Country Coverage within the FTSE
Global Equity Index Series
Consultation Paper
12 November 2003

THE INDEPENDENTG L O B A L I N D E X C O M PA N YFRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYO

Contents
1.

Introduction

2.

Background3.

The Key Issues

4.

Our Proposed Approach
4.1
4.2
4.3
4.4

5.

Guiding principles
Entry and removal of countries
Defining the status of markets
Changes to market status

Applying the Proposed New Framework

AppendixA.
B.

Current Classification of Countries
FTSE Global Equity Index Country GNI Per Capita Rankings

Page 1FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYOIntroduction
FTSE Group constructs global benchmarks and tradable indices to provide representative and accurate coverage ofmarkets. International investors use them as a tool for asset allocation, for developing investment products, forperformance measurement and for investment analysis.
A fundamental aspect of indices as global benchmarks is the appropriate classification of constituent securities into
markets and industries which can be used for portfolio analysis and the measurement of investment performance.
Whilst the latter has been the subject of substantial debates and refinement over the years, the classification ofmarkets has been largely ignored to date. The purpose of this Consultation Paper is to set out FTSE’s proposed
approach to determining the eligibility of markets and the classification of countries and to obtain feedback onwhether this is likely to meet the requirements of most index users. The Consultation Paper is seeking responses on
the principles of the proposed new framework of criteria, the criteria themselves and the results of applying the
proposed new criteria. The consultation process is intended to ensure that the process for taking such decisions
takes full account of opinion within the investment, academic and government communities. Following thisconsultation, it is expected that clear standards will be established for the inclusion and classification of countries,
which will be applied to the FTSE Global Equity Index Series on a forward basis.
The paper outlines key considerations in the development of suitable selection criteria and lists questions at the endof each section. For further guidance, the current FTSE Global Equity Index Series Ground Rules and supplementary
information on the series can be found on www.ftse.com/geis.
The Consultation Paper has been prepared by FTSE in consultation with a group of market specialists. The working
party consisted of:Chairman:David Hobbs, UBS Global Asset Management

Members:

Tim Batho, ITG Australia Ltd
Mark Makepeace, FTSE
Ali Toutounchi, Legal & General Investment Management
Peter Wall, FTSE

The consultation paper can be completed on-line at www.ftse.com/country
If you wish to handwrite your response please complete this paper and post to:
Eva Kun Leung, FTSE Group, St Alphage House, 2 Fore Street, London, EC2Y 5DA, UK
Please respond by Friday 19th December 2003.
Respondents Details
Name ________________________________________________________________________________________
Job Title ______________________________________________________________________________________Country ______________________________________________________________________________________
Organisation __________________________________________________________________________________
e-mail address __________________________________________________________________________________
Occupation (please tick)
Actuaries

Equity Sales/Trading

Regulation/Government

Analysts

Stock Exchange

Retail Banking

Asset management

Fixed Income ResearchStudent

Debt Capital Markets

Fixed Income Sales/Trading

Treasury

Derivatives

Investment Consultant

Vendor/Data Distributor

Equity Capital Markets

Journalist

Other (please specify)

Equity Research

Pension Funds
Page 2FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYO

BackgroundTo create the FTSE Global Equity Index Series, stocks are selected from a designated market or region. The
constituent markets or regions are kept under constant review to ensure they remain relevant and investable tointernational investors. To take investor sensitivity to country risks into consideration, each country’s market status
is categorised as Developed, Advanced Emerging, or Emerging.
The principles on which countries are considered for inclusion in the indices and how they are categorised are
therefore crucial both for users of the indices and the countries themselves. As markets emerge, mature, or suffer
periods of decline it is important to have a method for assessing which markets should be added or removed foreach benchmark. The appropriate status may change over time as market conditions and the macro environment
evolve.
Currently, most leading benchmarks use criteria for assessing a market’s appropriate categorisation that are mainly
subjective and opaque. Yet, inclusion in a widely followed global benchmark, such as the FTSE Global Equity IndexSeries, attracts significant cross border investment flows into the country. Similarly, classification of a country as
either a Developed or Emerging market affects investment levels as many investors segment assets in Developedand Emerging markets discretely.
It is important, therefore, that decisions on the eligibility of countries (or classes of shares within a country) and on
the classification of countries into Developed and Emerging categories are undertaken on a consistent and fair basis
and are viewed by most international investors as appropriate for their benchmark.

