Exploring Corporate Governance Around the World

By Allison Garrett, Senior Vice President for Academic Affairs at Oklahoma Christian University

Wednesday, January 18, 2006

Emerging Markets to See Huge Growth in 2006

The World Bank's International Finance Group announced yesterday that it expects 2006 to be a record-breaking year for emerging markets. Several factors contribute to the rosy expectations:
1. Emerging market economies are growing at twice the rate of advanced economies;
2. Poverty levels are decreasing in emerging market countries;
3. Every $1 in aid to emerging economies results in approximately $4 in private investment;
4. Domestic capital markets are deepening in these economies;
5. The market capitalization in emerging markets has more than doubled in the past decade; and
6. Trading in local currency bonds has increased.

Not surprisingly, the two leading countries in this category are China and India.


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