Social Philosophy: Economics: Business in the World

The following is excerpted from someone I know who has a small engineering firm in a certain Middle Eastern Country. When I first read it I thought yep that sounds about right for over there, then I got to thinkin' is this any different from the way big business is done in the USA (except for maybe the scale)?

BUSINESS… September 09

Business in this country is financial and relational – if you pay the right amount to the right person, you continue in business.

Business laws are made because they are expected, mostly from Western pressure, not because they are needed or expected to be used. They are not always written for function and ease. But this lack of precision is acceptable. Here is why…
For Example: Instead of law-abiding, an importer has a
relationship with the customs office in which both
understand how much cash the customs office employee
needs to complete the paperwork. And if the importer has
no relationship with the customs office, this niche is filled by
many competing individuals or companies that are
dedicated to liaison specifically between the importer and
the customs office. The tax office runs the same – relations
not rules. The same for the municipalities – the fees for
garbage collecting is negotiable. For instance an oil-change
and car repair shop wisely agrees to pay a long-term once-ayear
street set clean up fee to the government
representative, rather than leave it open, being vulnerable
to large increases that would force him to move the shop, or
close.
Large operations pay large people. Or, for simplicity, large
companies simply put a ruling government party head on the distribution of net profits, as if an investor. This ‘protects’ the company from lower-level government employee extortion attempts, for no one can ask something of someone above them on the ladder, only down.

“FREE MARKET” Government
Actually, in an odd sense the government is a good example of the free market. The government office employees are highly opportunistic. Any time a business needs something like import license renewal or tax payment receipt, the government employee meets the need, not the paperwork and laws. In other words, prices for business fees and taxes are negotiated with the government employee. Unfortunately, there is a lie stuck in this process – the government employee only reports to the government a small portion of the collected fees.
But in this government staff oligopoly, there remains a small competition between employees, each vying for the right to process the applicant’s, let’s say customer’s, paperwork, lowering the market price slightly for the consumer.
In another odd sense, there is free market investment within the government. Individuals, given the right opportunity and, again relationship, purchase an open government position with cash paid to someone in a higher position in that same office.
Or maybe someone owes a family or individual.
Instead of paying they might assign them to a controlling, ‘opportunity’ position. This position gives them hopes that they will have a good return on investment. Return on
investment is, of course, not the token government salary, but the opportunity to extort from the rich and squeeze the poor and, of course, eventually appoint others, pocketing the cash paid for the sale of the position, minus fees that continually leak up the hierarchy.
So, in the end maybe the government is more free business than the government allows the industry to be free market.

Relationships build strong business
Let’s get back to business. Earning customers is based
on relationship. If someone doesn’t like a family or
tribe, then they will not buy from them, no matter
the financial benefits. This does not always work the other way.
A company won’t buy product from a friend if the price is inflated.
Risking the loss of relationship, they might kindly point out the
price difference, or instead give an excuse that it was maybe a staff
mistake. Family is one tie, another is tribe, and another is like-
mindedness. There is commonly a beautiful cooperation between
believers in business. One believer recently sacrificed time and
investment to help jump start another in a cooperative service
business. As in most countries, trickery, back-stabbing and thievery
are common. Wickedness is generally only found under the table.
In other words, a local would not want to be known to have been
evil or wicked or even disrespectful. It would reflect poorly on their
family, lowering their status and potential. So if evil business
practices can be hidden, it can be done.