What are the features of emerging countries in major difficulty today?
We believe that the emerging countries that are in major difficulty today are those: Where savings are insufficient to finance the necessary investments, which reduces potential growth and creates vulnerab ility in the current account and excessive external debt; And which, moreover, are importers of commodities. When commodity prices rise, these imports become very difficult to finance due to the vulnerability of the current account, leading to shortages . Among the emerging countries we examine, the countries that have both negative features are Brazil, Tunisia, South Africa, Turkey, India, Pakistan and Madagascar.