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17.05.2012
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Building Thriving Companies in Low-Income Economies

The Challenge

Post-conflict economies and many low-income countries, such as Bangladesh, Haiti and Rwanda, offer prospects for high returns. But inward investment flows beyond oil and mining have remained scarce and have taken a substantial hit as a result of the global crisis.

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This group of economies is locked in a pervasive disequilibrium sustained by low expectations, dismal reputations, high entry barriers and poor information.

The creation of steady employment in formal enterprises is central to economic development and stability. The few successful companies in these markets merit attention.

(Please click to enlarge)

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Factors that de press investment today may recede as credible evidence of profitability shifts collective expec tations. Is there scope to reverse the marginalization of the poorest countries in the global economy? How can low-income countries credibly signal attractive business opportunities? And what can be done to reduce the high costs of “doing business” in these countries?

Proposed Solutions