The Economist has an interesting blog post that suggests India could transform its retail sector by opening up foreign direct investment to firms like Wal-Mart. There are two ways to look at this. Wal-Mart will either take advantage of its legitimate supply chain management and illegitimate business practices to end up becoming the only game in town, much like it has done in small-town America OR Wal-Mart’s reputation for unethical business practices combined with its leverage could be the only thing capable of taking on and taking down the hideously corrupt Indian bureaucracy.
The thing is politicians in India have two gravy trains:
1) Rural villagers exploited into thinking they’re going to be exploited by foreigners or urban Indians.
2) Wealthy interests greasing the politicians’ palms to get what they want at the expense of everyone else not willing/able to pay a bribe.
Neither of these is conducive to Wal-Mart ending up in India, regardless of whether you think it will be a blessing or a curse.
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