Question

Some argue that aggressively investing in emerging economies is not only economically beneficial but also highly ethical because it may potentially lift many people out of poverty. However, others caution that in the absence of reasonable hopes of decent profits, rushing to emerging economies is reckless. How would you participate in this debate?

Answer 1

Until my readings as a free-market policy denialist, I thought that participating in developing economies is somewhat far self-serving as well as predatory than getting citizens out of deprivation. They encounter a lot of opportunities for violence (by local people), and also political threats (jingoism and xenophobia) and investment risk. ROI volatility represents a challenge.

However, I am now having a shift in perspective as I go through the course. Variety, uncertainty and fast economic development are typical of the developing economies. With unexploited human and natural resources, and market for consumer products, they build a win-win chance: by engaging in infrastructure and technology, international investors from industrialized countries can benefit from economic development, and by modernizing their industrial and agricultural production, the developing economies can raise their living standards.