Introduction to Our Activities - Emerging Markets Forum€¦ · 1/7/2008 · Fidel V. Ramos FIdel...

Bringing people together to accelerate growth and well-being in emerging markets

International Capital Flows, Domestic Capital Markets, Growth and Development in Emerging Markets Countries

Emerging Markets Forum:Who We Are and What We Do

Introduction to Our Activities

I n t r o d u c t i o n t o O u r A c t i v i t i e s

Since its inception at Oxford University’s Templeton College in 2005, the Emerging Markets Forum has blossomed into the preferred venue for discussions and debate between leading policy makers and top business executives committed to creating and shaping policy solutions to the many challenges facing emerging economies. While the Forum’s impact on the world stage has steadily grown, it maintains its core mission to provide a platform for candid, honest and intellectual dialogue between high-level government and corporate leaders in an intimate and private setting.

So far, the Forum has held seven highly successful meetings in: Oxford (UK); Jakarta (Indonesia); Madrid (Spain); Montevideo (Uruguay); Gerzensee (Switzerland); Rabat (Morocco); and Hanoi (Vietnam). A total of 464 participants from 53 countries joined the meetings, including nine current or former Heads of State, 27 Central Bank Governors or Deputies, 42 Ministers or Deputies, 18 Heads or Deputy Heads of Multilateral Institutions and 115 Chief Executives or Board Members of private banks and corporations.

During the past year—in addition to organizing the third meeting of the flagship Global Forum in Hanoi this July—we organized two regional forums, one on Africa and another on Latin America in response to the interest and the demand for in-depth focus on specific regional markets. In 2009, a forum on Eurasia, focused on the emerging economies of Central Asia, will be added to the line-up.

The Forum disseminates the papers that form the basis of all its discussions through three channels. First, the papers are available on its website (www.emergingmarketsforum.org). Second, selected papers presented at the Global Meeting of the Emerging Markets Forum in Jakarta were published this year as a book marketed by a commercial publishing house. A second book based on the papers discussed at the Latin America Emerging Markets Forum which was held in Montevideo will be published soon. Finally later this year, the first issue of a professional journal (Global Journal on Emerging Market Economies) devoted to the work of the Forum will publish some of the papers presented in Hanoi. The Journal will be published three times a year and will be available by subscription.

At a time of great stress and uncertainty in the global economy, and the looming challenges facing emerging market countries, the Forum recognizes the urgency with which it must engage stakeholders and policymakers from the government and private sector to craft effective, innovative and viable approaches to the most pressing challenges. The central issues addressed in recent Forum meetings include how emerging markets should respond to the global financial turmoil, global capital flows and investment, regionalization and cross border trade, infrastructure, and the dramatic impact of climate change.

We are honored to be part of an organization that successfully brings public and private sector leaders of such high esteem and focuses on reaching actionable solutions to resolve the numerous challenges facing emerging market countries so as to accelerate their growth and development.

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Fidel V. Ramos

FIdel RAmOsFormer President of theRepublic of Philippines

michel Camdessus

mIChel CAmdessusFormer Managing Director

International Monetary Fund

haruhiko Kuroda

hARuhIKO KuROdAPresident

Asian Development Bank

Message froM Co-Chairs of the eMerging Markets foruM

e m e r g i n g m a r k e t s F o r u m : W h o W e A r e a n d W h a t W e d o

The Emerging Markets Forum was created by the Centennial Group as a not-for-profit initiative to bring together high-level government and corporate leaders from around the world to engage in dialogue on the key economic, financial and social issues facing emerging market countries.

The Forum is focused on some 71 emerging market economies in East and South Asia, Europe, Latin America, Africa and Eurasia that share prospects of superior economic performance, already have or seek to create a conducive business environment and are of near-term interest to private investors, both domestic and international.

Emerging market countries vary in size, history, resource endowments and income levels, but they share common aspirations and often face similar challenges for achieving sustainable growth. The Emerging Markets Forum is committed to bridging the gaps in knowledge sharing, policy guidance and private-sector engagement that will facilitate this common goal of sustainable growth and development.

There are few venues where leaders from emerging market countries can learn from their peers and engage in a candid exchange of views in a private and intimate setting. However, many countries are implementing strategies that will lead to faster economic growth and social progress through prudent macro-economic management, economic liberalization, openness to global markets and foreign investment and support for a dynamic domestic private sector. Emerging markets countries and the international business community share trade and investment interests and issues specific to these economies. No existing forum is dedicated to addressing these issues. The Emerging Markets Forum aims to fill this void.

