RSSBiz - Policy & Development Archives
October 03, 2007
Sov Funds, Petrodollars
I believe I display no great prescience in returning to my prediction that Arab Gulf State Sovereign investment funds (state investment funds) will be an emerging scare issue from the same crowd that brought you Dubai Ports World and other silliness.
Rather like a more charged replay of the Japan Inc scaremongering, but with extra xenophobia thrown in.
Continue reading "Sov Funds, Petrodollars"
Posted by The Lounsbury at 11:49 PM | Comments (2) | TrackBack
September 02, 2007
Morocco gets the Millenium Challenge Loot
Well, near 700 millions of USD in grants is not bad, over 5 years - of course with a USD that's declining unless MCC has fully hedged itself, that's more like 500 million Euro I'd guess, but not a bad chunk of loot, eh?
I recall running into a US diplo a few years ago who went on and on about the Moroccan proposal being nothing but a bunch of incoherent demands to plug budget holes, now it seems that the Moroccans wore them out.
More to the point for characters like me, is there possibility to leverage this money on private investments (i.e.hopefully all the blithering on about investment to boost productivity will have some foundation).
One item to note:
On the corruption front, Morocco has slipped to 79th out of 163 nations on Transparency International’s corruption perceptions index, from 45th out of 100 nations in 1999.
Transparency's index has always irritated me as frankly my experience tells me that Morocco is less corrupt now than it used to be ten years ago. Tolerance for corruption rather seems to be decreasing.
Granted this is not an easy thing to measure, but nevertheless.
Posted by The Lounsbury at 10:58 AM | Comments (7) | TrackBack
August 15, 2007
MENA & Credit Crunches, further thoughts
This interestingly timed article in the FT on the sharp rise in Islamic bond issuances provoked some thought, in conjunction with FT REPORT - FT FUND MANAGEMENT: Gulf pensions law promises a bonanza for fund managers from 13 August.
Although the arty has Humphrey Percy, chief executive of the Bank of London and the Middle East, London’s second biggest wholesale Islamic bank, saying “The growth of the sukuk market is a result of far greater knowledge about Islamic finance and much readier acceptance of sukuk as an investment vehicle.” I rather think it's a picture that looks more like CDOs before the tires got kicked this month, insofar as Sukuks haven't been stress tested in reality.
However, the plausible deniability, the lack of clarity and funky issue of "rating" (which frankly I think the rating agencies have become so lax as to make almost fictional)... all strike me as likely to fuel a boom. Liquidity flowing off, non-transparent funds....
Posted by The Lounsbury at 09:03 PM | Comments (0) | TrackBack
April 24, 2007
Wolfowitz Must Go.
On reading this headline and article: Wolfowitz Hires Prominent Lawyer in Fight to Stay at World Bank I have to say the lingering respect for Wolfowitz that I had evaporated. The man clearly lacks even a shred of good judgement. Even if he wins his senseless battle to stay, the fact he had to undertake such, under such circumstances means he will be gutted....
It is rare to see such a colossal example of bad judgement on display.
Posted by The Lounsbury at 10:10 AM | Comments (4) | TrackBack
March 14, 2007
Development Investing & Indiscipline
I just came away from one of the most profoundly frustrating meetings in a while.
Talking with some local business people about potential financing for an investment project (in real industry, for a change).
Not a bad proposition.
Except for the life of me I can't get them to express their god damned concepts and value proposition.
Continue reading "Development Investing & Indiscipline"
Posted by The Lounsbury at 12:51 PM | Comments (4) | TrackBack
February 18, 2007
Reflexions on Talent, Markets, MENA & Development - The Value of Initiative
Inspired in part by a comment by Shaheen, and in part by some convo I dimly recall from a few months back somewhere in bloggy land about the value of expats and overseas educated and experienced staff, I thought I might make a comment on the value of staff with international experience.
While perhaps potentially self-serving, I really mean to briefly reflect on barriers to growth in MENA, as a business as well as a social problem.
Continue reading "Reflexions on Talent, Markets, MENA & Development - The Value of Initiative"
Posted by The Lounsbury at 12:30 AM | Comments (12) | TrackBack
January 19, 2007
Iraqi Factories Arty
It becomes tedious in some ways to constantly harp on the sheer, mind-numbing incompetence of the Bush Administration (and in its own way, the Poodle's complicity in enabling such), however articles like this constantly remind me of the utter idiocy.
