The third issue is democracy. Contrary to what liberal western media argue, most investors could not give a damn about democracy and human rights – why else would hordes of American corporations have piled into the People’s Republic of China over the past few decades?
It is important to distinguish between the principles of democracy and the issue of legal certainty. Multinational corporations (MNCs) are more comfortable operating in markets that respect the sanctity of contracts and have relatively incorruptible legal systems (such as Singapore). The inverse is true when it comes to the countless administrative regulations that torment MNC managers in countries such as Philippines and Indonesia. Needless to say, their eradication could make a significant difference to business expansion.
