These are the three areas most likely to become Amazon’s next growth driver — and Echo’s not one of them

Amazon CEO Jeff Bezos went to great lengths in his annual shareholder letter this year to highlight the three big “pillars” of his company: Amazon Web Services, Marketplace, and Prime.

All three businesses have played a significant role in growing Amazon’s revenue, which topped $100 billion for the first time last year. But as big as those three businesses are, it’s equally important for Amazon to find the fourth pillar of the business that could eventually generate billions of dollars a year.

“While I’ll focus on those three, I assure you that we also remain hard at work on finding a fourth,” Bezos wrote in the letter.

It’s hard to predict where that fourth pillar will come from. Some think it’ll be Amazon’s voice-controlled audio speaker, Echo, while some expect its video streaming service to take off.

But according to RBC Capital’s Mark Mahaney, these are the 3 areas most likely to become Amazon’s next growth drivers: shipping, business supplies, and groceries.

Mahaney notes he picked them based on the market size, market efficiency, Amazon’s competencies, and signs of traction by Amazon. Here’s a summary of his thinking:

Shipping: Mahaney sees the parcel shipment market to be about $200 billion in size, the smallest among the three. But he still believes that’s a big enough opportunity for Amazon to invest in, and an area that needs improvements given the shipment delays it experienced in recent holiday seasons. Plus, having a stronger logistics network will only bolster the customer experience.

Mahaney believes Amazon already has the capacity and scale to build up its own logistics network, and it’s only a matter of time before it bulks up its shipping business. “Shipping as a Fourth Pillar for Amazon will be either an obvious option or an obvious reality,” he writes.

Business Supplies: Amazon Business sells everything a company needs, from basic office supplies to industry-specific products like lab equipment or hospital wear. Mahaney believes the business supplies market in to be $5 trillion worldwide.

Within a year of officially launching, Amazon Business has sold over $1 billion worth of products, and is growing 20% month-over-month. Given its size and hyper-growth rate, Mahaney believes Amazon Business could generate $3 billion in revenue in this year alone. And although that’s a relatively small number compared to Amazon’s total revenue, Mahaney sees huge potential for it to gain bigger traction soon.

Groceries: Amazon has been working on grocery delivery services for a while, but it was only over the past couple years that it really started to ramp up. Mahaney estimates the annual grocery spend to be roughly $3 trillion, giving Amazon a huge future opportunity.

Mahaney notes that Amazon is already one of the largest players in the online grocery space, and will only further grow as the total online groceries market is expected to keep expanding. And with its already robust logistics network, Amazon’s groceries business has all the potential to be the next growth driver, he says.

Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.

Understanding Economic and Political Systems Across Borders

Your business investment is affected by the type of political system in the country you wish to invest or explore. Before you decide in which country to do business with, you first need to examine the type of economic and political system it operates in. The three major political systems are (1) Capitalism, (2) Communism, and (3) Socialism. Work operations and habits are affected by each system, and your investment will also be affected in several ways that you may or may not like. Therefore, to be sure that you are going to do business in a potential country with acceptable environment without regret, you need to arm yourself with information to guide you through your investment period.


Capitalism is an economic system that leads to creation of wealth in most of the world. Most of the factors of production [land, labor, capital, entrepreneurship, and knowledge] are privately owned and used as pleased to produce goods and services. In a free market, what to produce and the quantity to produce is dictated by the market. In this market, buyers and sellers negotiate prices for goods and services. In capitalistic countries, consumers directly or indirectly inform producers on; what they want, how many they want, in what form they want it, how they are going to take possession of it, and so on. In such countries, while business owners make decisions on what to produce, how much to charge for products, how much to pay workers, where to produce goods and services, government often interjects to set the minimum wage, and also set standard for environmental safety reasons. Capitalism is what promotes the wealth of developed countries and responsible for their economic stability.


Communism is the political system in which the government owns almost 100% of the factors of production, makes all economic decisions, and also encroaches in the life of its citizens. In this type of system, you are restricted on where you should live, when you should travel, whether to change jobs, and what religion to practice. You can now see how far your investment can go in such a system with no freedom. Majority of the time governments do not know what to produce, or how much to produce because the prices are not reflective of demand and supply. Most countries under this system face starvation due to economic depression, and few prefer to build their military instead of creating wealth.


Socialism is an economic system with the premise that most businesses should be under the ownership of the government and that the profits should be distributed evenly among the citizens. Smaller businesses are owned by entrepreneurs, and those business owners are taxed heavily in order to pay for social programs. This system believes in social equality, and that the government should be an agent to distribute the wealth evenly to its citizens. It also believes that wealthier people should pay more through taxation, and that the tax revenue should be redistributed to the poorer people in form of social programs. Some of those social programs are free health care, free education, free food, free child care, and so on. Workers in this system have many employee benefits, receive sick leave, work fewer hours per week, and take longer vacations. There is no motivation to come to work early, work hard, or stay late. A major setback is that most professionals in socialist countries are migrating to capitalistic countries due to high taxation and other non-incentive issues.


Understanding countries and their respective economic and political system will help you to put your investment in the right place where it will grow and prosper for the better. Also, focusing on your business goals, and deciding on which countries you are comfortable with, will guide you into accepting a suitable economic system. In all, it all depends on how hard you want to work in order to make the profits you desire, or how lazy you want to be to receive government social programs.

