So finally we got our fair share of high-so-dumb-ass-rich kids in our street. How I know? He is driving a sportscar around as if he would train for a formula one race. The classic thing, you know: open windows, loud music, white muscle shirt (although no muscles), and this Thai style "you earthlings are so boring" look.
When I told him that this is not a racetrack, he just raised his shoulders meaning "i dont give a shit". This are the moments when I am happy that guns are not available here. I may have used it. He knows that he is protected and basically above the law. A hit and run would have no consequences for him, beside the hassle of bringing the car to the carwash.
The rich jobless kids of the government officials and big business families are the raising problem in Asia. Look at the bitch that killed a bunch of people in Thailand, the Hun Sen Nephew in BKK1 in Phnom Penh, who is violent and untouchable, the recently crashed son of a high ranking Chinese official who stopped his Ferrari in a wall. So Laos just fits in. In case you have seen the movie "At the horizon": it is just reality. And the original script saw the killer-turned-father going away as usual, but reality in Laos is written by authorities, so they insisted of a (ridicilous) jail scene.
The problem in developing countries is not hunger or poverty. It is the lack of law and civil society. Nothing will ever change as long as corrupt regimes will protect their siblings and BFFs. And still, local people are raised to just suffer, laying under the thumb for so long and trained to obey. Until a fruit seller can't make enough money anymore...
Showing posts with label corruption. Show all posts
Showing posts with label corruption. Show all posts
Monday, October 8, 2012
Saturday, September 15, 2012
SEA Games stadium
This is a sad but not unusual story in Laos. It is not even a long story. Years ago, Laos was the host of the ASEAN Games. Since it was lacking the necessary infrastructure, it got loans and support from other countries and constructed the SEA Games facilities outside town. We know from the Olympic Games that these facilities sometimes aren't used much anymore once the events is over.
But for Laos it could have been a different story, because that was the first time ever they had a proper swimming stadium etc.. Now, only the National Stadium is occasionally used for football games and propaganda events. Usually, it is closed. and of course, nobody maintains anything. It is just rotting, plants take over, two more years and wildlife will be populating it (could be just a different use, unintended).
This happens to nearly everything Laos gets paid from other country. Lao authorities don't maintain anything, they let it run down and then ask for a new one. And donor countries are stupid enough to listen.
But for Laos it could have been a different story, because that was the first time ever they had a proper swimming stadium etc.. Now, only the National Stadium is occasionally used for football games and propaganda events. Usually, it is closed. and of course, nobody maintains anything. It is just rotting, plants take over, two more years and wildlife will be populating it (could be just a different use, unintended).
This happens to nearly everything Laos gets paid from other country. Lao authorities don't maintain anything, they let it run down and then ask for a new one. And donor countries are stupid enough to listen.
Tuesday, November 9, 2010
Doing business in Asia
Today I found this in my inbox. A brief description of someone wanted to do business in Asia. It doesn't even matter what country this is about:
As someone who believe that business is driving development, this story shows the real problem of developing countries: It's not so much poverty or lack of education (though this is a huge problem, but not the cause). It is a lack of desire from governments. Desire in developing the country. Most governments in SE Asia are just fine with the situation, since their members already made enough money for themselves.
Let's see a developing country as a start-up business. The way they do it now is the way start up operated in the time of the first internet bubble. VC (in our example NGO and IMF and Worldbank) gave money, they burned it and asked for more money. Because there was a steady stream of new money coming in, there was no real reason to focus in the business model. That's the way developing countries operate: The infrastructure of the country is not financed by income from operations like taxes, but from donations and support from international institutions. The lack of taxes used to run the country is caused by a) lack of tax collecting processes and b) corruption.
So why aren't countries collecting taxes? Actually they do, but the system is far from transparent. First of all, foreign companies are due to tax, always. Local family businesses have to pay tax as well, but seldom do. The reason is: They won't get caught, and tax officers always think its too much work for them to collect the few dollars from small businesses. Then of course is a total lack of infrastructure and understandable tax laws. The reason is simply again the missing desire. If you want to get tax, you will establish a system.
The main reason why there is no system is corruption. This is all over Asia, and it's the biggest obstacle for the developing countries. Corruption kills competition and kills development of markets. Only the wealthy elite can afford to pay the bribes, so they run moist of the businesses and get a de facto monopoly. Without competition there is no incentive to grow and improve, so most businesses aren't developing much. Just look at state owned Hotels in Asia, or the quality of local run companies in general. Most use quite old equipment, producing same products since 10 years.
Why its important to have foreign companies?
Because they drive markets faster on a higher level. The know the process of competition and they know also they have to work harder then local companies (not only because of corruption, but also because cultural differences, lack of networks in the country a.s.o.) Successful foreign owned companies are a challenge for local companies, so the they have a quite good reason to improve and get the business.
But as long as the desire of the people in charge is their own bank account and not the countries wealth, there is no change at all.
I have applied for an investment license at the One Stop Unit in March
2009. I have still got no answer. The process is lengthy, complicated
and completely in-transparent. In reality, investors buy themselves to their licenses. I didn't pay, so I didn't get the license.
After all I have given up to make business here. If you are not
ruthless, you will only burn your fingers.
As someone who believe that business is driving development, this story shows the real problem of developing countries: It's not so much poverty or lack of education (though this is a huge problem, but not the cause). It is a lack of desire from governments. Desire in developing the country. Most governments in SE Asia are just fine with the situation, since their members already made enough money for themselves.
Let's see a developing country as a start-up business. The way they do it now is the way start up operated in the time of the first internet bubble. VC (in our example NGO and IMF and Worldbank) gave money, they burned it and asked for more money. Because there was a steady stream of new money coming in, there was no real reason to focus in the business model. That's the way developing countries operate: The infrastructure of the country is not financed by income from operations like taxes, but from donations and support from international institutions. The lack of taxes used to run the country is caused by a) lack of tax collecting processes and b) corruption.
So why aren't countries collecting taxes? Actually they do, but the system is far from transparent. First of all, foreign companies are due to tax, always. Local family businesses have to pay tax as well, but seldom do. The reason is: They won't get caught, and tax officers always think its too much work for them to collect the few dollars from small businesses. Then of course is a total lack of infrastructure and understandable tax laws. The reason is simply again the missing desire. If you want to get tax, you will establish a system.
The main reason why there is no system is corruption. This is all over Asia, and it's the biggest obstacle for the developing countries. Corruption kills competition and kills development of markets. Only the wealthy elite can afford to pay the bribes, so they run moist of the businesses and get a de facto monopoly. Without competition there is no incentive to grow and improve, so most businesses aren't developing much. Just look at state owned Hotels in Asia, or the quality of local run companies in general. Most use quite old equipment, producing same products since 10 years.
Why its important to have foreign companies?
Because they drive markets faster on a higher level. The know the process of competition and they know also they have to work harder then local companies (not only because of corruption, but also because cultural differences, lack of networks in the country a.s.o.) Successful foreign owned companies are a challenge for local companies, so the they have a quite good reason to improve and get the business.
But as long as the desire of the people in charge is their own bank account and not the countries wealth, there is no change at all.
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