Introduction: Inside the Black Box A Journey Toward Emerging Markets

  • Javier Santiso
Part of the The CERI Series in International Relations and Political Economy book series (CERI)


By the end of the twentieth century, emerging markets had become the new El Dorado of international finance. Their emergence was certainly not new. In fact, most Latin American stocks exchanges for example date from the end of the previous century and as stressed by many economists and historians, the integration of world finance was already very large and deep by the very end of the nineteenth century.2 Wall Street and London’s (re)discovery of emerging market gold mines have provided the impetus for one of the most incredible gold rushes of the late twentieth century. At the beginning of the 1980s, the so-called emerging markets (i.e. developing country stock markets surveyed by the World Bank’s International Finance Corporation (IFC)3) were only 32 and had a market capitalization of less than US$70 bn (around a mere 2.5 percent of world market capitalization). By the end of the twentieth century, the IFC identified 81 emerging stock markets with a total market capitalization of more than US$1.4 tn. (4.7 percent of the global bond market). The aggregate size of emerging debt markets has jumped from about US$450 bn. in 1989 to over US$1.4 tn. in 1999 representing nearly 5 percent of the world market, while emerging equity markets have experienced over the same decade an impressive growth reaching an aggregate size of about 8.5 percent of global market capitalization.


Financial Market Rating Agency Fund Manager Economic Sociology Temporal Horizon 
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© Javier Santiso 2003

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  • Javier Santiso

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