Poor countries have these problems, yes, but they don’t stop whatever, they just add some expense to it. In certain areas of Mexico, businesses have to pay taxes to the local cartel, but if you do, they’ll leave you alone-and they know that if they demand too much, that’s actually undermining their own self-interest. Effectively, the cartel is just another level of local government, taxing you like all the others do. An armed gang or warlord somewhere in Africa or Syria or Afghanistan very often functions similarly.