Ending the Current Recession (Part 2 of 5): Joint Venture Terms

What business arrangements are possible for thousand-employee investment unions in the 3rd World and their 1st World corporate joint venture partners? Here are examples:

1. Build-operate-transfer. BOT terms are ideal for such million-dollar projects as mini-dam and hydropower plant chains, ethanol distilleries, toll roads, ports and docks, marinas, waterworks, light rail, waste treatment plants, telecoms and other infrastructures. The foreign partner finances and builds the entire facility and operates it until construction costs and world-rate profit has been recovered. Thereafter, ownership transfers to a local partner consortium of ten or so investment unions. The 1st World EWM agency may lend the funds. At transfer time, the local consortium and/or its employee-entrepreneurs borrow from local LME funds for capitalization, maintenance and expansion purposes. As starter, 1st World companies with good BOT ideas may advertise in this blog. So may Philippine employee groups planning to set up BOT projects. Link-ups thru the ads may form profitable business ideas for Philippine application. Our scheme however requires passage of EWM and LME laws to finance such huge projects. Consequently, the potential partners will have to ‘force’ themselves to engage in political action as part of our anti-poverty cyber army.

2. Licensing for parts manufacture and assembly. There are over six million technologies on file in the US Patent Office alone. Some 300,000 more US applications get filed each year. Only 6% or so get commercialized. 1st World companies that operate billion-dollar labs and generate hundreds of technologies yearly simply file away most of the inventions due to lack of appropriate markets. Millions of the inventions on file can be potential profit makers in the 3rd World. 1st World and 3rd World state agencies have to organize and popularize technology database searches by 3rd World investment unions and 1st World companies. The result: perpetual creation of job-making, world-selling, recession-ending 3rd World companies. As starter, all 1st World companies wanting to license their technologies for good profit may advertise in this blog. All Philippine employee groups may similarly post their ads here. Resultant linkages will create a strong desire to form profitable Philippine businesses based on license arrangements. However such will hardly be possible without EWM and LME laws. The potential partners should therefore engage in political propaganda as part of our anti-poverty cyber army.

3. Franchising business methods and technologies. Franchising is popular in the 3rd World because local franchisees don’t need to start from scratch. Another benefit: franchisees receive continuing technology and advertising support from the mother company. A lot of 3rd World millionaires are franchisers. If the few can do it, why not an investment union of a thousand minds aided by state loans? Franchising ideas come by the million, a great match for millions of 3rd World employee unions setting up corporate groups. As starter, potential franchisers and franchisees may advertise in this blog so they may quickly generate good business ideas. Since our scheme requires EWM and LME laws, the future partners will thereby be ‘forced’ to engage in political action as part of our anti-poverty cyber army.

4. Factory turnkey with training. 3rd World light industries generally grew out of local entrepreneurs’ purchase of entire factories from the West. The seller provides trainers and sometimes continuing technology updates. In 1960s Philippines the state lent hundreds of millions of dollars to local entrepreneurs to set up such turnkey factories. The locals tried to stretch their loan proceeds by buying low-priced second hand factories using outdated technologies from the West. Result: ‘local’ came to be equated with low quality as leading edge Western technologies raised the quality of imports. Future Philippine investment unions have to learn from the lesson. One way: post their ads in this blog describing their desired product lines. 1st World producers of factory machineries may post counterpart ads. Linkages will tend to develop business plans that target quality production and Asia-wide markets thru latest technologies. However financing can come only thru EWM and LME laws. The potential partners should thereby require themselves to engage in political action as part of our anti-poverty, anti-recession cyber army.

