Globalization and Catching-Up in Emerging Market Economies

The paper discusses conditions and prospects for fast and durable growth in emerging market economies. In the course of history less than 30 countries have become rich and still more than 80 percent of the world population is lagging behind. In many cases a lot indeed. It is true not only for overwhelming majority of countries in the "Third World", but also for the new, emerging market economies of East Central Europe and the former Soviet Union. The postsocialist transformation has raised exuberant expectations for rapid economic and social progress. However - after already 12 years of liberalization and integration into the global economy - it has not happen. At least not yet. Thus the question arises - how real are the prospects for catching-up in these emerging markets? What are the cultural, political and especially economic factors that may contribute to sustained growth over the long term? Certainly, they are the ingredients, which must be used in the recipe for successful development strategy. Hence, is the contemporary wave of globalization bringing an additional chance for sustained growth and development, or is it just another threat to it?