This post is a quick announcement post letting you all know that I'm doing some research before I start up the next little series of posts. To get your mind juices flowing, I'll give you a brief 'teaser' paragraph. Think of it as a movie trailer for the next few weeks of posts.
What if companies acted as governments? I'm not talking about lobbying or bribing, I mean direct control. Sierra Leone's operating budget is somewhere around 340 million USD. Walmart's is well over 25 billion USD, according to their sales report last year. What would happen if Walmart took over control of the governance of Sierra Leone, moving all manufacturing there instead of to China and India? I posit that if Walmart was given this opportunity, Sierra Leone would become the richest nation in the region within 50 years, if not sooner.
Let the discussion begin!
What if companies acted as governments? I'm not talking about lobbying or bribing, I mean direct control. Sierra Leone's operating budget is somewhere around 340 million USD. Walmart's is well over 25 billion USD, according to their sales report last year. What would happen if Walmart took over control of the governance of Sierra Leone, moving all manufacturing there instead of to China and India? I posit that if Walmart was given this opportunity, Sierra Leone would become the richest nation in the region within 50 years, if not sooner.
Let the discussion begin!
Alrighty, lets walk this one out and see if it can swim.
ReplyDeleteWal-mart sets up a plant in Sierra Leone. While not a country noted for any current Islamic uprising, there is a 71% Muslim demographic. Suddenly, a western company has arrived within striking distance of Islamic extremists. Wal-mart could face the kind of craziness US Embassies are facing. How do we deal with that?
That's a great point, and I had a feeling someone would bring up the issue of extremism. Its obviously a problem that needs tackling, but rest assured, I'm working that through my head as I try to work this idea around. And remember, Wal-Mart wouldn't just be setting up a plant in Sierra Leone, it would effectively become the governing body of the entire country. I'll definitely be addressing this in future posts. Right now, I'm thinking of things like UN Security Forces being used in police actions around the country, military contractors being hired, and community leaders being brought on to work as liasons to weed out terrorists. More to come.
ReplyDeleteOn a side note, this year's figures show a decline in Islam in the country to 60% Muslim, 10% Christian, and 30% native religions.
Who would pay for these UN Security Forces and military contractors? Wal-mart will not because it will severely injure the bottom line. I do not think whether it is a store or not matters. It is a western company and that is reason enough.
Delete. In response to Casey: I agree completely, which is why I do not think they would put anything in Sierra Leone.
Man, I'd be really worried if things like that started happening. I have no doubt that Sierra Leone would become much richer very quickly...I would guess the richest country in the region in half the time you suggested. I would hope a company like Wal-Mart would change significantly if it were going to become a sort of corporational-national government. Even if they did overhaul and start changing to make it work...I mean, I watched Wall-E. Not okay. Haha.
ReplyDelete@Wade: Really, I think the Wal-Mart administration wouldn't set up a store anywhere they thought it would be attacked; they're really good at keeping their best interests in mind, and that includes making sure the stores are functioning well and they're making money.
At the same time, in the event Wal-Mart thought the risk was low but ended up getting attacked, I think they would pull the stores unless given some incentive to stay. That incentive may be more governmental crack-down by the country itself, or the U.S. government stepping in...either way, I still think they wouldn't leave their stores and products in a dangerous situation. Too much risk on their assets.
I think you are both reading this incorrectly. I'm not saying that Wal-Mart would open stores. They would move all their manufacturing to Sierra Leone. That means tshirt factories, plastics plants, etc. This would create hundreds of thousands of jobs, and chances are that it would benefit Wal-Mart financially as wages in Sierra Leone would be lower than even China.
ReplyDeleteI was just responding to Wade =]
ReplyDeleteMy first paragraph was my response to your post.