Decoupling in Business Conditions?

Under the present financial crisis conditions, many parts of the world have tended to de-globalize or close interactive channels with the outside world which risks hampering trade, finance and investment flows.

In other words, the present environment could impair business conditions of some countries, but not all.

The Economist offers their estimate on the potential changes in business conditions, ``GLOBAL business conditions are set to worsen for the first time since 1996, according to a new report by the Economist Intelligence Unit, a sister company to The Economist. Its business-environment ranking for the next five years assesses 82 countries in categories including the economic and political environment, finance, and infrastructure. The outlook for half of the countries surveyed will deteriorate as the downturn takes its toll. While rich countries' scores will decline most, particularly those of Britain and America, they are still a better prospect for businesses than almost anywhere else. Countries with financial problems, such as Ukraine and Venezuela, will see conditions worsen considerably." (bold highlight mine)

The Economist gives a complete breakdown....
Countries impacted directly by the present financial crisis are likely to suffer most from deteriorating business conditions.

And these are the economies that experienced a national bubble bust (UK, US, Europe) and on economies that had their export markets directed to serving these bubble economy (Hong Kong, Singapore, Malaysia, etc.).

There are exceptions. Venezuela and Ecuador are economies that have been embracing socialism even prior to the bubble bust.

However some economies particularly the BRICs and other Emerging Markets have been expected to improve business conditions even as the others falters.

Clearly if these estimates hold true then it can be construed as decoupling in business conditions. And investments are likely to flow into nations with improving business than otherwise.