By Mark Mobius
Financial Times
Twenty years ago this month the Templeton Emerging Markets Investment Trust (TEMIT) was born. It has been a remarkable journey. At the beginning there were a handful of emerging markets (EMs) to choose from, now there are over 60 such economies. Given the current environment, I believe EMs will play a much greater role in the global economy. Countries such as China and India should emerge as leaders due to their relatively stronger macroeconomic and financial positions.
In the early days there was a buzz about EMs, but also scepticism and a lack of understanding (to a certain extent there still is). Then, there were many emerging countries but few open or large enough to invest in. There were strict foreign exchange controls and limitations on foreign investment, in addition to problems with safekeeping of securities and market liquidity.
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