Please, go to [] for more information on economic and political system of different countries.

Dr. Sidney Okolo is a professor, mentor, consultant, strategist, and Speaker. He is affiliated to several universities, the Managing Director of International Business Associates, a management consulting firm, and President of Virtual Classrooms Institute, an online education institute. Among other things, he engages in all aspects of learning, knowledge, organization and human change. His focus is on leadership, management, entrepreneurship, profit engineering, human potential, excellence, achievement, business strategy, research and development. In addition to his work in the United States, his focus is also on developing countries in the continent of Africa, their leadership, culture, economic and market structure, community planning and development. He coined the phrase, “AFRICAN PIES”, which stands for: poverty, instability, ethnicity, and sectarianism in Africa.

Why Prices and Business Costs Will Still Be High Despite Economic Recovery

The announcement of the anticipated economic recovery and business growth has raised expectations. This will evidently address business related issues and challenges in the world market. But it is important to understand that some of the envisaged advantages, especially pricing and the cost of doing business may not happen overnight. America is the only country which is expected to declare the path of recovery; this of course will have the greatest impact on Barrack Obama’s administration. Very soon, the whole world should experience revival; ultimately and hopefully, pricing will be driven by competition.

You would have to make a holistic assessment of the effects of global recession and the current status of the world business so as to come up with a conclusive account of the expected business trends in a few weeks. This goes beyond a mere declaration of an end to the global economic crisis. Have in mind that a simple assertion of recovery does not end the recession.

First, in order to bring down costs, we have to focus on the current charge of doing business. The business operating costs is a puzzle that can only be solved by putting in to consideration many other factors. We must look into the cost of oil and oil products, government taxation rates and other relevant factors that result in increased prices.

Secondly, it is common knowledge that businesses were experiencing minimal profits and sometimes losses. This is therefore their time to recover all that they had lost. It means that many businessmen/woman may not be in a hurry to reduce prices since they are still trying to make up for what they lost previously.

What I Learned From My Home Based Business

I have always worked for others and dreamed one day of having enough skills to work for myself from home. It always seemed a long way off until one day when I realised that there was really no need for me to work in a job that was frustrating me every single day. So I took the leap.

I spoke with a trusted colleague and we went over the pros and cons and I thought that working as a temp for Property Managers really could work. Every time one of us went on holiday we all complained that no-one covered for us. Not because others were lazy, but because they just had too much on. My vision was to fix this issue and others.

My first assignment was word of mouth and I slipped in for four weeks to fill the gap. Everything was smooth and the portfolio was perfect. The second was a little different, they needed someone to cover a part-time position so they had me do some tidy up of the portfolio while I was there. Happy days, I could do this easily.

The third assignment went for over six months. It was a large agency and I just stepped in where they had the need at the time. It was towards the end of my time here that I realised the draw backs. Everywhere I had been was great, I loved meeting different people and learning new things. I didn’t want to leave. I realised that the only thing I was missing was a team.

The next office was even better and I cried when I left this one after a month. They even had an afternoon tea with cake to thank me for coming. While I did work a little harder than I would for a regular office due to time spent marketing for my next job, the work was the same without the team. The pay was certainly better so I pressed on.

Two more offices later and I realised that the shine had tarnished and more than being my own boss, I wanted an office to call home. I still loved Property Management so I started looking at somewhere to stay. The internal struggle to work for myself was still very real, which made the job search that much harder. I can admit now that while I could definitely have made more money working for myself, it is just not meant for me.

Please don’t let me put you off; it was amazing and I did have job offers along the way that were very tempting. I think I am just not the right person for the lack of a team. I enjoy awards nights, internal programs, Christmas functions and a team that I am part of.

If you are an entrepreneur and can work without those few slight drawbacks, I encourage and applaud you. Congratulations and I would love to hear your story. I wish you the best of luck. Me? I am off for some team time!

I found that this experience put me in a better position and I came back to the industry as a Head of Department. I had more respect, I had networked with many brands and I had gained more skills. I am so glad to have experienced this side of the workforce and I am happy for my time working from my home based business.

Introduction to Economics and Business

STUDENT: Hello, Teacher. Yes, I know what’s coming up now! For several coming Modules you are going to lecture me about “Microeconomics”!
And I also know that “Macroeconomics is the study of how the economy functions in broad outline”, because you lectured me on that one before. You have also told me before that “Microeconomics is the part of economics dealing with the activities of individual markets and firms”.

TEACHER:. Good for you. I see that you remember my previous lecture on the subject of economics very well.

STUDENT: Yes, and I also remember having asked you “why should I, as a business person, be interested in macroeconomics”? Now, I will ask you this… why should I, as a business person, be interested in microeconomics?

TEACHER: Simply because economics is a very relevant subject if a business person is to understand the environment in which he or she operates. A skill that may help the business to be successful, of course.

STUDENT: You mean to say that to be a good business person I need to be a good economist?

TEACHER: Not exactly. A deep knowledge of economics is neither necessary nor sufficient for being successful in business. However, a good grounding in economics will help you to analyze business situations much better. Now let me ask you something? Do you know what kind of science economics is?

