
implementation or expected outcome of the strategic business plan in any part of the world. This is
actually what is ignored at present in sensitive economic zones around the globe creating uncert ainty
and confusion in entrepreneurial, business and financial circles. How can these uncertainties and
confusion be addressed? The immediate remedial measures that need to be discussed are
rationalization of profit margins, reduction in unrealistic gaps in pay scales and removal of regulatory
flaws. Another area of concern is the urgent need for balancing of consumer and commercial income
and ex pens es to create room for personal and institutional savings and genuine profit margins. ―The
level of savings,‖ according to 2011 Global W ealth Report, ―is one obvious source of wealth differences,
with increased savings translated int o greater aggregate wealth and a higher wealth -income ratio. In
practice it is often difficult to identify the connection. Among G7 countries, the household saving rate
shows substantial het erogeneity, ranging from as little as 2% in Japan to 16% in Italy and 17% in
Germany. During the past 15 years, saving rates decreas ed in the UK, the USA, Italy, Japan and
Canada, but remained unchanged in France and even ros e slightly in Germany.‖ This situation calls for
―provision of more sophisticated financial instruments‖ and ―carefully engineered impact of financial
innovation on debts.‖ The declining saving rate is alarming for economic activity across the globe leading
to flawed economic and business growth projections and disappointing results.
The entrepreneurs need to create an independent powerful apolitical entrepreneurial plat form for
developing a Global Natural and Human Resource Vision and Index as a take-off base for a Global
Entrepreneurial Initiative with the following Five-P oint agenda that can be discussed, debated and
reviewed:


ILLUSTRATION 7: P ROPOS ED FIVE-P OINT AGENDA FOR ENT REPRENEURAL PLATFORM

1: Resources 2: Performance Evaluation
The proper evaluation of the natural and human resource
A real and unbiased evaluation of the performance of the
potential of the least developed and the developing
social and economic indicators to determine the precise
countries in general and “failed / fragile countries” in
extent of their self-reliance and reliance on others
particular

5: Accountability
The mandatory authorization of International Court of Justice to try and punish the
rulers, politicians, bureaucrats, top officers of the armed forces and business tycoons
who are responsible for the creation and perpetuation of the “Cycles of National,
Regional and Global Social and Economic Evils” through “Well-Conceived Structures
and Systems of Inhuman Exploitation.”

3: Gap 4: Removal of Barriers
The declaration of a Strategic Plan consisting of workable
The creation of unhindered channels for the flow of
options for the bilateral, regional and global
human and natural resources from human and natural
entrepreneurial cooperation to fill and / or narrow the
resource rich countries to natural and human resource
artificial bridgeable gap between natural and human
poor countries.
resource potential and social and economic performance

I propose to draw two short-term, mid-t erm and long-term maps of natural and human resources that are
available and will be available in a given timeline. Based on real potential and actual performance , the
human and natural resource efficiency and deficiency spots have to be marked on the map highlighting
their flow from resource rich to resource poor countries. The proposed map will also indicat e the artificial
barriers of any nature in the flow of resources and the cost of barrier to the countries involved.

If something is not done seriously on these lines than I have every reason to believe that economic
unpredictability, uncertainty and crises after crises will make the world economically unviable!


TABLE 6: HIGHLIGHTS OF DOING BUSINESS INDEX 2011 REFLECTING POSITIVE DEVELOPMENTS
PERIOD ECONOMIES REFORMS NATURE OF REFORMS

