For the past seven (7) years since I moved
to Nigeria, I have been taking courses in finance, economics, accounting, and
banking. After living in countries like the United Kingdom and Japan, I have
been fascinated by the myriad of additional considerations that entrepreneurs
and policymakers in emerging markets have to think about in comparison to
policymakers and entrepreneurs in advanced countries.
My favourite quote from one of my recently
published articles is: 'In advanced countries, there is only one set of forces
that can act on your business- the market forces. However, here in Nigeria,
there are two sets of forces that can act on your business- the market forces
and the evil forces.'
Emerging markets are much more complex and
nuanced, which is why business people, entrepreneurs, and policymakers often
find them more difficult to work in. I have been studying at the University of
London for my Master's degree in Finance and Economic Policy over the past
year, and I'm surprised that even in a city as diverse as London, most of our
reading material focuses on developed markets. We read about the US Federal
Reserve, the European Central Bank, the Bank of England, and the Bank of Japan,
as well as papers and textbooks mostly produced and written by Western scholars.
If it's true that business and policy
management in emerging markets is more nuanced and complex, then why is so much
of economics based around just a few rich countries?
Most of what we see in books and the
majority of journals and we read about economics are focused on advanced
markets. However, most people in the world do not live in developed countries.
It is called the G7 group for a reason- there are only seven countries
considered to be extremely wealthy on a global basis, out of 195.
Working one's way out of poverty is
serious business. Still, it becomes even more complicated when we do not have
enough academic focus on the strategies, policies, data and research that are
needed to do this successfully.
I have read so much about the Bank of
England, the Federal Reserve, the European Central Bank, and even the Bank of
Japan. I also want to read just as much about the Central Bank of Nigeria (CBN)
in academic literature.
Thus, the purpose of this book is directed
towards the dire need to focus on emerging markets. This is because there is
very little information on emerging markets, despite their complexities.
From now until the completion of my
Master's degree, I have decided to focus my essays on emerging markets. Either
I dwell solely on emerging markets, or I try to contextualise the topics within
emerging markets. I hope that this book and similar books written by Nigerians,
Kenyans, Bangladeshis and Indians will begin to refocus the world on the complexity
of entrepreneurship and policy-making in emerging markets.
I spent a part of my childhood in London
in a place called Hackney. At that time, Hackney wasn't a nice place to live as
it wasn't one of the high-end areas. The bus 38 used to stop outside my house.
This bus could take you from Hackney to Piccadilly Circus, one of the nicest
parts of London. When I was young, I would get on that bus and ride to
Piccadilly Circus. Whenever I was there, I'd begin to wonder why I couldn't be
one of those who lived in that kind of place. I found it difficult to
understand why the people in my environment weren't as affluent as the people
just a bus ride away from us. As I moved, I grew up taking my A-levels at a
poorly performing public college and thought about it more. How could I compete
with the wealthier kids that went to private school when my reality was so
different from theirs? When sharing my ideas- I called it the '38 project' - I
tried to get people thinking about questions like: "How do we make our lives
better?" "How do we get out of Hackney into Piccadilly Circus?"
This is exactly what emerging markets like
Nigeria, Kenya, Congo, and Ethiopia are currently facing. We are trying to play
the same game as wealthier countries, but with fewer resources. We want the
kind of progress that will get us out of the metaphorical Hackney into our own
Piccadilly Circus. We want to have the kind of GDP that can support sustainable
growth in our economies. We want to evolve. We want to have our own Google,
Facebook, Uber, and Apple. We want to have our own unique forms of innovation.
This book seeks to refocus the world on
emerging markets, which are home not only to many of the poorest people, but
also to the largest number of people.
In the global economy, only half a billion
people earn above twenty thousand dollars ($20,000) a year. Two billion people
earn between three and twenty thousand dollars ($3,000-$20,000) each year.
However, the majority- four billion people- earn three thousand dollars ($3,000)
or less per year. Most of these four billion people live in emerging markets.
In spite of these statistics, instead of
focusing on the needs, wants and desires of the four billion people that make
up most of the world's population, the whole of economics seems to be focused
on 0.5 billion people.
Therefore, the aim of this book,
Economics, Banking & Finance in Emerging Markets, is to try to push the
needs and desires of those four billion people forward and get us all thinking
about how we can improve their lives as well.
Economics is so important because it has
an impact on everything. A clear understanding of economics affects the way we
vote, the way we spend, the type of business we start, and the kind of things
we value. It also affects the way we substitute products for others.
I believe that a little bit of
understanding of economics in emerging markets can make a big difference to the
world's poorest and most vulnerable people.
This is particularly important to me
because I live in Nigeria, which has more poor people than anywhere else in the
world. Nigeria is home to over 80 million impoverished people.
Many people think India is a poor country.
However, the truth is only 5.5% of India's population is classified as
extremely poor, compared to over 40% of Nigeria's population.
Entrepreneurs in emerging markets face a
number of challenges that would not be faced if they were in developed
countries. These challenges are at least, in part, policy driven.
In 'Africa Rise and Shine', a book by one
of the most successful bankers in Africa, Jim Ovia, he spoke about the
condition of the road to his bank being one of the biggest challenges for him,
as customers found it difficult to drive on the road without damaging their
cars. So he ended up building a road! In advanced countries, it is almost
impossible to hear that owners of American or German banks had to engage in
road construction or their businesses, as these things have already existed.
Similarly, if you take a brief look at
Aliko Dangote - the richest man in Africa - you will discover that he also
encountered a similar problem with infrastructure. He has built and is
continuing to build roads and helping to develop ports so that he can get
cement materials to and from his factories.
The aim of this book, as reiterated
earlier, is to refocus the world's view of economics. It also seeks to ensure
that the intricacies and idiosyncrasies of economic, financial, and business
policy in emerging markets are projected. In addition, this book attempts to
encourage people to think about innovative, policy-based, business-based, and
investment-based solutions that can help lift this important, but often ignored
demographic of four billion poor people out of poverty and a bit closer to
Download Full PDF Report Here
How COVID-19 Will Increase Inequality
in Emerging Markets and Developing Economies
Emerging Market Covenant Quality
Reaches All-time Weakest Level Amid Slowing Issuance
Romania Officially Becomes an Emerging Market
Coronanomics (8) - African Economies -
An Emerging Market Fight Back
Dampening the Impact of Global
Financial Shocks on Emerging Market Economies
Emerging Market Covenant Quality Scores
Improve, But Risk of Cash Leakage Rises
Risk-Weight Variation Among Emerging
Markets Banks Impedes Capital Comparisons
Weak Investments And Deepening Slowdown
in Global Trade, Are Affecting Emerging Markets
Emerging Market Regulators Issue
Recommendations Related To Sustainable Finance