The Emerging Markets Forum differs from other meetings and forums of its kind, because it focuses on substantive and ideology free discussions on common issues and on reaching actionable solutions and conclusions which can then be applied by the participants attending the Forum in their respective countries and organizations. This is pivotal in ensuring that the Forum not only serves as an avenue to cultivate such discussion but also is an avenue to reach consensus and approaches in dealing with the challenges that emerging market countries face.

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our PurPose: Beyond talk


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Making a differenCe

What sets the Emerging Markets Forum apart?

Agenda : Driven by the priorities of emerging market countries rather than those of OECD countries or multilateral institutions. A high level Advisory Group helps shape its agenda and participants.

Belief : Sustainable development and poverty alleviation ultimately depend mainly (though not exclusively) on long term economic growth and on private sector action rather than heavy government intervention.

Participants : Participants have actual experience in high level policy formulation and in senior executive positions in private sector, rather than in academics.

Meetings : Are small enough to permit candor and intensive dialogue, and yet enough to incorporate diversity of experience and views.

Papers : Deliberations are grounded in substantive papers written by experts who have both real life experiences in policy formulation and are ideologically neutral.

Outputs : Practical actions designed to resolve issues rather than laborious communiqués or innocuous statements of intent.

Long Terms Sustainability : It is permanently active because the main work is done between meetings as participants use their influence to implement the conclusions reached at its meetings.

Uniqueness : Its modalities are both private (because nothing said is attributed to any individual) and public (because collective conclusions are actively disseminated through publications and the media).


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our leadershiP

All the Forums are co-chaired by distinguished statesmen and internationally renowned economic leaders. The substantive agenda and direction of the Forum is guided by an exceptional Advisory Board made up of senior leaders from the private and public sectors and academia.

Global Forum Advisory Board Members

Chairman of the Advisory Board:Gautam Kaji

Advisory Board Members

W. Bowman CutterManaging Partner, Warburg Pincus, United States

Jack Boorman Advisor, Emerging Markets ForumFormer Counselor, International Monetary Fund and Senior, United States

Kemal dervisAdministrator, United Nations Development Program (UNDP)

heinz hauserProfessor, University of St. Gallen, Switzerland

Rolf JekerChairman, Emerging Markets Services, Ltd., Switzerland

Caio Koch-WeserVice Chairman, Deutsche BankFormer Deputy Minister of Finance of Germany, United Kingdom

harinder KohliChief Executive Officer, Centennial Group

Pedro malanChairman, Unibanco, Brazil

Roberto de OcampoPresident, Asian Institute of ManagementFormer Secretary of Finance of the Republic of Philippines

Andrew shengChief Advisor, China Banking Regulatory Commission, P.R. of China

Co-Chairs

Global Forum Fidel V. RamosFormer President of the Republic of Philippines

michel CamdessusFormer Managing Director, International Monetary Fund (IMF)

haruhiko KurodaPresident, Asian Development Bank (ADB)

Latin America Emerging Markets Forum michel Camdessus Former Managing Director, International Monetary Fund (IMF)

enrique GarciaPresident and Chief Executive Officer, Corporacion Andina de Formento (CAF)

enrique V. IglesiasSecretary General, Iberoamerica General Secretariat

Africa Emerging Markets Forum Benjamin William mkapaFormer President of Tanzania


Eurasia Emerging Markets Forum Joseph deiss Former President of the Swiss Confederation, Switzerland


Founding Directors

Gautam s. KajiChairman, Centennial Group; Former Managing Director, World Bank

P. R. NarvekarVice Chairman, Centennial Group; Former Deputy Managing Director, International Monetary Fund (IMF)

harinder s. KohliPresident and Chief Executive Officer, Centennial Group; Former Director and Senior Advisor, World Bank

Chief Executiveharinder s. Kohli


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PartiCiPants

The Emerging Markets Forum has attracted very high profile leaders in their respective fields. Amongst those who have participated in the Forum, include former and current Heads of States, Central Bank Governors, Heads of Multilateral organizations, CEO’s of companies and Heads of Think Tanks.

