- Cafe Hayek - http://cafehayek.com -

Going to the Wal-Mart for China

Tweet [1]

FLOW [2]‘s Michael Strong explains Wal-Mart’s role in lifting hundreds of thousands of Chinese people out of poverty [3].

Between 1990 and 2002 more than 174 million people escaped poverty in China, about 1.2 million per month.  [4]With an estimated $23 billion in Chinese exports in 2005 (out of a total of $713 billion in manufacturing exports),  [5]Wal-Mart might well be single-handedly responsible for bringing about
38,000 people out of poverty in China each month, about 460,000 per
year.

There are estimates that 70 percent of Wal-Mart’s products are made in China.  [6]One writer vividly suggests that "One way to think of Wal-Mart is as a
vast pipeline that gives non-U.S. companies direct access to the
American market."   [7]Even without considering the $263 billion in consumer savings that
Wal-Mart provides for low-income Americans, or the millions lifted out
of poverty by Wal-Mart in other developing nations, it is unlikely that
there is any single organization on the planet that alleviates poverty
so effectively for so many people.  [8]Moreover, insofar as China’s rapid manufacturing growth has been
associated with a decline in its status as a global arms dealer,
Wal-Mart has also done more than its share in contributing to global
peace.

Comments