A Common Sense Economic And Market Structure Model For Developing Countries


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Developing World has represented the three-fourths of the world's population of people in developing countries. These countries have been called Third World countries by developed countries. They are defined and classified by the World Bank as developing countries because of their less developed economic status and low per capita GNP or GDP that depicts a low standard of living as compared to developed countries.

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A Common Sense Economic And Market Structure Model For Developing Countries

  1. 1. The Africa Solution
  2. 2. <ul><li>Developing World has represented the three-fourths of the world's population of people in developing countries. These countries have been called Third World countries by developed countries. They are defined and classified by the World Bank as developing countries because of their less developed economic status and low per capita GNP or GDP that depicts a low standard of living as compared to developed countries. Concentration is primarily in the continent of Africa These countries are made up of citizens with a very diverse ethnic group of people, different cultures, beliefs, politics, and various geographic locations that determined the type of economic and social development along with a market structure that are suitable in different locations or areas of the developing countries. Developing countries have been hunted by what this author coined as the “AFRICAN PIES”, standing for Poverty, Instability, Ethnicity, and Sectarianism in Africa. </li></ul>
  3. 3. <ul><li>Poverty stems from lack of education and low literacy level. These countries do not put too much emphasis on education as they resort to marrying more than one wife and having too many children. Farming and herding have been their main source of food production and livelihood. Ethnicity is attributed to too many tribes, languages, and dialects. It has also contributed to lack of trust amongst different ethnic groups due to lack of understanding each other's culture and tradition. They have become one country, one people, but different ethnicity. Instability is created by lack of a stable government by corrupted leaders, who will always come to power for the purpose of stealing funds. That ultimately leads to no mandate to build infrastructure, and develop the economy or market for the country. When people's needs are not met, most of the times in developing countries, rebellion begins when the government neglects a certain group of people. When people are deprived of the necessities of life while the other group has it all because of their ethnicity and religious sect, it creates tensions that lead to a &quot;time-bomb&quot; ready to explode. These most times cause conflicts that are attributed to hatred, sabotage, riots, revolution, and deaths. This is common in the developing countries where corruption has played a role due to self-centeredness on the part of the leaders. Leaders therefore resort to intimidation of their citizens and thereby control these countries by coercion. </li></ul>
  4. 4. <ul><li>In the event of designing, developing and implementing a common sense economic and market structure development strategies for the developing countries, considering a holistic approach and the culture play an important part in the outcome. The implementation is based on the localities and their comparative economic advantage. The aim is to help the developing countries acquire the common necessities of life such as food, shelter, and clothes. Hence, these countries will become less dependent on developed countries and foreign aids. </li></ul>
  5. 5. <ul><li>A comprehensive education across the country needs to be instituted. Sometimes in the local dialect and language in order to make it easy for the citizens of that area. Assessment test of individuals' talent and abilities need to be explored, recognized and documented to be sure where these individuals' maximum potentials lie. A program needs to be instituted in order to teach the citizens methods of family planning and birth control. They also need to know the social and economic benefit of the birth control. </li></ul>
  6. 6. <ul><li>Some individuals may have the ability in agricultural work (Crops/livestock/Poultry). Locations with fertile lands need to be located and utilized for crops and livestock, and those areas without fertile land will have to be used based on its comparative advantage, such as poultry, storage of byproducts, and market areas. </li></ul>
  7. 7. <ul><li>Supermarkets are to be constructed in all densely populated locations or urban cities to enable the young men and women find and keep jobs. The stores will consist of three shifts so that students can work and at the same time go to school and do their school work. These markets will be located in the areas where people can afford to shop. A Wal-Mart (USA) and USA Large Grocery Chains approach will be most appropriate in these locations. The four utilities of market will have to be considered and instituted as the main reason for the location of the supermarkets. </li></ul>
  8. 8. <ul><li>Considering the product that people will want, the price to set for the product , the place that will be appropriate for the supermarkets and their nearness to the people, and how the promotion of the product will be conducted in order to reach the consumers and customers. </li></ul>
  9. 9. <ul><li>The nomadic approach of rearing, transporting, and selling livestock will be changed to using trucks to transport them if it involves long distance in order to avoid spreading of any diseases such as mad cow disease and other diseases that come from livestock feces as they are transported though out the country. Trading locations where buyers and sellers meet, and the days to meet are to be established in both rural and urban areas. </li></ul>
  10. 10. <ul><li>Areas where people still live in poverty, a trade by barter may be established so as to allow the farmers who want to exchange items from their farms to bargain for exchange. This short-run method will continue until the economic development is in place and running. </li></ul>
  11. 11. <ul><li>Foreign investment and property rights need to be considered as part of encouraging investments and savings in order to stimulate the economic growth. This method will help the developing countries to invest less money on capital goods, create more competitive markets, and in turns reduce or eliminate corruption. </li></ul>