Heads of State:

Nguyen Tan dzung, Prime Minister of the Socialist Republic of Vietnam

susilo Bambang Yudhoyono, President of Indonesia

Joseph deiss, Former President of the Swiss Confederation, Switzerland

Vicente Fox, Former President of Mexico

Osvaldo hurtado, Former President of Ecuador

Benjamin William mkapa, Former President of Tanzania

Carlos mesa, Former President of the Republic of Bolivia

moeen Qureshi, Former Prime Minister of Pakistan

Fidel V. Ramos, Former President of the Republic of Philippines

Heads of Multilateral Institution:

enrique Garcia, President of Corporacion Andina de Fomento (CAF)

Abdoulie Janneh, Secretary General, Economic Commission for Africa

haruhiko Kuroda, President of the Asian Development Bank (ADB)

michel Camdessus, Former Managing Director, International Monetary Fund (IMF)

enrique V. Iglesias, Former President, Interamerican Development Bank (IaDB)

Omar Kabbaj, Former President, African Development Bank

Babacar Ndiaye, Former President of the African Development Bank


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Central Bank Governors/Deputies: Argentina, Botswana, Bolivia, Brazil, Colombia, Egypt, France, Ghana, Hong Kong, Hungary, India, Indonesia, Luxemburg, Malaysia, Mauritania, Morocco, Pakistan, Spain, Sweden, Switzerland, Tanzania, Thailand, United Kingdom, United States, Uruguay, Vietnam, Zambia

Ministers/ Deputies: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, India, Indonesia, Japan, Mexico, Morocco, Pakistan, Philippines, South Africa, Spain, Switzerland, Thailand, United States, Uruguay, Vietnam

Total number of Participants: 464 from 53 countries

Table 1: The following table shows the official positions held by the participants of the Forum who have attended the seven Forum Meetings.

Region

Current and Former

Asia Africa europe latin America and the

Caribbean

middle east North America

heads/deputy of states 3 2 2 3

Governors/deputy of Central Bank 7 6 7 6 1

ministers/deputy of Finance 6 3 2 6

ministers/deputy of Trade 1 1 1

Other ministers/deputies 9 6 6 1

CeOs and directors 28 18 30 30 1 8

heads/deputies multilateral Organizations

3 4 6 5

heads/directors of Think Tanks 11 1 9 9 3

Note: Some participants have held more than one position throughout their careers and this is reflected in the table.


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struCture and organization

The emerging markets Forum’s focal point is the Global meeting which is held annually.

This year the meeting was held in hanoi, Vietnam. In 2008, the emerging markets Forum achieved another first by successfully organizing the latin America Forum in montevideo, uruguay and the Africa Forum in Rabat, morocco.

In 2009, a new addition to the regional meetings will be the eurasia emerging markets Forum.

2007 Latin America Emerging Markets Forum, Montevideo, UruguayThe Uruguay Central Bank hosted the first Latin America Emerging Markets Forum in Montevideo. This meeting took place during December 12 - 14, 2007.

2008 Africa Emerging Markets Forum, Rabat, Morocco The 2008 Africa Emerging Markets Forum was held in Rabat, Morocco during April 7-9, 2008. The meeting was hosted under the high patronage of His Majesty King Mohammed VI.

2008 Global Meeting of the Emerging Markets Forum, Hanoi, Vietnam The Global Meeting was hosted by the Ministry of Planning and Investment in Vietnam. The meeting took place during June 29 - July 1, 2008.

Global Meeting

AfricaEmerging Markets Forum

EurasiaEmerging Markets Forum

Latin AmericaEmerging Markets Forum


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Meetings Planned for 2009

ManageMent and staff

harinder KohliChief Executive

sylvie NavilleForum Manager

sumithra RajendraDeputy Manager

harpaul KohliInformation Analytics

Yao Yan Bei Finance Director

January 31 - February 2, 2009Inaugural meeting of the eurasia emerging markets Forum

(Bern, switzerland)

April 1 - 3, 2009latin America emerging markets Forum

(Bogota, Colombia)

June 23-June 25, 2009Global meeting of the emerging markets Forum

(mumbai, India)

september 2009 (tentative)Africa emerging markets Forum

(Capetown, south Africa)

Please email us at [email protected] for further information. Latest updates and other related information can be found at www.emergingmarketsforum.org.