Page 3FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYOThe Key Issues
3.1

The allocation of countries to the Developed or Emerging market sections of FTSE’s global benchmark indices
has historically been based on broadly defined criteria and the subjective views of international investors.
The key issues that this Consultation Paper is seeking to address are:i.

The lack of a widely accepted definition of what constitutes a ‘Developed’ or ‘Emerging’ market
hinders the creation of a transparent set of rules for defining the status of countries withininternational investment benchmarks; andii.

Although broad criteria currently exist governing the eligibility of a country (or significant class ofshares), there is not yet a clear and predictable framework for reviewing and managing the entry andremoval of countries.

In consequence, there is a need to establish a process, or set of rules, which will have wide support amonginternational investors to deal with the promotion and/or demotion of a country (or significant class ofshares) between ‘Developed’ and ‘Emerging’ market status.

3.2

These issues are now becoming more urgent as international investment flows grow and countries
increasingly compete for such investment flows. Examples of some of the issues we face include the status
of Taiwan, which is in the process of removing its QFII (Qualified Foreign Institutional Investor) scheme, theeligibility of the China ‘A’ share market where a QFII scheme has recently been introduced, and new
countries joining the European Union in May 2004 which are currently not represented in the FTSE Global
Equity Index Series. The governments of Advanced Emerging markets are also increasingly questioning thebasis on which their countries are categorised as an Emerging market and what changes are necessary
before they can be re-classified as Developed markets.

Your Views:
Q1.

Do you accept that insufficient clarity currently exists in defining the market status of countries today?

A1.

Yes

Q2.

Do you consider decisions regarding the eligibility of countries should be:NoA) determined using more objective criteriaorB) such decisions need to be subjective and based on a view of market opinion

A2.

A

B

Page 4FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYOOur Proposed Approach
4.1

Guiding Principles

4.1.1 Our proposed guiding principles are:i.

Materiality – the country needs to be of a material size in relation to international investors’ portfolios
to warrant the cost of including the country in the benchmark indices. As most international
investors use global benchmark indices for managing multi-national portfolios, FTSE proposes todefine ‘material’ as a percentage of the region in which the country exists for the purpose ofdetermining whether a country is eligible to join the indices.
If an existing constituent country becomes too small in size, in relation to its region, FTSE proposes
not to remove the country but amalgamate it with a neighbouring country whenever possible. An
example of this approach is the treatment of the Luxembourg market, which, for the purpose of the
FTSE Global Equities Index Series, has been included within Belgium.

ii.

Consistency and Predictability – given the potential for significant market impact, FTSE believes itshould be consistent in the way in which it takes decisions and that investors should be able topredict, as far as practical, future changes in status or eligibility of countries in the FTSE Global Equity
Index Series. To this extent, FTSE proposes to publish a Watch List of countries where FTSE is keeping
their eligibility or status under review. The Watch List, and any changes to the list, will be publishedon www.ftse.com

iii.

Cost Limitation – FTSE will seek to minimise change, whenever practical, in order to limit thepotential cost of such change to portfolios tracking or benchmarked against the indices.

iv.

Stability – given the importance of changes to the eligibility or status of a country (or significant classof shares), it is important that no change is introduced before we can assess, with all reasonablecertainty, that the change is likely to be of a permanent or progressive nature. FTSE proposes to use
a phased approach to the introduction of new countries into the indices whereby, normally, a new
country added to the FTSE Global Equity Index Series will join with the status of an Emerging market
and will only be promoted to the status of a Developed market if it meets all the requirements for asuitable period of time.

v.

Market Access and Investibility – FTSE believes that the free movement of capital into and out of acountry and a high level of investibility is a prerequisite for being classified as a Developed market.
We accept that currency controls and some restrictions on the movement of capital, together withlower levels of investibility, are characteristics of Emerging markets but believe, as a minimum forinclusion, all international investors must be able to invest, and withdraw their investment, incompanies listed on a local stock market in a timely and secure manner.

vi.

Quality of Market – FTSE considers that the quality of the stock market (regulatory environment,
information flows, trading and settlement infrastructure) is an important factor in determining theeligibility and status of a country for investment purposes and that economic factors alone areinsufficient as a measure to determine the Developed or Emerging status of countries.

