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sarzan
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sarzan,

As for whether starting some EC now would hurt or helps your chances, I think schools care more about the quality and impact of the EC you do than the reason why you did it. That said, I do think that several years of noninvolvement would mean you would have to find some EC that's pretty unusual and your impact would have to be pretty amazing to really improve your chances that much. So perhaps the best answer for you is to not aim at the very top U.S. schools, but instead aim lower on the list where the strengths you do have are strong enough to get you in, and/or to focus on European schools where the EC emphasis is not so huge. A lack of EC involvement is not an absolute deal-breaker at all schools.

As for exaggerating versus lying, I'm sure a fair number of applicants do the former and probably get away with it. But making up an EC involvement out of thin air and trying to pass that off on the adcoms would be a really bad idea, and I doubt many applicants are stupid enough to try that.

One thing you could do is to use your essays to explain to the adcom what you just explained to me (without the negative stuff about other applicants), i.e., that you come from a third world country and that you are in an unusually demanding career. You could also say, if this is true, that you see your career and post-MBA goals as having a social impact dimension already, so that's where you have channeled your urge to get involved, etc.

Good luck,