Betting on the BEMs

According to Jeffrey E. Garten, Under Secretary of Commerce for International Trade, US exporters should be looking to the future and to markets likely to expand dramatically in the next 20 years. European growth for the near future is likely to be flat. The same expectation exists for Japan. In ide...

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Bibliographic Details
Published in:Distribution (Radnor, Pa. 1992) Pa. 1992), 1994-12, Vol.93 (13), p.46
Main Author: Buxbaum, Peter
Format: Article
Language:English
Subjects:
Airports
Corporations
Emerging markets
Forecasts and trends
Foreign policy
Government
Infrastructure
International trade
Market potential
Politics
Predictions
Roads & highways
US exports
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Summary:According to Jeffrey E. Garten, Under Secretary of Commerce for International Trade, US exporters should be looking to the future and to markets likely to expand dramatically in the next 20 years. European growth for the near future is likely to be flat. The same expectation exists for Japan. In identifying the big emerging markets (BEM), Commerce looked for countries that: 1. represent crucial markets for a wide range of products, 2. promise future economic expansion, and 3. play major political roles. Garten said that the GDPs of the BEMs are currently about 25% that of the industrialized world's, but in less than 20 years it is expected to reach 50%. BEMs should more than double their share of world imports, rising to 26% by 2010. The Commerce Department says that the governments of the Chinese Economic Area will spend $560 billion over the next 6 years on power plants, airports, highways, telecommunications, water and sewage projects. India and Indonesia will spend over $100 billion over the same period. Garten said, however, that there are foreign policy considerations to consider, which usually require government involvement.
ISSN:1066-8489