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- W290644046 abstract "I. INTRODUCTION Many approaches have been proposed for how less developed countries (LDCs) can achieve prosperity, despite their current lack of the ingredients usually associated with growth. World consensus seems to recommend adopting a political economy that includes rapid liberalization of market regulation, privatization of state-owned enterprises (SOEs), and attempts to access global capital markets. These conceptions have been challenged in light of the recent global economic currency crisis; however, the resulting recommendations remain mostly unchanged. Recommendations, particularly those coming from influential intergovernmental lending agencies, still focus on intensifying incentives to move toward a more market-based economy, integration within limitless free trade areas, and the creation of additional intergovernmental organizations to standardize this agenda. This consensus has shaped the plans implemented by injured LDCs to assist in their recovery from crisis, as a result of both voluntary choice and coercion from external influences. This Note will propose a new perspective from which development can be viewed. Imagine for a few moments that the citizens of an LDC are similar to the individuals that will be involved in a newly-formed corporate enterprise. Both groups are ultimately seeking to advance their utility, both individually and collectively. To be successful, both groups must adopt a comprehensive strategy that will lead them to that goal while being weary of the tremendous influence of more established competitors. Finally and most critical to any developing organization, both groups must find a way to finance their efforts while maintaining sufficient control over the enterprise. This Note will view LDCs through the paradigm of a start-up corporation seeking to design a business plan and capital structure that will enable it to prosper in a world dominated by large corporations, global capital markets, and industrialized countries. Given the recognizable linkages between nations and corporations in theory and practice, this perspective will lend itself toward more beneficial, yet somewhat unpopular, recommendations for LDC development. Part II will present several theoretical starting points for the discussion, including some basic elements of economics, and will bring to light potential processes for achieving the ultimate goal of development. Part III will describe the empirical problem facing many emerging markets, most notably how their struggle to attract foreign investment and their willingness to adopt an imposed policy agenda have produced a crippling effect on development. Part IV will suggest policy recommendations for emerging market economies that will allow LDCs to reach the theoretical goals set out in Part II while avoiding the perils described in Part III. To do so, Part IV will analyze parallels between the process of national and corporate development through the stages of business planning, venture capital financing, and eventual public offering of securities. II. SOME THEORETICAL STARTING POINTS: THE MISSION FOR THE EMERGING MARKET NATION Around the globe, there is a clear divergence between developed countries and LDCs. Developed countries are industrialized production centers that offer a high quality of life to their citizens and have large amounts of capital to pursue opportunities for innovation and improvement. More often than not, these nations have relatively democratic governmental structures, liberal market-based economies, and efficient capital markets. At the other end of the spectrum, LDCs produce less efficiently, use technology that is often more crude, offer a significantly lower quality of life to their citizens, and lack the capital and resources necessary to join the ranks of industrialized nations.(1) Presuming that LDCs would prefer to enjoy the position of security and opportunity held by developed countries, the obvious goal is development. …" @default.
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- W290644046 date "2000-01-01" @default.
- W290644046 modified "2023-09-26" @default.
- W290644046 title "Less Developed Country as Start-Up Corporation: Adopting the Venture Capital Model for Development in Light of Global Capital Market Realities" @default.
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