‘We've only begun to see the impact they will have in the financial markets’
By Jeffrey D. Voudrie, CFP
Posted at SeniorJournal.com
Feb. 11, 2008 - We've all heard about the amazing growth taking place in developing countries and how the global economy will never be the same again. But countries like China, India and Vietnam seem so far away. It can be hard to understand how those marketplaces can affect the individual investor here in the U.S.A. After my recent trip to Cambodia, I'm here to tell you that emerging markets aren't some short-lived fad. We've only begun to see the impact they will have in the financial markets.
My wife and I had visited Cambodia last March, but this time was different. Besides having our four children along for the experience, the signs of a growing economy were everywhere.
Construction was taking place all around Phnom Penh, the nation's capital. A new 42 story office building had broken ground, the country's first skyscraper. It's being financed by a South Korean company. A huge new complex of shops and office buildings were coming up on old rice fields north of town in a special economic zone.
Masses of new apartment buildings were being constructed. The prices of these condo/apartments continue to increase. Those that were $40,000 when construction started are now $100,000.
Land values continue to soar exponentially. More people can afford cars. Everyone has a cell phone. Universities and schools teaching everything from nursing to English classes to management and computer skills are popping up on every corner. And the schools are packed.
The city continues to improve its infrastructure with the paving of roads and improvement of their drainage system, which is important during the monsoon season. Internet access is growing as is the availability of cable television.
But there's much work to be done. Power outages occur almost daily. The municipal water isn't potable. The sewer system has a very limited reach. There is no mass public transportation service in a city of well over 1 million. There's little garbage collection.
Just outside of town, the picture is even starker.
When you travel out to the provinces, it's like stepping back in time. Once you get off the main highway, there are no paved roads. Many homes are simple wooden shacks with thatch roofs. Naked children play with sticks in the road next to ditches that are little more than open sewers.
Electricity comes from generators that operate a few hours a day. Health care is almost non-existent. The rice grown in the fields hardly supplies enough grain for each family's yearly needs.
Not all provincial families live in dire poverty. But the majority do.
The young people don't want the same life their parents have. They want more. And they're willing to work for it. Many of them turn to the garment factories, where by working six to seven days a week, ten to twelve hours a day, they can make $100 a month. In country where unemployment can reach 50%, that's a nice sum of money. But it's not much of a life.
Others realize that education is their ticket to a better future. The church we visited and were working with offers free English and computer classes. Over 200 students jam every available room of the building four nights a week.
In addition, all of these kids attend either high school or university during the day. Many of them came from the provinces and plan to send money they earn back home to help support their families.
So if you think the emerging markets‚ is just the latest financial talk point, think again. The story in Cambodia is the same story all over Asia.
These people want a better life. They want a higher standard of living. They are becoming educated. Their countries are only beginning to improve their infrastructure. Astute companies from around the world are investing big bucks into these economies. And the growth is only going to increase.
This isn't a five year fad. It will take decades for these countries to grow into modern nations. But there's no going back. The young people we met are determined and focused. This generation will do what it takes to succeed.
Your generation worked very hard to achieve financial security. In today's changing global marketplace, you'll have to invest smarter in order to maintain it. In next week's article, I'll give you practical steps to take advantage of the opportunities these emerging markets provide.
If you have a specific question or would like more information, give me a call toll-free at 1-877-827-1463 or you can also reach me by email at jeff@guardingyourwealth.com. I will answer your financial question FREE.
By Jeffrey D. Voudrie, CFP
Posted at SeniorJournal.com
Feb. 11, 2008 - We've all heard about the amazing growth taking place in developing countries and how the global economy will never be the same again. But countries like China, India and Vietnam seem so far away. It can be hard to understand how those marketplaces can affect the individual investor here in the U.S.A. After my recent trip to Cambodia, I'm here to tell you that emerging markets aren't some short-lived fad. We've only begun to see the impact they will have in the financial markets.
My wife and I had visited Cambodia last March, but this time was different. Besides having our four children along for the experience, the signs of a growing economy were everywhere.
Construction was taking place all around Phnom Penh, the nation's capital. A new 42 story office building had broken ground, the country's first skyscraper. It's being financed by a South Korean company. A huge new complex of shops and office buildings were coming up on old rice fields north of town in a special economic zone.
Masses of new apartment buildings were being constructed. The prices of these condo/apartments continue to increase. Those that were $40,000 when construction started are now $100,000.
Land values continue to soar exponentially. More people can afford cars. Everyone has a cell phone. Universities and schools teaching everything from nursing to English classes to management and computer skills are popping up on every corner. And the schools are packed.
The city continues to improve its infrastructure with the paving of roads and improvement of their drainage system, which is important during the monsoon season. Internet access is growing as is the availability of cable television.
But there's much work to be done. Power outages occur almost daily. The municipal water isn't potable. The sewer system has a very limited reach. There is no mass public transportation service in a city of well over 1 million. There's little garbage collection.
Just outside of town, the picture is even starker.
When you travel out to the provinces, it's like stepping back in time. Once you get off the main highway, there are no paved roads. Many homes are simple wooden shacks with thatch roofs. Naked children play with sticks in the road next to ditches that are little more than open sewers.
Electricity comes from generators that operate a few hours a day. Health care is almost non-existent. The rice grown in the fields hardly supplies enough grain for each family's yearly needs.
Not all provincial families live in dire poverty. But the majority do.
The young people don't want the same life their parents have. They want more. And they're willing to work for it. Many of them turn to the garment factories, where by working six to seven days a week, ten to twelve hours a day, they can make $100 a month. In country where unemployment can reach 50%, that's a nice sum of money. But it's not much of a life.
Others realize that education is their ticket to a better future. The church we visited and were working with offers free English and computer classes. Over 200 students jam every available room of the building four nights a week.
In addition, all of these kids attend either high school or university during the day. Many of them came from the provinces and plan to send money they earn back home to help support their families.
So if you think the emerging markets‚ is just the latest financial talk point, think again. The story in Cambodia is the same story all over Asia.
These people want a better life. They want a higher standard of living. They are becoming educated. Their countries are only beginning to improve their infrastructure. Astute companies from around the world are investing big bucks into these economies. And the growth is only going to increase.
This isn't a five year fad. It will take decades for these countries to grow into modern nations. But there's no going back. The young people we met are determined and focused. This generation will do what it takes to succeed.
Your generation worked very hard to achieve financial security. In today's changing global marketplace, you'll have to invest smarter in order to maintain it. In next week's article, I'll give you practical steps to take advantage of the opportunities these emerging markets provide.
If you have a specific question or would like more information, give me a call toll-free at 1-877-827-1463 or you can also reach me by email at jeff@guardingyourwealth.com. I will answer your financial question FREE.
2 comments:
i'm glad this author aware that this is the trend in asia, not just cambodia. i like this kind of fair observation of cambodia to the rest of developing asian countries. i don't like is when some authors of some other reports are being biased against anything and everything cambodian. i don't have any problem with an unbias, fair opinion. i know that journalists are supposed to be professional in their writing, except when they are racist against cambodia and bias in their one-sided reports that khmer people like myself don't like and don't respect their opinions. thanks for being fair to cambodia in your reports.
It is nice to hear the fact you mentioned. Even I am Cambodian, I do not know clearly how my country develops untill I read your report. Also agree with above comment, thanks for being faired to Cambodia and Cambodian. I do know we still have along way to go, but I do happy because we are on the way.
I best appreciate you.
SuperM
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