international, serviceI am currently an undergraduate business student born in the US to immigrant parents. I’d like to conduct for profit business over there in the services industry.
Government in that region (my parents are from the West Indies) is typically corrupt to varying degrees and as a result public services suffer, again to varying degrees.
Given that information, what do you guys know, have experiences, or just think about competing with government in the public services sector?
Do you think they would try to kill me, make laws that would hinder my business, perhaps use crony capitalism to fund someone they know to push me out the market?
I’m just asking if anyone has experience working in developing/third world environments because corrupt and unstable governments are bound to do pretty much anything they want if they feel their money is in danger.
What you are describing is normally something taken on by non-governmental organization (NGO) - not for profit businesses.
In general, business investors are reluctant to invest in unpredictable and insecure environments. My experience is that it is not the common for a business to enter an economic region were corruption of some form is the norm in an attempt to change how business is done; worth noting that it is a crime for a US based business to engage in bribes internationally.
Given that I'm not an expert on the topic, the best I'm able to suggestion is to open up your search to cover all the world and non-NGO approaches to fighting corruption. That said, I'm guessing that you will find the most research being done by NGOs; for example, you might take a look at this unclassified report by the Organization for Economic Co-operation and Development titled "Fighting corruption and promoting competition."
Mafias are a much bigger everyday problem than corrupt civil servants.
Assuming you stay reasonably low, the worst you’ll see happening in the case of corrupt civil servants is a taxman, a hygiene controller, or a police officer finding “problems” in whatever they’re probing into. You may get more or less obvious invitations to pay cash in order to make the problems “go away”.
As time passes, it can become a recurring thing if you cave in. Locals who play along (many don’t) tend to think of this as a cost of doing business.
Mafias, on the other hand, are a much bigger problem. Especially when they pocket local politicians or police officials. You do not negotiate with a mafia: if you’re on their radar, you’ll basically be subjected to a protection racket. Just about anything becomes possible then.
If you are on their radar, that is.
And that’s a big if, in my experience living in Central America and in the Caribbean. If you’re not too flashy, or if it’s well understood that you’re doing something helpful for the community, or if you’re on the good side of well connected locals, your odds of being subjected to any of this are very low.
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