What is most painful is the degree to which this Right Bolshevism has given ammunition (rhetorically, not fundamentally factually) to attack free markets, etc. in a Naomi Klein sort of fashion.
Of course, the arty, on reviving the Iraqi state factories, includes this more depressing note:
There are also serious questions on whether officials in the focus of the United States presence in Iraq, within the fortified Green Zone in Baghdad, are ready to support factories that were seen as no more than relics of an era that American ingenuity and reconstruction were going to make forever obsolete.
I am sure. Bolsheviks live in a fantasy world.
Posted by The Lounsbury at 07:58 PM | Comments (2) | TrackBack
Two Huge Middle Eastern Stories: One Good, One Bad
Continuing the economics discussions, an interesting editiorial from Al Hayat (English site) on economics changes in region, and the tensions between a nasty political enviro and improving economics.
Posted by The Lounsbury at 06:45 PM | Comments (5) | TrackBack
January 16, 2007
Frightened Bunnies
That is what North African businessmen remind me of.
Frightened bunnies.
Trying to put together a deal involving North American parties, UK party and some North Africans.
I get a message today, everything looks attractive, but couldn't I find a French partner instead?
Continue reading "Frightened Bunnies"
Posted by The Lounsbury at 04:51 PM | Comments (2) | TrackBack
December 05, 2006
Economic Freedom in MENA versus Oligarchies: How?
I take as axiomatic that the real place for reform in the MENA region is found in creating economic liberty that will, in the long run, help create the social conditions necessary for MENA socio-political systems to move to real pluralism from their long love affaire with Dirigisme and Oligarchic autacracies.
However, in looking hard at what I do in fact in terms of what economic actors and agents are necessary to deal with to make a successful business, I am left with a contradiction. There is no natural exit from the death grip of the Oligarchs. It strikes me that the "West" needs to support economic liberty, but how does one do so without letting economic liberty be captured by the Oligarchs. And don't anyone tell me "regulation" or other such socialist nonsense, for rather clearly the Oligarchs in MENA are very happy with the "Socialist" systems and state domination, for they milk Leviathan rather well. And the masses are sold on "solidarity" that is not.
Continue reading "Economic Freedom in MENA versus Oligarchies: How?"
Posted by The Lounsbury at 01:46 PM | Comments (22) | TrackBack
November 28, 2006
MENA Govs - Still don't get Free Market
I just came away from an interesting yet profoundly frustrating meeting with some Sr. officials from the Maghreb on investment projects in the "Technology Space" - one can interpret that broadly to mean any technology new to the Maghreb, not just North American style Hi Tech.
Motivated folks, smart and well-educated.
And without the slightest fucking clue as to how the bloody fuck the private sector invests. Painfully clueless.
Continue reading "MENA Govs - Still don't get Free Market"
Posted by The Lounsbury at 03:51 PM | Comments (7) | TrackBack
October 22, 2006
Bedou Scum & Destination Aqaba - Incentives and Disincentives to Investment
A peculiar article from The Financial Times on a new emergence of little old Aqaba, that almost famous Ottoman fort, "Incentives make Jordanian port investor haven".
Never liked the place myself, but more interesting than the somewhat hypish headline is the discussion of barriers:
Continue reading "Bedou Scum & Destination Aqaba - Incentives and Disincentives to Investment"
Posted by The Lounsbury at 08:01 PM | Comments (4) | TrackBack
October 04, 2006
Dubai, the Attraction
A quick note to draw attention to a recent arty by Roula Khalaf of FT on Dubai and the why behind its success to date: Dubai cultivates oasis of calm where Arab business life can flourish
The main thrust of the article is to highlight some of the why behind Dubai's success to date, beyond just stupid amounts of capital. Although that is a clear major condition, it is not a sufficient one as the other petro-giants of the region never managed to achieve Dubai's success (even if we mitigate our appreciation of the success by noting a definately unsustainable aspect doped by too much liquidity chasing too few quality assets).
Despite my own critical attitude towards Dubai - much is clearly illusion and can not survive, there are also clear lessons with respect to the ability of the Arab/MENA region entreprenurial classes actually being able to flourish when a moderately liberal (quite liberal for the off-shore aspects) business environment is established. I do note that some of - indeed in some ways much of Dubai's liberalism is rather Potemkin liberalism insofar as it is all of a very temporary, Enlightened Despot Suffrage quality. That being said, if one takes Dubai with a grain of salt, it does illustrate via its off-shore business services sector the degree to which Arabo-Muslim entrepreneurship is seeking a place to flourish away from the dead hand of the state, and the degree to which even in the temporary, Prince-dependent liberalism of Dubai seems vastly attractive in a world where the West is growing stupidly more hostile to Arabo-Islamic money.
