Globalization                              

SPECIALS  

China's massive investment in Africa has been touted as a move in the right direction in ridding Africa from the dudgeon of poverty. However not much is said about the poor working conditions, low salaries Africans working for Chinese earn. In addition the Chinese are now running retail shops which could otherwise be in the hands of the local people. Zambian opposition leader Michael Sata says he would expel Chinese traders if elected to power. FJ
 


Saturday, March 15, 2008

                                          Eggs from India, Ground Pea from Guinnea       Amanda

  It’s difficult to take many more than 15 steps in Monrovia without passing someone selling ground pea. “Ground pea” is the local name for Arachis hypogaea - the legume known in much of the Western world as a “peanut”, but elsewhere as earthnuts, goobers, goober peas, pindas, jack nuts, pinders, manila nuts and monkey nuts. Ground pea are roasted and wrapped in small pieces of plastic on the side of the road. A pack of roughly 20 grams costs 5 Liberty Dollars (LD), about 12 cents, US.

 Eggs, though slightly less ubiquitous, are sold on many street corners for equally marginal cost. Hard-boiled, at a registered grocery store, a half dozen eggs may cost 60 LD, or $1 US. Hardboiled, on the side of the road, two eggs costs about 20 LD.

 It seems logical to assume that products such as ground pea and eggs are sourced locally. Logistics in Liberia are complex enough, that I assumed sourcing products from any distance would make such cheap prices impossible. Perhaps neighboring countries have a comparative advantage in growing ground pea, or producing eggs, but wouldn't the transportation costs render local production more economical? Moreover, there are enough chickens in the streets of Monrovia, and there is arable enough soil throughout Liberia, to imagine an abundant, local supply of ground pea and eggs.

 I held this assumption for months, until a recent stock out of eggs in the local grocery stores. What in the world would cause an egg shortage? I posed this very question to Roger, the owner of our local Stop and Shop (yes, there is a Stop & Shop in Monrovia, and no the discount cards do not work).

 “Many people lost entire consignments this past month,” replied Roger.

“They were mishandled and cracked during shipment,” explained an attendant at Monoprix Grocers as he weeded out the cracked from whole eggs.

 Monrovia’s eggs, as it turns out, are not grown locally. Nor are they sourced from within West Africa, or even elsewhere in Africa, for that matter.  Monrovia’s eggs are shipped from India. How, precisely, is a question for a later day. But, if the eggs are from India, what is the origin of other basic, cheap, core products? Like the ground pea?

 The ground peas sold on Monrovia’s streets are a somewhat more local flavor than the Indian eggs. While ground pea does grow in Liberia, the majority of those that we pack in 5 LD packs come from Guinea, Liberia’s neighbor to the North.

 The ground pea is harvested in Guinea, wrapped in plastic bags or stored in barrels, and trafficked through Nimba or Lofa counties down to Monrovia’s “Red Light” District. Red Light is a major intersection between Roberts International Airfield and downtown Monrovia; before the war it was home to the largest market in Montserrado, a title held in recent years by Waterside market. At Red Light, market women purchase ground pea by the can before packaging the small snack in plastic purchased at local Monrovian stores. The market women are expert bargain shoppers and purchase the ground pea in such bulk that they can turn a profit on 5 LD per pack.

 Nutritional staples, cheap products, surprisingly complex supply chains.

 Amanda Leese


               Pervez           Recession .... what recession?   January 25, 2008

The media is full of reports on the economic downturn in the US and speculation whether the country is the midst of a recession or on the verge of one. The collapse of the housing market and the sub-prime crisis and the resulting impact are making news headlines daily.
But if you are in India at this time, all of this seems like fiction. All the IT services majors - TCS, Infosys and Wipro have announced 9-month earnings that are exceeding Billions (Yes, with a "B") of dollars and high rates of revenue growth despite a weaker dollar. Housing market is crazy with the demand continuing to skyrocket. Jobs in the IT and ITES sector are plentiful and candidates are few causing double digit wage inflations. Mutual fund investments are giving 50-60% annual returns.
Consequences of a flat world?

Pervez

 


6.9.2007

                                         Why you don’t see too many suits in Finland
Phil
 

Few Finnish businessmen walk around in suits. I just got back from my local dry cleaners (SOL) and was comparing it to my local dry cleaners back in the states (Zips), Finland is about ten times more expensive… (prices are including tax)

Suit dry cleaned and pressed in Finland: 27.35€ ($37.46)
Suit dry cleaned and pressed in U.S.: 2.83€ ($3.88)

Sport coat dry cleaned and pressed in Finland: 15,80€ ($21.64)
Sport coat dry cleaned and pressed in Finland: 1.41€ ($1.94)

How fast you get your garments back in Finland: I dropped it off at 6pm on Thursday, it’ll be ready at 5pm on Monday
How fast you get your garments back in US: “in by 9am, out by 5pm” the same day.


Phil


Tuesday, October 16, 2007
                                    Advertising takes wings! Pervez

Inspite of flying extensively in India for the last 10 months or so, last week was the first time I flew Air Deccan. I understand that this is an extremely innovative airline when it comes to revenue maximization. Which is probably the reason it was acquired by Kingfisher some time ago. Air Deccan was started with a mission to bring air travel to the common man. Translation: cheap, low frills airline!

You quickly begin to understand their success when you notice the large ads painted on the exterior of the plane. You settle down comfortably in your seat and you see an ad starting back at you from the back of the seat in front of you. There are ads on headrest covers ... ads everywhere!

The airline even has a silent auction that is conducted during the duration of the flight. You can actually bid on items ranging from keychains to watches. If you have a winning bid, you pay cash for merchandise and pick it up before you deplane!

Pervez
 

 

 

 

 

 

 



 

 


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