Although the value of investments in emerging markets has been hit hard by the financial crisis, we should keep in mind that the sources of the crisis were definitely not the emerging countries

1. Terms of Expansion and Investments View on Brazil
Market by Ziad K Abdelnour
Although the value of investments in emerging markets has been hit hard by the financial crisis,
we should keep in mind that the sources of the crisis were definitely not the emerging
countries. These markets did not suffer any severe credit crises. Mortgages, which triggered the
crisis, are not a cause for concern in this region.
The Latin American economies were spared, in large part, because their mortgage systems are
completely different from the U.S. system. Most Latin American mortgages are subsidized by
the government. As a result, there was none of the speculation of housing prices and method of
finance that we experienced here in the United States.
Some Latin American economies might, in fact, be better prepared to recover from the crisis
than several of the more developed economies and are, in principle, in better economic shape
as a number of them have generated stabilization funds to support their respective economies.
A lot of those Western hemisphere countries are resource rich.
They have enjoyed significant additional benefits from the economic development in China
while the Chinese have used their recent economic muscle in an effort to corner the world’s
most strategic natural resources. This has contributed significantly to Latin America’s rise.
I see the Latin American - Asian relationship strengthening further as China spends billions to
gain access to Latin America’s natural resources and create an infrastructure in the region
that will not only enable resources to flow back to China, but provide a basis for further
economic development and consequent political stability in South America.
Continuous Reading: Terms of Expansion and Investments
Thank you.