The Rise of Emergent Economies in the Global Landscape

Globalization and Emergent Economies

Defining Emergent Economies

Throughout human history, different countries have led the world economy and politics due to their power over other nations. There have always been significant differences between developed and developing states. In the middle, there is a group of nations called emergent economies. This term is used because they are not yet at the same level as the richest countries, but their future expectations appear inspiring.

Emergent Economies in the Global Market

At present, global society is organized within a free market system governed by the law of supply and demand. This means that any country or company is allowed to buy and sell goods to other states, aiming to earn more money. Some goods or products, such as oil, electricity, and other raw materials, are particularly valuable. Consequently, countries possessing these goods can boost their economies more quickly than other nations. Notable examples include:

• Russia
• China
• Brazil
• South Africa
• India

Competition and Challenges for Emergent Nations

These new markets and powerful countries must compete with the established industries and companies of many developed nations. To do so, they often try to offer customers a better price. However, this is not an easy task, and they can frequently suffer the consequences of battling large multinationals and entities, for example, in the oil market.

Emergent Economies' Role in Global Crises

During the years of economic crisis in the Eurozone and the USA, some emergent economies provided assistance to these affected countries by offering loans to help preserve the equilibrium of their economies. Of course, these loans carried considerable interest, which will provide the emergent countries with a valuable source of capital in the future. Furthermore, these operations could foster new commercial and political relationships between countries that had not previously engaged in such extensive cooperation.

Future Prospects of Emergent Economies

In conclusion, developing countries often have to work harder and for less cost to compete with developed countries. While no one knows if these countries will lead the world economy in 5 or 20 years, it seems clear that they will continue to grow steadily, step by step.