In addition, these financial institutions had an important role channeling funds to emerging economies in regions such as Central and Eastern Europe and in Latin America. With the outbreak of financial crises in the United States and Western Europe, these institutions suddenly scaled back their exposures to emerging economies, creating problems for these economies too.
With respect to economic activity, the progress of globalization increased the role of emerging economies not only as production bases for the leading economies but also as a huge market for the latter's own products.