The concept being that the developing world actually has extra-ordinary assets within each country, that if properly combined and put to use, far outpace possible funding from the developed world.
Pingyao Realm Ltd. This includes the remaining Chinese provinces north of and not included in the Jinghong Realm. and the nations of North Korea and South Korea. The headquarters for this company shall be in Pingyao, Shanxi, China. Pingyao is an historical financial center and was the birthplace of modern banking in China.
Darkhan Realm Ltd. This region will include Pakistan, Afghanistan, Iran, Azerbaijan Russia, Kazakhstan, Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, Bangladesh, Nepal, Bhutan, Mongolia and Japan. The headquarters for this company will be in Darkhan Mongolia. Darkhan was chosen first for being in Mongolia, the most central neutral country of the region, its relative size and its international history.
Quevedo Realm Ltd. This shall include all of the Americas. The headquarters for this company shall be in Quevedo Ecuador. Quevedo was chosen because of the city's location, size and the unusually large international population of the city. Also the agricultural products of the immediate region are sold worldwide. Thus Quevedo has a world view particular to its relatively small size.
Each of the six holding companies shall have a similar structure. They shall be holding companies for owning, but not limited to, the following areas of business.
A. Commercial Real Estate. Direct ownership or partnership of commercial real estate or ownership in public traded real estate companies. There is to be no debt on any commercial real estate holdings. I envision this to originally be bank branches of third world banks, commercial buildings, warehouses and power plants. Initially all commercial real estate to be acquired will be existing structures or securities. Only from cash raised from public offerings and profits will new structures be built or real estate loans be acquired. I also envision that instead of privatization of many municipal services such as water and sewage that the municipalities would sell just the infrastructures for shares and lease back and run the operations themselves.
B. Residential Real Estate. This to include direct residential real estate or residential real estate investment trust shares.
C. Mineral, water, right of way and timber leases. These are to be leased to operating companies. They are never to be operated directly. This again would include royalty trusts and the trading by governments of portions or all of certain rights for shares.
D. Government securities. This is from any government entity in the entire world: national, state or provincial, local, etc. This too would originally come from third world banks, spreading up the development chain as the holding companies grow in size and liquidity. I could also envision an initial infusion of American and European treasuries being given by such countries as China, Japan, India, Taiwan, Norway, Russia, the EU, G8 and countries of the Middle East in exchange for shares to facilitate the creation of alternatives to global currencies and to spur worldwide development.
F. Currencies: With each initial IPO and each subsequent secondary offering of common shares or equivalent GDR's, each regional holding company shall receive currencies in exchange for those shares. Upon the receiving of such currencies each regional company shall use such currencies as described below. These currencies are to be used for taxes, dividends, acquiring new assets, and as a hedge against the long term currency fluctuations of all countries.
G. Investments in private companies in development or for re-organization purposes.
CREATION AND ONGOING GROWTH OF THE SIX HOLDING COMPANIES
Each of the six companies would have a board of 19 members; 1 president and 18 outside directors.
It is this concept to create six world class corporations based in third world countries with a third world bias for development. It is however the proposed goal of the six companies to be diversified as greatly as possible and to have financial interests in every country in the world.
Thus spreading the risk and rewards to as wide a shareholder’s base as possible that the larger the six companies spread the more value created for shareholders. Shareholders in rural third world countries could, over time, develop capital formation that is both easily convertible but also less open to wide swings in currency valuations. This would also allow for a semblance of diversifying outside of ones own country without in actuality having as much so called capital flight.
It is also my proposition that for an initial extended period of time there would be no need to stress repatriating earnings from any developing country. It is important to again stress that it is the concept of the six companies as supra regional companies and to try and negate the idea of a home country and to foster instead an idea of regionalism combined with a total world outlook. The profits earned within the country/region by all six holding companies would remain to be reinvested and pay dividends in that country/region.
Gary L. Tucker