Editor's note: the article below from Michael Heise (via Project Syndicate) observes that emerging economies have gotten off to a grim start but the impact is not uniform. Most importantly it seems that financial markets are evidently punishing the currencies of countries that, due to macroeconomic imbalances or political instability, are susceptible to external shocks of any kind. This is particularly important in our own context as we see the Kwacha continue to fall and debt costs rising.
For many emerging economies, 2014 has gotten off to a grim start. Concern over the Chinese economy's marked slowdown and the Argentine peso's steep slide against the US dollar has triggered heavy selling pressure on an array of emerging-market currencies. But the current volatility does not portend sustained weaker growth in emerging economies as a whole. Differentiation is needed, and that is what financial markets are now doing.