Patience, Discipline Are the Watchwords in Emerging Markets

There are 195 sovereign states, according to the United Nations, and two observers, namely the Vatican and Palestine. High-income countries in North America, Western Europe and Asia-Pacific account for about 15 percent of the sovereign states. Most of the rest of the world live in low- and medium-income countries.

During the Cold War, low-income countries were often called Third World. Later the jargon became lesser developed countries. More recently, they are referred to as emerging markets or emerging market economies. There are around two dozen emerging market countries that have been integrated into the global economy and capital markets in a significant way. Of these, population and economic capacity is concentrated in half a dozen nations. Even though Albert Edwards, an analyst at Societe Generale, has rightfully called the BRIC body "a bloody ridiculous investment concept," it does underscore the concentration of potential in a handful of emerging markets