The fragile middle
Decades of rapid growth have created a new middle class in the developing world, prompting multinational companies to invest heavily in emerging markets as they attempt to serve millions of new consumers. But rising inequality and slowing growth has presented a risk to this new middle class and is forcing companies to rethink their strategy. In this week’s podcast, Ferdinando Giugliano is joined by Shawn Donnan, world trade editor and James Kynge, emerging markets editor to discuss this nascent middle class and its prospects in the face of slowing growth
Every year, there is debate at Davos about what is hot – and what is decidedly not. This year, the emerging markets are definitely in the second camp.
Never mind the fact that the streets of Davos are full of cheery posters proclaiming the joys of Malaysia, India or Brazil – or that Nigerian food was being served to Davos delegates at lunch (complete with snail stew.) Also ignore the determinedly upbeat messages emanating from a host of officials from the BRICs nations.
Behind the chirpy smiles, a new mood of anxiety is stalking the emerging markets delegations, amplified by the recent dramas around Argentina. And that marks a stark contrast to recent years, when the emerging markets were regarded as the new saviours of global growth – and their leaders strutted around the Davos corridors with pride. Read more
Currency jitters in India and emerging markets
India was once seen as a rising superpower and one of the world’s most dynamic economies, but now its rupee is plunging and the economy is stalling. What’s more, this seems to be part of a broader problem in emerging markets, as Indonesia, Turkey, South Africa and Brazil all experience currency jitters. Gideon Rachman is joined by Victor Mallet, New Delhi bureau chief and Ralph Atkins, capital markets editor, to discuss what’s going on and how deep the problems are.