The Economics of Emerging Markets

One of the most important developments in the past twenty years is the rise of economies outside of North America and Europe (the so-called “first world”). The center of world economic growth has shifted to formerly poor and marginal economies. This has lifted millions of people out of poverty and given new dynamism to Asia, South America, and the economies of former Soviet and Eastern European states. What has caused the impressive growth in China, Brazil, India, Russia (the “BRIC” countries) and smaller economies such as South Korea, Poland, and Singapore? We will discuss the policy and institutional changes that have made these transformations possible. We will also discuss the implications for the United States and Europe as they lose their role as the only rich economies in world economic and political organizations.