The shifting tide of global power in emerging markets

Countries & Cities · Published 12 October 2026 Swipe more like this →

In short: Once defined by their lack of development, emerging markets are now reshaping the world. From the rise of the BRICS to the rapid growth of India and China, these transitional economies are moving from the periphery to the center of global GDP.

An emerging market is a transitional economy that displays characteristics of a developed market but has not yet met its full standards. Coined in 1981 by World Bank economist Antoine Van Agtmael, the term describes countries in a state of flux between developing and developed status. While often associated with high growth and market liberalization, the term is not a guarantee of progress; countries can theoretically move from being more developed to less developed. Political scientist Ian Bremmer suggests that in these nations, politics often carries as much weight as economics. This fluid classification means countries are in a transitional phase.

The economic landscape has shifted dramatically over time. In 1960, emerging market economies held a 27 percent share of global PPP-adjusted GDP. By 2013, that share had risen to approximately 53 percent. As of 2025, China and India stand as the world's largest emerging markets. Ranking the ten largest emerging economies by nominal GDP features four BRICS nations—China, India, Russia, and Brazil—plus Indonesia, Mexico, South Korea, Turkey, Saudi Arabia, and Poland. The BRICS nations represent a significant portion of these top economies. This group includes Brazil, Russia, India, and China.

Scholars frequently dispute this grouping. Organizations like the IMF and World Bank no longer consider South Korea or Taiwan to be emerging markets, leading some analysts to suggest Argentina or Thailand for the top ten lists instead. Furthermore, the term 'emerging market' is sometimes criticized as being too focused on financial criteria. Some scholars argue it overlooks the reality of 'emerging finance capitalism,' where the interests of financial capital may outweigh those of labor and the general population. Investment in these sectors has grown significantly, with hedge fund capital hitting record levels in 2011. Additionally, some experts suggest that the traditional distinction between developed and emerging blocs may become irrelevant as fiscal responsibility becomes the primary metric.

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