Supermarkets connect

WORLD: The Supermarket Revolution Moves Into Honduras, by Dan Charles, NPR's Morning Edition, August 5, 2008

The supermarket is an untold story of connectivity--and consolidation. You remember as a kid, there were all these plain specialty food stores, which then got sucked up into the ever-enlarging supermarkets (the old baker who had a shop now heads the bakery dept), only to be replaced later--as supermarkets became such bargain places--by higher-end food shops as incomes rose.

That was indeed a half-century process for us, but you can see it exploding in China today.

Interesting that Wal-Mart goes by a more localized name down south.

(Thanks: ROVERfixer )

Comments

[Luigi]

Interesting post, but I wouldn't say the supermarket story is untold. There's been a lot of talk lately about the coming of the supermarket. Incidentally, do you think that the kinds of network graphs discussed here http://rs.resalliance.org/2008/09/11/shipping-containers/ are good representations of global connectivity.

[Vinny]

This is an interesting story on how the stereotypes of big business in the developing world gets flipped on its side. Two different seemingly opposing points of view meet in the middle for the benefit of all. Both community and individuals are greatly helped, with a little help from aid organizations. It is an example of business opportunity meeting international aid to bring positive change. Truly integrative thinking, what does it say about the leadership at Wal-Mart that we are so loathe to admire? An example of what BSR calls Community Economic Development ( http://www.bsr.org/research/issue-brief-details.cfm?DocumentID=49809 ) except in a integrative manner

[Vinny]

There was an interesting blog post on the World Banks Private Sector development blog: http://psdblog.worldbank.org/psdblog/2008/07/ending-povertyt.html. On how supermarkets help with global reduction in poverty. Supermarkets such as the one in Honduras connects these developing nations with international supply chains where health, safety, and more importantly knowledge can spread through the network towards the developing world. But like the Chinese milk scandal, this involves some degree of risk, what can businesses do to mitigate risks entering developing world markets while "racing to the bottom of the pyramid" and make money in the developing world.

[Vinny]

I also find it interesting at how this relates to the whole organic food movement. For example, I read an interesting article over at Wall Street Journal about the whole "Slow Food movement": http://online.wsj.com/article/SB122022613854086965.html?mod=googlenews_wsj and its effects on sustainability and globalization. Can the push for more so called organic, local, "sustainable" food be really the direction to provide millions with food and eradicate hunger in the world around us? What does this imply towards connectivity that has already helped raise many out of poverty. Can organic foods really help the millions in developing nations.

[Brian Thompson]

As a citizen of Honduras, I can tell you that the supermarket revolution is indeed helping small farmers sell their produce. The problem is, although globalization is increasing wealth in Central America, the mechanisms of production can be quite fickle. With more and more industries such as textiles relocating from Central America to the Far East and a general downturn in the global economy, farmers will have no one to sell their produce to. Latin America is an odd case where globalization has reduced poverty, but not to the extent seen in other regions of the world.