Resilience and Growth Amid Global Turmoil
M. Ayhan Kose and Eswar S. Prasad
Emerging market economies (EMEs) have become the darlings of international investors and the focus of enormous attention in academic, media, and policy circles. In Emerging Markets M. Ayhan Kose and Eswar S. Prasad present the definitive account of the evolution of EMEs and use the lens of the global financial crisis to evaluate their strengths and weaknesses.
Led by a set of large and dynamic countries—including Brazil, China, India and Russia (the BRICS)—emerging market economies have become a powerful presence in the world economy. They now account for a substantial share of world output and have become major drivers of global growth during the past decade. They are significant players in international trade and financial flows and are beginning to exert rising clout in global policy debates. However, the financial crisis of 2007–09 and the worldwide recession that followed cast a pall over the notion that EMEs had become self-reliant and "decoupled" from demand conditions in and financial flows from advanced countries.
Kose and Prasad, prominent experts on emerging market economies and globalization, draw on their experience and extensive research to assess the resilience of EMEs in the face of the global financial crisis. Their analysis shows that EMEs, as a group, weathered the recent crisis much better than did the advanced countries, and most of these economies have bounced back rapidly from the global recession. The authors investigate the resilience of EMEs and explain why some countries in this group have done better than others. Based on this analysis, they discuss some of the key policy challenges these countries face in order to ensure the durability and sustainability of their long-term growth.
This book is important reading for anyone trying to anticipate the future growth track (and risks) of EMEs or contemplating business opportunities in these economies.