How EMI Helps
Our Emerging Markets Institute provides additional thought leadership on the role of emerging markets and emerging market corporations in the global economy.
Daunting challenges need to be confronted for the world to benefit fully from the contribution of Emerging Markets and EMMs:
Emerging Markets will be critical to sustained global growth during the next 20 years:
- Macroeconomic and current account imbalances need to be adjusted
- Currency reserve surpluses need to be invested into productive activities
- Financial market volatility and instability needs to be tamed, or at least attenuated
- Natural resource supply/demand management and resultant volatility need to be better understood and managed
- EMMs will need to acquire new skills to become more effective leaders of global enterprises
- Developed market MNCs will need to revise their long established paradigms regarding how to compete in Emerging Markets, and adapt to increasing competition from EMMs
Emerging Market multinationals (EMMs) will play an increasingly important role:
- Top 10 markets combined will be twice the size of the US economy in 20 years (they are roughly the size of the US economy now)
- Many Fortune Global 500 corporations will derive the majority of their incremental growth and shareholder value creation from Emerging Markets.
- Number of EMMs in the Fortune Global 500 have tripled from 31 to 94 from 2003 to 2010.
- EMMS are leaders in promoting growth in less developed regions, thus extending the benefits of globalization to more people
- EMMs are increasingly a source of innovation grounded on the unique needs of their home markets
- EMMs are playing an increasingly meaningful role in the globalization of many industries – aerospace, IT, consumer electronics, engineering and construction services, healthcare, pharmaceuticals, automotive, etc. – redefining industry structures and contributing to productivity gains
- EMMS are an increasing source of direct foreign investment into developed economies, sometimes contributing to the revitalization of declining sectors in these economies.