WASHINGTON, DC--(Marketwire - February 4, 2009) - Today's market increases and the announcement by the U.S. government to undertake a major bailout plan to restore confidence in the world financial system, prompted a rare comment from Alexander Mirtchev, Chairman of the Board of Directors for the Kazakhstan Sustainable Development Fund, Kazyna. Dr. Mirtchev provided thoughts on what the suspension of an unfettered free-market in the United States could mean for emerging economies, including Kazakhstan.
"There are dire predictions being made about the impending meltdown of emerging markets. The predictions are based on the assumption of a steep decline in commodity prices, combined with a liquidity squeeze that, taken together, will wipe out the reserves of transitional market countries," said Dr. Mirtchev, who is also the founder of the Washington-based consulting firm Krull Corporation.
He continued: "Emerging markets are all different. It is just a label that does not describe the reality of an economy. Emerging markets have experienced declines and weathered many storms and years with no reserves. In the case of the Kazakh economy, it depends a lot less on financial schemes that need to be unwound than the so-called mature markets. In times of trouble, the people of the emerging markets will work harder, their commodities will be put to good use domestically and in the region, and their companies will survive, restructure and come out stronger."
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