Emerging Markets

How do they change the traditional view of development?

The rise of emerging markets is changing the traditional view of development as follows.

· First, foreign “investment” is replacing foreign “assistance.” Investing in the emerging markets is no longer associated with the traditional notion of providing development assistance to poorer nations.

· Second, emerging markets are rationalizing their trade relations and capital investment with industrialized countries. Trade and capital flows are directed more toward new market opportunities, and less by political consideration.

· Third, the increasing two-way trade and capital flows between emerging markets and industrialized countries reflect the transition from dependency to global interdependency. The accelerated information exchange, especially with the aid of the Internet, is integrating emerging markets into the global market at a faster pace.

What challenges do they face?

In their effort to create a market economy and to ensure sustainable development, emerging markets still face big challenges that come from fundamental problems associated with their traditional economic and political systems. A market economy requires those countries to redefine the role of the government in the development process and to reduce the government’s undue intervention.

Another serious problem that those countries have to confront is controlling corruption, which distorts the business environment and impedes the development process. An even more challenging task for those countries is to undertake structural reforms with their financial system, legal system, and political system, so as to guarantee a disciplined and stable economy that is relatively free of political disturbances and interference.

What are their prospects?

Emerging markets are the “key swing factor” in the future growth of world trade and global financial stability, and they will become critical players in global politics. They have a huge untapped potential and they are determined to undertake domestic reforms to support sustainable economic growth. If they can maintain political stability and succeed with their structural reforms, their future is promising.

Emerging Markets

What brings them into being?

There are two potential causes for the creation of emerging markets: the failure of state-led economic development and the need for capital investment.

· First, state-led economic development failed to produce sustainable growth in the traditional developing countries. This failure and its tremendous negative impact pushed those countries to adopt open door policies, and to change from the state’s being in charge of the economy to facilitating economic growth along market-oriented lines.

· Second, the developing counties desperately needed capital to finance their development, but the traditional government borrowing failed to fuel the development process. In the past, the governments of the developing countries borrowed either from commercial banks or from foreign governments and multilateral lenders like the IMF and the Word Bank.

This often resulted in heavy debt overload and led to a severe economic imbalance. The past track record of many developing countries also demonstrates their inability to well manage and efficiently operate the borrowed funds to support economic growth.

In light of the unsatisfactory results of government borrowing, developing countries began to rely on equity investment as a means of financing economic growth. They seek to attract equity investment from private investors who will become their partners in development.

To attract equity financing, a developing country has to establish the preconditions of a market economy and create a business climate that meets the expectations of foreign investors.

This change in financing sources thus became another factor leading to the rise of emerging markets.

Emerging Markets

What Are Emerging Markets?

What are they?

Emerging markets are countries that are restructuring their economies along market-oriented lines and offer a wealth of opportunities in trade, technology transfers, and foreign direct investment. According to the World Bank, the five biggest emerging markets are China, India, Indonesia, Brazil and Russia. Other countries that are also considered as emerging markets include Mexico, Argentina, South Africa, Poland, Turkey, and South Korea. These countries made a critical transition from a developing country to an emerging market. Each of them is important as an individual market and the combined effect of the group as a whole will change the face of global economics and politics.

What makes them different?

Emerging markets stand out due to four major characteristics.

· First, they are regional economic powerhouses with large populations, large resource bases, and large markets. Their economic success will spur development in the countries around them; but if they experience an economic crisis, they can bring their neighbors down with them.

· Second, they are transitional societies that are undertaking domestic economic and political reforms. They adopt open door policies to replace their traditional state interventionist policies that failed to produce sustainable economic growth.

· Third, they are the world’s fastest growing economies, contributing to a great deal of the world’s explosive growth of trade. By 2020, the five biggest emerging markets’ share of world output will double to 16.1 percent from 7.8 percent in 1992. They will also become more significant buyers of goods and services than industrialized countries.

· Fourth, they are critical participants in the world’s major political, economic, and social affairs. They are seeking a larger voice in international politics and a bigger slice of the global economic pie.

Black Sea

Since joining the European Union in 2007, Bulgaria has been receiving financial packages from the EU to help boost its financial and economical standing. Along with the growing infrastructure, many businesses are establishing their headquarters and bases in Bulgaria, vastly and rapidly increasing the wealth of the economy.

Many Investors are attracted to the Black Sea Coastline, which has miles of untouched and undeveloped sandy beaches. Offering a mild and temperate climate with fantastic ski regions further inland, the nation of Bulgaria has so many investment opportunities. Opodo, the online airline company, has recently rated Bulgaria as one of the top 10 emerging market travel destinations, creating a buzz for travel and tourism. Many people have begun to visit the country’s popular ski locations, since flights to and from the country have become more frequent and better priced.

Now is the perfect time to invest in Eastern European markets to increase your investment portfolio or to start your first investment.

If you are someone looking to invest offshore or in emerging markets, then the beautiful country of Bulgaria could be your perfect location. An extensive list of property is available for your viewing, with the perfect location to suit your investment or housing needs.

Investing in emerging or re-emerging property markets requires some knowledge and experience. Property consultancy International can help you locate and purchase the perfect property for you.

Are you invested?

Are you invested?

Property Consultancy International leverages our international Savoir-Faire and overseas property sourcing for those seeking superior service for your one of a kind property around the world.

We specialize in Areas including Belize, Bulgaria, the Caribbean Islands, Florida, France, Italy, USA, the UK and many more.

Property Consultancy International is a full service consulting firm that can help you make your offshore real estate investment as easy as investing locally!

If you are considering investing in a commercial development or buying a summer home aboard Property Consultancy International can help. Our worldwide network of lawyers, tax advisors and property consultants are there for you in what could be the most important investment decision of your lifetime.

Property Consultancy International portfolio of properties for sale includes new property developments, resale property, villas, town houses, penthouses, apartments, commercial developments, undeveloped housing developments, you name it we have it in prime locations around the world.

Property Consultancy International has the contacts and knowledge to find properties before they are publicly available for sale. Not all our properties are visible on our web site as many of our clients prefer a more discreet marketing approach, we can send ALL our properties from our portfolio with a simple request.

Whether you are looking for a beach front property, a villa with a pool, front line golf residence, an exclusive city apartment, a shopping center or a traditional countryside retreat, Property Consultancy International can offer an overseas property to meet your requirements and the full service you need to make you feel you are buying just down the street.

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