The pressure of the markets increases at precisely the point when a country diverts from its reform path. And then the only options are to refuse to buy bonds, and accept the escalation of the crisis that we are seeking to prevent, or to allow the conditionality to fall by the wayside.
Emerging-market economies now account for close to 80 per cent of global growth – up from just one-third at the start of the millennium. Improved economic management in emerging markets has both increased their potential growth and reduced their riskiness.