Poverty is a reality faced daily by millions of people in scores of countries around the world. However, poverty is found in mainly those countries economically referred to as ‘3rd world’ or ‘Developing Nations’. Until most recently, two of the most populated countries in the world, India and China, were classified as Developing Nations, with companies in affluent western countries, hesitant in trading with them. Today, India and China, through a few decades of business astuteness, enterprise and international trade, have levitated the world economic rankings. China in particular, has dragged millions of its people out of poverty and into relative prosperity. Ironically, western countries and institutions, who a decade earlier had hesitated on trading with India and China, now rush to trade with them.
Empowering Developing Nations
Is having the pioneering vision in creating a truly supportive partner to help during turbulent times.
One of the lessons we learn, from the rise of these two recent trading nations, is they created an environment conducive to attracting foreign/western trade and investment opportunities. Some would argue that India and China rose to the detriment of western countries. The contrary view, of course, is that today those western countries, who traded and invested in India and China, have stood to gain the most amongst their rivals, who decided not to. Those who collaborated in trading activities, believed that through trade and empowerment of their ‘Developing Nation’ trading partners, they would stand to gain more, and whether they knew it or not, the concept of ‘good trade, being good for both sides’, kicked in and they both benefited; the western partner got cheaper goods/services, giving them a competitive advantage on home soil; the Developing Nation partner got foreign investment for providing goods/services and to create a better environment for itself and its people, and so the cycle continues to the betterment of both.
During the 2008 financial crisis and subsequent recession, western companies, with strong eastern trading partners, are better able to cushion the recessionary affects, through a two-way exchange of benefits, and retain/gain a competitive edge in their markets. Having the pioneering vision to forge and empower new trading partners in the emerging markets of today, could be the very lifeline that the developed world partner needs, from a stronger and supportive developing world partner, during the turbulent times of tomorrow.