Page 5FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYOYour Views:
Q3.

Do you believe:A) a key principle should be ‘materiality’orB) do you consider all countries that meet Quality of Markets criteria should be included in the indices?

A3.

A

B

Q4.

Do you agree or disagree with the proposal that if an existing constituent country becomes
too small it should not be removed but remain in the indices or be amalgamated with aneighbouring market?

A4.

Agree

Q5.

Do you agree or disagree with the proposal that new countries should normally be added tothe indices as Emerging markets and only be eligible for promotion to Developed status after
a suitable period of time?

A5.

Agree

Q6.

Do you agree or disagree with the proposal to take account of the Quality of the Market in
addition to the economic status of countries in determining whether a country should beclassified as a Developed or Emerging country?

A6.

Agree

4.2

Entry and Removal of Countries

DisagreeDisagreeDisagree4.2.1 It is proposed that a country should be eligible for inclusion in the FTSE Global Equity Index Series if it meetsthe following criteria:i.

It constitutes a minimum of 50 basis points (0.5%) on a free float market capitalisation basis of oneof the following:- the geographic region used for index review purposes; or (if classified as Emerging)- Emerging markets in totalii.

The market is accessible to international investors and it meets minimum Quality of Markets
standards in respect of the regulatory environment, information flows, and trading and settlement
operations. Investibility is considered under two separate headings (i) operational features, and (ii)stock market characteristics. It is necessary for both characteristics to be at a level to suggest to FTSE
that the country has the conditions necessary for sustainable investment.

Page 6FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYO

4.2.2 The operational features of the market include, as minimum standards of investibility, that:a.

An independent regulatory authority exists with oversight over equity investment that exhibits acommitment to ensure appropriate protection for investors’ rights;b.

Purchases and sales of stocks by international investors on the national stock exchanges are allowed
by law;c.

Accurate and timely share prices, dividends and corporate actions data necessary to sustain an index
or a portfolio are available;d.

Timely information is available on share ownership and changes of ownership necessary to maintainfree float adjusted indices;e.

Capital inflow and outflow operations are conducted within currency exchange regimes, where
exchange rates are largely determined by market forces;f.

Timely capital and income repatriation is possible;g.

Limits on the levels of foreign ownership allow at least 15% of a company’s share capital to be held
by foreign investors;h.

Custodial arrangements exist to meet international investor requirements; andi.

Administrative requirements to allow international investors to conduct stock market operations are
not onerous.

4.2.3 Stock market characteristics include, as minimum standards of investibility, that:a.

The overall level of stock trading activity should be sufficient to provide a pool of no less than fiveliquid securities to underlie an index; andb.

The size of the stock market is material, after considering (i) free float availability, (ii) the level offoreign ownership limits and (iii) other limitations on capitalisation as applicable for inclusion in a
FTSE Global Equity Country Index.

4.2.4 FTSE will also consider whether a potential new country meets the guiding principles in respect of stability.
A country will not be added to the FTSE Global Equity Index Series where FTSE believes that the market may
fail to meet any entry criteria in the foreseeable future.

4.2.5 A new country added to the FTSE Global Equity Index series will be classified as an Emerging market unlessexceptional circumstances exist. Where a new class of shares becomes eligible for inclusion in the indices(such as ‘A’ shares in China), they will be added to the country of origin and given the same market status
as that country.

4.2.6 Where a country falls below, and is considered likely to remain for the foreseeable future below, 10 points
basis (0.1%) of its geographic region or of Emerging Markets (if currently classified as Emerging), it may be
amalgamated with a neighbouring country or removed from the indices. A market that fails to continue tomeet the accessibility and quality of markets criteria may be removed at FTSE’s discretion. Alternatively, a
miscellaneous non-country specific category could be created for each region. This would include sizeable
companies from countries which are no longer eligible for inclusion.

Page 7FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYOYour Views:
Q7.

Is 50 basis points of a region an appropriate level for allowing entry into the indices?

A7.

Yes

No

Q7a. If not, what would you propose?

A7a.

Q8.

In the case of markets being considered for promotion into the Developed category, should it
be a requirement that the stock market structure be sufficient to provide a diversified pool of
securities?

