Chapter 18: Governance is Everything
What we will cover in this chapter
- Emerging and developed market designations are outmoded. It is more appropriate to speak of progressing and regressing markets.
- Governance is not an absolute designation. Whether it is improving or deteriorating is a more important judgement call.
- Governance tends to be cyclical. Hubris is the enemy of all great success stories. It is also largely unavoidable and ensures the cyclical nature of governance.
- If deteriorating governance coincides with loosening of regulations or aggressive monetary easing it can have a short-term bullish effect on markets but will be a long-term headwind.
DAVID FULLER HAS long professed that “in emerging markets, governance is ...