STUDENT: I remember something like “the dismal science”.

TEACHER: That was ages ago, when Malthus made very negative forecasts about what would happen as population increased faster than food production. No, the answer I was hoping for was “economics is a social or behavioral science”. And this is so because basically economics deals with how people behave in different circumstances. By the way, you know who Malthus was, don’t you?

STUDENT: Thomas Robert Malthus (1766-1834) was an English economist, sociologist, clergyman and pioneer in modern population study. Malthus argued that poverty and distress were unavoidable because population, when left unchecked, increased faster than the means of subsistence.
And getting back to your definition of economics, what it means is that what economists do is theorize on behavior. Is that all?
TEACHER: After congratulating you for your encyclopedic knowledge, let me tell you that economics is a social science that tries to explain the behavior of the economy; more exactly, the behavior of the economic agents which are, after all, people. Naturally since economics is not an exact science, economists develop theories which are sometimes called economic models.

STUDENT: And why and when are these models useful to a business manager?

TEACHER: Economic models are simplifications of the real world. They may be useful in explaining how the world works. Of course, the ultimate test of how useful economics is to business is… does it really explain or accurately predict what is going on in the real world?

STUDENT: Fine. And so which is the subject we will discuss in this first Module of microeconomics?

TEACHER: We will outline some of the key topics that are of interest to both economists and business persons. Later you and I will discuss them in greater detail.

To begin with, let me state that all business firms operate within a market. Would you attempt to define what a market is?

STUDENT: Sure. A market is the environment in which suppliers and demanders of a given product or service interact. And let me add that this interaction determines what is produced and consumed and in what quantities.

TEACHER: A very good “economic” definition. Obviously you mean that this “determination of what is produced and consumed and in what quantities” is reached via the price mechanism, the result of the interaction of suppliers and demanders in the market.

STUDENT: Sure. And I may add that this is why any business person must have a very good understanding of the markets in which he or she operates. But I have a question. Do all activities of a firm actually take place in a market?

TEACHER: Not necessarily. A key question for managers of firms to be asking all the time is: should we be doing activity X within the firm, or should we buy it the market from another firm? In other words… should we make it or purchase it?

STUDENT: So, an activity conducted within a firm is an alternative to a transaction in the market.

TEACHER: Exactly. While firms always operate in some market, they also perform internal activities, and one of the key economic issues managers face is to decide which transactions should be internal to the firm and which ones should be left to the market.

STUDENT: I see; and it seems to me that lately there has been a strong tendency towards “farming out” functions.

TEACHER: True. From administrative tasks to manufacturing, more and more functions are contracted in the market. EDS and IBM have dramatically increased their taking over of IS activities from firms; and farming out manufacturing to “toll producers” has also increased very much.

The theory of the firm

But allow me to expand on the subject of markets, and mention “the theory of the firm”. When we discuss how markets work, we are primarily interested on the determination of the price and quantity sold of specific products.

* The theory of the firm will be used to study the supply decisions of firms.
* Consumer demand theory will help us to generate predictions about how demand will change in response to changes in key economic variables, such as the price of the product and the incomes of consumers.

The Economics Of The Firm

While in a large economy decisions are made by an enormous number of participants, many of which are individuals, one of the key economic decision-making units is the business firm. Can you imagine why this is so?

STUDENT: Well, the business firm is an economic actor that hires workers, buys inputs, and produces some product that it then sells in the market. Of course, a firm may be organized in many different ways from a legal point of view; sole proprietorships, partnerships, corporations, etc.

TEACHER: True, but from the economics point of view the firm is an entity in itself that is conceptually separate from its owners and workers.

STUDENT: And what is the conceptual difference between the word ‘firm’, and others such as ‘business’, ‘enterprise’, ‘company’, ‘corporation’, etc. ?

TEACHER: Conceptually, there is no difference at all, according to the broad definition given above. When I use the word ‘firm’ I will be referring to this broad definition. Obviously, sometimes I will refer to specific types of firms, since in fact there are important legal (although not economical) differences between a partnership and a corporation, for instance.

Now please allow me to discuss…

The elementary theory of the firm

We call it the elementary theory of the firm because in order to simplify the “model”, we discuss a single-product firm; usually the product is assumed to be a manufactured one.

STUDENT: Is this not an over-simplification?

TEACHER: No, because the principles involved can be applied to any firm. What is it that any firm typically needs in order to manufacture any product?

STUDENT: I’m sure it needs plant and equipment, and workers to operate the equipment and for ancillary tasks. It must also buy inputs, such as components, raw materials, energy, etc.

TEACHER: Right. How would you, in general, call the plant and machinery a firm employs?

STUDENT: You are obviously referring to land, buildings, machines, tools, vehicles, etc. This is often referred to as capital or capital goods. But I am a bit confused. There is no question that land, buildings, etc., are capital. But we also often speak of capital when we talk about money in the bank and other financial assets.

TEACHER: Good point. In the theory of the firm “capital” will generally be used to refer to physical capital, such as plant and equipment. Of course the word capital is also validly used to mean financial assets, such as “working capital”, which is not invested in physical capital. But again, in the theory of the firm we will in general use it meaning physical capital

STUDENT: Fine, now I understand. But I have another question. Since the theory of the firm is based on a single-product firm, does this mean that economics can not deal with multi-product firms?

