Springing to Life: Emerging Markets in 2018

Emerging market economies are established when nations develop a currency, build banks and an economic infrastructure, and some form of exchange with a regulatory body. Emerging market economies are not as progressive as advanced economies, such as Japan, USA, Germany, etc., hence the term “emerging”.

Investors are interested in emerging market economies for the reason that they experience much faster growth and can yield much higher returns to their investments. Due to political instability and domestic infrastructure problems, investors find that emerging markets are high risk investments.

In 2018, through technological innovation in several sectors across the globe, technology is transforming the way certain markets operate. Sectors that are absorbing a lot of capital are healthcare, education, financial services, consumer goods and services, manufacturing, agriculture, energy.

China is experiencing a vast amount of technological innovation in its various growing sectors, especially in agriculture and energy. Innovation in China’s agricultural sector mostly focuses on “farm-to-table” supply chain management.

The main focus, though, in the agricultural sector, is on validating food safety and importing new consumable commodities such as olive oil and avocados, creating new business opportunities.

China is struggling to settle difficulties regarding energy consumption, taking into consideration that they are the greatest consumers of coal. Currently, China is developing life-science parks to find creative solutions to establish methods of renewable energy.

Another succeeding emerging market is India, with their innovation in healthcare. An example of this can be found in the Aravind Eye Care System, which performs cataract operations and standardizes the process with great efficiency. This creates an excellent investing opportunity, as the Aravind Eye Care System is transforming a great health care service.

Another transformation in health care services in India comes through taking advantage of the supply-chain management by operating medical convoys to provide health care to communities in hard to reach rural areas.

This method has been adopted by India’s Health Management Research Institute, demonstrating that developing existing systems through technology can improve a nation’s economy and attract investors.

Emerging market economies nurture innovation-based projects which drive improvement and market potential. As their technological innovations mature, so will their economies.