Wal-Mart Puerto Rico: Promoting Development Through a Public-Private Partnership

Case Writeup 1

Case1: Wal-Mart Puerto Rico: Promoting Development Through a Public-Private Partnership

1. Who are the stakeholders in Wal-Mart’s public-private partnership, and what was their role in it?

        The stakeholders in Wal-Mart’s public-private partnership used to be composed of the Government of Puerto Rico (The Department of Agriculture and Economic Development Bank), a non-profit organization named Caborrojenos Pro Health and Environment, local farmers, and Walmart. Also, ConectaRSE assisted the project development. Then in December 2008, the NGO withdrew from the project since it was overwhelmed by the size of the project, whereas ConectaRSE was involved as part of formal project participant.

(1) The Government of Puerto Rico

        To begin with, the Department of Agriculture (DA) offered assist for both production and marketing. When farmers delivered their products to collection centers managed by DA, the products were classified, packed, and branded with the Del Pais brand which means “from the country”. The, the agency of DA delivered those products to Wal-Mart stores.

        Besides the Economic Development Bank (EDB) supplied Financing. It created an alliance with a private sector provider. It singed an agreement with the BBVA (Banco Bilbao Viczcaya) Foundation, which tries to create social capital through microcredit, to create the “Corporacion para las Microfinanzas -Puerto Rico”.

(2) NGO

        Caborroienos Pro Health and Environment(CPSA) was included to provide stability, offer organizational skills, and to support fund raising. It provided the organizational structure of the project and led the search for U.S. federal funds before it left the project.

        On the other hand, after the withdrawal, the president of CPSA, Valderrama, gave up the presidency of the NGO and participated in the SDC project as manager. Valderrama planned strategies for the project, and managed its everyday operations.

(3) Local Farmers

        Local farmers were chosen by DA to participate in the project. They were required to attend mandatory 25-hour training program to develop managerial abilities, business skills, and basic farm administration skills. Then they had to supply products to Wal-Mart according to the plan.

(4) Wal-Mart

        Wal-Mart was the buyer of the supply chain. It bought local agricultural products in negotiated quantity and price. Then it sold those products in its stores. It also continuously communicated with other stakeholders to manage the project well.

(5) ConectaRSE

        ConectaRSE is a CSR consultancy. Originally, it was in assisting position rather than being formal stakeholder. However, after CPSA left the project, it was incorporated as formal participant of the project.

2. Analyze the strengths and weaknesses of the Sowing the Development of the Country partnership.

(1) Strength

        To begin with, the SDC project will help Puerto Rico to less depend on import and have more stable local food supply by increasing the quantity and quality of local food production and reducing food miles. This would not only benefit dwellers in the island but also would show Wal-Mart as driving force in the agricultural development of Puerto Rico.