TEACHER: Economics can deal perfectly well with multi-product firms. As a matter of fact, these firms are an important topic in the branch of economics known as Industrial Organization. Don’t worry, we will discuss this matter in one of the following Modules of this Subject.

STUDENT: Would you please summarize what exactly the theory of the firm is about, in practical terms?

TEACHER: Sure. In the theory of the firm, we analyze how the technology used in production, combined with input prices, affects unit costs as the volume of output is changed. We also discuss how the demand for the firm’s product changes at various prices.

STUDENT: Sounds great. And what is the usefulness of all this analyzing?

TEACHER: The importance of all this is that, given the cost structure at different levels of output and the market demand at different prices we can conclude what level of output will maximize the firm’s profit.

STUDENT: A precise way to put it, Teacher.

TEACHER: Thanks. And since I mentioned “market demand”, let me tell you that the choices available to firms in the markets they sell to are very much influenced by the competition in those markets.

STUDENT: Easy to agree with; and I’d add that, to some extent, the firms may also be constrained by the competition in the markets where they purchase their inputs.

TEACHER: True. Competition in the market a firm sell in may be more or less intense depending upon the availability of similar or superior products, potential substitutes, and the number and characteristics of competing firms. There are basically three types of markets from the point of view of the structure of the competition.

Perfect competition

Under perfect competition, there are many firms in the market producing an identical product and none of the firms is sufficiently large to influence the market price. Can you think of an example?

STUDENT: I guess they are not too many examples for manufactured products, but in general producers of commodities such as those of grains, crude oil, etc. operate under perfect competition. An let me add that you forget one conditions, which is that for a market to operate under perfect competition all buyers and sellers must be constantly informed of the prevailing price at which transactions are taking place.

TEACHER: Good observation. Not let’s describe…

Imperfect Competition

The most common structure in which firms operate is imperfect competition. In this type of market there are a finite number of competing suppliers, each selling differentiated products that can, to varying degrees, be substitutes for each other. What type of situation do you think firms face in these types of markets?

STUDENT: I guess most firms will have to make decisions about how much to produce and at what price to sell.

TEACHER: Correct. And also of course they have to worry in varying degrees about what the competition is doing. Now let me ask you … what type of competition do you think would be in extreme contrast to perfect competition?

STUDENT: This is the M word: monopoly!


TEACHER: Right, monopoly. This is a situation where there is only one producer of a product; the single producer faces no competition from other local producers and the product can not be imported.

A monopolist has the power to set not just output but also the price of the product.

STUDENT: Nice situation for any business to be in!

TEACHER: Sure. No other suppliers can take market share from a monopolist. But while monopoly may be good for the firm involved, it will generally be bad for consumers, because the monopolist will tend to charge higher prices than those that would prevail under a competitive situation.

STUDENT: Naturally, I’m sure this is why most countries have regulations to prohibit monopolies, or to control them when they can not be avoided -cases like water, electricity or local telephone service.

TEACHER: The latter are examples of “natural” monopolies, where under prevailing technologies consumers would have to pay more if several firms were competing in the market, than they pay if a well regulated monopoly is allowed. The key word is “prevailing technologies”; long-distance phone service used to be a natural monopoly years ago, but this is no longer so due to modern communications technology.

The basic condition for a monopoly to operate is the existence of some barriers to entry, like those given by patent protection.

But let’s return to the commonest type of market, imperfect competition. This type of market lies between the two extremes of perfect competition and monopoly, and involves a range of different cases. In general, imperfectly competitive markets involve products that, actually or in the mind of the buyers, are similar but not identical. Can you think of another condition?

STUDENT: There are a limited number of potential producers, each of which can influence the others by its own behavior; changing output, prices, advertising, etc.

TEACHER: True. The most common cases of imperfect competition are oligopoly and monopolistic competition.


Oligopoly exists where the market is dominated by a small group of competing firms. Most large firms operate in this type of markets. Just as an example, let me mention the PC (Personal Computer) industry. Here each firm is greatly affected by what its close rivals do in terms of product prices and innovations.

Monopolistic competition

In this type of markets there are many firms but in general their products or services are differentiated. The restaurant business is a good example, especially if we exclude large chains. Each individual restaurant not belonging to a chain, has a small share of the market as in perfect competition; but the difference is that the restaurant has some discretionary power on the prices it charges. Why do you think this is so?

STUDENT: Because, in contrast to perfect competition markets, here the products are not exactly alike. Restaurants are differentiated by physical location, the type of food they offer, the quality of food and service, ambience, prestige, etc. I am sure this is why they have some price fixing power, but it certainly is a limited one. At some point customers will be willing to travel farther for a meal and/or accept other types and qualities of food and service.

TEACHER: Exactly. Now let’s discuss the following theme: What determines the behavior of the business firm?

Motivation Of The Firm

What do you think is the best answer to that question?

STUDENT: I’d say, as a first approximation, that a firm attempts to maximize profits. Let me add that profits are defined as the difference between the firm’s revenue (or gross income) and its costs.

