Donald Trump Forays into the Former Soviet Territory

Donald Trump to me is a puzzle. When most of his competitors lost or went to prison in the junk bond business, he made a virtue and a fortune out of it.

That those unsecured bonds were invested in the unpredictable real estate sector made it a double-edged sword. Still he won.

What is behind Trump's success? We can shrug it off as "luck."

But much has to do with his uncanny knack to spot an opportunity.

His recent foray into Tbilisi, Georgia has raised eyebrows but hopes too.

Tbilisi is no Las Vegas. Population is just over 1 million.

Georgian economy is not something a capitalist mogul will die for. Foreign direct investment climate has deteriorated.

Not to speak of the ever-present risk of war by the dissidents in Abkhazia and South Ossetia, which may lead to an intervention by Moscow.

Trump's " junk-bonds-are-gold" mentality seems to have spotted yet another opportunity in a scenario where other co-capitalists may see none.

Gone are the days when an anti-Soviet stance was enough to attract American investment. Today even Russia too is on the capitalist pathway. The old "Russians are coming" attitude no longer haunts Americans.

In recent times, Georgia has tried hard to create a business-friendly atmosphere for investment. One major drive has been in the tourism field. The government there has been offering sops like long-term tax concessions for new hotel construction.

It appears that Donald Trump has signed a licensing agreement with Silk Road Group, a real estate developing company in Tbilisi.

Risk-taking need not be throwing caution to the wind. Donald Trump's recent strategy is aimed at "licensing" revenues. Investment financing is minimal..

1. The licensee is allowed to use the "Donald Trump" brand name.
2. Trump's organization will provide the know-how.

Georgia is pinning great hopes on a revival of its ailing economy with the arrival of a celebrity real estate developer like Trump on the scene.

But it is premature to predict whether other global investors will follow in Trump's footsteps.