Some Thoughts On Living In The Less Developed World: Emerging Markets ~ by Jurgen Klemann
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Some Thoughts On Living In The Less Developed World
Emerging Markets
By Jurgen Klemann
Loads of articles in this magazine revolve around countries like Argentina, Brazil, Mexico, South Africa, Panama, Belize, the Dominican Republic etc. What do these countries have in common? They all fall into the category of emerging markets. No matter what the differences and similarities of these countries may be, one way or another, they all belong to the less developed world. 

My humble self prefers the phrases “less developed world” and “developed world” to phrases like first, second, third and fourth world. First, because it is a little difficult to draw the line between these categories.

Second, lawyers do not enjoy a reputation for being skilled with numbers. I am a typical example of that species. I abhor everything that has anything to do with numbers crunching. So let us continue instead with the phrase “less developed world”.
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Since cruising around all over the globe and turning into something like – even though it sounds a little cocky – a global player, so far I have lived and worked in two less developed countries. The countries I am rambling about are South Africa and Mexico.

My first career in law and business led me to South Africa. My second career in college teaching has led me to Mexico.

As living in the less developed world is not necessarily the same as living in Gringolandia and Western Europe, it may be worth chatting a little about living in the less developed world. What makes living in emerging markets/less developed countries different to living in the developed world?

Poverty

One point to be mentioned in this context is poverty. Forty per cent of the population in Mexico live in extreme poverty. Seventy per cent of the population in Guatemala live in extreme poverty.

Eighty per cent of the population in Honduras live in extreme poverty. South Africa appears to be turning from a race society into a class society. Whilst a tiny upper class and a small (upper) middle class enjoy a truly pleasant lifestyle there, the overwhelming majority of the population in South Africa faces poverty or even extreme poverty.

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Of course there is also severe poverty in countries like the United States and New Zealand. Nowhere in the developed world is the gap between rich and poor as fast growing as in New Zealand, according to some findings by the OECD. However, it goes without saying that the portion of the population living in poverty is a bunch more significant in countries like Mexico and South Africa than in New Zealand. What makes the difference is the percentage of the population that faces the consequences of poverty every day.

The other extreme is Colima deserves to be called “cholo ciudad”. “Ciudad” is Spanish and means city. “Cholos” or “nacos” is Spanish slang for people who do not have the foggiest clue about what to do with a knife and a fork in a restaurant – the burger classes. In  a nutshell, in case you are toying with the idea of relocating to a less developed country widespread poverty there does not necessarily have to affect your quality of life.

When you stagger around a little in cities like Johannesburg or Mexico City, you come across another feature of widespread poverty in emerging markets – street hawkers.

There are a heap of street hawkers every day in those cities trying to sell you all sorts of things. They do not really try to make a living as street hawkers because they are truly convinced of the concept of free enterprise.

Those folks do not really have a bunch of options, as far as making a living is concerned. They often cannot land proper employment in the formal sector of the economy. It boils down to the fact that the informal sector of the economy is their last and only resort to survive.

The informal sector of the economy in South Africa also consists of taxis without licence and shebeens. Shebeens are bars in black townships without a licence. Needless to mention that I graced a few shebeens in Soweto with my presence when black friends of mine took me to Soweto. You have got to have some fun in life.

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Unemployment

The existence of a significant informal sector in the economy leads us to another serious issue in quite a bunch of less developed countries. The issue I am rambling about now is unemployment. Let us use South Africa as an illustration here. According to official statistics, the unemployment rate in South Africa hovers around twenty five per cent. Everybody who knows the country and lived or lives there can confirm that this statistic deserves to be called a whole load of bloody rubbish. Trying to get a more or less realistic handle on the situation there, the unemployment rate in South Africa presumably hovers around forty per cent. 

Most of the unemployed there are blacks without any useful qualification or experience. To quote Paul van Eeden who reflects exactly my stance: “I don’t think many people who have not lived in a third world country can fathom what forty per cent unemployment is like”.

Unemployment often leads to crime. Crime may be the last resort to survive. Crime may destabilise the entire society. As a consequence, the hoi polloi who form their world view based on what they see in the box expect the government “to do something, anything”. As Ronald Reagan used to say: “The most dangerous words in the English language are – Good morning, we are from the government. We are here to help you”.

Even though South Africa may be an extreme example, the following figures may help you grasp the consequences of severe unemployment. There are about twenty thousand murders committed in South Africa every year. To make a comparison, there were more or less sixteen thousand murders committed in the United States in 2001, which does not enjoy a reputation for being a peaceful safe haven. However, the population of Gringolandia is about six times bigger than the population of South Africa.

Even though crime seems to be a serious issue in Mexico City and Guadalajara as well, smaller places in Mexico like Colima do not seriously suffer from it. They are peaceful and quiet.

By the way, a rather unusual feature of crime has unfolded during the last ten years in South Africa, about which you do not hear a bunch in lots of mainstream media outfits. I am talking about the slaughter of white South African farmers and their families. During the past ten years, more than one thousand farmers in South Africa have been killed. To put things a little into perspective, during the Mau Mau uprising in Kenya no more than thirty two civilians were killed. During the civil war in Rhodesia, which lasted fourteen years, exactly two hundred and sixty nine white farmers were killed there. 