TEACHER: That all firms attempt to maximize profits is not an unreasonable assumption indeed, since most businesses appear to be interested in making money. The decisions a firm should make in order to maximize its profits are determined by the current state of technology.

Technology, Inputs, And The Production Function

Technology is the total knowledge available concerning the production of certain goods or services. Firms are limited by the current state of technology. In making its decisions, the firm must take this into account.

Input is anything the firm uses in its production process; machines, energy, raw materials, labor, etc.

The Production Function

For any final product, the production function is the relationship between the quantities of various inputs used per period of time and the maximum quantity of the product that can be produced per period of time.

Now, Student, in analyzing production processes we suppose that all inputs can be classified into two categories. Can you guess what these two categories are?

STUDENT: I sure can try. Some inputs are fixed (such as the machines available at a certain point in time) and other inputs are variable; those whose quantity can be changed during the relevant period. In the latter category we may mention, with natural limitations, labor and raw materials.

TEACHER: Good. Whether an input is considered variable or fixed depends on the length of the period under consideration. The longer the period, the more inputs are variable, not fixed. In general we can define two time periods: the short run and the long run.

The short run is defined as the period of time in which at least one of the firms inputs is fixed. Since the firm’s plant and equipment are among the most difficult inputs to change quickly, the short run is generally understood to mean the length of time during which the firm’s land and equipment are fixed.

The long run is that period of time in which all inputs are variable. In the long run, it is assumed that the firm can make a complete adjustment to any change in its environment.

Average Product Of An Input

In order to determine which production technique -that is, which combination of inputs- a firm should use, it is necessary to define the average product and marginal product of an input.

The average product of an input is the total output divided by the amount of input used to produce this amount of output. Example: In an eight hour shift a machine can produce 800 units of product; the average product of the machine is 100 units per hour.

The marginal product of an input is the addition to total output due to the addition of the last unit of input while other inputs used being held constant. Example: assume that a machine makes chocolate tablets which are then put into cases by hand. With the same machine and ten workers putting tablets into cases we can produce 1000 filled cases per hour, an average of 100 cases per worker. If we add one worker, we can produce 1090 cases per hour. The marginal product of a worker is 90 boxes per hour.

STUDENT: Why is it that the additional worker only adds 90 cases of product, while the average of the first ten workers was 100 cases each?

TEACHER: Ah, this is because you have the infamous law of diminishing marginal returns working against you! Which is perhaps the best-known, and certainly one of the least-understood, laws of economics

In short, the idea is that if equal increments of an input are added, the quantities of other inputs being held constant, beyond some point the resulting increments of product will decrease. That is, the marginal product of the input will diminish. The reasons for that general law to apply are different in different situations. In our example we can assume that the chocolate tablets coming out of the machine move on a conveyor belt from which the workers take them to put them into cases. As you put one more person to work on the same conveyor belt, the workers will possibly have less space to work efficiently. It is also possible that the 11th. worker is less trained and efficient than the first ten. By the same token, if you add a twelfth worker it is likely that the marginal product of this additional person will be less than 90 cases per hour, an so on.

Now we are in a position to answer a very important question; what is the optimal input combination to maximize profits? In other words, assuming that the firm is going to produce a particular quantity of output, what combination of inputs should it choose to maximize profits? Any comment?

STUDENT: Well, obviously to maximize its profits the firm must minimize the cost of its output.

TEACHER: Yes, this seems obvious enough. OK, the let me tell you now that “the firm will minimize cost by combining inputs in such a way that the marginal product of a dollar’s worth of any one input equals the marginal product of a dollars worth of any other input used”.

STUDENT: Now is does not sound so obvious. Can you explain what this means?

TEACHER: Sure. Going back to our chocolate tablets example, let’s assume that the firm could either change the speed of the machine -consuming more or less energy per hour- and/or change the number of workers operating the packing line.

A Common Sense Economic and Market Structure Model for Developing Countries

For more than thirty years developing countries’ economic problems have created major financial crises in the international community. Developing countries have remained so due to their low-income economies. African and Middle East countries live in ethnic diverse communities and are subject to political instability and corruption than Asia and Latin American countries that live in more homogeneous communities. There is more cost involved in a population of workers and who belong to different ethnic groups because of diversity, cultural differences, religion and language. The purpose of this economic development model is to address economic stability, the problems (value inhibitors), solutions (value drivers), the strategies and implementations of the economic enhancement in order to help the developing countries be less dependent on developed countries. So many studies have been conducted on developing countries, but none of the studies have focused on how the developing countries could apply or use the economic models with less participation of the industrialized countries. World Bank and United Nations ought to examine minutely any potential foreign aid application while focusing on this model for developing countries. This model will enhance in devising a strategic means of monitoring the developing countries before distributing fund to those that may not use the model or practice noncompliance. The practical sense of the use of this model is to elevate the developing countries to economic success and stability, and reduce their dependency on developed countries.

