Executive Briefings

Poor Infrastructure Common to Most Parts of Most Emerging Markets

Executives cannot ignore such such emerging markets as South Africa, Brazil, Vietnam, Bangladesh and Ghana. For many reasons, these regions are becoming attractive hotspots for multinationals in a variety of industries. The one commonality among them is their infrastructure challenge--underdeveloped supply networks. However, Edgar Blanco, research associate at the MIT Center for Transportation and Logistics in Cambridge, Massachusetts, says the differences in levels of infrastructure within emerging markets gives the perception of a country within a country. "Segments of emerging markets that are clustered around ports or urban centers have a reasonable level of infrastructure abilities; however, as you move away from those pockets, most of the infrastructure is not developed," says Blanco. "This is a challenge when examining emerging markets, in that areas within the same market may have completely different profiles."
Source: Inside Supply Management, http://www.ism.ws

Executives cannot ignore such such emerging markets as South Africa, Brazil, Vietnam, Bangladesh and Ghana. For many reasons, these regions are becoming attractive hotspots for multinationals in a variety of industries. The one commonality among them is their infrastructure challenge--underdeveloped supply networks. However, Edgar Blanco, research associate at the MIT Center for Transportation and Logistics in Cambridge, Massachusetts, says the differences in levels of infrastructure within emerging markets gives the perception of a country within a country. "Segments of emerging markets that are clustered around ports or urban centers have a reasonable level of infrastructure abilities; however, as you move away from those pockets, most of the infrastructure is not developed," says Blanco. "This is a challenge when examining emerging markets, in that areas within the same market may have completely different profiles."
Source: Inside Supply Management, http://www.ism.ws