In this blog we will analyze New Markets at the country, sector and firm level. We will not attempt to be 'complete', but focus on background news instead.
See also our Facebook page at http://www.facebook.com/neweconomies.
Monday, May 24, 2010
SOME FUN: OUR OWN VERSION OF THE FIFA 2010 WORLD CUP AN ENTERTAINING TEST OF THE CORRELATION BETWEEN ECONOMICS, POLITICS AND FOOTBALL SUCCESS
In three weeks the FIFA Football World Cup in South Africa will get all attention. It is the most important football tournament and all soccer fans feel their heart beating faster ...already. It is also a tournament that will be symbolic for a clash between styles. It is an event where East meets West and North meets South, with a large group of Emerging countries participating next to Developed ones.
Football World Cup 2006: Clash between Emerging and Developed
And the Emerging group is definitely not without chances: countries like Brazil and Argentina are definitely considered favorites. And maybe the Africans can score a big surprise now that the tournament is in their own continent.
Four years ago the performances of South Korea and Turkey marked the beginning of an era during which we have to take Emerging countries more serious. Not just economically but also in football.
THE LMG EMERGE SOUTH AFRICA 2010 ALTERNATIVE WORLD CUP
LMG Emerge will combine this and tell you the stories of the participating nations and their soccer teams in a more entertaining way. We organize our own LMG South Africa 2010 World Cup.
On paper that is, looking at both football-related and other variables. Crazy? Not so much: various analyses have shown that there are correlations between economic success/development and success in football. Maybe not that illogical, since it is an expensive sports at the highest level.
But then again, Emerging countries have their younger populations, less problems with obesity and couch-potatoism. So it will be fun to see who will win.
OK, here are the rules of our competition.
We will look at 3 different football related factors: 1) Team Performance/Ranking; 2) Individual Player Quality and 3) Historical Performance during the World Cup.
Since it is after all a football tournament those factors will count double.
We will also look at 9 different building blocks from our LMG Emerge financial models, namely:
4) Geographic situation / Natural Resources; 5) People; 6) Government; 7) Military/Defense; 8) Economics; 9) Finance; 10) Communications; 11) Transportation 12) Role in World Politics
With the Football related factors counting double that gives us a total of 15 points to distribute.
We will follow the schedule of the World Cup.
In round one all countries will play 3 matches in groups of 4 countries each. In a free draw we will allocate 5 variable points to each of these 3 matches.
In the second round we will allocate 7 variable points to the matches. In the quarter finals 9, in the semi-finals 12 and in the finals the competitors will be compared based on the whole set of factors.
We will write little stories about the matches that will be fun to read. Our tournament will end when the real guys start. By that time you will know quite a bit about the football and the economies and political situations in the participating countries.
And yep, after the REAL FIFA WORLD CUP 2010 is finished it will provide us with an entertaining possibility to compare results: is there a linkage between economics, politics and football success?
Still confused? Don't worry. Things will become very clear along the way. See it as an entertaining way to learn about football and 32 nations.
Principal at LMG Emerge. LMG is an internationally operating independent financial consultancy firm headquartered in Zeist, The Netherlands.
Our clientele consists of institutional and high net-worth private investors (investment advice) and corporates (valuation advice, risk analyses).
Our areas of activity include: Asset Allocation, Selection of Financial Providers/Asset Managers and Emerging Markets advice.