The world economy and trade has been grappling with the aftermath of the 2008 financial crisis. It is only recently that there has been a modest trade growth of 4.7%. Nevertheless this growth remains below the 20-year average 5.3% and is a result of diminished import demand in developed economies coupled with moderate import growth in developing economies.
The emerging economies have a huge potential for capital formation in infrastructure sectors, expansion of trade, growth of services and agrarian economy. However, a significant lack of financial innovation in these markets has hampered growth and investment in these economies. Traditional structures continue to thrive in these markets as they rely much on arbitrage. As a result, many new ventures are stifled at a very nascent stage given the dire need for well-established financial instruments as the necessary fuel.