Emerging Markets: A changing role

The big topic at the World Economic Forum in Davos, Switzerland will be the global credit crisis.

In fact the credit crisis is not global. The emerging markets are not exposed to the same credit problems. Once seen as borrowers of capital, dependent upon the US and developing economies, emerging economies are now holders of capital.

The developed economies may now be reliant upon these countries - China, India, Brazil, and several of the Middle Eastern economies.

See: Emerging markets withstanding credit crisis, reports EFIC's World Risk Developments bulletin
As well: China, India to drive growth as credit crisis gains momentum

As large as the US economy is, it is not the only economy and it has not been a growing one. The harping by the US media that a recession in the US will cause a global recession are totally unfounded and irresponsible. The EU is a strong, sound and stable economy. India and China will continue to grow internally. An economy does not need to rely heavily upon trade to grow. Besides, the US is not China's only market. And, when an economy recedes it doesn't mean nothing gets bought, built, or consumed. It just means that it may be less than it was. In some sectors.

The tables may have turned.

Perhaps now the emerging economies have emerged.