Continue reading "Dubai, the Attraction"
Posted by The Lounsbury at 03:38 PM | Comments (2) | TrackBack
September 26, 2006
Dubai tapping out the logic
I am about to fly out of that strange theme park for construction towers and glad to do so.
While I have been convinced of Dubai's logic in the past, it seems fairly clear that the flood of liquidity and declining planning discipline (1.2 hour to go 1 KM at 8pm?) are beginning to kill the tree that bears the golden fruit. Rather like the gardener who mistakenly thinks more water is always good, so Dubai seems to be mistaking more growth as always good.
Posted by The Lounsbury at 09:14 PM | Comments (2) | TrackBack
August 29, 2006
Development as Follow Through or Under-Development As Attention Deficit Disorder
Doing a bit of macro-economic research to justify some lies I am about to tell with respect to a financing project - well not lies, maquillage, some beautifying and promoting, and having the occasion to reflect on one of the great failings of MENA region governmental services - the sustained production of useful information.
Note the word sustained. I am .... well not surprised but irritated, frustrated and otherwise unhappy ... given my expectation that last years useful updating of statistical series X has not been followed through. No, the Attention Deficit Disorder Statisticians have decided to do an utterly different series (of fuck all utility to the investor, although I guess some academic might find it useful).
Continue reading "Development as Follow Through or Under-Development As Attention Deficit Disorder"
Posted by The Lounsbury at 08:58 PM | Comments (4) | TrackBack
August 27, 2006
Published: World Bank's MENA Econ Dev and Prospects 2006 "Financial Markets in a New Age of Oil"
Perhaps I will make this a tradition, but let me draw your attention to The semi-newly published (June, hey I didn't notice) World Bank report on MENA economic prospects, for 2006.
Last year's got me all inspired to rant on a bit and otherwise criticise a noble if somewhat flawed effort. It also inspired some parties to suggest I write "Development Porn" - I suppose writing the following engendered this:
Posted by The Lounsbury at 12:16 AM | Comments (0) | TrackBack
August 24, 2006
Real Challenges - Competing With Hezbullah
I had another convo with the American group on the US Gov propo regarding Lebanon reconstruction.
The thinking is going in the right direction, they realise on reflection that rushing in to compete with Hezbullah is a great way to do CPA bis, but now the question is "How do you compete with Hezbullah to mitigate its wins?"
Regardless of American stupidity in regards to its FP, the question is a real one.
How indeed does the US compete with Hezbullah?
Continue reading "Real Challenges - Competing With Hezbullah"
Posted by The Lounsbury at 11:09 PM | Comments (0) | TrackBack
August 23, 2006
Pimping Giddiness: MENA Private Sector & New America Foundation
In reading the first paragraphs of a Washington Post Op Ed by a fellow at the New America Foundation, entitled The Real 'New Middle East' I thought I was going to be pleased, sadly though the author took real observations and mixed them in with simple-minded swallowing of corporate and governmental PR spin to produce absurd tripe typical of the wide-eyed neophyte or the paid propagandist.
A pity as the author's main thesis in a less over-done and gullible form has merit.
Continue reading "Pimping Giddiness: MENA Private Sector & New America Foundation"
Posted by The Lounsbury at 11:41 AM | Comments (0) | TrackBack
August 17, 2006
MENA Trade, Business Culture & Americans
While I confess this note is in part motivated by my desire to have an excuse to share this cartoon from the Moroccan business daily, l'Economiste from yesterday's - 16 Aug edition. This was emailed to me yesterday, and is worthy of a good laugh, I thought it also worthwhile to undertake some reflexions on both the subject matter and some generalisations about practical issues.
The text, by the way, reads roughly, "Let's go, don't be so timid." I presume everyone gets the allusion.
The subject matter is the fairly substantial non-impact of the much ballyhooed - in US circles - and much feared -in Maghrebine circles- Free Trade Agreement with the United States.
Utterly unsurprising, I may add, despite the rather overdone expectations on the American side (based on painful conversations with earnest American officials I have had from time to time) and fears on the Maghrebine side (who delusionally feared the US was going to come in and buy everything. If only.)
