As emerging market economies have now begun to slow, we look at what such a crisis might mean for the future of these developing nations. Will they be able to weather the storm and make strides toward becoming “developed economies?” Or will the next crisis unveil weaknesses that send these economies back in time?
Though some developing economies will surely succeed in closing the gap, others will likely stumble. The reason for our pessimism is not the direct economic effects of an upcoming downturn, but rather the political instability that will follow. So it is time for analysts to put the financial ratios to one side for a moment and look at the threats posed by emerging market politics.