The Emerging Markets Club was founded in 2001 and has established itself as one of the most active clubs at ISB. With increasing globalization and opening up of international markets, emerging economies (markets) have become the focus of all investment activity because of the growth opportunities they offer. An influx of Foreign Investment combined with deregulation and increase in local productivity has resulted in high growth rates in these economies and ensured that they play an increasingly important role in influencing the world economy.

The term ‘emerging market’ was originally coined by IFC to describe a fairly narrow list of middle-to-higher income economies among the developing countries, with stock markets in which foreigners could buy securities. The term’s meaning has since been expanded to include more or less all developing countries. Developing countries are those with a Gross National Income (GNI) per capita of $9,265 or less.

(The World Bank classifies economies as low-income (GNI $755 or less), middle-income (GNI $756–9,265) and high-income (GNI $9,266 or more). Low-income and middle-income economies are sometimes referred to as developing countries. Reference: Global Economic Prospects and the Developing Countries, World Bank, 2002.)