Continue reading "MENA Trade, Business Culture & Americans"
Posted by The Lounsbury at 12:48 PM | Comments (4) | TrackBack
July 18, 2006
Transparency, FDI & Foreign Groups - Counterintuitive Observations
An amusing side note to distract from the Lebanon hysteria that is sucking us all in.
I'm presently doing research on North African financial groups for a potential new piece of business (my idiot whankers back on the other side of the Atlantic still not grasping the lack of transparency that renders any given piece of research in MENA twice as hard at minimum than in the developed world).
It has been amusing so far to find that despite all our talk in sector about how foreign groups bring best practices, better governance and more transparency, that in the Maghreb -comparing like to like, i.e. listed to listed- the locals are actually rather better about publishing their financial reports than the French groups(*). Never mind site functionalities. Not really surprising, if one knows French banks, but provides a bit of nuance to easy talk about FDI and benefits. Not, mind you, that I am against FDI and all things being equal foreign groups usually do raise standards....
Continue reading "Transparency, FDI & Foreign Groups - Counterintuitive Observations"
Posted by The Lounsbury at 08:49 PM | Comments (0) | TrackBack
July 14, 2006
Islamic Banking - Incoherent Whinging
It is not often I read something in The Financial Times that provokes me to think in contempt, what the fuck were they thinking, but today’s arty entitled Banks subvert Islam’s ban on usury by some cretin named Tarek el Diwany certainly did.
The commentary piece, which largely covers a truly superficial and irrelevant ‘history’ of
European lending institutions supposed origins, does put its finger on a real issue, the superficiality and conflict of interest ridden process by which “Islamic” products are being created today. Whatever one’s interpretation of the religious ban on usury (whether you have the economically illiterate if traditional penchant for seeing it cover all interest or whether you see it in the more rational and economically literate light of a ban on abusive lending), one can not deny that the current system which institutions are creating “Islamic” products is entirely incoherent and more than a bit of a sham; or at least that it is ridden with severe conflict of interest issues that are bound to result in debilitating corruption.
Continue reading "Islamic Banking - Incoherent Whinging"
Posted by The Lounsbury at 10:41 PM | Comments (1) | TrackBack
May 27, 2006
Economic Progressivism: Left Things to Love in Islamic "Economics"
I ran across a press release from some US Uni by some anthro-sociology professors on 'progressive' features of Islam ironically pointed to by an 'Islamic Investing' website trumpeting it as Study Finds Muslim Scholars An Egalitarian Force For Economic Reforms, a fine illustration of the brainless lack of confidence among certain circles that they take anything with a remotely positive spin on anything "Islamic" and wave it around, saying "See Islam positive, Islam positive!!!!" like five year olds. Witless gits.
The site itself I came across from a decent arty on the diversity of fatwas and the general focus on small things in life although in fact although I am of the opinion that foolish fatwa shopping is a bad sign of a rather brainless 'islamisation' but that is probably my general snobbery and contempt for people running after ill-groomed 'religious men' for advice when half a brain and some reasonable reflexion would suffice.
However, let me get on to the silly stereotypically Left academics' silly PR note on "Progressivism" and Islam:
Continue reading "Economic Progressivism: Left Things to Love in Islamic "Economics""
Posted by The Lounsbury at 08:15 PM | Comments (11) | TrackBack
Whanking Ignorance on Dubai
In writing a little bit on some idiotic whanking about "progressive" economics and conservative Islamists, I reminded myself to return to something I spotted via GrapeShisha
A truly stupid article on Dubai which only deserves comment on these excerpts
Dubai sounds like a fake country. Or an exotic place only vacationing al-Qaida cellmates and CIA spooks know how to find. ..... Dubai's connections to al-Qaida terrorism apparently were accidental, not government-countenanced. But Islam is the state religion ..... So beneath the glitz and gleaming skyline Dubai is a theocratic Islamic state that no American would want to be a citizen of for more than an hour. But it's spectacular proof that the Middle East is not monolithically backward, hopeless or anti-Western. And it shows that relatively good things can evolve in the Muslim world without the United States having to use force to create them.
I honestly am impressed the author could pack quite so many stereotypes, just plain idiotic mischaracterisations (hint having a state religion does not a theocracy make you semi literate git, else England would be a theocracy (and in terms of enforcing 'uniformity would not have been far off Dubai if one rewinds not so far, but no one would think of writing seriously that Elisabeth I was a 'theocrat' ).
