The bloom is off the rose of once-promising emerging markets, where growth rates have plummeted. Jane Fraser, Citi’s CEO for Latin America, explains why with her theory of the “Three C’s”: China, commodities and a capital exodus.

But the news isn’t all bad. Fraser, No. 41 on the Fortune Most Powerful Women List, recalls visiting developing countries when they were enjoying 8% to 10% growth rates and worrying that the fundamentals weren’t keeping up. “Education, reforms, infrastructure—they were busting at the seams,’’ she says.

Like IMF Managing Director Christine Lagarde, Fraser now says, “a lower growth rate isn’t a bad thing, if there are some structural reforms getting through, if investment is going where it needs, and if the challenges of populism…aren’t pulling the agenda away from the fundamen