Question 1. Walmart
Over the years Wal-Mart has maintained its stand as the world’s largest private entity. This has been prevalent through the way it has lowered costs for all their customers across the world and yet still manages to make immense profits (Vutugwa, 2013). Wal-Mart has been dubbed by many as a life saver but many players in the field have criticized it due to the way it hinders their growth. Well despite all these arguments, Wal-Mart recently made plans to expand in Africa in an aim to boost their global influence. This was evidenced through the purchase of South African retailer Massmart (Mossman, 2013). However, this initiative has faced various controversies in terms of ownership and location where the local people were concerned that the purchase would lead to losses of jobs and decrease in the local manufacturing and production industries.
In addition to this, the ownership of the South African based retail company was opposed as the local people feared that Wal-Mart would lead to increased imports which would hence bring about the closure of the local companies. However, the local unions in labor intervened and ensured that there would be no job cuts for a period of two years after the takeover. They also introduced a policy where the South African Commercial Catering and Allied Workers Union would be left in charge as the main bargaining power (Mossman, 2013). This was coupled with about US$ 14.6 million would be set aside for developing local suppliers. Many critics still argued that it was not a clever move by claiming that Wal-Mart’s ownership of the local company would disregard the clauses maintained in the contracts signed. Similarly, the ownership of Massmart was opposed due to the fact that the Wal-Mart’s revenues were higher than the country’s GDP. This would mean that the consumer spending power would be increased to elevate the experiences of the socioeconomic levels of population (Clifford, 2010).
This was followed by a response from the Wal-Mart company where they indicated that they planned to purchase most of the fresh food products locally. They also indicated that they would open more stores over the years and increase the number of employees and respect the regulations held locally. The government of South Africa also raised concerns over the issue but required the intervention of governments to prioritize the smooth sail of Wal-Mart with the local enterprises. Critics also opposed the ownership and internalization of Wal-Mart in South Africa due to their strategies on hiring and firing employees easily. Similarly, it was criticized due to the fact that it did not incorporate female employment (Vutugwa, 2013). Despite all these criticisms Wal-Mart has defended their intentions by focusing on issues of climate change where they ensure no waste corporate initiatives and launching stable policies that meet the agricultural requirements. They have also initiated their support for local farmers and other communities that produce food that uses fewer resources and produce reduced amounts of waste. Wal-Mart plans to internalize the local companies by urging them to engage in measures that will ensure effective distribution of resources (Clifford, 2010).
This will be accompanied by initiatives that promote investments within the local companies and a move that will attract best practices in the industry. This will also increase the standards for the local and regional markets as it encourages productivity and delivery of services in an effective and efficient way. It will also reduce the prices of products which will lead to the local companies enhancing their creativity and competitiveness for them to survive in the market (Mossman, 2013).
Question 2. Should the United Nations be empowered to prevent further deforestation in Brazil’s rain forest?
The answer to this question is yes because as it seems the people of Brazil are faced with the challenge of balancing the welfare of the poor people as well as maintain the industries. These conditions have contributed to the increased demand for foreign intervention as they need international help to elevate the situation. The industries in Brazil have led to the destruction of the forests where they have polluted and destroyed the environment (Reuters, 2013). Similarly, the traditional approaches used have been rendered irrelevant as they have failed to curb the situation and increased rates of deforestation. They have also failed to improve the living standards of the people as they lead to reduced economic ventures full of corruption. The traditional park approach failed to maintain the forests or even generate sufficient economic incentives that would uplift the lives of the rural people. The industries have also had their role to play in the deforestation of Brazil as they lead to losses in the biodiversity and ecosystem services which include: preventing soil erosion, controlling the floods, treating the water and protecting the fisheries (EDF, 2013).
The United Nations should be mandated to fund the efforts of conserving the rainforest. This should incorporate strategies and incentives that require maintenance of biodiversity and generation of rainfall. This would be achieved through payment procedures for services within the ecosystem. The U.N should implement the Reduction Emissions from Deforestation and Degradation where the World Bank should fund the United Nations to conserve and maintain such projects (Reuters, 2013). The payments should be channeled towards reducing deforestation and lowering the rates of degradation to create conducive environments for the rural people. Similarly, these activities should be coupled with incentives set up by the United Nations to increase prices for products for farmers who agreed to the terms of reducing deforestation and carbon emissions. Additionally, powers such as enhancing eco-tourism within the country should be mandated to the United Nations as they would ensure that the entrance fees to parks were increased (EDF, 2013). It would also require funding from the World Bank to employ more local people as guides around the parks.
The United Nations requires resources to increase corporate sponsorship on the division of tropical rainforests into sections that would get funding from international entities. Institutions and corporations that aim at developing the forest would pay some funds that would be directed to catering for the massive needs within the country (UN News Centre, 2013). After the incentives and programs within the United Nations have been funded, they would ensure that most of the areas within the forests are protected and expanded to allow more parks and increase the benefits acquired (Reuters, 2013). This would be followed by increased patrol and surveillance policies that would protect the forest from deforestation activities. Entry into the forest and parks within it would be monitored by security personnel put in place by the United Nation organizations. Incidentally, the United Nations should also be allowed to establish institutions that conduct research and train local guides and scientists who would increase the extraction of resources within the forest (UN News Centre, 2013).
References
Clifford, S. (2010). Wal-Mart bids for Massmart to expand into Africa. Retrieved from http://www.nytimes.com/2010/09/28/business/global/28walmart.html?_r=0
Environmental Defense Fund (EDF) (2013). Brazil’s record-low 2010 deforestation more proof U.N. must act on avoiding deforestation. Retrieved from http://blogs.edf.org/climatetalks/2010/12/02/brazil%E2%80%99s-record-low-2010 deforestation-more-proof-u-n-must-act-on-avoiding-deforestation/
Mossman, M. (2013). Wal-Mart in Africa: Unpacking the monolithic Market. Retrieved from http://africanarguments.org/2013/03/19/walmart-in-africa-unpacking-the-monolithic-market by-matt-mossman/
Reuters. (2013). UN agrees multi-billion dollar framework to tackle deforestation. Retrieved from http://www.trust.org/item/20131122133817-l7kq9/
UN News Centre. (2013). Deforestation in the decline but rate remains alarming, UN agency says. Retrieved from http://www.un.org/apps/news/story.asp?NewsID=34195#.UpxukNIW1ZU
Vutugwa, C. (2013) Wal-Mart is eyeing the African Market. Retrieved from http://techmoran.com/walmart-is-eyeing-the-african-market/
