New MasterCard Research Ranks 65 Cities in Emerging Markets Poised to Drive Long-Term Global Economic Growth

PURCHASE, N.Y., Oct 22, 2008 /PRNewswire-FirstCall via COMTEX/ -- With global economic growth expected to be driven primarily by emerging economies at an unprecedented rate of 12 to 1 compared to rich-world economies (according to the International Monetary Fund), emerging markets are becoming increasingly important investment and business centers. Responding to this reality and providing guidance in today's economic environment is a new study from MasterCard Worldwide, the Worldwide Centers of Commerce(TM): Emerging Markets Index.
The Index provides valuable insights into the 65 leading cities driving growth within more than 30 emerging markets. Cities are generally considered to be leading indicators for national economies, making the study an important barometer of larger global economic trends and growth potential over time.
"Given the current economic climate, MasterCard is focused on providing valuable insights that assist our customers in identifying new market opportunities for the future. The Emerging Markets Index is key to that commitment," said Walt Macnee, President, Global Markets, MasterCard Worldwide. "By evaluating 65 emerging market cities and their increasingly important roles in global commerce, the Index offers companies a roadmap for where commerce is headed next."
The Index evaluates 65 cities on eight dimensions related to their business climate, political environment, economic growth, commercial connectivity, quality of life and other areas, and explores the compelling global and regional economic trends that distinguish these cities as future development hubs.
Some key findings from the study include:
-- China led the Emerging Markets Index ranking overall, with 15 of the top
30 cities. Shanghai and Beijing held the number one and two spots
respectively.
-- Budapest ranked third overall, helped by its heritage as one of the
first eastern European countries to initiate trading with the West
following the Cold War.
-- South Africa had more cities on the list than any nation outside of
Brazil, Russia, India and China (the BRIC nations), suggesting that
Africa may be entering an era of growth in the global market.
-- Latin American cities held two of the top ten spots, and five Brazilian
cities placed among the top 50.


"As the current financial environment shows, globalization is a part of today's economic reality -- capital, talent, technology and even intellectual property now move seamlessly across borders and nations," said Dr. Michael Goldberg, Program Director, MasterCard Worldwide Centers of Commerce. "Emerging market cities will play an increasingly important role in global commerce and may provide unique market opportunities for businesses in the face of changing economic times."
The Index, developed by a panel of nine independent experts in economics, sociology and urban studies, is part of the broader MasterCard Worldwide Centers of Commerce(TM) program -- a global initiative to examine the role of cities in performing critical functions that connect markets and commerce around the world.
The full report and ranking are available at www.mastercardworldwide.com/insights.
Key Findings
Asia Pacific, Middle East and Africa
Chinese Cities Dominate the Index. With 15 cities ranked in the top 30 and four in the top ten including #1 Shanghai, #2 Beijing, #6 Guangzhou and #10 Shenzhen, China outshone all other countries in the Index. Chinese cities placed among the top ten within the Index in measures relating to their commercial climate, economic growth and business connectivity, and held all top ten spots in the area related to education and IT connectivity. China's national economy played a key role in its city rankings, as has the visionary leadership of Shanghai, an important global commercial center.
Outsourcing Engine India Second Only to China. Led by Mumbai, the number one city in a critical dimension related to financial markets, eight Indian cities appeared in the Index, more than any country other than China. Scoring well in measures related to security and risk and connectivity, this showing reflects the leadership of cities like Chennai, a global center for automotive and film production.
South Africa a Gateway to a Continent. With the most cities in the Index outside the BRIC nations (Brazil, Russia, India and China), South Africa's strong showing may reflect the ongoing opening of Africa to Western products, services and companies. It is clearly a place to watch carefully for new business opportunities.