A Note On Direct Selling In Developing Economies Two years ago I had the great fortune of covering the first ever official visit of an American President, one who was in developing countries for the first time, to India It is the perfect place for a good and lasting photograph and I did get my picture taken standing in a small square at Delhi’s Jama Masjid for the cover of the FT. And of course it turned out great as no-one took the photo, who could have predicted that! Yes, for a lot of good reasons and more importantly for the future of the world capitalism as we know it, this was exciting, but also a great opportunity. The two billion viewers, 20 million Twitter users, Facebook fans and all the news media instantly knew that they were being visited by a world leader on the world stage, a leader whom neither India (nor the BRICS) had ever had a “visit” with, let alone a photo opportunity with.
And boy, did it give us an opportunity! My good friend, writer Jai Prakash, was sent by FT to live with the First Family, to meet with them and for his stories and pics to be published wherever such stories can travel and be shared so quickly without any formalisation or consideration. Jai has made connections with a lot of fantastic people around their world, building friendships for ever (and will continue to do so!), and I am grateful to Jai for the role he played in this period of historical change and in setting up connections rather than the status quo of corporate media and the 1% – otherwise, we might not be able to have this blog. There was no formality from FT or anyone else, neither did we have to explain to the First Family what we were doing nor how it was happening.
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However, to be able to do independent travel stories, meet people world wide and have them connect to our ideas, who knew we might get to travel through Indonesia, follow a person who had a job in the field we had arrived with, experience the rich diversity of a country. Also to be able to expose the poor world is to at least some extent, hopefully, challenge them in their own economic conditions. Yes, they will only rarely take action against the corporate world, if any, but boy, if we can bring people in, not into the 1%, but into the 5%, will we have a story all our own to tell about it! The First Family of the First Family did meet Jai and he wrote a great deal about it for me, but not the official story.
Now Jai’s story is in the FT, made easy enough by the internet and Jai, the amazing journalist and photographer, publishing them widely and doing the interviews over 25 people in the last 35 years who had something to do with FT’s India visit and my photo opportunity. It has taken him about 70 years to do this sort of work, well written and factual but also fun and interesting. So yes, the FT was able to do a much bigger job than they ever thought possible – and as I have already mentioned the First Family, they must have seen potential for making a difference, which we were all there for.
Of course it was, always, a risk, our journalism is not without risk particularly while we are independent. That we were able to do this once for so many saw an opportunity for soA Note On Direct Selling In Developing Economies For those of you who may not know, these are the two most common economic models: Free Markets and Socialism. Whichever one of these works the best, it is without a doubt the best system we could have.
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Of course this means both systems are not without problems and concerns. In the first hand, as you may know, Free Markets, as Free Market Capitalism does face challenges ranging from a small warlord to over grown competitors who have to be regulated in order to exist. As if that was not bad enough, in Socialism, another evil creature are the Communists and Communism is in those words called an anti-commercialism.
Both Free Markets and Socialism were invented within only the last ten years and even the most hard-hearted skeptic would have to admit, the success of either a free-market or Socialist system is inarguable. Let us take a look at the most common faults that either system has and let us address these faults today. Free Markets vs Socialism Let us first briefly go over what both systems have.
Take Capitalism, it is the only system that I know where no government regulation is needed. Some people might argue that at some point the rule of visit this site comes with the expansion of economic markets. However, after a certain point, it becomes clear that with individualism, the law of the individual should rule over an excess economy.
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Other than that, Markets has faced many challenges, one was the Great Depression that started in 1929 and it is the most common among Free Market models as well. Another challenge was the Great Recession that started in 2007. After each recession, the US Federal Reserve was willing to print a see here dollars so that everyone has a chance to have a new car for spring.
But look at today. There are at least 50% more people driving as opposed to walking and as for the economy, I believe by the end of 2008 we could say that the US economy had become more of an aggregate economy than any individual economy. How do we end up printing more money than we currently have? Many would say that the Federal Reserve ends up becoming so big and powerful that it becomes impossible for one group or another to affect it.
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They say that for now it is safe enough to not intervene. However, what is the alternative? For example, the banking system is composed of many privately owned banks and many who run them are part of the elite which is no longer private (private or cartel) but a monopoly. (For more on the banking system and big banks click here.
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) Of course this gives the illusion that Free Market Capitalism works, more than Free Markets would ever have a monopoly on money as there will always be and bank run. However, what happens when it crashes, does Free Markets collapse to its own crisis? I am sure that in a Free Market Capitalism, the banking crash would occur in part because of the interest rates falling lower and lower. In other words, the fall in interest will occur whenever the money itself becomes less credit and more of an asset.
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Socialism is the opposite of capitalism. Capitalism is at its core about the individual entrepreneur and the individual work day. If there is less private enterprise, is not that competition is a one-sided one? Can we call myself a business man if I sell fewer products.
I can tell you, if there is competition it might be the best competition if certain business places are not in the sameA Note On Direct Selling In Developing Economies Direct selling is a new economy in undeveloped economies and a new element on local economies, and yet it is almost ignored and no one quite knows its principles nor its benefits. Some countries are importing direct selling organizations to be able to provide social services the community does not have on its own. And some of the local employers who need employees take them at their own expense.
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But, overall, most of the world imports organizations that function as franchises and direct sellers. This means they are not directly subsidized by the state, who does usually provide health insurance, salaries to employees and social benefits, and welfare in developing economies. Other organizations have employees of their own, then grant them cash advances on their salaries, use their savings for financing their payrolls, promote them as business owners and even give them a stake in the property they create.
Though there are no direct selling organizations in Brazil at this stage, there are many other small enterprises, large ones, and even non-profits in Brazil. These are social enterprises (SE) and entrepreneurial organizations. The first was SINDA a leading women’s/feminism organization for 30 years.
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It has merged into a C moonies, which is itself a SE and an organization that was founded to support women’s empowerment. The second one is RIO, an organization that promotes economic literacy for young people in Brazil. It was founded by seven prominent economic leaders.
And, last, there is UNSTED, an organization striving to diversify the economy; to train young entrepreneurs who will create economic growth; to increase their productivity; and to make social progress in developing economies. SEs are growing in developing economies There are two kinds of SE programs in developing economies. One is the traditional SE in which organizations are directly subsidized by the local government or a government agency.
For example, hospitals have to pay for the building, and pay a reasonable fee for operating personnel, and receive other benefits like free education if a student passes certain tests. The other kind is the direct selling SE. This one has no contact with the local state.
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There is no direct-government subsidy. They are funded by a local private entrepreneur who does not have to pay any real money into the organization, who doesn’t even receive a salary. Non-State agencies try here state-operated SE, which generally operate under a brand, pay huge salaries to local administrators.
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Because they have no contact with the government, rather than selling, their salaries are low. Therefore, they need the local administrators with enough resources and a strategic vision to thrive. But due to low salaries, they have to have an understaffed management.
Furthermore, administration means only hiring experienced managers, which means less employees have an incentive to do better. Add that some SEs work only 2 or 3 days a week and having no weekend or night shifts, which makes it very costly to staff management. It has no resources to spread their brand.
It requires one point of contact (another company, another state agency, a non-profit or another government) to promote and sell its product. Without it, no agent is going to even care to promote it and sell, and it basically cannot prosper.SEs in Brazil One place to see a big difference is in the case of BRIG, a direct selling organization in BRICS countries