Role of leadership

In developing countries, most leaders behave and think differently. Although, these may not be tolerated by developed countries, they are the norm and are based on their ethnicity, beliefs, religion, culture, social classes, and assumption of supremacy. Negotiating and managing conflicts in developing countries is a matter of understanding the genetic makeup of that country. Diversity may create needs but these needs do not have to be neglected in order to create balance among the ethnic or sectarian groups. A Western countries’ style of negotiating and resolving conflicts may not be applicable in the developing countries where religion and ethnicity have continuously impacted the leadership in those countries. Hence, the inefficient and ineffective leadership have led to social development and economic neglect that have caused the worse economy and poverty in those areas. If politics are set aside and economic benefits are put in the forefront by these developed countries, the chances of conflict resolution will be increased.

Leaders who have vision for change may think about what the impact the economic and market development will have in the long-run, and in the locations and in the life of its citizens. The social problems in Malaysia exist because of the ethnic Chinese who are not Muslim in a country where over 90 percent of the population is Muslim.

In developed countries, situations create focus on civilization and leadership, where civilization shapes leaders and leaders shape civilization. Power is treated as a shared resource, but in most developing countries coercion is the system used by leaders. Leaders use physical, economic, and social threats and punishments to induce change in followers for the sake of the leaders. The leaders therefore have become power wielders. These leadership problems have impacted the economic and market structure of the countries. Hence, a new model may mean a step to a new and better way of life for all the developing countries. The Western part of the Asia continent is predominantly Muslims and still have untapped resources that have not been explored because of dictatorship, politics, religion, culture, beliefs, and diversity. Exploring these countries and helping them stabilize will transcend to trading with other developing countries, which will in turn pull them out of poverty, instability, and create peace among the sectarian and ethnic groups.


Before the coming of the tsunami in December 26 2005, the South Asian countries were poor and developing. Both the South and East Asia have untapped economic sources. These potential raw materials need to be explored in order to help develop the economic and market structure of the region. The tsunami destroyed the infrastructure, economy, and the lives of the people of the South Asian countries. The 6.3 in magnitude earthquake that hit the central java of Indonesia on May 27, 2006 destroyed what was left of the tsunami. These countries will benefit from cash crop, livestock, and poultry production because of their adequate weather and availability of natural water, which will not require a high technology in order to irrigate the farmland. Mechanized farming will need to be introduced and implemented to aid in maximizing production of agricultural products. The Eastern part of South Korea has a comparative advantage over industrial, commercial, and manufacturing production. Producing and trading on building, automobile, motorcycle, and other petty materials in the form of buying and selling will enhance in the development of the market setting and economy. This will help in the stabilization of the East and South Asian countries. A stable economy will help resolve and manage conflict in these countries that have different ethnic groups and history of diversity. The economic and market structure may also aid in the stability of the leadership, political and social system. The environmental problems may need to be addressed in order to guard against pollution or any unhealthy by products or waste materials that may cause harm to people or have short or long term health problems or may be fatal to people. If these countries are stable, they will attract foreign investments rather than needing foreign aid. The military disturbances in East Timor are not helping the economic and the market structure of the young independent country.

The four factors that determine the economic growth are labor, capital, land, and Entrepreneurship. Developing countries have more labor force with lower wages than developed countries and yet their economic growth is still lower than that of the developed countries. Capital is another problem facing developing countries. They need resources such as equipments, machines, factories, and money to work with. Labor without capital is synonymous to guns without bullets. Capital will also represent an investment that will pay off in the future. Most developing countries have untapped resources such as oil, gold, diamond, minerals, forests, and water that represent land which by themselves cannot stimulate economic growth unless they are explored and converted to goods and services. Technology enhances economic growth. A group of agricultural researchers from Texas A&M University and University of California-Davis acquired a four-year grand of $4.4 million from U.S Agency for International Development’s Mission to Afghanistan eGrazing. This discovery will aid the livestock herders to successfully tend to cattle, sheep, horses and goats. If this system had been in place, it may have made an impact during the tsunami in Indonesia. Political and social factors that inhibit Economic Growth are corruption, instability, lack of leadership and administrative skills, population growth, and lack of business enterprises.


African countries are very poor and in dare need of economic and market structure development. Before these countries go global, they may to have sufficient needs of life by taking comparative advantage of their sources of raw material. Some have cash crops that need to be irrigated, some have livestock and poultry that need to be technologically upgraded, and market structure that needs to be redesigned, developed and implemented. The improvement of the agriculture will help the poor farmers send their children to school, build infrastructure, develop the quality of institutions, and make a smooth run of transportation.

Middle East

Middle East region is a turbulence area because of instability associated with religion, oil, dictatorship, and developed countries’ influence. The Iraq war has devastated the whole region, and couple with the Israel, Palestinian, and Lebanese conflict, which has created further economic drawbacks that amount in billions of dollars. The destruction of the infrastructures, and the lost of lives have sent the economy of Lebanese country decades backwards.

Latin America

Development in Latin Americans countries could stem from agriculture, forestry and fishing, to mining, and manufacturing. These Latinos can help in building their countries rather than trying to immigrate to United States of America. If guided, they will improve their countries’ economy and help in the marketing of agricultural, manufacturing and other natural resources. Immigrants spend much time in the state of California farms, Illinois factories, North Carolina, and areas in the north east of United States of America working mostly in food industries. These efforts can be redirected to Latin America in order to develop the entire area.

