The big emerging markets

Abstract During his tenure as Under Secretary of Commerce, the author was one of the architects of the Clinton administration's Big Emerging Markets policy under Secretary of Commerce Ron Brown. He is now dean of the Yale School of Management. The Clinton policy emerged out of a growing conviction that some ten markets will account for the overwhelming growth potential in world imports, not to mention commensurate growth in economic and political influence around the world. These markets include, in Asia—the Chinese Economic Area (China, Hong Kong and Taiwan), South Korea, Indonesia and India; in Africa—South Africa; in Central Europe—Poland and Turkey; and in Latin America—Mexico, Brazil and Argentina. The administration concluded that, because many of these countries still have important state sectors, and because virtually all are focusing heavily on infrastructure projects that demand the involvement of local governments, U.S. companies need the U.S. government at their side to win a fair hearing. What is more, because of the intensity of foreign competition and the capital demands on these countries, international competitors will be public/private partnerships in which foreign governments provide concessionary financing and aggressive advocacy to support their companies' efforts. This presentation is based on the author's speeches during his tenure as Under Secretary for International Trade of the U.S. Department of Commerce, June 1993 to October 1995.