As investors get jittery about China’s growth prospects, I thought it would be a good time to revisit our talk with Dev Kar, lead economist at Global Financial Integrity and a former senior economist with the International Monetary Fund. We sat down with him in Banff, where we was speaking at the 2011 Global Investment Conference.
Kar points out even the largest emerging markets like China and India have some major governance issues which investors seeking long-term opportunties need understand and be aware of. “Illicit flows are also a problem,” he says noting that this is a sign of larger problems in these countries. “You can’t just look at the growth, you need to look at other factors especially for the long-term,” he said. Click on the image to watch the entire interview. And click here for more comments from Kar.