In association with the different settings, the critical processes have evolved differently in the emerging market economies
and the Eurozone economies.
'This means that many emerging market economies
will be able to exit from crisis support measures sooner than advanced economies with monetary tightening generally preceding fiscal tightening,' he said.
Despite the subsequent withdrawal of capital that ultimately put pressure on emerging market asset prices, many emerging market economies
entered this downturn in a position of financial strength born of conservative leverage and sound policies.
Das claims that the emerging market economies
are better integrated in the global economy than the rest of the developing world.
Summary: Emerging market economies
are set for a strong recovery over the long term, as the positive effects of globalization begin to manifest themselves, says a senior executive with one of the world's premier financial institutions.
With advanced economies all in recession and growth in emerging market economies
slowing abruptly, the IMF has urged countries to move quickly to clean up their financial sectors, in particular remove toxic assets from bank balance sheets, which would allow the economy to mend.
''Most emerging market economies
, including in developing Asia and Latin America, are at a crossroads, and the next 12 to 18 months will be difficult,'' the study said.
The group's shares have been hit in recent days as fears mount over emerging market economies
, but the bank said growth had continued in the third quarter.
"We want to diversify, number one in Europe, number two in the United States, and then in emerging market economies
," said Farhat Bin Guidara, governor of the Central Bank of Libya and a member of the board of the state's investment authority.
Emerging market economies
, he said, were experiencing good growth, though inflation, linked to high oil and food prices, remained a serious problem.
The 184 member countries of the International Monetary Fund (IMF) approved a proposal on September 18 to overhaul the way voting shares are distributed in the organization, raising the stakes of Korea and several other emerging market economies
. Korea, the world's 12th largest economy, had its share of the total votes in the IMF raised from 0.764 percent to 1.346 percent, jumping from 28th to 19th place in terms of influence out of the 184 voting countries.
Asia, where FDI increased by 44 percent between 2004 and 2003, continues to see the most foreign investment of all emerging market economies
. According to S & P, the rising trend is expected to continue in 2005 and beyond due to a still-favorable global financial environment, improved corporate profits and growing confidence in the policy performance of some key emerging market countries like China, Brazil and Mexico.