Emerging Markets: Inside the Black Box

This chapter puts into perspective the massive global rebalancing and shift in the wealth of nations that the world is experiencing. The emerging markets are characterised by diversity rather than unity and represent a socio-political interaction of bankers, analysts, and politicians. The super-emerging BRIC economies of Brazil, Russia, India, and particularly China have shown impressive growth rates in contrast to recession in OECD countries, and investing in these emerging markets is now synonymous with investing in the future. The changing relationship between OECD economies and emerging markets, and the democratic preferences of financial markets, are examined.