With the U.S. balanced on the edge of recession, Europe slowing and Japan in a perpetual slump, developing countries are confronting a drop in foreign investment and anaemic export markets. That is a concern being voiced by Charles Dallara, managing director of the Institute of International Finance, which conducts research on behalf of more than 300 financial institutions.
During the 1990s financial crisis, direct investment from developed to emerging-market countries tended to hold steady because investors were generally confident in the long-term prospects of countries such as Brazil, South Korea and Mexico. But today, says Dallara, global investors and multinational corporations are increasingly aware of the political fragility that exists in many emerging-market economies.
Source: Michael M. Phillips, Global Marketplace Faces Challenges as Economies Slow, Wall Street Journal, April 18, 2001.
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http://interactive.wsj.com/articles/SB987547596706802425.htm
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http://www.ncpa.org/pi/internat/intdex12.html
