One word is causing a lot of concern in Peru: Frontier.
It may sound like a tiny little detail, but the difference between an “emerging” and a “frontier” market is a big deal to investors and a country’s leadership.
In the developing world, that little word change is like going from the varsity team to the junior varsity squad.
The index company MSCI is currently in the process of deliberations over whether it should demote Peru from its class of emerging market countries to frontier markets. MSCI says only three stocks in Peru meet its requirements for emerging markets.