• Emerging Enterprises: How a New Breed of Corporations Is Reinventing Global Business

  June 2008 - to present

  A Corporate Program Series Sponsored by 

  
  This series will focus on the burgeoning trend of best-in-class companies originating from emerging market countries, and by virtue of their global reach and often unconventional business models, reinventing the nature of global competition. At the inaugural session of this series, participants identified the macroeconomic and political transformations that have provided the foundation for these emerging enterprises to grow and thrive on a global scale. A transformation of the global business environment, including changes in trade policy, integration of financial markets, and the spread of liberal economic reforms in developing countries all played a part in creating the conditions that allowed emerging enterprises to thrive.  Follow-up sessions in this series will take place in 2008-2009 and will focus on the emerging enterprises themselves--their strategies, organization, and challenges.

  
  

   

  • Meetings  
  • Suggested Readings  

   

  Meetings

  Emerging Enterprises: How a New Breed of Corporations Is Reinventing Global Business

  Corporate Meeting

  
  June 19, 2008

  Related Project: Emerging Enterprises: How a New Breed of Corporations Is Reinventing Global Business

  Speakers:	Mohammed Grimeh, Global Head of Emerging Markets, Lehman Brothers
  	James D. Wolfensohn, Chairman, Wolfensohn & Company, LLC; Former President, The World Bank
  Presider:	Jeffrey E. Garten, Juan Trippe Professor of International Trade and Finance, Yale School of Management

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  Suggested Readings

  Books

  • The Emerging Markets Century: How a New Breed of World-Class Companies is Overtaking the World, Antoine van Agtmael  Antoine van Agtmael forecasts that key economies of the former Third World will dominate the future.  In the 21^st century, the economic center will shift from the U.S. and Europe to Asia and Latin America due to demographics, globalization, and the ascent of India and China. The continued success of businesses in emerging economies is highly probable since many produce consumer goods, which are bought by the large populations of lower-income countries.  
  • Multinational Companies from Emerging Economies: Composition, Conceptualization and Direction in the Global Economy, Andrea Goldstein Andrea Goldstein explores the basis for the success of contemporary multinational corporations from emerging economies, arguing that the history of multinational business offers valuable lessons for the present.  Today’s emerging multinational corporations are embedded in dense political, social, and ethnic networks, and must be analyzed within the context of a global economy.

  Reports

  • Grant Thornton Report: Emerging Markets: Reshaping the Global Economy Grant Thornton draws key insights from its emerging markets index.  Mature economies should no longer confine themselves to domestic markets, given the import requirements and profit opportunities in emerging economies.  At the same time, mature economies face significant competition from Latin America and Asia, as shown by comparisons of export growth rates.  Privately held businesses must change their strategic thinking to reflect a global marketplace. 
  • PricewaterhouseCoopers Report: Beyond the BRICs: a broader look at emerging market growth prospects PricewaterhouseCoopers expects that the E7 (China, India, Brazil, Russia, Mexico, Indonesia, and Turkey) will be 50% larger than the G7 by 2050.  The report provides updated analyses of significant emerging economies, to include Vietnam and Nigeria, and also highlights the potential winners and losers within the OECD due to global economic shifts.      
  • World Pay Report The Hay Group finds that senior managers in less developed economies have more disposable income than their western counterparts. 
  • BCG Report: How 100 Top Companies from Rapidly Developing Economies Are Changing the World Several factors in rapidly developing economies have contributed to their forming of capable and ambitious corporations: growing markets, inexpensive resources, challenging economic climates, and the presence of multinational corporations.  The Boston Consulting Group identifies 100 companies from such economies which are expanding internationally and thus transforming global markets.  Analyzing the overall strengths and weakness of these companies, the report provides advice for the challengers as well as the incumbents in the international business arena.           
  • OECD Roundtable on Freedom of Investment, National Security and “Strategic Industries”. Summary of Findings This roundtable addressed rising concerns of national security, debating whether restrictions on foreign investment were necessary or harmful.  OECD surveys were cited, showing that foreign corporate takeovers often have positive effects in the host country, and are not that dissimilar from other forms of foreign direct investment.  Finding ambiguity in national definitions of “security,” the roundtable pledged to focus more attention toward developing sound national procedures regarding investment practices.   
  • World Investment Report 2007: Transnational Corporations, Extractive Industries and Development Due to higher commodity prices, there has been a recent revival of foreign direct investment in extractive industries.  The World Investment Report stresses that transnational corporations participating in extractive industries can lead to economic development and poverty alleviation in the host country.  In order to guarantee a positive and clean relationship, government regulation and stakeholder responsibility must be improved.   
  • Accenture Report 2007: The Rise of a Multi-Polar World Accenture reports that the current economic landscape heralds a deeper phase of globalization.  Emerging economies are now both destinations and sources of foreign direct investment.  Emerging economies are also pursuing more research and development, with an increasingly talented workforce and supportive government.  As more multinational corporations are based in emerging markets, the West will soon have to compete for financing. 
  • Accenture Report: Brave New World The number of emerging market companies in the Fortune global 500 has more than tripled since 1995.  Accenture points to 5 arenas of possible competition between emerging and developed economies: talent, capital, resources, consumers, and innovation.   
  • Inter-American Development Bank: Entrepreneurship in Emerging Economies – the Creation and Development of New Firms in Latin America and East Asia The Inter-American Development Bank qualitatively and quantitatively compares the entrepreneurial process in Latin America and East Asia to better understand how to promote regional economic growth.  Finding that Latin America has fewer numbers of entrepreneurs and less growth of enterprises, recommendations are also provided to remedy these shortcomings.  
  • The Russians are Coming: Understanding Emerging Multinationals