A8.

Yes

Q9.

Where appropriate, do you think a miscellaneous category should be created for each region
as an alternative to merging countries?

A9.

Yes

4.3

Defining the Status of Markets

NoNo

4.3.1 FTSE believe that the following risk profile features should be considered when classifying countries as
Developed, Advanced Emerging, and Emerging Markets:• Economic stability• Social & political stability• Corporate governance practices; and• Quality of markets

4.3.2 FTSE proposes to adopt relative economic wealth, as indicated by the World Bank’s annual Atlas Gross
National Income (GNI) per capita measure, as an initial screen for candidacy for Developed, Advanced
Emerging, or Emerging Market categorisation. The World Bank’s GNI per capita figures are a widely acceptedindicator of overall economic development, and it has been observed that political, social and economic
stability tend to increase with higher levels of general economic wealth. Final categorisation would be
subject to assessment of the country using GNI data and the additional criteria listed above and in the
Quality of Markets table overleaf.

Page 8FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYOQuality of Markets Criteria
Criterion

Requirement for
categorisation as“Developed”

Requirement for
Requirement for
categorisation as
consideration for“Advanced Emerging” any categorisation

Market and Regulatory Environment
No government interference in the stock market(e.g. “market support operations”)✓✓

Stock market regulatory authorities and oversight- The market is generally well-regulated✓✓

Memorandum of Understanding with the
US, UK, and EU exchanges in place✓✓

Fair and non-prejudicial treatment ofminority shareholders✓✓

Non or selective incidence ofForeign Ownership limits✓✓

No objection to or significant restrictions on
repatriation of capital and income✓✓

No penalty applied to repatriation ofcapital and income✓✓

Free and well-developed equity market✓✓

Free and well-developed foreign exchange market✓✓

Non or simple registration process
for foreign investors✓✓

Settlement – Rare incidence of failed trades

✓

✓

✓

Custody – Sufficient catalysts and competition
to ensure high quality custodian services

✓

✓

✓

Clearing & settlement – at least T+3 efficient✓✓

Exchanges of “shares in kind” permitted?

✓

Stock Lending permitted✓

Foreign Exchange reserves – Sufficient FX reserves
to support international portfolio flows✓

Settlement – Free delivery✓

Custody – Omnibus account facilities✓✓

Brokerage – Sufficient catalysts and competition
to ensure high quality broker services

✓

✓

✓

Liquidity – Sufficient broad market liquidity tosupport sizeable global investment

✓

✓

✓

Transaction costs – implicit and explicit costs
to be reasonable and competitive

✓

✓

✓

Short sales permitted✓

Off Exchange transactions permitted✓

Order-driven trading system✓

Transparency – market depth information /visibility and timely trade reporting process

✓

✓

✓

Developed Index futures Market✓✓

Developed Index options Market✓

Commitment to enhance the listed
derivatives market

✓

✓

✓

Custody and Settlement✓

Dealing Landscape

Derivatives✓

Page 9FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYO

3.3.3 FTSE will only promote a country to Developed status where it believes both social and political stability andcorporate governance practices exist to levels in keeping with other developed countries. Where FTSE
believes that a developed country no longer exhibits these characteristics to levels common to otherdeveloped countries it may, giving sufficiently long notice, demote the country to Advanced Emerging or
Emerging status.

3.3.4 The following table gives a guide to the Quality of Markets FTSE expects for each category. Where arequirement exists for more than one country categorisation, a higher standard is expected in Developed
than Advanced Emerging and again for Emerging.

Your Views:
Q10. Should changes to a country’s status be based on economic grounds only?
A10. Yes

No

Q11. Do you support the approach of classifying countries using the four Quality of Markets risk
profile features set out above?
A11. YesNo

Q11a. If not, what alternative do you propose?
A11a.

Q12. Is “Advanced Emerging” useful as a categorisation for a market, or should FTSE discontinue its
use and classify countries only as Developed or Emerging?
A12. a) “Advanced Emerging” usefulb) Countries should only be classified as Developed or Emerging
Q13. How important to you are corporate governance practices within a market in determining its
market status?
A13. a) Very important;b) quite important;c) not important;d) don’t know

Q14. Do you support the proposed criteria for the promotion and demotion of countries between
Developed, Advanced Emerging and Emerging categories?
A14. Yes

No

Q14a. If not, what changes do you propose?
A14a.

