The Art of “Eagling” the Future
To predict a crisis and act promptly before disaster strikes: this is the new recipe of emerging countries.
Last month, a new crisis brought back the fear that the world might be going into a new cycle of darkness. After three years of a bubble bloated with foreign capital, Island started to face investor’s lack of credibility. The turbulence in the tiny European country generated a lot of talks on the pages of the Wall Street Journal and the Financial Times. Would the World be on the verge of being hauled into a new era of financial crises? The answer is a sonorous NO – at least for the time being. Although the risks exist, the developing countries (also known as emerging countries) are going through a period of unprecedented solidity of their fundamentals and economic predictability.
For the American Allan Meltzer, from University of Carnegie Mellon, the risks of an endemic financial crisis are much smaller today. Says he, “It is less likely that any speculative attack happens, and those countries have got good defenses”.
Allan Greenspan, the former Federal Reserve President (the American Central Bank), has always been an enthusiast of this financial revolution. Says he, “Financial instruments more and more complex have added to the development of a more flexible, efficient, and resistant market”.
Globalization was once considered the terror of emerging countries in the last decade. The current World stability can bring a lot of benefit to those who have learned how to make the best use of it.
(Time magazine, April 2006, page24)
We can infer from the text that,