F e b r u a r y 2 0 1 1 • V ol 26 • No 2
In This Issue
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5
Using Social Media
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The Rise of Emerging Markets
British F.M. visits Hong Kong By Sam Powney
Amid
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Business Confidence Survey
Concepts and Terminologies
for its substantial fluctuations in currency
of the economic crisis in the world’s most
As with many buzzwords, ‘emerging markets’
markets, yet the South Korean economy
developed nations, investing in emerging
is a term whose legitimacy is questionable; but
has grown at such a pace that many see it
markets looks ever more attractive and
although some see it as outdated, it is perhaps
more as an ‘emerged’ than emerging market.
even essential. In mid-2010 China officially
difficult to think of an alternative. Originally
As another example, many of the countries
overtook Japan as the world’s second largest
brought into fashion in the 1980s by then
surrounding the Eurozone have independent
economy, but there has also been impressive
World Bank economist Antoine van Agtmael,
currencies yet they are firmly tied in to the
g ro w t h i n o t h e r e m e r g i n g e c o n o m i e s .
the term is sometimes loosely used as a
European market.
Indonesia, for example, managed to skirt the
replacement for emerging economies, but really
crisis in 2008 and is now the third fastest
signifies a business phenomenon that is not
Although the economic difference between
growing economy after China and India.
fully described by or constrained to geography
neighbouring countries can be very
Turkey’s economy was hit during the crisis,
or economic strength; such countries are
noticeable, very often entire regions seem
but bounced back very soon afterwards and
considered to be in a transitional phase
to experience a similar economic direction
avoided any of its banks going under despite
between developing and developed status.
almost en masse. Many of the Central
ongoing fears of a return
and South American nations are currently
deep ties with the European market. India
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is often seen as the country with the most
Moreover, there is a question as to whether
enjoying a period of sustained growth,
potential for economic growth, currently
it is more helpful to look at the performance
and economists like to talk of the region’s
ranking as the world’s 11th largest economy,
of individual countries or at broader regions.
emergence from ‘the lost decades’ of corrupt
but projected to become the most populous
On the one hand, all the emerging national
dictatorships and economic stagnation.
nation in the next 15 years. Though there
economies have their own currencies, yet the
H e re i n H o n g K o n g t h e t e r m ‘ A s i a ’ i s
may be exceptions, taken together emerging
stability of a currency does not necessarily
frequently used almost as a byword for
markets are becoming an ever surer
correlate to a country’s economic growth.
financial opportunity, though the boundaries
investment opportunity.
The South Korean won has long been known
of this emerging region are usually left
• News • New Appointments • Shaken Not Stirred
(Continued on page 2)
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