I honestly wonder at the literacy and rationality of American commentators on Islam, the Islamic world and... well just the outside bloody world in general. Theocracy....
Posted by The Lounsbury at 08:09 PM | Comments (5) | TrackBack
January 26, 2006
Development & Means
The Pratike responds to my half-meant statement, "Assistance is political. Now, if the US process can't distinguish between long term and short term objectives, having some bizarro wall between the diplos and the assistance people is not going to help much overall. In any case, I rather suspect Bishop is the sound of comfy sinecures being gored":
Maybe so. I don't know anything about InterAction or the Center for Global Development. But it seems to me that if you want to "depoliticize foreign aid," you ought to advocate that the U.S. funnel more money through international organizations rather than via the U.S. AID pipeline, which is about as political as it gets.
I am at a loss to think of an international organisation where the spending of money is not political as well.
Nor would I think it would depoliticise foreign aid, it would merely politicise the financing of that organisation.
Posted by The Lounsbury at 01:16 AM | Comments (0) | TrackBack
September 26, 2005
Gulf Finance, Booms & Inefficiencies
Our friend and sometime contributor Waterboy draws attention to something obvious to all involved, and yet an item that remains out of control: overliquidity in the Gulf region and the consquent mad asset price boom in the Gulf. His observation is spot on, that there is
there's too much cash chasing too few investment opportunities in the region; too little oversight, regulation or transparency; too much exuberance - bear in mind, as Japanese bank Nomura pointed out, that Saudi Telecom's market capitalisation of US$74bn is worth more than BT (US$35bn), AT&T
(US$15bn), SK Telecom (US$15bn), and Telekom SA (US$9bn) combined - and far too many unsophisticated investors who think that having the names of a couple of ruling family members in the IPO prospectus is a valid alternative to a business plan - or, for that matter, an existing business.
No doubt about this at all. Some conversations I had over the past week painfully illustrated that. This aside, a key point of disequilibrium is the degree to which despite the asset valuations in the Gulf being absolutely looney to the point of surreal, the money is not flowing within the region to a reasonable degree.
Continue reading "Gulf Finance, Booms & Inefficiencies"
Posted by The Lounsbury at 04:59 PM | Comments (1) | TrackBack
September 12, 2005
Underdevelopment as Dilettantisme: Why MENA Does Not Attract Capital, Reason No. 5
While sadly behind on my ability to comment substantively, I thought a bit of a comment on dilettanstisme would be worth a quick intervention (and it being all I have time for, it's what one gets).
The comment is provoked by a series of convos over the past few days in regards to a certain MENA country (which for various sensitivity reasons shall remain unnamed) and its hosting of a MENA region investment conference. Let's say that our certain MENA country is not exactly a star performer in the realm of attracted FDI, per capita or in gross. Of course neither is the region.
Posted by The Lounsbury at 02:49 PM | Comments (0) | TrackBack
August 26, 2005
Structuring Private Equity in MENA for Development (bis)
Added Thoughts on Private Equity for Devleopment MENA
I neglected to touch on a few key points in my original note, below are further thoughts on private equity and economic development for the MENA region.
Continue reading "Structuring Private Equity in MENA for Development (bis)"
Posted by The Lounsbury at 01:22 PM | Comments (0) | TrackBack
August 25, 2005
Structuring Private Equity in MENA for Development
Structuring Private Equity in MENA for Development
A few weeks ago I raised the subject of emerging markets private equity in particular in the context of US Gov efforts to utilize the vehicle to further its political / development goals in the Middle East – North Africa region. One of our online world colleagues if you will posed a question to me as to what the “The Lounsbury” approach would be, in the context of my expressed skepticism in regards to the investment vehicle / definition chosen by The Overseas Private Equity Corporation.
Ironically (well not really) at present I am working on materials closely related to just this question, although not really in regards to development – but as much of the private equity activity in region has been international development institution driven there is a clearly overlap. Now, having sent drafts of my materials off for comment I can take a moment to sketch out some preliminary thoughts on the issue that will be the basis for future comment.
First, my assumptions, based on personal experience in the region and in the “sector” if we can call it that. Again, these are my a priori assumptions and principes.