  12. 12. <ul><li>Establishment of local leaders by ethnicity, who will act as representatives or middlemen between the government and their ethnic group. These local leaders are be selected by group they represent and approved by the government to ensure that they are working on behalf of the people they represent and not for their own self-interest. In addition, the African experts may be contracted to help establish these boundaries of no corruption. </li></ul>
  13. 13. <ul><li>Citizens have certain religious beliefs and ways of thinking, and as such need to be segregated according to their sect in terms of market structure and economic development. Individuals who understand that certain groups have designated times in which they pray will have no problem doing business with such groups. This will reduce tensions for those who understand the culture of this religious group, and for those, who do not there will be tensions and uneasiness, which is the reason for grouping citizens according to their religious sect. </li></ul>
  14. 14. <ul><li>Government need to institute &quot;watch dogs&quot; in order to police the programs and to make certain that the programs are in place and running. A 3-year trial needs to be established for any program of economic and market structure that is implemented for these countries. This is enough time to evaluate the program in place in order to ensure its workability. Experts in Africa need to be involved in all phases of implementation in order to combat corruption and promote stability. </li></ul>
  15. 15. <ul><li>Poverty will be eliminated if adequate and stable structure for economic and market is established, and the governmental leaders through the local leaders will address all citizen's problems. The essential necessities -- housing, clothing and food -- will be the top priorities for these countries in order to eliminate the poverty. </li></ul>
  16. 16. <ul><li>Professionals and skilled workers are to be encouraged through issuance of incentives in order to motivate them to stay and reside in these developing countries and help in the development of these countries rather than leaving for developed countries. Mass exodus from these developing countries only harms and delays the development of these countries. </li></ul>
  17. 17. <ul><li>Construction of infrastructure such as roads, buildings, and bridges are important for the economic and market structure of developing countries. Food products and other necessities of life can be transported to their respective destinations as quick as they are needed when good infrastructure is in place. It may also encourage in foreign investments. Investors will prefer to invest in stable countries to unstable countries. </li></ul>
  18. 18. <ul><li>Construction of adequate running water in developing countries and to all parts of the countries also will help in building stable economic and market structure in developing countries. It will help in curtailing diseases such as typhoid's and malaria that usually come from unclean water. It will help the children of these developing countries in focusing in education and literacy programs other than traveling miles upon miles to fetch water from the streams and wells. Some of these children die in taking these water-fetching adventures. </li></ul>
  19. 19. <ul><li>Installation of electrical system will help in the growth of communities. Businesses cannot operate adequately where electricity is lacking. As such, these developing countries will require electricity in all areas of the countries as a form of economic development and for market structure in order to help businesses function and grow, help in the food storage, and eradicate waste of food products that would otherwise be stored safely in cold rooms and refrigeration. </li></ul>
  20. 20. <ul><li>Social Organizations need to be introduced in order to help the poor get out of poverty, and give them the opportunity to operate their own small businesses. This type of organizations are set up by the government as not-for-profit organizations, and the purpose is to develop the people's business skills and issue them interest free start-ups loans to enable them manage their own businesses, which in turn lead them to poverty free. They are guided on the type of businesses to open, how to open them, where to open them, and why they should open those kinds of businesses. </li></ul>
  21. 21. <ul><li>Third Party Collateralization is the use of independent private organizations to guarantee the implementation of projects. More often when funds are given directly to developing countries, the funds are diverted to private use by the leaders. So, in order to ensure that the funds given to these developing countries are used appropriately and as directed, it becomes necessary to use third parties as collaterals. The third party becomes the guarantor that guarantees that the funds will not be abused rather will be put to use as proposed. The third party will also act as the contractor for the implementation of the project, and at the same time refund the funds if mismanaged. </li></ul>
  22. 22. <ul><li>World Bank should use this model to keep these developing countries in check, by enforcing the use of this model as a condition of receiving funding or foreign aid. As a way to check and ensure that monies do go to what they are intended for, developing countries need to pledge to use and implement “A COMMON SENSE ECONOMIC AND MARKET STRUCTURE MODEL FOR DEVELOPING COUNTRIES”. This model will check and police the development of these countries. The intention of this requirement is not to discriminate against developing countries, but to help the citizens of those countries as they have no way of benefiting from these funding and foreign aid that usually end up abused, misdirected, and misused for other personal and private purposes by the misguided and corrupt leaders. </li></ul>
  23. 23. <ul><li>Underdeveloped countries in the continent of Africa that are economically dependent on developed countries of the West. Such countries are poverty stricken with high birthrates. World Bank defined developing countries as those with low-income economies with per capita incomes of $755 or less. World Bank is an International Organization that categorizes such countries as developing countries and also issues loans to them. </li></ul>
  24. 24. <ul><li>Dr. Sidney Okolo </li></ul><ul><li>Ph.D., Organization and Management </li></ul><ul><li>Ph: 312-671-4721  </li></ul><ul><li>eFax: (425) 671-1282                 </li></ul><ul><li>[email_address] </li></ul><ul><li>http://www.iba-pec.com </li></ul><ul><li>http://www.linkedin.com/in/ibaweb </li></ul><ul><li>http://drsidneyokolo.blogspot.com </li></ul>