The term “emerging markets” became synonymous with “emerging economies” and no longer relied on income or other statistical measures. The fact that for Wharton faculty, the most important element of the definition of emerging economy is the strength of its economic institutions and policies, as the state of law, regulatory controls and enforcement of contracts. For his part noted that McDermott notes that after the collapse of the Soviet Union, the degree and speed of transfer of government assets to the private sector was critical for defining the characteristics of emerging markets. But that led to problems on both sides of the spectrum of privatization.
“Many of the measures were related to the size of the economy in the hands of private enterprise. These parameters are not very helpful, “he says. “Those who did not change were bad, and changing too fast also blew up.” McDermott investigated the patterns of development in Eastern Europe and Latin America and found that differences in economic progress can be attributed to what he calls “transnational integration, such as admission to European Union or participation in NAFTA. These systems have different characteristics and can provide a better understanding of the economic potential of countries to join the club of developed nations. The organization that comes to mind in such cases is almost always the OECD (Organization for Economic Cooperation and Development truth, the article said Wharton, who Witold Henisz, Wharton management professor, emerging economies began to review Recently his vision of the global economy, particularly after the resource-rich nations began to gain influence in the commodity markets, today’s booming.