Final answer:
Developing countries, or emerging markets, need to attract inexpensive capital and gain access to international markets to achieve economic growth. Market-oriented reforms, technological advancements, and globalization play key roles in determining whether these economies can succeed in the long term. Accommodating environmental concerns and integrating populations lacking human capital remain critical challenges.
Step-by-step explanation:
Emerging markets, or Less Developed Countries (LDCs), are crucial players in the global economy as they represent new consumers and significantly contribute to economic growth. For such markets to experience rapid growth, attracting inexpensive capital is essential to spur new business development and to improve productivity. Access to international markets is another prerequisite for buying goods and ensuring that these economies can keep pace with more developed countries. Yet, the lack of these characteristics can lead to a divergence rather than a convergence in economic abilities among nations, as noted by Abramovitz (1986). Market-Oriented Economic Reforms play a pivotal role in facilitating economic progress in developing regions, aiming to escape poverty traps by focusing on fundamentals like health and education, which are key components of human capital development. Technological advancements aid in this development process, enabling investments in education, which previous generations could not have imagined.
The impact of economic growth on society and the environment is another consideration, as seen in developing nations like China. With increasing purchasing power, there's a push for the production of consumer goods without depleting resources or harming the environment. Initiatives such as the Belt and Road Initiative are expected to bring new markets for consumer goods and resource extraction, ideally with a greater commitment to environmental stewardship. Global trends like technology advancement and globalization have redefined market dynamics, enhancing competition and market access worldwide. However, whether market reforms will translate into long-term success in developing economies remains a topic of debate. The integration of poor populations with limited human capital into the growing economy is a significant challenge facing market reforms.