Political struggles, lack of administrative skills, and power supremacy have strangled the economic and market structure of most countries in Latin America. For decades the Latinos have traveled north of the border to United States of America in search of better lives. This economic situation has resulted in the deaths and mutilations of people trying to enter United States of America. The smugglers who are known as the “coyotes” have made huge profits for attempting to transport these illegal Latinos across the border. It is very dangerous ventures because of the hot temperature, train transportation, unhygienic felt, bad weather, lack of food, water, and other unknown dangers along the road to the border. Immigrants spend months traveling to the border and most times do not make it to United States because they are caught and send back south of the border. Most gang groups have resorted to kidnapping wealthy Latin Americans living in the United States side of the border for huge ransoms, demand thousands of dollars in exchange to the kidnapped victims and most of the times these victims are killed. Families are separated due to fractured economy when men live their families for years in search of money for food in the north of the border. Income is not redistributed to the population, the rich gets richer while the poor gets poorer. The people of Latin Americas deserve more from their leaders and their natural resources, which has not happened because of corruptions and drug kingpins who have operated by intimidation, coercion, and fear.

The Four “Pies” facing developing countries

Poverty stems from lack of education, opportunities, and low literacy level. These countries do not put too much emphasis in education as they resort to marrying more than one wife and having too many children. Farming and herding have been their main source of food production and livelihood. Ethnicity is attributed to too many tribes, languages, and dialects. It has also contributed to lack of trust amongst different ethnic groups due to lack of understanding each other’s culture and tradition. They have become one country but different people. Instability is created by lack of a stable government by corrupted leaders, who always come to power for the purpose of stealing funds. That ultimately leads to no mandate to build infrastructure, and develop the economy and market for the country. When people’s needs are not met, most of the times in developing countries, rebellion begins when the government neglects a certain group of people. When people are deprived of the necessities of life while the other group has it all because of their ethnicity and religious sect, it creates tensions that lead to a “time-bomb” ready to explode. These most times cause conflicts that are attributed to hatred, sabotage, riots, revolution, and deaths. This is common in the developing countries where corruption and venality have played a role due to self-centeredness on the part of the leaders. Leaders therefore resort to intimidation of their citizens and thereby control these countries by coercion.

17 Strategies for implementing economic and market structure in developing countries

(1)A comprehensive education across the country needs to be instituted. This may be in the local dialect and language in order to make it easy for the citizens of that area. Assessment test of individuals’ talent and abilities need to be explored, recognized and documented to be sure where these individuals’ maximum potentials lie. A program needs to be instituted in order to teach the citizens methods of family planning and birth control. Individuals also need to understand the social and economic benefit of the birth control.

(2)Some individuals may have ability in agricultural work (Crops/livestock/Poultry). Locations with fertile lands need to be located and utilized for crops and livestock, and those areas without fertile land may need to be used based on its comparative advantage, such as poultry, storage of byproducts, and market areas.

(3)Supermarkets are to be constructed in all densely populated locations or urban cities to enable the young men and women find and keep jobs. The stores will consist of three shifts so that students can work and at the same time go to school and do their schoolwork. These markets will be located in the areas where people can afford to shop. A Wal-mart (USA) approach will be most appropriate in these locations. The four utilities of market will have to be considered and instituted as the main reason for the location of the supermarkets.

(4)Consideration of the product that people will want, the price to set for the product, the place that will be appropriate for the supermarkets and their nearness to the people, and how the promotion of the product will be conducted in order to reach the consumers and customers.

(5)The nomadic approach of rearing, transporting, and selling livestock will be changed to using trucks to transport them if it involves long distance in order to avoid spreading of any diseases such as mad cow disease and other diseases that come from livestock feces as they are transported though out the country. Trading locations where buyers and sellers meet, and the days to meet are to be established in both rural and urban areas.

(6)Areas where people still live in poverty, a trade by barter may be established so as to allow the farmers who want to exchange items from their farms to bargain for exchange. This short-run method will continue until the economic development is in place and running.

(7)Foreign investment and property rights need to be considered as part of encouraging investments and savings in order to stimulate the economic growth. This method may help the developing countries to invest less money on capital goods, create more competitive markets, and in turns reduce or eliminate corruption.

(8)Establish local leaders by ethnicity, who will act as representatives or middlemen between the government and their ethnic group. These local leaders may be selected by group they represent and approved by the government to ensure they are working on behalf of the people they represent and not for their own self-interest. In addition, the African experts may be contracted to help establish the boundaries of no corruption.

(9)Individuals have certain religious beliefs and different ways of thinking, and as such need to be segregated according to their sect for the benefit of market structure and economic development. Individuals who understand that certain groups have designated times in which they pray will have no problem doing business with such groups. This may reduce tensions for those who understand the culture of those religious group, and for those, who do not there will be tensions and uneasiness, which is the reason for grouping citizens according to their religious sect.

(10)Government need to institute “watch dog groups” in order to police the programs and to make certain that the programs are in place and running. A 3-year trial needs to be established for any program of economic and market structure that is implemented for these countries. This is enough time to evaluate the program in place in order to ensure its workability. Experts in Africa need to be involved in all phases of implementation in order to combat corruption and promote stability.

(11)Poverty may be reduced if adequate and stable structure for economy and market is established, and the government leaders via the local leaders address all citizen’s problems. The essential necessities — housing, clothing and food – may be the top priorities for these countries in order to reduce the poverty.

