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Rob Hawcroft
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   Posted 5/12/2010 8:37 PM (GMT +8)    Quote This PostAlert An Admin About This Post.

Some thoughts on...

Emerging-market-isation of the west.

In the past in EM in the good times the business class salted profits away abroad (thus causing business under-investment at home) as they knew they would need them to support their businesses in the down turn, additionally they were concerned that their wealth could be predated by a populist government to support the masses. Given that this is what is happening now in Europe with rising tax burdens, an unstable economy and an increasingly desperate mass of people, what are the business class expected to do other than take their money out of the country?

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Mike Reilly
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   Posted 5/13/2010 11:00 PM (GMT +8)    Quote This PostAlert An Admin About This Post.

 As always,  another thought provoking post Rob ... thank you

 

 Story;

 Your post hits home, well actually next door .....

 My neighbor here in the USA is a Ukrainian whose family owned a business there

 he fled to France when political instability erupted in Ukraine;

 he went from helping run his family business to playing piano in a Paris nightclub

 later he moved to Argentina and set up  the same type of business his family ran in Ukraine

 he fled  to the USA when he felt political instability in Argentina would erupt ( although it did not )

 in the USA he became a successful architect and sent his daughter to medical school

 

 

Bottom line;

 This sounds like a good thing for well-managed growing countries and a bad thing for poorly managed low growth countries .... hasn’t the World behaved like this all the time throughout history ?  I guess the concern here is what the implications of capital drain and brain drain are in the poorly managed low growth countries to global economic/political stability.

 

Regards,

 

     Mike

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Rob Hawcroft
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   Posted 5/13/2010 11:07 PM (GMT +8)    Quote This PostAlert An Admin About This Post.
I agree Mike, now I reread the post I realise I should have added the UK, US and Japan to Europe.
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