Why DiB‚Ñ¢ is inherently a private sector affair
Wednesday, April 15, 2009 at 2:47AM GLOBAL BUSINESS: "Private, but Public: Companies in emerging markets often have to take on services usually provided by the government," by Mike Valente and Andrew Crane, Wall Street Journal, 23 March 2009.
The "new frontier" of "company towns," as it is described here. If you want to go into the Gap, be prepared to develop entire systems and communities and not just your mine or factory.
Of course, mining companies know this going back quite some time, learning the hard way and adapting.
The inset sums up nicely:
COMPANY TOWNS
•New Frontier: As companies move into developing markets, they often find themselves taking on jobs usually handled by the public sector, such as building roads or opening hospitals and schools.
•Big Hurdles: Companies struggle to help locals without making them too dependent and to placate shareholders who may not see the value of their investments.
•Modest Proposal: Companies must take on sweeping roles only when the situation demands. And, whenever possible, they must be prepared to work through other groups and turn power over to locals.
All very DiB: if you come in for the resources, you must create infrastructure beyond that required to move the goods.
You have to leave the place more connected and more empowered than you found it.
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