qrm
There is much more to investment than 'buy cheap sell high".
it will always be another totalitaristic regime to fall apart and always some poor people forced to sell cheap
How is this statement related to Kosovo?
Do you understand some basics of economics?
Lets take Kosovo for example.
3 months old country, with no money, poor infrastructure and with desperate need for investment in order to develop.
How do they move forward?
They need to give some incentive to investors to come and inject some cash. For investors to inject some cash means that there must be some competitive ROI (return on investment). The riskier the investment, they will expect higher ROI.
Banks lend money on same principle. When they do your credit score check, they will assess the risk and according to that risk they will decide what interest rate will you get.
Now, its up to you to do your maths and see how much can you give away for what profits.
And this is where your economy sense is tested.
A year ago I approached one poor Croatian coastal municipality. They were quite left behind and though they owned lots of land, they couldn't sell any. Well, they were after 100eur per m2.
No infrastructure, no facilities, nothing. They offered us 10% discount of communal taxes.
I brought with me two investment bankers from London. We came up with the proposal where we would develop a master plan for a particular area where we have seen the potential. We would market that project and sell it for them to carefully selected investors. After the project was in full swing, the prices of all the land around would multiply and they would be able to make serious money. There will be many new jobs created, and lots of cash flow. In return, we asked for the best plot of land there, which was roughly around 20% of the total land offered.
Can you guess the answer? They said no. We can't give it to you. We are happy to take, but we can't give. And they are still sitting on it, asking why no one wants to invest there.
Then we moved to Dalmatia. We identified wonderful area on one of islands in the vicinity of Split. This time the story was different. When mayor heard our proposal, he offered us much better located land for half price (for total project),and offered to build the whole infrastructure from the taxes we were due to pay.
This mayor was an experienced and educated businessman, and he understood that is much better to have 50% of something that 100% of nothing. Something that the other guys didn't.
Unfortunately, some other investors beat us to it, and come up with cash quicker.
Back to Kosovo.
To get something, you need to give something. So if Kosovo government has any economic sense, they will give very good incentive to investors. In that way, the place will start developing, and other investors will follow like sheep, demand will increase, prices will go up, more money will be pouring in and very soon Kosovo government will have enough cash to start investing themselves.
What is the end of the story?
Investors that took the initial risk made lots of money, and government made money, country developed and everyone happy.
All provided that the government had enough brains to chose what to give away and to whom, and for how long.
Dubai is an excellent example of how to turn desert dust into gold dust, following the same principle.
Finally, I really don't understand where your statement about exploiting poor people who are forced to sell cheap is coming from.
