Explanation:
Economists debated how to better enforce market economics in former socialist economies during the fall conference of the Organization Mont Pelerin, a leading international community of free-market intellectuals. The surest theoretical path from Red Square to Mont Pelerin can, under some conditions, be through the Silicon Valley. The same happens to other nations that are in the developing world.
Several political and economic trends show that Silicon Valley growth, fueled by risk capital, plays a more protagonist role. The goal is to align this vivid and creative source of funding with development aid and policy priorities.
They mix non-existent access to money with active management assistance. Their main aim is to mitigate their financial losses by long-term capital gains. Nevertheless, it is not sufficient to increase or speed up risk capital flows, especially new capital from the developed world, to give new focus to business processes across developing countries. In developing countries, a government-built "enabling mechanism" is needed to create an enticing business environment and infrastructure for risk capitalists.
