Saturday, May 8, 2010

Money Migration

As many developed nations grapple with immigration issues, trying to protect their own social security and healthcare programs, underdeveloped nations are being targeted as financial engines of growth. From the sale of infrastructural works by specialty engineering firms to support services involving high technical equipment, development is good business offering high returns. Funded by inter and multi-national agencies, pooling money from donor countries under the premise that by developing a poorer country it will reduce illegal immigration from, and increase trade with, that particular country, to lay the necessary foundation for economic stability.


With infrastructure and technical services in place, a secondary opportunity takes shape as extractive and agriculture based business, can now utilize transportation and communication services to find markets. Downstream manufacturing and import and export activities add jobs and build communities with the need for expanding support services. Funded by entrepreneurs, with the foresight and essential research to calculate the risk to reward to persuade bankers and other financiers to share in the startup risk and stay the long-term course, to profit from economic development.

As jobs are created, so too is immigration policy, driven by the need for high level skilled professionals, effective management and manual workers, until these expertises can be locally trained. Service providers are and will always be a challenge to immigration policies, for as standards of living increases so will visitors on vacation, how to separate a guest who brings money in, from someone who is being paid for a service, is the issue. Funded by foreign investors, commonly visitors on vacation will paid for their expenses while, someone seeking a business opportunity will firstly bring in money but, more than likely, will eventually take out more money than their brought in, hopefully, leaving experienced and skilled workers, improved infrastructure or market share. Deciding on what type of development is best directs immigration policy.

With a money migration policy controlled by taxation and transparent reporting, service providers, banks and other financial institutions including holding companies will have a clear understanding of the cost of doing business in this country. Without such a policy, corruption and its ripple effects will hinder the decision to invest, increase overall cost and retard development. Funds borrowed from inter and multi-national agencies to develop public transportation, electricity or communication networks have ended up financing arms and coups. Funds from foreign investors disbursed through banks and other financial institutions with high levels of oversight, have still been used inappropriately to build unplanned mansions or purchase prestige cars for private individual use.

As money moves worldwide, Private Equity firms, offer the most trustworthy method in achieving development with reduce waste, having combined successful portfolio management techniques, the entrepreneur vision and feasibility studies with the necessary industry managerial talents and a sturdy and dependable workforce to strengthen its financial performance, while closely monitoring and reporting progress. Investment decisions are made with numerous exit strategies, first in mind and superior returns to all stakeholders, with a long-term investment philosophy.

Rationale

T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.