Richest Man in the World

¶ … richest man in the world live in Mexico?

Carlos Slim

Since 2010, Carlos Slim has been declared the wealthiest man on Earth. The Mexican businessman stated that becoming the richest individual alive was not his scope, but that he is set on conducting his business and attaining his organizational goals. Carlos Slim became rich due to its business operations in technology, communications, finance and retailing.

From a detached standpoint, the situation appears legit, as Carlos Slim has gained his wealth through business endeavors. Nevertheless, it has to be mentioned that the richest man in the world comes from a relatively weekly developed country. Mexico is the 12th largest economy of the globe, by size of its gross domestic product, yet it reveals high dependence on exports, high levels of unemployment and over half of its population (51.3 per cent) live below the poverty line (Central Intelligence Agency, 2012).

In such a setting, a question is being posed relative to the means in which Slim got to be so wealthy. The response relies not in the innovative technologies created by his firms, but in the monopolistic style employed by them. The companies owned by Slim and his family are organized into a conglomerate which controls the market place in Mexico. They employ the highest possible prices and they possess vast economies of scale. They discourage competition from smaller size firms and they do not face competition from larger size companies, since there exist none in Mexico. The entry barriers for firms outside the country are high and Slim's companies continue to enjoy monopoly. Furthermore, Slim pays low salaries to his employees, maximizing as such the profitability of his firms and his personal wealth.

Part 2: Bill Gates vs. Carlos Slim

Several years back, the position of the wealthiest man in the world had been occupied by Bill Gates, the founder of Microsoft. Similar to Slim, Gates got his wealth through business operations, yet there are numerous differences between the means in which the two men created their wealth. For instance:

Gates operated in an open market economy, with low barriers to entry, fostering as such competition

Microsoft excelled from the standpoint of technologic innovation, and this generated sales and international popularity

Similar to Slim's conglomerate, Microsoft has also been accused of monopolistic practices, and faced these charges in international courts. The company nevertheless assumed responsibility, paid its dues and continued to grow through innovation. In such a setting, it is clearly concluded that the domestic context of the industries and market in which the two businessmen operated were directly responsible for their final success.

Had Gates operated in Mexico, it is unlikely he had achieved this level of wealth as he could not have created such innovation; this is due to the shortages in technology and skilled labor force in Mexico. Vice versa, had Carlos Slim operated in the United States of America, he would have been unable to become the wealthiest man on Earth. He might have become an industry leader in a specific business sector and he might have become wealthy, but he would not have been able to accumulate the highest wealth of any men alive. And this is due to the nature of the U.S. market place, which does not condone the actions of Slim. The market is opened and the entry barriers are decreased; the market is liberated and ruled by economic principles and competition is stimulated.

Part 3: Social responsibility

A final aspect to be addressed relative to Bill Gates and Carlos Slim is represented by the social responsibility revealed by each of the two businessmen. At an initial level, both of them create jobs and employ thousands of individuals. In the case of Bill Gates however, he mostly employs knowledge workers, paid with high salaries; the average developer at Microsoft earns an estimated $106,000 salary per annum (CNN Money, 2012). In the case of Slim's conglomerate of companies, these also employ thousands of individuals, yet the salaries paid by Slim and his family are as low as possible. This is possible due to the nature of the Mexican economy and labor law, but it is socially inequitable since it prologues the poverty in a country in which half the population already live below the poverty line.

Additionally, Slim does not give back to the community through the process of social mortgage and this is best revealed in terms of the products sold by his companies. More specifically, the products and services delivered by the magnate's firms are charged at high prices and far from being considered common goods, accessible to all Mexicans. These high prices are inequitable and socially unjustifiable in a country of so many poor individuals.