June 2009 117 216 Making it easier to start and operate a business. Strengthening transparency,
May 2010 property rights and improving the efficiency of commercial dispute resolution and
bankruptcy procedures. More than half of those policy changes eased start -up,
trade and the payment of taxes
2009/2010 16 --- Facing rising numbers of insolvencies and debt disputes, most of the Eastern
European, Central Asian and the OECD high-income economies have reformed their
insolvency regimes, including Belgium, the Czech Republic, Hungary, Japan, the
Republic of Korea, Romania, Spain, the United Kingdom and the Baltic States
focusing on improving or introducing reorganization procedures to ensure that
viable firms can continue operating. Before, it was common for insolvent firms in
many economies of Eastern Europe and Central Asia to be liquidated even if they
were still viable.
2009-2011 East Asia and --- Indonesia, Malaysia and Vietnam took the lead, easing start-up, permitting and
Pacific property registration for small and medium-size firms and improving credit
information sharing. Hong Kong SAR (China), after seeing the number of bankruptcy
petitions rise from 10,918 in 2007 to 15,784 in 2009, is working on a new
organization procedure.
----------- Latin America, 25 In Latin America and Caribbean, 23 of the 25 reforms simplified administrative
Caribbean, South processes. Many did so by introducing online procedures or synchronizing the
Asia and Eastern operations of different agencies through electronic systems. In this way Brazil, Chile,
Europe Ecuador and Mexico simplified start-up, Columbia eased construction permitting,
and Nicaragua made it easier to trade across borders. In South Asia, where 5 of 8
economies introduced changes (7 in all), India continued improvements to its
electronic registration system for new firms by allowing online payment of stamp
fees. Across Eastern Europe the implementation of Eastern Union regulati ons
encouraging electronic systems triggered such changes as the implementation of
electronic systems in Latvia and Lithuania.
2004-2011 140 296 The average time to start a company fell from 49 days to 34, and the average cost
from 86% of income per capita to 41%.
2006-2011 Georgia, >12 All made the largest strides in making their regulatory environment more favorable
Rwanda, Belarus, to business
Burkino Faso,
Saudi Arabia,
Mali, the Kyrgyz
Republic, Ghana,
Croatia and
Kazakhstan
2004-2011 China 14 Made it easier to do business, affecting 9 areas covered by Doing Business. In 2005
a new company law reduced what had been one of the world’s highest minimum
capital requirements from 1,236% of income per capita to 118%.
In 2006 a new credit registry started operating. Today 64% of adults have a credit
history. In 2007, after 14 years of consultation, a new property rights law came into
effect, offering equal protection to public and private property and expanding the
range of assets that can be used as collateral.
2004-2011 India --- India implemented 18 business regulation reforms in 7 areas. Many focused on
technology—implementing electronic business registration, electronic filing for
taxes, an electronic collateral registry and online submission of customs forms and
payments. Changes also occurred at the sub-national level. In India, as in other large
nations, business regulations can vary among states and cities. According to Doing
Business in India, 14 of the 17 Indian cities covered in the study implemented
changes to ease business startup, construction permitting and property registration
between 2006 and 2009.
1980s Hong Kong SAR --- Economies where it is easy for firms to do business often have advanced e-
2008 (China), government initiatives. E-government kicked off in the 1980s, and economies with
Singapore, well developed systems continue to improve them. Hong Kong SAR (China) and
Denmark, United Singapore turned their one-stop shop for building permits into online systems in
Kingdom 2008. Denmark just introduced a new computerized land registration system. The
United Kingdom recently introduced online filing at commercial courts.
DATA SOURCE: Doing Business Index 2011


Bibliography

1: Lynge Nielson, ―Classif ication of countries based on their level of development: How it is done and how it could be done,‖
IMF w orking paper, February 2011

2: Markus Jaeger, ―The Great Risk Shift – or why it may be the time to rethink the developed-/emerging-markets distinction,‖
Deutsche Bank Research, 2010

3: World Economic Forum, Global Competitiveness Report, 2011

4: Agility Emerging Markets Index 2011

5: Sumit Dora, Sven Smit & Patrick Vigguerie, ―Drawing a new road map for growth‖, McKinsey Quarterly , Apr 2011

6: Alan M. Taylor, ―The Future of International Liquidity and the Role of China,‖ Maurice R. Greenberg Center for Geoeconomic
Studies and International Institutions and Global Governance Program, CFR, November 2011

7: Esw ar S. Prasad, Role Reversal in Global Finance, Cornell University, Brookings Institute and NBER, August 2011

8: Sebastian Becker, ―Public Debt in 2020: A Sustainability Analysis for DM and EM Countries,‖ Deutsche Bank Research,
March 24, 2010

9: Wayne G.Borchardt, Jill S. Dailey and Paul F. Nunes, ―New paths to growth, The Age of Aggregation,‖ 3 rd issue of Accenture
Outlook, 2011

10: The Emerging Middle Class in Developing Countries, OECD Development Centre

11: Credit Suisse Research Institute, 2011 Global Wealth Report, October 2011

12: David Jin, David C. Michael, Paul Foo, Jose Guevara, Ignacio Pena, Andrew Tratz, Sharad Verma, Winning in Emerging-
Market Cities – A guide to the World‘s Largest Growth Opportunities, The Boston Consulting Group Inc., September 2010

13: Doing Business 2011, Making a Difference for Entrepreneurs, A co-publication of the World Bank and IFC, 2011

14: Good Governance Program, Business Ethics, A Manual for Managing a Responsible Enterprise in Emerging Market
Economies, U. S. Department of Commerce, International Trade Administration, Washington D. C. 2004

15: Global Innovation Index 2011, INSEAD 2011

16, Deloitte Touche Tohmatsu, ―Innovation in Emerging Markets, Strategies for Achieving Commercial Success,‖ 2006

17: Studies on Growth with Equity, Making Recovery Sustainable – Lessons from Country Innovations, International Labour
Organization / International Institute for Labour Studies, 2011

18: Global Entrepreneurship Monitor, 2010

19: Financial turmoil and global imbalances: the end of Bretton Woods II? Chris Hunt, September 2008


Emerging market's future

Recommended

Recommended

More Related Content

What's hot

What's hot (10)

Similar to Emerging market's future

Similar to Emerging market's future (19)

More from SUN&FZ Associates

More from SUN&FZ Associates (20)

Recently uploaded

Recently uploaded (20)

Emerging market's future