Continue reading "Structuring Private Equity in MENA for Development"
Posted by The Lounsbury at 05:05 PM | Comments (2) | TrackBack
August 22, 2005
On MENA Business & Rescued Excel Sheets, a Sneak Peak
Being impossibly pleased with myself for having found a way to rescue the data which my untrustworthy Excel whacked this weekend, I thought I would share the product of that work (well a sample) and a quick note on something I intend to expand upon.
[Update, hmmm, I obviously don't know what I am doing with the image taggery, but if one reads discussion below one sees the image better/ Fixed -E]
Continue reading "On MENA Business & Rescued Excel Sheets, a Sneak Peak"
Posted by The Lounsbury at 06:04 PM | Comments (0) | TrackBack
August 11, 2005
Market Madness or Brilliance? US Gov Private Equity for MENA Announced (cross from Aqoul main)
At the risk of descending into flackery or something approaching it, I thought a brief comment here might be fun.
OPIC BOARD APPROVES $75 MILLION FOR MIDDLE EAST & NORTH AFRICA FUN
Certainly this plays into my personal interests. (and in this cross post I indulge in them)
Posted by The Lounsbury at 06:22 PM | Comments (7) | TrackBack
August 01, 2005
How (Not) to Execute Meaningful Privatisation Policy
I found this morning, despite being rather dead due to perhaps a bit too much scummy extracurricular sportingness, and a terrible weekend being surprised by a face to face with some fuqaha as part of the ongoing transaction to close the Apartment Plus Joint Venture, myself a bit upset with policy issues.
The Moroccan government, in all its (non-)brilliance announced that it was selling off the State sugar refineries in block (good thing) to the King's holding company in a rather peculiar result from the international tender it ran.
Continue reading "How (Not) to Execute Meaningful Privatisation Policy"
Posted by The Lounsbury at 03:21 PM | Comments (2) | TrackBack
June 29, 2005
Why I do what I do.
Interesting point of reflexion emerged on my post on policy and funding last night. I shall extend commentary but for the moment, this post merely allows you to opine.
Well, before letting you opine, if I ever even bother, let me reproduce the comment that provoked this:
Your final paragraph is the key one.
First, all else being equal in theory developing markets ought to offer excess returns in pretty much every sector because they are not as efficient/sophisticated as developed markets. I made a sneering remark earlier about exporting best practices to Nigerian breweries. "Best practices" which ignore local political/cultural/social conditions are unworkable practices or, worse, practices that, when implemented, achieve some completely unintended effect. But you don't need to implement best practices to beat your competition in developing markets, just better practices. To do that, you must understand how and why things work they way they do in the country you're in.
The problem is that all things are not equal. Developing markets must compete for human capital just as they must compete for investment capital. The educated people who would normally be smart, agressive entrepreneurs in developing countries are either a) already part of the established rent-seeking system and, therefore, already making excess returns or b) taking advantage of better opportunities elsewhere. Why mess about with trying to crack the local system when you can make piles of cash in the developed world without having to worry about being economically or physically knee-capped?
In other words, you need the right kind of local partner to make these investments work. But the right kind of local partner often has better things to do than be your local partner. Thus, you're left to choose between various wrong kinds of local partner.
China is a good example of this. When China first opened up, it was as worthless a mess as you could ever hope to see. The best and the brightest Chinese got out of China and never went back, often starting or working for extremely innovative companies in the U.S.
But China did have a lot of highly-trained smart, agressive people who were willing and able (language skills) to game the system -- Hong Kong. They turned China into a place to do business. Now, many Chinese who left China back in the 70s and 80s have gone back or at least established strong business links there and have made piles of cash in the process.
Had you tried to convince some of these people to go back to China to start a business in, say, 1985, they would have laughed at you and quite right, too. But without their (or someone like them's) cultural/political/linguistic skills, any enterpreneurial effort would have been doomed to failure.
In conclusion, if you have the right sort of local partners with the right sort of modern business attitudes you ought to make money in almost any sector -- the more basic the better. If you don't have the right sort of local partners with the right sort of modern business attitudes, you're probably going down in flames no matter how good your idea is.
For example, few things are less sexy than distribution systems. But if you had people with the guanxi to pull it off and the modern business attitudes to run it, you could make piles of money with a Walmart-style business in almost any region in the developing world. The problem is that the folks with the guanxi are already part of the system and the folks with the modern business attitudes are in London.
I plan to comment more on this. The commentator has hit on a number of points that I absolutely agree with. Some items I would qualify, and an excellent area of discussion.
Posted by The Lounsbury at 09:49 AM | Comments (0) | TrackBack
