Emerging Markets: The Telecom Case

One example of traditional economics meeting out capitalist practices is this, the penetration of telecom companies into emerging markets. Unlike the environment we are used to, these markets have, comparatively, lax regulations and business practices. Well, it might be a western bias to say these emerging markets have lax regulations. In all honestly, regulations and are fewer; therefore, the markets are more susceptible to corruption.

This has been the case in Uzbekistan. To preface this, Uzbekistan is a relative newcomer in terms of telecommunications; though, in an ever globalized world, actions in less recognized regions can have far reaching effects on the populace’s perception, and confidence, in another. This case involves the CEO of TeliaSonera – Lars Nyberg. He resigned despite being cleared of charges, which involved corruption and abuse of human rights. The corruption charges involved the daughter of a government official and a shell corporation, which acted as a buyer.

If you take anything from this, let it be this – within any market unethical actions will have far reaching consequences. This is, in my opinion, one of the greater benefits of globalization. I don’t mean to assume that everyone is made equal, but that individuals are held accountable, more so. This is only when the international community recognizes the wrongdoing. This is often when the international community has a stake in the individual’s actions. In essence, this is people putting their well-being ahead of other; I hope this will have a positive effect on the developing world. Only the future will tell.