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key theMes and issues for disCussion

The Forum focuses on specific themes for in-depth exploration around which to develop policy consensus. Among the selected themes that have been discussed include: Global Economic Developments and the Impact on Emerging Markets; Private Capital Flows: Regional Trade and Investment; Developing National and Regional Cooperation, Financial Markets; Infrastructure Development and Public Private Partnerships; and Climate Change and Energy.

gloBal eConoMiC develoPMents and the iMPaCt on eMerging Markets

With the rising share of emerging market economies in international trade and capital flows, emerging market countries are finding that their economic prospects and policies are heavily influenced by the broader global economic environment. Accordingly, each Forum meeting starts with a review of the trends in the global economy and financial markets and their implications for emerging markets. Issues discussed include global imbalances, resilience of emerging markets to global stress, impact of financial turmoil, competiveness of regional economies, and long-term relative performance of Asia and Latin America. Since the 1997 “Asian Financial Crisis” many emerging market economies—particularly in Asia—have undertaken major economic and institutional reforms, strengthened their financial systems and national balance sheets, accumulated large reserves and taken other steps to enhance their resilience to global shocks. Many countries have shifted from having capital deficits to capital surpluses. While sound policies have ensured that some emerging market countries are not as badly affected as they could be from the recent global financial turmoil, the indirect impact of recent developments in the US and other developed economies is still being felt to some degree, particularly in terms of reduction of economic growth, exports and debt flows. Part of the solution to remaining resilient in the face of external setbacks is to ensure sustainable growth internally within these countries.

An important and socially desirable way to ensure this is through increased inclusive growth policies. Over the long term, this would lead to higher economic growth as well as reduction in income disparities, and therefore make the development process politically and economically more sustainable.

Publications:

Global Imbalances and Capital Flows to Emerging Market Countries By Jack Boorman, Emerging Markets Forum.

Will Emerging Markets Remain Resilient to Global Stress? By Peter Dattels and Ken Miyajima, IMF.

A Market Player’s View of the Implications of Current Global Financial Turmoil By Caio Koch-Weser, Gustavo Canonero, Arend Kapteyn, and Michael Spencer, Deutsche Bank.

Productivity and Competitiveness in Latin America: Policy Options to Close the Gaps By Adriana Arreaza and Luis Miguel Castilla, Corporación Andina de Fomento.

The Prospects for Latin America: Risks and Opportunities with a Historical Perspective By Claudio Loser, President, Centennial Group Latin America.

The Prospects for Latin America: Risks and Opportunities with a Historical Perspective (Rev. June 2008) Claudio Loser, President, Centennial Group Latin America.

Income Disparity and Growth By Vinod Thomas, World Bank.

The Difference Inclusive Growth Makes By Vinod Thomas, World Bank.


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Private CaPital flows

For a long time emerging market countries have largely attracted capital flows, mainly official flows, from developed nations. In the past decade, private capital flows to emerging market countries have increased dramatically as a result of economic growth, increased stability and the liberalization of capital accounts, and now dwarf official flows.

In more recent times, emerging market countries themselves have become an important source of lending and investment to other emerging market countries. And, in the past few years, some emerging market countries have even started investing in the developed world particularly through Sovereign Wealth Funds.

Management of private capital flows—both inward and outward flow of capital and their potential benefits—are a regular topic of discussion at the Forum. The case of Sovereign Wealth Funds has recently been added to the agenda, since emerging markets are

both investors and recipients of such flows and because their sudden emergence as a major source of funding has generated much debate, particularly relating to sovereignty, security and transparency issues.

Publications:

Private Capital Flows to Emerging Market Economies: Major Drivers, Recent Developments and Key Issues By V. Sundararajan and Harinder Kohli, The Centennial Group.

The International Capital Flows’ New Directions By Marcílio Marques Moreira, Centennial Latin America.

Outward Foreign Direct Investment from India By Rakesh Jha, ICICI Bank Limited, India.

FDI Outflows from Emerging Economies By Heinz Hauser, Swiss Institute for International Economics & Applied Economic Research and University of St. Gallen.

Managing Capital Inflows: What Have We Learned? By Barry Bosworth, Brookings Institution, Washington DC.

Foreign Direct Investment in Emerging Economies By Klaus Meyer, Reading University.

Managing Portfolio Equity Flows in Emerging Market Countries By Manu Bhaskaran, V. Sundararajan and Harinder Kohli, The Centennial Group.

The Coming of Age of Sovereign Wealth Funds: Perspectives and Policy Issues Within and Beyond Borders By Adriana Arreaza, Luis Miguel Castilla, and Cristina Fernández, Corporación Andina de Fomento.


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regional CooPeration, trade and investMent

Over the last quarter century, international trade and investment growth has constituted the most dynamic aspect of international cooperation and globalization and has led to a shift in regional interactions as trade flows among developing countries have grown faster than overall trade. In East Asia, regional trade now exceeds levels of NAFTA and approaches levels close to the European Union. As emerging economies see benefits of greater trade and investment flows between themselves, there is a keen interest in all regions to emulate the example of Europe. Yet, clear differences exist between

regions on trade openness and integration, with Latin America and Africa lagging well behind Asia.

