HOME

Globalization

In the first (current) phase of globalization, countries primarily compete for the world's investment capital. In this current phase, it is presumed that capital will move to locations where it will find the best conditions to procreate (money generating more money).

But the second phase of globalization will not just be about money, but about people with money.

For poor countries, the globalization of the future will still be a competition to attract the most foreign money, in order to have their economies catch up with those of the rich nations. But in order to be competitive, they may not just be attractive to foreign money, but also to rich foreign people.

Already, more people from rich countries than ever before work in poorer countries, because more and more companies from North America and Europe have a business presence in Third World countries. One effect of this is a generally much wider awareness that living in countries outside of North America and Europe can be very rewarding indeed.

I can imagine that in coming years, more and more people from rich countries will settle in Third World countries, not so much for business opportunities but for the opportunities that present themselves with local sexual partners. And if migration decisions of rich men favor certain countries, than investment money will follow in their paths.

With the right policies, dirt-poor, small countries like East Timor or larger ones such as Cambodia could develop in the direction of Monaco or Luxembourg. But the local governments would have to implement policies to make their countries especially attractive to the rich of the West. They will never achieve this if they let their countries run by the Christian zealots and feminists of NGOs, because then, these countries will just be as unattractive for rich people from the West as most Third World countries.

The following are just some measures that could attract rich people to poor Third World countries.

Taxation - Charge a flat foreign resident tax, e.g. 500 or 1000 dollars per month, but impose no local income tax, and no taxation on money earned internationally.

Second citizenship - Offer an easy second citizenship, even a temporary one... at a price (e.g. double the foreign resident tax).

Special development zones - The rights of foreigners to reside in a country could be limited to special development zones. In this respect, the world could learn from China.

Safety - The country, or at least parts of the country where foreigners would reside, would have to be so safe that unaccompanied women can walk alone anywhere in the night.

Foreign businesses - Let foreigners run small businesses, such as restaurants, entertainment venues, hotels, small housing complexes, food production, and the like (in either all of the country, or in special development zones). This will generate all by itself the infrastructure that will be needed to attract ever more foreigners. Always just impose flat taxes that are independent from whether a business is successful or not.

Morals - Impose very, very few moral restrictions, especially on consensual sexual relationships.

Welfare - Use a good portion of the money generated by the presence of the foreigners to finance welfare for poor locals, such as subsidized healthcare and subsidized education. To avoid animosities, make sure that the local population knows that many of these projects are financed by the resident taxes of foreigners.

I am aware that because of the moral leniency requirements, the above model could not be implemented in countries with a mainly Islamic population. But the model may be well suited to attract citizens of Islamic countries who are dissatisfied with the strict moral rules of their home countries.

**********

http://www.asiatour.com/globalization.htm
Jan Garanoz
Juhu Tara Road, Juhu,
Mumbai - 400049 India
Last updated: February 16, 2010