Opportunities In Emerging Markets: GW COO's View

The 2%-3% real growth currently representing strong expansion inEuropean pharmaceutical markets would be considered a disaster in developing countries, Sean Lance, chief operating officer at Glaxo Wellcome, told the Financial Times' World Pharmaceuticals conference in London last month (Marketletters March 31 and April 7).

In Asia alone, economies are displaying annual growth closer to 10%, while the long-volatile Latin American region now offers exciting prospects, as does eastern Europe. Massive growth in China's Gross Domestic Product is expected over the next five years, and incremental growth to 2000 in Mexico, Indonesia, India and Russia will equal the GDP of a small European Union state. Who can doubt that there is much more to come after 2000?

He asked: what does this mean politically? Within 20 years, at least four of the emerging nations will be among the top 10 economies. The focal point of the G7, if it still exists, will have shifted to the East. Businesses without a major presence in these markets are consigning themselves to the second division, he warned.