In the immediate aftermath of the most recent global economic recession it is easy to look for ways to capitalize on the reemergence of the housing and credit markets.  If a slow but consistent climb out of the economic hole that was created last fall actually occurs it is likely there will be many new and different investment vehicles offered to investors eager to come back from the severe losses that have been felt over the past 12 months.  As attractive and lucrative as it sounds, investing in developed nations may not be the most rewarding activity.  There are plenty of economies around the world that would benefit from robust outside investment.  These economies are rich with potential and are waiting for a few visionary investors to really turn them into cash cows.

This article is not about imperialism, or the transfer of wealth from poorer countries to those with more developed economies.  This article does however give an alternate view to those held by many mainstream US investors and investment advisors.  As the US climbs out of the recession, the industries and sectors that have provided real economic vitality in the past to US investors have all but ceased to exist on American soil.  Computer companies and tech firms have moved much of their labor and infrastructure overseas, and countries like China and India will soon become economic powerhouses in their own right, fueled by the trans-Pacific migration of labor and the tech sector.  In other words, there has never been a better time to invest in these economies.

The death of American-based production jobs has hurt the US economy greatly.  But a curious phenomenon has occurred as the dust has settled, at least temporarily, from the economic downturn.  Many of the jobs that Americans once held, in factories, offices, and warehouses across the country have been sent overseas, creating a new emerging market in the east and leaving the US to play a giant game of education and economic catch-up.  The millions of production jobs lost in the US have not helped unemployment figures, but the major shift has given the US the opportunity to reinvent itself as the world economic powerhouse of another order.  Perhaps it is time for America to begin investing in its neighbors as they work their way up the ranks from developing nations to developed economies.  By doing so, Americans can reap the economic and social benefits of this wealth restructuring quite easily once the market becomes less volatile and it becomes entirely clear which economies are heading in which direction.  The potential growth on an initial investment in a developing economy is limitless.

Foreign capital investment is the engine that drives many of the developing nation’s economies.  Continued investment and support from American and European investors will allow these emerging countries to bring something to the economic table so to speak, and lift the entire global economy out of the recession as one.  With all the news and internal focus on the US government’s stimulus, it is easy to see why the blinders have been placed on outside development.  Outside development leads emerging markets down the path to recovery and promotes positive global growth.  Perhaps the proper combination of internal and external investment will give rise to a more secure, more stable, and far less lopsided global economy.  The roles of each nation, of each economy have changed, and it is up to the US and other economic leaders to redefine the direction and set the tone for a realistic and stabilized economic recovery.