Free Capitalist Network - Community Archive
Mises Community Archive
An online community for fans of Austrian economics and libertarianism, featuring forums, user blogs, and more.

How to start a business in Third World Countries?

rated by 0 users
Answered (Not Verified) This post has 0 verified answers | 38 Replies | 6 Followers

Top 500 Contributor
203 Posts
Points 5,615
rosstaylor posted on Tue, May 1 2012 9:53 PM

Does anyone here have experience starting a business in a third world country? Is it difficult? Where do you recommend that is safe and with strong property rights?

 

 

  • | Post Points: 80

All Replies

Top 50 Contributor
1,711 Posts
Points 29,285

I see. Does Chile have gun control?

  • | Post Points: 35
Top 500 Contributor
Male
197 Posts
Points 3,920

Most South American countries have very restrictive gun control legislation

 

Chile is no exception

  • | Post Points: 20
Top 50 Contributor
1,711 Posts
Points 29,285

Well, that's no surprise I guess. And I know Hong Kong inherited gun control from the British way of governance, so...I guess the world is just a-bloomin' with the gun control pestilence.

  • | Post Points: 5
Top 75 Contributor
1,485 Posts
Points 22,155

SkepticalMetal:

I see. Does Chile have gun control?

 
Yes, but it basically all boils down to how much you are ready to pay. Also if you buy a gun from a private citizen (and not from an armory) you get much less (if none) paperwork and hassle.
Compared to Europe, it's a weapon heaven: for example according to Chilean law if you shoot an intruder (even unarmed) with a registered gun, it's your right. For Americans it may not be much but for us Europeans being able to defend ourselves without being charged with assault or even murder (the latest trend of our wise overlords) it's almost unconceivable.
 
The two main problems (for foreigners) for owning guns are this.
 
First it's the weapon ownership test. It's a bit weird and an inheritance of the Pinochet era. You have to go to a police station or an army post (the nearest to your residence), field strip the gun and name the components in Spanish. You need to do this on your own gun, so the only difficult part is learning the Spanish terms. If you buy a gun locally, the armorer will give you a crash course for free. 
 
Second are costs. Weapons in Chile are expensive and choice is limited. This is because it's such a small market and most proper armories are located in Santiago (and almost all are on Avenida General Bulnes and Avenida Vitacura). Chileans tend to be pretty conservative when it comes to weapons: for handguns the most common calibers are .38 Special, 9mm, .357, .44 Magnum and .45 ACP. You may have serious problems finding ammo and reloading supplies for other calibers but any country that allows me to use a .45 ACP to defend my property is fine in my book. Ammo are expensive due to limited supply: expect to pay a 50 rounds box $20 for 9mm and about $50 for .45 ACP.
Hunting is pretty popular in Chile and it's done with an odd mixture of modern shotguns (Mossberg and Beretta being the local favorites) and old bolt action rifles, most of them Mauser.
 
There are many idiosyncracies in the Chilean system that can only be learned from expats living there or by talking to policemen. Different from many other nations, Chilean policemen are very friendly to gun owners and will walk you step by step through the procedure. Don't rely on armorers for tips: many are known to provide false informations to customers on purpose. When in doubt, head to the carabineiros (police) and ask them. It's unbelievable how different Chilean policemen are from their homologues in other countries.
Together we go unsung... together we go down with our people
  • | Post Points: 20
Top 200 Contributor
452 Posts
Points 7,620

That actually sounds very reasonable. I expect the situation in the U.S. to get worse, not better, unless Texas and other southern states secede.

http://thephoenixsaga.com/
  • | Post Points: 20
Top 50 Contributor
1,711 Posts
Points 29,285

@ Kakugo

Thanks for the info once again - Chile sounds like the way to go, of course I plan on doing all of my world exploring very soon.

@ shackleford

Yes but based on the "official response" the Obamanation Administration gave out as a retort to the secession petitions, you get the feeling that to make secession a reality would bring about a second civil war.

  • | Post Points: 5
Top 500 Contributor
Male
256 Posts
Points 5,630
I have been to Africa and I would recommend it only to my personal enemies (who wouldn't ask me for recommendations wink). The whole continent has actually got much worse since the '90s under all points of view and the only island of stability (and sanity), South Africa, is melting away. I will never set foot there again, no matter how much money I am offered or even if Charlize Theron offers me a date.

Morocco is fairly stable and affluent (for an African country). They have not much a history of violence or instability. Morocco has an impressive culture and great natural scenery. The standards of living has continuously improved. Quite a few Europeans live there during the winters - especially the French.

  • | Post Points: 20
Top 50 Contributor
1,711 Posts
Points 29,285

Strange, as I've always heard Botswana was Africa's golden gem, with Morocco there as well as Al stated. Just the history alone is enough to make me want to visit Morocco, a place I've long thought of as the definition of exotic.