Despite a number of intra-regional trade agreements in Latin America, Africa and South Asia, the level of intra-regional trade in these continents has remained well below expectations of the policy makers. Intra-Africa trade is hindered by the difficulty of travel and transport and lack of investment due to the absence of a minimum level of stability in many African countries. In South Asia political tensions have stymied progress.

In sharp contrast, trade in East Asia is undergoing a transformation driven by China’s shift in competitive advantage away from one of low-cost to one of high value production. To increase regional trade among emerging countries, rather than expend excessive energy on trying to pass macro-level free trade agreements, policymakers need to focus on the fundamentals: improve their competiveness; create an environment that is business friendly; facilitate trade logistics; and create physical connectivity between countries.

This is particularly true for smaller developing nations, where it is much more productive to focus on micro-level changes, such as customs reform. Given the intense interest of the participants in enhancing regional cooperation, this subject is a regular part of the Forum’s agenda, so are the efforts to create greater economic links between Asia and Latin America, and between Africa and Asia.

Publications:

Cross-Border Trade and Investment among Emerging Economies: Lessons from differing experiences in Africa, Asia and Latin America By Claudio Loser, President, Centennial Group Latin America.

Trade Facilitation and Public-Private Partnerships in Africa By Rolf M. Jeker, Emerging Market Services Ltd.

Barriers to Cross-Border Trade and Investment: Lessons from Southern Africa By Lesetja Kyanyango, National Treasury of South Africa.

The Challenges of Regional Integration in Africa and Policy Options By Anupam Basu, The Centennial Group.

Challenges to Cross-Border Investments in Mining in Africa By Samuel Jonah, Jonah Capital

Latin American and East Asian Trade Strategies By Luis Miguel Castilla, CAF.


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develoPing national and regional finanCial Markets

Many emerging market economies—particularly in Asia and the Middle East--have started to generate surplus savings and recently have become net exporters of capital to developed countries. Yet, even in Asia most countries need to increase investment rates, including for the purpose of eliminating infrastructure bottlenecks. These investment needs are partly met by importing private capital from capital markets in the US and Europe, because their national and regional financial markets are not sufficiently developed to intermediate their own surplus savings.

The financial markets in Asia, for example, do not match the region’s prowess in manufacturing. Financial markets in many Latin American countries and most African countries have a long way to go. Public and private sector leaders in emerging markets are therefore keenly interested in developing both regional and national financial markets, including equity and bond markets. The speed of capital market development and integration will ultimately be determined by market forces. However, if the process is not given greater urgency, regional capital markets may be marginalized by larger and more mature markets, such as the NYSE or Nasdaq.

The basic building block must be the development of national financial markets. Parallel efforts are also necessary to develop regional capital markets. This would require developing countries overcoming a number of roadblocks, including: major differences in capital market development among countries; equity markets that are slow with listings; total listings are low; some markets have high transaction costs and high equity premiums. Central bankers and policymakers must facilitate the development of both national and regional financial markets in adopting global standards. Greater coordination among all the exchanges and capital markets is required and efforts must be properly synchronized. It is also imperative that there is greater cooperation with the private sector.

Publications:

Regional Integration of Capital Markets in ASEAN: Recent Developments, Issues, and Strategies (With Special Reference to Equity Markets) By Jaseem Ahmed, Asian Development Bank, and V. Sundararajan, The Centennial Group.

Financial Integration in Africa: BMCE Group Strategy By Jaloul Ayed, BMCE Bank.

Policies to Support Financial Sector Development in Africa By Philipp M Hildebrand, Swiss National Bank.

Financial Sector Challenges in Africa’s Emerging Markets By Massimo Russo and Piero Ugolini, The Centennial Group.

Securing International Finance: Issues of Debt Management, Prospects, and Modalities By Paul A. Acquah, Central Bank of Ghana.

The Capital Markets in Latin America: Are they at a turning point? By Miguel Alberto Kiguel, EconViews and Universidad Di Tella.

Financial Markets in Latin America By Claudio Loser, President, Centennial Group Latin America.

Asian Financial Markets and Asian Bond Markets Initiative By Eisuke Sakakibara, Waseda University.

Building National and Regional Financial Markets: The East Asian Experience By Andrew Sheng, University of Malaya & Tsinghua University, Malaysia.