Q15. Are the Quality of Markets criteria proposed suitable?
A15. Yes

No

Q15a. If not, what changes do you propose?
A15a.

Page 10FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYO

4.4

Changes to Market Status

4.4.1 FTSE considers that any change to the status of a market should require evidence of significant and enduringtransformation in the characteristics of the market concerned. It is recognised that economic and financial
cycles might cause markets to become more or less material in size without warranting action on the basisof materiality. Any category change would be applied to a country where:•

The country market has exhibited these new characteristics for at least two years; and•FTSE believes, after consulting the relevant FTSE Advisory Committees, that the market is likely tocontinue to exhibit these characteristics for the foreseeable future.

4.4.2 There may, however, be circumstances within particular markets which severely restrict investibility, such as
the imposition of currency controls, which necessitate the removal or suspension of a country from theIndex. Recent examples of this include the treatment of Malaysia and Venezuela. In such circumstances, FTSE
may take the exceptional action of removing or suspending a country from the indices.

Your Views:

Q16. Do you support the proposed approach to handling changes in market status?

A16. Yes

No

Q16a. If not, what alternative do you propose?

A16a.

Q17. Is the 2-year period proposed adequate, too long or too short?

A17. a) About right;b) too long;c) too short

Q18. Do you think FTSE acted correctly in suspending and removing Malaysia and Venezuela?

A18. Yes

No

Q18a. If not, what alternative actions would you have wanted FTSE to have taken?

A18a.

Page 11FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYO

Applying the Proposed New Framework
5.1

There are a number of potential new country additions to the FTSE Global Equity Index series that have been
proposed by users of the indices together with requests for reclassification of a small number of countries
into Developed or Advanced Emerging status. Using the proposed criteria set out in the Consultation Paper,
FTSE has reviewed all markets which may be eligible for inclusion in the FTSE Global Equity Index Series orwhere the Developed/Emerging status of the market has been questioned. A summary of FTSE’s findings is
given below and, following analysis of responses to the Consultation Paper, FTSE will review and agree theappropriate actions to be taken in respect of each of the following potential actions with its independent
expert Advisory Committees, during the first quarter of 2004.
i.

China ‘A’ share market – Regulations governing foreign investment in the China ‘A’ share market arechanging. A QFII scheme has been introduced for international investors and this scheme is likely tobe broadened in its scope whereby ‘A’ shares may become eligible for inclusion in the FTSE Global
Equity Index Series within the foreseeable future. FTSE will continue to monitor progress in changes
in the QFII in China and will, when appropriate, introduce a shadow China index in order thatinternational investors can become familiar with the China market prior to China ‘A’ shares
becoming eligible for inclusion in the FTSE Global Equity Index Series. The China ‘A’ share market will
be placed on the Watch List.

ii.

Countries joining the EU in May 2004 – ten new European countries will join the EU in May 2004 of
which, the Czech Republic, Hungary and Poland are already included within the FTSE Global Equity
Index Series. Of those countries not currently included in the indices, Cyprus and Slovenia are of a
sufficient size and have the potential to meet the entry criteria to be eligible for inclusion in theindices. Subject to the responses to the Consultation Paper, these two countries will be reviewed indetail for possible inclusion in the FTSE Global Equity Index Series as Emerging markets at the timeof the Emerging European markets review in June 2005. Cyprus and Slovenia will be placed on the
Watch List.

iii.

Advanced Emerging markets – The status of all Advanced Emerging markets has been reviewed andno changes are recommended at this time. South Korea and Taiwan are considered by many Asianinvestors to be of Developed status and will be put on the Watch List and their progress monitoredwith the possibility that the two markets may be promoted to Developed status in 2005. South Africa
is considered to have a mature regulatory and stock market infrastructure but is classified as an
Advanced Emerging market using the World Bank’s GNI per capita figures. Israel has a high GNI per
capita but further improvements in the Quality of Market and greater stability are considered to benecessary before a change in status of this market would be considered.

iv.

Status of most recently promoted developed markets – The status of Greece and Portugal have beenreviewed and no change to their status is proposed. However, many investors wish to see further
improvements in the Quality of Market for Greece.

v.