  On-line Resources

  • S&P: Beyond BRICs: Opportunities and Risks in Emerging Markets  http://sandp.ecnext.com/coms2/summary_0260-150162_ITM
    This special report from Standard & Poor’s looks at general growth trends in emerging economies and forecasts which countries will emerge the strongest from Central Europe, Asia, Latin America, and South America.  The report also explains to investors why emerging economies now have less credit risk and more potential for high portfolio returns.  
  • Center for Knowledge Studies: Emerging Economy Reporthttp://emergingeconomyreport.com/faq.html
    This report by the Center for Knowledge Studies profiles India, China, Indonesia, South Africa, Kenya, Egypt and Brazil.  With these 7 case studies, the report provides insights relevant to corporate strategy, product and service innovation, and marketing tactics. 
  • Business Monitor International: Emerging Europe’s Frontier Markets 2008http://www.businessmonitor.com/specialreportsfrontier/emergingeurope.html
    The Business Monitor International presents risk analysis for several unfamiliar frontier markets.  These markets offer strong macroeconomic growth, rapid development, and the unique role to serve as diversification hedges.  The report highlights investment opportunities in Kazakhstan, Mongolia and Azerbaijan, and also contrasts the growth paths of Armenia, Georgia, Ukraine versus Serbia, Bosnia, Macedonia.
  • MITSloan: How to Win in Emerging Markets http://sloanreview.mit.edu/smr/issue/2008/spring/09/
    Emerging markets in Asia, Latin America and Eastern Europe now provide some of the strongest revenue and profit growth for global producers of consumer goods, like Colgate-Palmolive, Group Danone, and PepsiCo.  Since multinational corporations still face hurdles in competing in these emerging markets, this report provides 6 tools for their success.    

   

  About Basic Element

  

  Basic Element is Russia's leading diversified investment company striving to conduct business in Russia and around the world in an effective and responsible manner. Basic Element's main assets are concentrated in six economic sectors - Energy, Resources, Manufacturing, Financial Services, Construction and Aviation.

  Basic Element through its affiliates owns significant stakes in and operates dozens of companies. Many of them play key roles in their respective market segments in Russia and internationally, including UC RUSAL, GAZ Group, Transstroy and Ingosstrakh. In 2007, Basic Element stakes in Strabag (Austria), Hochtief (Germany) and MAGNA (Canada) were added to the list of assets.

  Basic Element is one of the largest, most dynamic and fastest-growing business groups of modern Russia. With more than 100 companies in six industry sectors, its revenues are consistently growing at a rate of more than 40 percent a year. More than 300,000 people work at the Group's companies in Russia, the CIS, Africa, Australia, Asia, Europe and Latin America.

  Visit Basic Element at www.basel.ru/en/

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• New CFR Books

  

  In Termites in the Trading System, Jagdish Bhagwati reveals how the rapid spread of preferential trade agreements endangers the world trading system.

  

  America Between the Wars explores how the decisions and debates of the years between the fall of the Berlin Wall and the collapse of the Twin Towers shaped the events, arguments, and politics of the world we live in today.

  

  In The Fall and Rise of the Islamic State, Noah Feldman tells the story behind the increasingly popular call for the establishment of the sharia—the law of the traditional Islamic state—in the modern Muslim world.

  Complete list of CFR Books.

  New Council Special Reports

  Securing Pakistan's Tribal Belt

  This report outlines the nature of the challenges in Pakistan's tribal areas, formulates strategies for addressing those challenges, and distills the strategies into realistic policy proposals worthy of consideration by the incoming administration.

  Avoiding Transfers to Torture

  This report analyzes the debate over U.S. use of assurances against torture, explaining the contexts in which they are used, how they can be conveyed, and what they can contain, and recommends a number of ways to respond to criticism so that the United States can continue using assurances.

  Complete list of Council Special Reports.

  David Rockefeller Studies Program Contacts

  For more information on the David Rockefeller Studies Program, contact:

  Gary Samore
  Vice President, Director of Studies, and Maurice R. Greenberg Chair
  +1.212.434.9627
  gsamore@cfr.org

  Sebastian Mallaby
  Director of the Maurice R. Greenberg Center for Geoeconomic Studies, Deputy Director of Studies, and Paul A. Volcker Senior Fellow for International Economics
  smallaby@cfr.org

  Janine Hill
  Deputy Director of Studies Administration
  +1.212.434.9753
  jhill@cfr.org

   

  The Think Tank

  The David Rockefeller Studies Program

  The David Rockefeller Studies Program is CFR’s “think tank.” Its work is integral to achieving CFR’s goal of contributing to the foreign policy debate. Fellows in the Studies Program do this by researching, writing, and commenting on the most important challenges facing the United States and the world.

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