Page 32 - MYM 2016

Marketers Without Borders
per-capita GDP is $13,200 and India’s per-capita GDP is $5,700. Why is this so?
Adam Smith had the answer to this question, too: “ e statesman who should attempt to direct private people in what manner they ought to employ their capitals would... assume an authority which could safely be trusted to no council and senate whatever.” In other words, when the gov- ernment tries to run the country’s businesses, as happens in socialistic or communistic countries, the economy su ers.
In the past, both China and India su ered from this exact problem, decades of government control of business. But relatively recently, both countries have adopted free-market principles. e results have been astounding. China is perhaps
the world’s fastest-growing economy with average annual growth over the past 27 years of 9.9%. India has had an even longer period of growth with aver- age annual growth over the past 65 years of 6.1%. If these growth rates continue in the future, both China and India will close the gap between their economies and the more-developed nations like America, Germany and Japan.
What can be done about really poor countries?
ere are some 200 countries in the world, 193 of which are members of the United Nations. And 28 of those countries have a per-capita GDP of $2,500 or less. To the right, you can see 17 of those countries and their per-capita GDP.
In poor countries like these, many services we take for granted are just not available to the average person. For example, medical care. at’s why there is an organization called “Doctors Without Bor- ders.” In more than 60 countries around the world, the organization saves lives by providing medical care.
It’s a never-ending task. How can a small coun- try get wealthy enough to provide adequate medical care for all of its citizens? And, of course, things like food, housing, transportation, security and
the other products and services enjoyed by people living in the developed countries.
fig. 2: here are 17 of the world’s 28 countries which have a per-capita gDP under $2,500
country
Per-capita gDP
Liberia
$800
Niger
$900
Mozambique
$1,100
Guinea
$1,200
Madagascar
$1,400
Ethiopia
$1,500
Gambia
$1,600
Mali
$1,600
Rwanda
$1,700
Haiti
$1,700
Uganda
$1,800
Zimbabwe
$1,800
Afghanistan
$1,900
Chad
$2,200
Senegal
$2,300
Nepal
$2,400
Tanzania
$2,500
32 | MINd YOUr MarkETING OCTOBEr 2016
Marketers Without borders
Perhaps this is a job for a new organization called “Marketers Without Borders.”
e name itself suggests the answer to the problem. No small country can get wealthy if it stays within its own borders. A small country can only get wealthy if it ignores its own borders and markets brands to the rest of the world.
But business people inside small, poor coun- tries really don’t have the knowledge or the experience to build brands on the global market. However, marketing people in large wealthy coun- tries obviously do.
Take one example. Dietrich Mateschitz was in ailand when he discovered a drink called “Krat- ing Daeng” which helped to cure his jet lag. So he looked up the owner of the drink (Chalco Yoov- idhya) and suggested forming a global company. Mateschitz and Yoovidhya would each hold 49% of the company and the remaining 2% would be held