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Strategies That Can be Used by Third World Countries to Improve Foreign Direct Investment Inflows

November 30, 2013   

Third world countries can use certain strategies to improve foreign direct investment inflows.

The first strategy that can be used by third world countries to improve foreign direct investment inflows is that of developing good human resource pools. Investors are likely to invest where there are people capable of being engaged in productive activities without requiring too much training or retraining.

The second strategy that can be used by third world countries to improve foreign direct investment inflows is that of developing good infrastructure. Investors are likely to invest where there are good roads, where there are good, modern rail networks, where there are efficient ports… and so on.

The third method that can be used by third world countries to improve foreign direct investment inflows is that of putting in place measures to guarantee political stability.

The fourth method that can be used by third world countries to improve foreign direct investment inflows is that of offering direct incentives to prospective investors. But an effort should be made, to avoid using ‘incentives’ as a shortcut to attracting foreign direct investment. The truth of the matter is in the fact that if a country has good human resource, good infrastructure and political stability, it is bound to attract foreign direct investment ‘automatically’ without having to offer incentives.

Three Ways In Which Money Moves from First World Countries to Third World Countries

November 16, 2013   

The way the world works is such that we tend to have a lot of money flowing from the first world countries to the third world countries. There are, in actual fact, some three ways in which money moves from first world countries to third world countries.

The first way in which money moves from first world countries to third world countries is through aid. The aid is either channeled through the government directly or through Non Governmental Organizations.

The second way in which money moves from first world countries to third world countries is through remittances. These are usually personal arrangements, like where, Diaspora citizens send money to their poor relatives in third world countries. It can be a situation where, for instance, a Diaspora citizen living in a place like, say, New Jersey, makes an unemployment claim at www.njuifile.net, (that is, the www.njuifile.net weekly claim) after going through the njuifile.net sign in page requirements, only to send a portion of the money to his relatives back home. The argument would be that, in spite of his hard predicament in the west, his relatives back home need the money more.

The third way in which money moves from first world countries to third world countries is through foreign direct investment.

Challenges Faced by People Trying to Promote Good Governance in Third World Countries

November 11, 2013   

People trying to promote good governance in third world countries tend to face certain challenges.

The first challenge faced by people trying to promote good governance in third world countries is that of ethnicity.

The second challenge faced by people trying to promote good governance in third world countries is that of poverty. Poor people are easily swayed to vote for leaders who promote bad governance.

The third challenge faced by people trying to promote good governance in third world countries is that of lack of education. Uneducated folks are hard to motivate into seeing the ‘bigger picture.’

The fourth challenge faced by people trying to promote good governance in third world countries is that of hostility from the beneficiaries of bad governance. This is akin to the hostility that you too would face if, for instance, you tried to change IT support in an organization, from being an internal function, to being one offered online through the likes of the LogMeIn123 portal. In that situation, you’d have people who benefit from the status quo being opposed to any ideas to move the IT support function to www.logmein123.com. They’d even start making allegations about the logmein123.com scam: just to ensure that the new idea, which threatens their interests, doesn’t succeed.

Strategies for Ensuring That the Aid Sent to Third World Countries Actually Makes a Difference

November 6, 2013   

Often, we come across complaints that the aid sent by developed countries to third world countries doesn’t make a difference. Some of these turn out to be fair complaints. But rather than focusing on the problem, we need to focus on the solution: by identifying the strategies that can be used for ensuring that the aid sent to third world countries actually makes a difference.

Now one strategy for ensuring that the aid sent to third world countries actually makes a difference is that of appointing monitoring and evaluation officers: to monitor the usage of the aid on the ground.

Another strategy for ensuring that the aid sent to third world countries actually makes a difference is that of seeing to it that the aid is only earmarked for projects that have genuine impact on the ground.

Yet another strategy for ensuring that the aid sent to third world countries actually makes a difference is that of seeing to it that the aid is channeled through non governmental organizations, as opposed to government agencies. If you opt to use this strategy, you need to ensure that the NGOs partnered with don’t use most of the money for their own operations either. Left to their own devices, the folks in the NGOs may, for instance, start outsourcing everything – including payroll preparation, which can be outsourced to a company like ADP as described in this post.

How to Promote Democracy in Third World Countries

November 2, 2013   

Certain things can be done, to promote democracy in third world countries.

Firstly, if you want to promote democracy in third world countries, you need to invest heavily in education. People who are properly educated are likely to develop the critical thinking that is necessary for effective participation in democratic processes. But this has to be proper education: education that promotes critical thinking, as opposed to education by rote, which only promotes the memorization facts with no critical thinking component whatsoever.

Secondly, if you want to promote democracy in third world countries, you need to invest heavily in economic development. Folks who are economically empowered, like, for instance, those working for Macys, which has a remarkable employee connection website are unlikely to be easily taken advantage of by politicians who are undemocratic. It is poor people who are forced by the immediate circumstances to lose sight of the bigger picture: thus promoting the propagation of impunity and other undemocratic ethos in their societies.

Thirdly, if you want to promote democracy in third world countries, you need to invest heavily in the creation and propagation of strong political parties. In the absence of strong political parties, politics ends up being centered on personalities, and once matters get personal, it is very hard for real democracy to take root.