Developing nations by building commerce
Opportunity in flight capital
China, Russia, and Nigeria are the largest sources of
illicit flight capital in Asia, Europe, and Africa
respectively. Trillions of US dollar equivalents are
being transferred and held offshore. The money
sources from bribes, trade mispricing, FDI diversion,
and a wide variety of creative tactics.
See for example:
Illicit Financial Flows and the Problem of Net
Resource Transfers from Africa: 1980-2009
Joint Report by the African Development Bank and
Global Financial Integrity, May 2013
Enforcement attention is focused on stopping such
transfers and eliminating the havens that accept
them. This is appropriate.
But what if we could also convince those that control
the funds to anonymously reinvest them in projects
that aid the developing world while offering rates of
return that are much higher than bonds or mainline
equity? That money represents a gigantic pool that
could radically alter the value chains in which poor
farmers participate. And much of the money comes
from citizens of those same countries who are in the
best position to assess frontier market risk. Who
knows until we ask?
The "bottom billion" of the world's people live disproportionally in countries which are
resource constrained or trapped by ineffective government. The people have no access to
capital for community-level investment because they have no collateral. They have no
advocacy apart from endless donor aid.
We believe that every community has something to offer, and that each has the potential
to meet its own needs. The key to enduring community development is a favorable
balance of trade - selling something that the world needs, at a price that affords a good
contribution margin. Sometimes this requires moving further down the supply chain to
capture more of the value of a retail sale. It may require different farming or extraction
methods to improve product quality. In every case it requires outside intervention.
There are a constellation of non-governmental organizations that provide technical
assistance to developing communities, usually funded by specific government aid grants.
We are one of those, although we are working toward a more holistic solution based on
combining revolving aid funds with value chain upgrading. This site provides additional
detail on our approach.
PBV has created, grown, and sold companies since 1988. More recently, we have begun
applying this experience in lesser developed countries and frontier markets where so
many commercial opportunities remain unchallenged. We are both investing for our own
account through targeted country funds, and collaborating with donor organizations to
better direct development aid to regions of socio-economic disadvantage.
A Mission of Profitable Empowerment
Copyright 2015 Pacific Business Ventures
Website by PBV Technologies
Pacific Business Ventures
HDI Source: UNDP & jepoirrier.org