Business is the best way of making money. There is no a single person in the world who managed to become rich by working on a regular job. Thus, business is the best way to become wealthy. Today, people understand this fact, and therefore, almost everybody strives to launch own business projects. People are interested in business, and for this reason, you may find that there are millions of websites, thousands of magazines and newspapers dedicated to business.
I am an active Internet user. I do not merely add content on my blog. Moreover, I launch different websites to find interesting materials for reading. Business is one of foremost interest. For this reason, I regularly visit popular business blogs. Every age has its personal trends. Today, the third world became a trend for western businessmen. I repeatedly hear American and European businessmen praising making business in countries of the third world. These people also encourage unknowledgeable individuals to start a business in the third world. I usually get amazed when I hear such things. I am very well-acquainted with the third world, and therefore I know all the pros and cons of making business in that area. So are business opportunities in the third world as amazing as our western friends tell us? Is that region so safe and secure to invest you earned money? What are the risks you will have while making business in the third world?
In this post, I will tell you about the major disadvantages of making business in countries of the third world. First of all, let me tell you what “Third world” term means. “Third world” is a Collective name for most of the nations of Africa, Asia, Latin America, and the Middle East, many of which share a colonial past and are variously termed as developing, less developed, or least developed countries. They support 75 percent of the world’s population but consume only 20 percent of its resources, and are generally characterized by (1) slow pace of industrialization, (2) low to very low levels of per capita income that is insufficient to generate savings for economic growth, (3) low literacy levels but high rate of population growth, (4) poor health facilities and transport infrastructure, (5) dependence on agricultural and commodity exports as main foreign exchange earners.
Making business in the Third World is not as comfortable and profitable as many people consider it to be. Here are some of the most significant disadvantages of making business in the third world.
1) CRIMINAL AND CORRUPTED GOVERNMENTS
Corruption and uncivilized countries are synonyms. Corruption is widely spread in all the countries of the third world. Whether it is Latin America, Middle Asia, or some of the countries of Africa, no doubts, all the government in these regions are corrupted. Some of them are less or more corrupted. However, be sure that high levels of corruption exist in all countries of the third world.
Some American businessmen think that a high level of corruption is beneficial for their business. In some cases, this assumption might be true. While a government is corrupted, you can buy its members souls. I mean by giving good bribes you can do whatever you want in that government. You can buy a president or a prime minister of a government, and thus, you may get an absolute physical and financial security. In other cases, you can give bribes to the members of special services, policemen, and other government members. By doing so, you open new opportunities for your business. This is the main reason why American and European businessmen are so interested in making business in the third world. By giving bribes, businessmen can avoid huge taxes, fines, and many other unwanted things.
On the other hand, this corruption can turn against you. Living in a country, where a law is written but is not obeyed, might be extremely dangerous for your life and financial possessions. Do you know how many businessmen are seized of their companies and assets in different countries of the third world? I think you have no idea about that. Those businessmen, who advertise making business in such unsafe regions of the world, are also unaware of potential dangers hiding in those areas. First, the political situation in countries of the third world is always unstable. Revolutions, rebellions, and government overthrows are usual for this region. Today, the current government may be kind, generous, and merciful towards you and your business. Tomorrow, everything may change. Moreover, in some countries of the third world, government officials are legal criminals. For some corrupted governments, seizing financial possessions from their rich citizens is a common tradition.
Thus, making business in the third world is a tremendously risky activity. In those regions, an official law exists; however, it is never obeyed. Therefore, you are always at a very high risk while making business in the third world.
2) A HIGH LEVEL OF CRIME
A widely spread crime is not a danger to you as long as mafia members have not spotted you yet. If you are spotted, prepare yourself for huge problems. In the USA, Germany, Sweden, and other prosperous and civilized countries of the world, you can always rely on local police. In the third world, things are done absolutely differently. In those regions, governments and criminal elements cooperate with each other. Government officials spread crime themselves. The heads of mafias and other criminal groups are controlled by politicians. Thus, in countries of the third world, criminals do not afraid of the police. So how dangerous it might be to live in a country with a huge amount of criminals who cooperate with local government? There is nothing more dangerous than living in that scary environment. Murdering, kidnapping, blackmailing, robbing are usual in countries that belong to the third world. In the USA and Europe, governments make efforts in order to destroy crime. In the third world, governments spread and develop organized crime.
It is clear that high levels of crime are never beneficial for any types of businesses. Rich Americans and Europeans are the best victims of financially hungry criminals. If you do not want to share your wealth with the mafia or other criminal organizations, you should never even think about making business in countries of the third world.
The third world is not the best area to make a serious business. Political instability, high levels of crime, corrupted and criminal government members, and many other negative sides of that region make this destination tremendously unattractive for establishing any types of business enterprises. Before starting your business in countries of the third world, you should consider twice about potential dangers and risk you will have in that region.