Possible new entrants – Iceland, Jordan and Saudi Arabia are considered potential candidates forinclusion in the FTSE Global Equity Index Series. These markets will be reviewed in detail, placed on
the Watch List and monitored during 2004. It is intended to ask FTSE’s expert Advisory Committees
to review these markets again in 2005.

vi.

Possible treatment of very small constituent countries – Colombia and Morocco are the smallest
countries in the FTSE Global Equity Index Series. No action is currently considered necessary in respectof these markets.

Page 12FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYOYour Views:
Q19. Do you support all the proposals in this section of the Consultation Paper?

A19. Yes

No

Q19a. Please give details of any that you would like to see reconsidered.

A19a.

Q20. Do you have views on the potential timing of any changes arising from the above proposals?
If so, please specify.

A20.

Page 13FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYOAppendix A
Current Classification of Countries as Developed/Advanced Emerging/Emerging
FTSE Developed

FTSE Advanced Emerging

FTSE Emerging

Australia

BrazilArgentina

Austria

IsraelChile

Belgium/Luxembourg

MexicoChina

CanadaSouth Korea

Colombia

DenmarkSouth Africa

Czech Republic

Finland

TaiwanEgypt

FranceHungary

Germany

India

GreeceIndonesia

Hong Kong

Malaysia

Ireland

MoroccoItaly

Pakistan

Japan

Peru

Netherlands

Philippines

New Zealand

PolandNorwayRussiaPortugal

ThailandSingapore

TurkeySpain
SwedenSwitzerland
United Kingdom
United States

Page 14FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYOAppendix B
FTSE Global Equity Index Country GNI Per Capita Rankings
FTSE All World Index Series
FTSE Country Category

Country

Developed
Developed
Developed
Developed
Developed
Candidate
Developed
Developed
Developed
Developed
Developed
Developed
Developed
Developed
Developed
Developed
Developed
Developed
Developed
Developed
Advanced Emerging
Developed
Developed
Advanced Emerging
Candidate
Developed
Developed
Candidate
Advanced Emerging
Candidate
Advanced
Advanced Emerging
Advanced
Advanced
Emerging (dropped June 03)
Advanced
Advanced
Advanced
Advanced Emerging
Advanced Emerging
Advanced
Advanced
Advanced
Advanced
Candidate
Advanced
Advanced
Advanced
Advanced
Advanced
Advanced
Advanced
Advanced

SWITZERLANDNORWAYJAPANUSA
DENMARKICELANDSWEDENHONG KONG
UK
NETHERLANDSAUSTRIABELGIUM/LUXEMBOURG
FINLANDGERMANYIRELANDFRANCECANADASINGAPORE
AUSTRALIAITALYISRAELSPAIN
NEW ZEALAND
TAIWANCYPRUSGREECEPORTUGALSLOVENIAKOREASAUDI ARABIAARGENTINAMEXICOCZECH REPUBLICHUNGARYVENEZUELACHILEPOLAND
MALAYSIABRAZIL
SOUTH AFRICA
TURKEYPERU
THAILANDCOLOMBIAJORDANRUSSIA
EGYPT
MOROCCOPHILIPPINESCHINAINDONESIAINDIA
PAKISTANWB Atlas Income category 2003
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
High
Upper Middle
Upper Middle
Upper Middle
Upper Middle
Upper Middle
Upper Middle
Upper Middle
Upper Middle
Upper Middle
Upper Middle
Lower Middle
Lower Middle
Lower Middle
Lower Middle
Lower Middle
Lower Middle
Lower Middle
Lower Middle
Lower Middle
Lower Middle
Lower Middle
Low
Low
Low

Income group: Economies are divided according to 2002 GNI per capita, calculated using the World Bank Atlas
method. The groups are: low income, $735 or less; lower middle income, $736 – $2,935; upper middle income,$2,936 – $9,075; and high income, $9,076 or more.
Source: World Bank Atlas ‘03, The World Bank 2003
Page 15FRANKFURT • HONG KONG • LONDON • MADRID • NEW YORK • PARIS • SAN FRANCISCO • TOKYOFor further information please visit www.ftse.com/country, email classification@ftse.com
or contact one of FTSE’s regional sales representatives.
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