Big Ten Emerging Markets

A FORMER SENIOR U-S TRADE OFFICIAL SAYS THE WORLD WILL 
SOON BE DOMINATED BY A SET OF RISING POWERS KNOWN AS THE BIG TEN 
EMERGING MARKETS, INCLUDING CHINA, INDIA, AND BRAZIL. THE FORMER 
OFFICIAL SAYS THE UNITED STATES IS UN-PREPARED FOR THIS FUTURE 
AND NEEDS TO CARRY OUT REFORMS OR RISK LOSING ITS ROLE AS THE 
WORLD'S DOMINANT ECONOMIC AND POLITICAL POWER.

FORMER UNDERSECRETARY OF COMMERCE JEFFREY GARTEN OUTLINES HIS VIEW OF THE NEXT CENTURY IN HIS NEW BOOK CALLED "THE BIG TEN". THE TITLE REFERS TO 10 NATIONS HE PREDICTS WILL EMERGE AS POTENTIAL WORLD POWERS IN THE NEAR FUTURE. THEY INCLUDE THREE IN LATIN AMERICA -- MEXICO, BRAZIL, AND ARGENTINA -- AND FOUR IN ASIA -- INDIA, INDONESIA, CHINA, AND SOUTH KOREA, IN ADDITION TO TURKEY, POLAND, AND SOUTH AFRICA.

THEY REPRESENT AN HISTORICALLY UNPRECEDENTED PHENOMENON. THAT IS THE RISE OF SO MANY COUNTRIES AT ONE TIME. WE HAVE SEEN THE RISE OF TWO OR THREE ... GERMANY, JAPAN, EVEN THE UNITED STATES ... BUT NEVER SO MANY COUNTRIES IN SO MANY DIFFERENT REGIONS SIMULTANEOUSLY.

MR. GARTEN, NOW DEAN OF THE YALE UNIVERSITY SCHOOL OF MANAGEMENT, SAYS THE EMERGENCE OF THESE MARKETS NOT ONLY THREATENS THE UNITED STATES' DOMINANCE IN INTERNATIONAL AFFAIRS, BUT ALSO COULD POSE NEW CHALLENGES TO WORLD ECONOMIC AND POLITICAL STABILITY. HE SAYS HE IS PARTICULARLY CONCERNED WITH HOW EACH OF THESE EMERGING MARKETS WILL COPE WITH THE OFTEN CONFLICTING DEMANDS FOR CHANGE IN THEIR POLITICAL AND ECONOMIC SYSTEMS.

THE CLASH BETWEEN THE OPENINGS OF THE POLITICAL SYSTEMS AND THE ECONOMIC SYSTEMS IS IN MY VIEW A TREMENDOUS UNCERTAINTY. LONG TERM I THINK IT WILL WORK, BUT I DO NOT KNOW HOW LONG THE LONG TERM IS, AND I WOULD SAY THAT OVER THE NEXT SEVERAL YEARS WE ARE IN FOR SOME REAL VOLCANOES, AND THIS IS GOING TO BE A TREMENDOUS CHALLENGE TO U-S FOREIGN AND TRADE POLICY.

MR. GARTEN SINGLES OUT INDONESIA AS ONE OF THE MOST VOLATILE COUNTRIES IN THE WORLD IN THIS RESPECT. THE ECONOMIST POINTS OUT INDONESIA HAS THE FOURTH-LARGEST POPULATION IN THE WORLD AND ONE PERSON HAS RULED SINCE THE MID-1960'S, YET THERE IS NO PLAN FOR SUCCESSION EVEN THOUGH ITS LEADER, PRESIDENT SUHARTO IS IN HIS MID-70'S.

BUT MR. GARTEN'S BOOK FOCUSES MORE ON HOW THE UNITED STATES SHOULD CHANGE TO MEET THESE NEW CHALLENGES HE IS FORECASTING. HE URGES DEEP REFORM IN FOUR AREAS.

HE SAYS, NEW DOMESTIC ECONOMIC POLICIES, NEED TO BE DEVELOPED TO COPE WITH INCREASED INTERNATIONAL COMPETITION -- HE CALLS FOR A MORE VIGOROUS, TRADE-DRIVEN FOREIGN POLICY -- HIGHER EDUCATION FOCUSSED MORE ON INTERNATIONAL ISSUES AND SKILLS -- AND HE SAYS CORPORATIONS MUST PREPARE STRATEGIES AND TRAIN NEW EXECUTIVES IF THEY ARE TO CONTINUE AS LEADERS IN THE WORLD ECONOMY.

MR. GARTEN SAYS A FIRST STEP IN MOVING FORWARD WITH THESE REFORMS IS TO ACKNOWLEDGE SOME OF THE UNITED STATES' WEAKNESSES, PARTICULARLY THOSE OF THE COUNTRY'S POLITICAL LEADERS.

IT IS DIFFICULT TO EXAGGERATE HOW LITTLE AWARENESS OF MOST OF THESE ISSUES OUR CONGRESS HAS. PEOPLE ARE BEING ELECTED FOR ALL KINDS OF REASONS, BUT CERTAINLY INTERNATIONAL SOPHISTICATION DOES NOT EVEN POP UP ON THE RADAR SCREEN. AND THIS IS THE GREAT IRONY THAT AT A TIME WHEN THE OUR ECONOMY HAS BECOME SO TIED TO THE WORLD OUR ELECTED OFFICIALS ARE INCREASINGLY PAROCHIAL AND LOCALLY FOCUSED.

MR. GARTEN SAYS FOR THE UNITED STATES AND OTHER COUNTRIES THE NEXT FEW DECADES WILL OFFER A COMBINATION OF UN-PRECEDENTED OPPORTUNITIES AND RISKS. THE OPPORTUNITIES INCLUDE MORE THAN A TRILLION-DOLLARS IN INFRASTRUCTURE PROJECTS IN DEVELOPING NATIONS. THE RISKS ARE TIED TO WHAT HE SEES AS AN INCREASINGLY INTERDEPENDENT GLOBAL ECONOMY WHICH COULD FACE MASSIVE INSTABILITY IF ITS MAJOR PLAYERS ARE NOT PREPARED FOR THE CHANGES AHEAD.

05-May-97
Source: Voice of America

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