  • | Post Points: 20
Top 500 Contributor
267 Posts
Points 5,370

Botswana was, for much of the latter half of the 20th century, the world's fastest growing economy.  Their dire poverty led to a culture of fiscal restraint then they found diamonds.  or something like that.

 

... just as the State has no money of its own, so it has no power of its own - Albert Jay Nock

  • | Post Points: 20
Top 500 Contributor
Male
256 Posts
Points 5,630

Meistro, I thought it was countries that were rich in natural resources that had the most problem with corruption and tyranny.

  • | Post Points: 20
Top 500 Contributor
267 Posts
Points 5,370

Pretty sure problems with tyranny are universal; some tyrants get better press.

 

... just as the State has no money of its own, so it has no power of its own - Albert Jay Nock

  • | Post Points: 5
Top 10 Contributor
Male
5,118 Posts
Points 87,310
ForumsAdministrator
Moderator
SystemAdministrator

Kakugo:

SkepticalMetal:

Hmm, thank you for the information. Where would you say is the best place overall for a libertarian to live?

I have been to Africa and I would recommend it only to my personal enemies (who wouldn't ask me for recommendations wink). The whole continent has actually got much worse since the '90s under all points of view and the only island of stability (and sanity), South Africa, is melting away. I will never set foot there again, no matter how much money I am offered or even if Charlize Theron offers me a date.
 

Why do you dislike it so much?

To paraphrase Marc Faber: We're all doomed, but that doesn't mean that we can't make money in the process.
Rabbi Lapin: "Let's make bricks!"
Stephan Kinsella: "Say you and I both want to make a German chocolate cake."

  • | Post Points: 20
Top 500 Contributor
203 Posts
Points 5,615

@Kakugo - thank you! Your replies never disappoints :)

 

  • | Post Points: 5
Top 75 Contributor
1,485 Posts
Points 22,155

DanielMuff:

Kakugo:

SkepticalMetal:

Hmm, thank you for the information. Where would you say is the best place overall for a libertarian to live?

I have been to Africa and I would recommend it only to my personal enemies (who wouldn't ask me for recommendations wink). The whole continent has actually got much worse since the '90s under all points of view and the only island of stability (and sanity), South Africa, is melting away. I will never set foot there again, no matter how much money I am offered or even if Charlize Theron offers me a date.
 

Why do you dislike it so much?

 

 

Where do I start about my experience with Africa?

Let's start at the airport, where immigration and custom officers will make your life miserable for starter. They turn up to check passports when they feel like it (meaning you have to spend lots of time in no man's land) and the less we talk about baggage control procedures, the better. If there's a charter plane full of tourists coming, you can rest assured the tour operator has some "special agreements" which means your luggage will slip to the back of the queue. So far so good, these are common irritations when traveling by air, just a bit more extreme than usual.

Then we get to the hotel. The sign of a good hotel in Africa is the number and quality of the security personnel: those in Tanzania are usually top notch since they mostly hire Masai who are honest, alert and very smart. In Kenya most hotels have very shaky security: guards are easily bribed and will melt away at the first sign of danger. Now: security in Africa is not an extra hotels throw in to make guests feel more comfortable. As The Clash sang back in the '70s (about Jamaica) "Every white face is an invitation to robbery". Just a few weeks ago my village baker's nephew was seriously wounded during a hotel robbery in Kenya. Security had completely disappeared even before the attack began.

Then there's corruption. In Africa is not as the same as in Asia or the Middle East. In those places prices and fees are "all inclusive" (nudge nudge, wink wink) and usually open to barter. Haggle a bit and both parts will be satisfied. Not in Africa: you get pestered for more money at every turn and it's never enough. As I am fond to say "A honest bureaucrat is one that, when bought, will stay bought". Personally I have nothing against bribes, but I consider them a form of verbal contract. I pay you to speed up this process and you do it, end of story. 

Let's talk about racism now. Racism in Africa is not the kindergarten variety we have in the West. If you are white (or yellow, or even light brown), you are not welcome there, and people will make you feel unwanted at every turn. I am told people living in rural areas tend to be different (a guest is a guest regardless of skin color) but, let's be honest: unless you are prospecting or going on a safari you won't leave urban areas.

Finally there's the widespread misery. I have been to the Eastern Bloc in the heydays of the Cold War. I have been to the Palestinian settlements in the West Banks. None of them had the misery you find in Africa. It's something that goes far beyond mere material poverty and I cannot exactly explain it. This is what scared me the most about Africa. I'd gladly go back to the West Banks but I would never set a foot again in Africa, even if it becomes a Chinese colony.

Together we go unsung... together we go down with our people
  • | Post Points: 5
Top 200 Contributor
Male
371 Posts
Points 5,590

you might want to check this out

http://www.economist.com/news/business/21572172-why-investors-frontier-markets-need-someone-show-them-around-guide-africa

"Blood alone moves the wheels of history" - Dwight Schrute
  • | Post Points: 20
Previous | Next
Page 2 of 3 (39 items) < Previous 1 2 3 Next > | RSS