Emerging markets are in a better position than they were in the late 1990s, even with the recent plunge in places like India and Indonesia, Pimco CEO Mohamed El-Erian said on Friday.
Bearish sentiment has gripped emerging markets in recent weeks. Expectations that the U.S. central bank is set to start winding down its flow of easy money has sent investors scrambling out of riskier emerging markets in recent months.
El-Erian noted the Federal Reserve taper debate was harming emerging markets.
(Read more: Which emerging stocks have it worst?)
The prospect that the Fed could pull back on its massive bond-buying had created a "wedge" between asset markets and the real economy, he said, and triggered sharp volatility in far-flung markets like Indonesia and India.