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sorry, what I meant to say is that developed countries need to help grow/establish the middle class in emerging market countries. My understanding of the situation (and to be honest, I am in no way an authority on this, and am most likely totally wrong), but population growth in developed countries is slowing, which is another way of saying that we are not producing more and more customers like we used to. Companies need more and more people to buy their stuff so that they can grow and grow. So, if developed nations are not producing ever-larger numbers of consumers, companies have to look elsewhere. Hence, enter emerging markets. However, and this may be totally biased or completely wrong, but from what I've read and seen, a large portion of the populations in those emerging economies do not have much disposable income and thus do not make very good consumers. But if the economies in those countries improve, that will create better paying jobs, low income earners will rise and become middle-class earners, and become better consumers. And you will see overall economic growth, as new businesses are started, tax revenues increase, governments are able to spend more, credit levels are increased, etc. At least, that's why I think need to grow the middle class in EM. |