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infrastruCture develoPMent and PuBliC-Private PartnershiPs

It is now widely agreed that infrastructure is an essential building block for economic growth and social development. Infrastructure enhances productivity, social progress and international competiveness as well as increases the attractiveness of a country for foreign investment. It is fundamental for enhancing regional trade and investment flows. In recent years, Asia in particular has witnessed an increase in access to infrastructure.

However, overall access to infrastructure still remains uneven across emerging market countries. There is a sharp

difference in terms of access especially when comparing rural and urban areas. In fast growing countries, particularly in Asia, infrastructure bottlenecks are threatening to suffocate future growth. In many countries, the public sector has neither the financial nor human resources to meet their massive infrastructure needs. Policymakers are seeking ways to promote public-partnerships in infrastructure development which is geared towards providing greater access to their citizens and businesses.

However, it is crucial that these public-private partnerships operate within well-conceived legal and regulatory framework informed by global experience. Solid public-private partnership is not only imperative in meeting the increase in demand for infrastructure in these rapidly developing countries but it would also set the countries on the right track towards sustainable growth and development. Policy makers and private sector leaders have much to learn from each other by sharing their experiences and discussing their concerns. This subject is therefore a part of the Forum’s core agenda.

Publications:

Public-Private Partnerships and the Infrastructure Challenge in Latin America By Stefania Scandizzo, Corporación Andina de Fomento.

Building Asia’s Infrastructure: Issues and Options By Haruhiko Kuroda, Rajat Nag, and Rita Nangia, Asian Development Bank.

Issues in Infrastructure Investment in Africa By Maria Ramos and Vuyo Kahla, Transnet Limited.

Infrastructure Development and Services in Selected Emerging Market and OECD Countries: Key Indicators By Harpaul Alberto Kohli, The Centennial Group.


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CliMate Change and energy

Climate change has become one of the central issues of our time because global warming affects every nation and every person on this globe. Despite potential progress in curbing greenhouse gas emissions, the sea level is projected to rise up to one meter in the future, which will have a dramatic impact on many developing countries.

The glaciers in the Himalaya are melting rapidly, a development that will lead to serious water shortages on the Indian sub-continent. Emerging Market Countries cannot afford to be complacent about climate change, nor should they be defensive.

Currently 29% of emissions come from Asia and this would increase to over 42% over the next two decades on current trends. India and China will build coal fired plants in the next five years that will add more CO2 than Kyoto will have saved. Greater energy efficiency as well as a low carbon footprint can be achieved through clean energy policies, focusing on renewable energy sources, carbon taxes and through the trade of carbon credits.

Technological solutions to gas emissions will not come from a centralized approach, rather, technology breakthroughs must come in partnerships with the private sector. Clean Development Mechanisms (CDM) need to be pursued relentlessly. There exist a lot of business opportunities and financial benefits to pursuing CDM. However, this requires a cohesive approach and support from both the public and private sectors.

Publications:

Climate Change: Opportunities for Private Sector By Kevin Leo-Smith, Sustainable Forestry Management Africa.

Climate Change: Priority Agenda for Policy Makers and Opportunities for Business in Emerging Markets in Asia By Bindu Lohani, Asian Development Bank.

Business Opportunities in Africa for CDM-Projects and Carbon Trading By Rolf M Jeker, Emerging Market Services Ltd.

Climate Change: Opportunities for Africa By Maria Ramos and Vuyo Kahla, Transnet Limited.

New Global Energy Scene and Emerging Markets By Armando Ribeiro de Araujo, Centennial Latin America.

Other Related Publications discussed at the Forums:

El Salto del Siglo XX al Siglo XXI: Del “Neoliberalism” al “Neopopulismo”. ¿Una Caracterización Suficiente? By President Carlos D. Mesa Gisbert.

Outsourcing and Offshoring: Key Trends and Issues By Mari Sako, Saïd Business School, University of Oxford.

All the above mentioned papers can be accessed from the website at www.emergingmarketsforum.org


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PuBliCations Other than producing and publishing papers for the Forum Meetings, the Emerging Markets Forum also focuses on ensuring that the papers presented at the forum meetings reach out to a larger audience. The Forum published a book, “Growth and Development in Emerging Market Economies”, in early 2008 which contains selected papers from the Global Meeting in Jakarta. At the end of 2008, the Global Journal of the Emerging Market Economies a professional journal available by subscription only will be ready for distribution.

