Investors in emerging markets have had a rough ride over the past few weeks. One Financial Times article summarized just how rough: "The South African rand has tumbled, Hungarian bonds have been sold, and the Turkish stock market has crashed 41 percent in dollar terms in seven weeks."
Amidst the general stomach-churning among investors interested in emerging markets, a Wharton Alumni forum in Instanbul on the prospects of emerging markets provides useful perspective. One Wharton alumni of note, former IFC Acting Executive VP Assaad Jabre, told the forum: "Emerging markets will be the winner of the globalization process. A few years ago, many people were saying that developing countries would be the victims. We know that won't be the case. China, India, Turkey, and others are success stories." Jabre says a major reason is the growth of the private sector in those countries.
The optimism of the Istanbul forum speakers is in synch with the "cautious exuberance" that World Bank Group and other emerging markets experts have expressed since the beginning of the year. Our earlier posts reflect the prevailing views: Fall in Emerging Markets Financial Vulnerabilities Not Temporary, and Speed Bumps on the Road to Emerging Markets, among others.
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