5. Capital sharing. In the 1970s to 80s, then Philippine dictator Marcos and leading Japanese companies managed to set up thousands of factories in the Philippines thru joint venture arrangements. The terms: 60-40 capital sharing, the locals contributing more but in pesos. Japanese partner companies contributed factory machines and equipment, thereby selling Japanese production at maximum price. Maximum pricing reduced interest on loans (provided by Japanese government banks) to rates way below Western bank rates. Low interest on loans became Japanese partners’ main selling point for joint venture offers, a sure winner against Western competition. The durability of Japanese machinery (they lasted for scores of years) made the arrangements feasible even over the long term. Our future investment unions may consider such arrangements provided their planned markets are world-scale. As starter, all 1st World manufacturers of industrial goods that seek new markets may advertise in this blog. The same with large Philippine employee groups. Linkages will generate highly profitable business ideas which however will require EWM and LME financing. The need will ‘force’ the potential partners to participate in our cyber army’s political campaigns for passage of the needed laws.

6. Joint stock. Ten or so small Philippine companies competing in the same industry may merge with several investment unions and get a 1st World joint venture partner that possesses new technologies and world markets. This scheme should address the Philippine problem of almost a million large to micro businesses altogether selling less than what one leading US or Japanese company sells. As starter, 1st World companies in any business line may advertise in this blog to encourage small Philippine companies and investment unions to merge and set up a million-dollar joint venture with the aid of EWM and LME loans. Feasibility studies will have to target continent-wide marketing. Of course the million-dollar schemes will require the potential partners’ participation in our cyber army’s political campaigns for passage of EWM and LME laws.

7. Capital and marketing partnership. This arrangement is ideal for corporate multi-crop farms and marine aquacultures. Example: A local investment union partners with a Japanese seafood restaurant chain operator at 50-50% capital. The joint venture leases 3,000 hectares of Philippine seas, installs artificial reefs, and operates breeding facilities in a coastal land lease. A percentage of harvest is sold to the Japanese partner company, the rest exported to restaurant chains in wealthy Pacific Rim cities. Harvests are sold live so they command premium prices. The scheme applies to multi-crop farming and livestock raising whereby partner restaurant chains order specially grown and processed livestock, fruits and vegetables. As starter, food-based 1st World Pacific Rim companies may advertise in this blog to attract local employee groups with ability to lease thousand hectare Philippine marine waters and denuded uplands. Similarly, local employee unions may advertise in this blog indicating their local capabilities and technical/social linkages. Link-ups will certainly generate great profit-making ideas, all dependent on largesse from the EWM and LME laws. The need for largesse will 'force' the potential partners to join our cyber army in international political action for passage of EWM and LME laws.

8. Contract growing and processing. This arrangement assures constant supply of agribusiness products according to contractor specifications. Contractor may or may not invest capital but specifies how crops or livestock should be raised and processed. Examples: sausages, smoked meats and hams, flavored meats and jerkies, fruit juices and purees, seaweed-based gels, furniture and paper products, food supplements and medicines. The local investment union’s thousand-hectare farm may engage in contracting for several companies. As starter, Pacific Rim companies engaged in restaurant chain operations may advertise in this blog to look for Philippine investment union companies able to lease thousand-hectare denuded uplands for conversion into multi-crop farms and managed forests. Local unions may similarly advertise to attract potential partners. The resultant linkages will conjure high-profit projects that will however require financing assistance from EWM and LME laws. The potential partners will hence be 'forced' to participate in our cyber army’s political action towards passage of such laws in both 1st and 3rd Worlds.

What are the advantages for the business partners? Locals multiply their production assets twice or even thrice thru foreign investments and loans. The joint venture company acquires new technologies, credit worthiness and sure markets. The foreign partner acquires a sure source of supply while making good local profit over the long term.

What are the social advantages? In the Philippines, 30 million employees and managers as thousand-member investment unions may create thousands of such joint ventures each year. Result: millions of local poor get employed in good-paying jobs. The new hires acquire marketable skills and afford innovation-oriented education, both becoming tickets to permanent middle class incomes.

Perpetuation of the schemes thru the LME and EWM laws will ultimately raise all 68 million Filipino poor to the middle classes. In time the local joint ventures will begin to create new joint ventures in other 3rd World countries. Repeated millions of times all over the 3rd World, the schemes shall create a culture of mutual help for all humanity. Poverty thereby ends, and the earth ceases to become a ‘vale of tears.’