Growth and Development in Emerging Market Economies: International Private Capital Flows, Financial Markets and Globalization, Edited by Harinder Kohli, Sage Publications India, 2008

Global Journal of Emerging Market Economies – This Journal will contain selected papers from the Global Meeting of the Emerging Markets Forum held in Hanoi. The Journal will be published thrice a year and will be available by subscription.

Emerging Markets newspaper: A Special Feature on the papers that were presented at the Global Meeting of the Emerging Markets Forum held in Hanoi will appear in the Emerging Markets newspaper which will be distributed at the IMF/World Bank Annual Meeting in October 2008.

Special Report

The Forum also published a paper written by Jack Boorman titled An Agenda for the Reform of the International Monetary Fund.

Jack Boorman is the Former Counselor and Former Director of Policy Development and Review Department at the International Monetary Fund (IMF).

In the paper, Mr. Boorman sets forth his views on all the issues relevant to the ongoing debate concerning the prospective role of the Fund in the international financial systems- the governance of the Fund, including its management structure; the development of a sustainable funding model, a critical issue because of the shrinkage in its lending activity. He explores the pros and cons of these issues and makes specific proposals for reform in many areas. He also makes the point that these issues be dealt with in proper sequence if a consistent and coherent model for the institution is to emerge. Given the positions Mr. Boorman held in the IMF and his broad knowledge and experience one would be seriously amiss if one did not consider his views with the care that they deserve.


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in the Press

The Emerging Markets Forum Meetings has attracted significant international press coverage. Amongst the prominent press pieces that have been published are as follows. Full access to these press articles can be found at the forum website.

POINT OF VIeW Between hanoi And havana By Jorge Castañeda | NEWSWEEK Published Jul 26, 2008, from the magazine issue dated Aug 4, 2008

“At a recent meeting in Hanoi of a new global outfit called the Emerging Markets Forum, a group that is positioning itself as an emerging-economy, though business-oriented, alternative to Davos, participants were exposed to a fascinating perspective on the Vietnamese experiment. At the meeting—and during this writer’s additional week touring the country—officials outlined a combination of rigorous one-party rule in the classic socialist style (including a Ho Chi Minh mausoleum indistinguishable from Mao’s and Lenin’s, and a completely official, propagandistic press) with freewheeling, swashbuckling, barely regulated market economics. Over the past 15 years, Vietnam has grown 8 percent annually, and last year saw more than $18 billion in foreign investment—one of the highest totals in the world as a percentage of GDP. Such an impressive performance (despite the current specter of rising inflation and slower growth) has led

many to view the country as a model for nations now going through what Vietnam went through in the early 1990s after the collapse of the Soviet Union and the end of the Socialist bloc. Example A: Cuba.

Though Fidel Castro always regretted that the Vietnamese had become “revisionists” and “capitalist-roaders,” it was his younger brother, Raúl, who managed Cuba’s tight relations with Vietnam. When he traveled to Hanoi in April 2005 for the 30th anniversary of the fall of Saigon, he was said to be enthusiastic about what he saw. To Raúl Castro, Vietnam has even more appeal than China, because of the enormous difference in size. ….”

Growth mismatch prompts reflection Story by: Laura Mossman Magazine: Investment Adviser Published Monday, August 25, 2008

“With some markets lagging, greater coodination among exchanges and capital markets is required.

Managers within the IMA Global Emerging Markets sector are faced with a mass of contradictions when sifting through potential stocks and weighing up the investment potential for different countries. On the one hand, many of these markets are now unrecognisable from the way they were even a decade ago. The increasing trend of globalisation is lessening the “us and them” rivalry between the developed and developing world, with Western businesses aware that their competitors in places like China and Russia are potentially in better shape to face the future than they are…

…This was at the heart of the Emerging Markets Forum, held in Hanoi, Vietnam at the end of June. Delegates looked at not only the divergence between emerging and developed markets, but also the mismatched growth and opportunities among the individual emerging markets.”

Mr. Castañeda is Mexico’s former foreign minister and Global

Distinguished Professor at New York University.


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Middle-age spread

Dec 14th 2005 From The Economist print edition

More mature relations with foreign creditors are benefiting emerging markets

“EMERGING markets are alternately courted by foreign capital and savagely rejected by it. Many of the luminaries who assembled on December 9th-11th at Templeton College, Oxford for the first annual meeting of the Emerging Markets Forum bear the scars of this torrid relationship. The forum—chaired by Fidel Ramos, former president of the Philippines, and Michel Camdessus, once managing director of the IMF—brings together veterans from ministries, markets and multilaterals, in a room where no one is trying to sell a bond or secure a bail-out.Not that emerging markets are struggling to do either these days.

