Capital is heading home. Trade deficits are
soaring. Reform has stalled. And the easy years of catch-up growth have
come to an end. There are no shortage of reasons why the markets have turned bearish on
the emerging markets, and there are plenty of explanations for why they
have been so badly hit at the start of 2014. There is one thing that does not quite add up, however. While the
emerging markets have been tumbling, the frontier markets have been
doing as well as they ever did. They easily out-performed most other
assets last year, and have carried on rising even as a wider crisis has
rippled through the developing world.