Cooking up some sort of conspiracy therory may go a little over the top. These farm murders are likely to be explained by ordinary crime. But they reflect very badly on South Africa. 

You may wonder how come I am aware of them. Quite simple. I read the right newspapers. I hardly read German newspapers. They are dreadfully dull and horribly politically correct. When I do read them every now and then, I usually envy my feet fallen asleep. My favourite newspapers are “The Economist” and “The Spectator”. Both tend to be radically liberal. In particular, “The Spectator” reflects viewpoints that deserve to be summarised as marvellously politically incorrect.

After keeping an eye on the election campaign and the election in South Africa, my humble self reckons that the country does need indeed media that stand for true independence and political incorrectness. I followed the campaign primarily be reading articles on that topic in my favourite newspapers and magazines. The campaign was somewhere in the middle between horribly dull and dreadfully boring. South African newspapers like Business Day reckon that this assessment is a good thing because it shows political maturity. I do disagree. I do not reckon that the boring elections in former East Germany were a good thing.

Assessment

Taking these drawbacks into account, is it worth living in a less developed country? Yes, it is. Of course terms like “less developed country”, “developing world” or “emerging markets” imply that there is some development going on or that something is emerging there. To rule a misunderstanding out, we are talking here about countries like Argentina, Brazil, Mexico, South Africa etc. We are not talking about failed states like Afghanistan and Somalia. Once more, my answer is an unequivocal yes. However, what are the reasons for my unequivocal yes?

Based on my own experience in South Africa and Mexico, there appear to be less rules and regulations that dominate your life, both privately and professionally. The individual – at least the individual who has something between his ears that deserves to be called brains – often enjoys more freedom in terms of what you can do and how you can get things done. In a nutshell, there are more opportunities to make your mark. 

To illustrate the claim with an example, there are a bunch less constraints at colleges and universities in Mexico as far as curricula are concerned. It means that you have more freedom to do what and how you want to do things in the classroom. Needless to mention that this sort of freedom also entails more responsibility to do things properly. To be a little provocative again, this sort of freedom is presumably not the cup of tea for folks who – how shall we say – are not the sharpest knife in the drawer.

Anyway, your quality of life may improve as well when you shift to the less developed world. Just leave big cities there – like Johannesburg or Mexico City and the hassles that they entail – behind you and you may an enhanced quality of life. To illustrate it again with an example, one of the things that yours truly most enjoys is sitting on my roof terrace, watching the sunset and listening to animals. When you do this sort of thing in the developed world or in any big  city , you “enjoy” the sound of car alarms. Do this sort of thing in a more pleasant setting and you can hear insects, birds and other animals.

There is one region in Latin America that may offer some ground floor opportunities for adventuresome folks. The region includes western Brazil, southern Peru, northern Chile and Bolivia. Goldman Sachs has recently published a study, which predicts a brilliant future for Brazil. Regretfully, that study has been ignored to a large extent.

Anyway, why does that region offer some splendid ground floor opportunities? Quite simple. The economies of these countries are based on natural resources and commodities. Western Brazil and eastern Bolivia are situated in the Amazon basin and are blessed with timber, coffee and cocoa. As far as my humble self has been able to get a grip on the situation there, a Trans Oceanic Highway is being constructed, on which these resources and commodities can be delivered to the coasts of Peru and Chile. Moreover, Bolivia may turn into a significant natural gas producer. However, that region falls into the category of a real frontier, which means getting things done there will take years, not months. But frontiers do offer ground floor opportunities.

As often in life, it does not make sense to look for guarantees. Instead, look for opportunities. There is a difference between making a living and making a life. We have not exhausted our frontiers. We often just fail to recognise them.

New Latin American Literature

Students sometimes ask me what my favourite music is. When I tell them, their facial expressions clearly indicate that they do not have the foggiest clue what I am talking about. When I ask them what their favourite music is, my facial expression presumably tells them that I do not have the foggiest clue what they are talking about. The music at the few sudents’ parties that I blessed with my presence gives me the impression that I may give that sort of music a miss.

However, things tend to be a little different with Latin American literature. Latin American literature made inroads throughout the world with novels that reflect the magic of tropical worlds. The novel “One Hundred Years Of Solitude” by Gabriel Garcia Marquez may serve as an example for the literary style called “magical realism”.

But the wind of change seems to be blowing. The Mexican writer Jorge Volpi was born about a year after “One Hundred Years Of Solitude” was published. He and  fellow Mexican writers – e.g. Ignacio Padilla and Eloy Urroz –  are developing their own style. They refer to themselves as the “crack generation”. They mean by “crack generation” that they have abandoned literary conventions that dominated Latin American literature for quite a while.

It may be worth keeping an eye on things. Things are happening in the less developed world, in terms of business and literature and ....

The following is a list of articles written by Jurgen for the magazine:

To contact Jurgen Click Here

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