Mexico’s government has already raised the foreign money it needs for 2006 and 2007. It can now borrow almost as cheaply as its northern neighbour. The spread on its debt—the premium it must offer investors above the yield paid on American Treasuries—is little more than a percentage point. Last month, spreads on J.P. Morgan’s index of emerging-market bonds (the EMBI Global) fell below 2.3 percentage points, the lowest on record (see chart). According to economists at Goldman Sachs, countries such as Brazil are borrowing at margins not seen since Britain was the world’s banker and gold its standard of value…

…The Emerging Markets Forum, however, concluded on a more wistful note. The relationship between emerging markets and global capital may be more stable than it was. But it is also less rewarding than it should be. However strong the flow of private capital from abroad, the forum noted, it continues to be more than matched by public flows in the opposite direction.

Emerging economies will add more than $400 billion to their foreign-exchange reserves this year, according to some estimates, and their net exports of capital will near $200 billion. Rich-world investors have shown themselves willing to buy emerging-market assets at

high prices, in local currencies and at lengthy maturities. Yet the flow of capital out of poorer countries is greater than the flow in. The challenge for emerging markets, the forum-goers concluded, is not only to seduce and tame overseas capital, but also to put their own savings to better use at home.”


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Newspaper articles:

Vietnam News, The National english language daily“Emerging Markets Forum opens in Capital”, June 30 2008

Bao Vietnam “PM Dung meets Emerging Markets Forum’s VIPs”, July 1, 2008

el Pais (uruguay) “El modelo vietnamita”, Aug 18, 2008“Baja inflación brasileña obedece a la política ortodoxa del Banco Central”, Jan 21, 2008

America economia “Sería increíble que As ia se hiciera tan rica como América Latina”, May 26, 2008

Financial Times“Asia must spend to grow, ADB report says”, By Shawn Donnan, September 22, 2006

dawn (Pakistan) “Time to look to the East”, Dec 31st 2005

manila Bulletin “The Philippines as an emerging market” , Oct 15, 2006

Tehelka (India) “Corruption may not impede economic development, but for how long?”, Nov 18 2006

The Citizen (dar es salaam) Tanzania: Mkapa to Chair Forum On Africa’s Emerging Markets”, March 4, 2008

The daily star (Bangladesh) “Asia must boost infrastructure investment: ADB”, September 23, 2006

A comprehensive list of articles can be found on the website.


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sPonsors

The Emerging Markets Forum is a not for profit initiative and depends on contributions from sponsors to make the meetings possible. We would like to thank the following sponsors for believing in our mission statement and continuously supporting the Forum.

main sponsorsAsian Development Bank Centennial Group Corporacion Andina de Fomento (CAF)Deutsche Bank HolcimInfrastructure Development Finance Co. Ltd.(IDFC)Société Générale de Surveillance (SGS)State Secretariat for Economic Affairs of Switzerland (SECO)

Additional Sponsors for Specific Meetings:

Global Meeting of the Emerging Markets Forum, 2005

Darby Overseas Investments Ltd. Housing Development and Finance Corporation of India John Templeton FoundationPT Danareksa (Persero) of Indonesia Templeton College, University of Oxford


Bank MandiriCitigroup Columbia University PT Danareksa of Indonesia Darby Franklin Templeton InvestmentsHDFC BankMS Management Services AG Telkom Indonesia

Latin America Emerging Markets Forum, 2007

Banco de España Banco RepublicaBanco Central Del Uruguay IberoAmericana General SecretariatSaludsa Zonamerica Africa Emerging Markets Forum, 2008

BMCE Bank Caisse de Depot et de Gestion (CDG)CRA Rogers CaseyProfessional Assocation of Morrocan Banks (GPBM)Groupe OCPKingdom of Morocco Maroc Telecom Royal Air Maroc


Ministry of Planning and Investment of Vietnam CRA Rogers Casey

*Some of the images were taken from freedigitalphotos.net


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N o t e s

Further details on the Forum and its meetings may be seen on our website at http://www.emergingmarketsforum.org

The Watergate Office Building, 2600 Virginia Avenue, NW, Suite 201, Washington DC 20037, USA. Tel: (1) 202 393 6663 Fax: (1) 202 393 6556

Email: [email protected]

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