Eastern Europe

For its part States, McDermott observes that after the collapse of the Soviet Union, the extent and speed of the transfer of assets from the Government to the private sector was critical to the definition of the characteristics of emerging markets. But that generated problems on both sides of the spectrum of privatization. Many of the measures had to do with the volume of the economy in the hands of private initiative. Such parameters did not help much, he says. Those who did not show any change were bad, and that changed too fast also ended up being it. McDermott investigated patterns of development in Eastern Europe and Latin America, and noted that the differences in the economic advancement can be attributed to what calls transnational integration, such as the admission schemes to the European Union or participation in Nafta.

Such systems have different characteristics and may provide a better understanding of the economic potential of countries that may join the club of developed nations. The organization that comes to mind in such cases is almost always the OECD (Organization for cooperation and economic development Lo true, indicates the article from Wharton, Witold Henisz, management Professor, Wharton, that emerging economies began to review recently his vision of the global economy, mainly after the resource rich nations started to gain influence in commodity markets, currently in free trade expansion. Those Nations wish to integrate into the international markets and are therefore open to foreigners willing to build their economic infrastructure, but for that demand greater benefits compensation. Unlike what happened in the early days of colonialism, these countries are not scanned. The approach is now more sophisticated, says Henisz.

It is as if they were saying: we want to continue working with you, but under our conditions. It is a form of more similar to the US approach, says Henisz. Those countries aims to play with the same rules that we play.