(12)Professionals and skilled workers are to be encouraged through issuance of incentives in order to motivate them to stay and reside in these developing countries and help in the development of these countries rather than leaving for developed countries. Mass exodus from these developing countries only harms and delays the development of these countries.

(13)Construction of infrastructure such as roads, buildings, and bridges are important for the economic and market structure of developing countries. Food products and other necessities of life can be transported to their respective destinations as quickly as they are needed when good infrastructure is in place. It may also encourage in foreign investments. Investors will prefer to invest in stable countries to unstable countries.

(14)Construction and installation of adequate running water in developing countries and to all parts of the countries also will help in building stable economic and market structure. It will help in curtailing diseases such as typhoid’s and malaria that usually come from unclean water. It will also help the children to focus in education and literacy programs rather than traveling miles upon miles to fetch water from the streams and wells. Some of these children die in taking these water-fetching adventures.

(15)Installation of electrical system may help in the growth of communities. Businesses cannot operate adequately where electricity is lacking. As such, these countries will require electricity in all areas of the countries as a form of economic development and market structure in order to help businesses function and grow, help in the food storage, and eradicate waste of food products that would otherwise be stored safely in cold rooms and refrigeration.

(16)Social Organizations need to be introduced to help the poor get out of poverty, and give them the opportunity to operate their own small businesses. This type of organizations are set up by the government as not-for-profit organizations, and the purpose is to develop the people’s business skills and issue them interest free start-ups loans to enable them manage their own businesses, which in turn lead them to poverty free. They will guided them to the type of businesses to open, how to open them, where to open them, and why they should open those kinds of businesses.

(17)The potential goals may be achieved by enforcing the use of this model as a condition of receiving funding or foreign aid. As a way to check and ensure that monies do go to what they are intended for, developing countries pledge to use and implement this model. This model will check and police the development of the projects. The intention of this requirement is not to discriminate against developing countries, but to help the citizens of those countries as they have no way of benefiting from these funding and foreign aid that usually end up abused, misdirected, and misused for other personal and private purposes by the leaders due to corruption and venality.

Who Are the Developing Countries

World Bank defined developing countries as those with low-income economies with per capita incomes of $755 or less. World Bank is an International Organization that categorizes such countries as developing countries and also issues loans to them.

Dr. Sidney Okolo is a professor, consultant, strategist, and Africa expert. He is affiliated to several universities and the Managing Director of International Business Associates, a management consulting firm, and also the President of Virtual Classrooms Institute, an online education solution.

Does Bad Luck Always Come in Threes?

A few days ago my trusted laptop died on me, well certainly it went into a coma, waiting for repair and a new lease of life, I hope this can be achieved when I return to England. Yes you are right I haven’t backed up the recent stuff, on my external drive, like everything we always think it won’t happen to us!

Saturday was a beautiful day sunny day here 24 degrees, so we planned a walk to my favourite beach a few miles away. We set off, parked the car, and decided to take a shot cut along a track. We reached the beach, as beautiful as ever, enjoying our walk; then we watched a yacht in a strong sea breeze whilst we drank a beer.

Heading back along the track I tripped and fell. After getting my breath back I hobbled the remaining half a mile to the car. On returning home my leg had swollen greatly and I could hardly move. Two days later it was no better so I decided on a hospital visit.

Yes a fracture, I had been walking about on a broken leg. Now I’m confined to a wheelchair and the now small world, of my lounge. Luckily we have a large sofa and a downstairs shower room. I spent the next few hours manoeuvring a wheelchair. I’m actually quite proficient now, I can reverse park and transfer myself from chair to sofa!

However it’s now 3.15 am and the discomfort of the toe to thigh plaster has awoken me again and as I write this I wonder with trepidation if there will be a number three disaster?

Dismissing the idea I decided to concentrate on what is good in our lives. Affiliate marketing has allowed me to work at home and winter in Spain. It makes a great hobby, giving me an exciting interest whilst my sport enthusiast partner pursues paddle tennis squash and cycling. Plus I get cash rewards and satisfaction as it grows.

We are enjoying some glorious sunshine and beaches whilst virtually everyone I know is shivering in the icy-grip of winter in the UK. If you would like to plan your future in the sun and work online, wherever home may be, affiliate marketing could be your answer.

Affiliate marketing is a simple online system; If you choose to work with the guidance of a mentor, excellent products for your customers are provided, together with sales pages and training, plus the companionship of others learning at the same time.

You won’t have to source your own products, build websites and learn all the marketing techniques before you start to see orders coming in. You can start earning whilst you are learning the skills. It is a great way to spend your winters with time flexibility and choices.

You obviously have to work to build your business, but once it is established you too will have time for other things. Live anywhere and work with your laptop, start now and plan your future, make 2016 a year to remember!

Books to help and inspire you:

“Ask for the Moon and Get It!” by Percy Ross

“Awaken the Giant Within” by Anthony Robbins.

“The Power of Your Subconscious Mind” by Joseph Murphy.

“Feel the Fear and Do It Anyway” by Susan Jeffers.

“99Ways to flood Your Website With Traffic” by Mick Macro

“SEO step by step” by Caimin Jones.

Hello My name is Anne

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