Developmental Economics

I started this blog to speak about the challenges that a venture capitalist like me is facing and to educate the public on a variety of issues. Especially if those issues are related to economics. Regardless of whether we’re talking about micro or macroeconomics, I am here to openly discuss every possible scenario that leads to development. I know that economics is a broad topic, and that’s why I always discuss it in an interdisciplinary manner. To understand the economy, you also need to understand sociology, politics, culture, psychology, etc. Actually, one needs to have an advanced level of knowledge in social sciences, and at least a moderate level in human arts.

During my work, I’ve met a lot of people who deal with developmental economics of developing states, and let me tell you that those economics are one of the most interesting and definitely the most challenging, at least to me. Understanding a society that has a different culture from yours is not an easy matter. When discussing such societies, you need to be very careful not to sound like an idiot. As a venture capitalist, you need to understand the regional and local dynamics since you cannot apply the same rules in the USA and Africa, for example. You might apply them, but you will witness different results. A lot of venture capitalists are only interested in profit, and profit should be your motivator, but you need to know that not everybody has the same demand.

I was involved in several international projects and my experience tells me that the easiest way to set yourself up for failure is if you think that the market will adapt to your needs and not vice versa. The international project that I was the fondest of was about providing water infrastructure to a community affected by a devastating earthquake. There was a need for a whole new infrastructure. After we managed to repair the electricity infrastructure and provided basic hygiene needs with the running water, we had to make it possible for the locals to run hot water. This is where my venture capitalist experience came in hand and through my contacts we managed to provide the locals with water heaters researched on tanklesscenter.net. Now the community is up and running, and people seem to be happy. The intervention was successful only because we managed to answer people’s needs without imposing what they don’t need.