Walmart fails to invent a better Mausefalle

The news that Walmart has failed in Germany (and hence, Mausefalle or mousetrap) should not surprise too many. Looks like Walmart is good at wringing the last bit of productivity where the physical and legal infrastructure are strong - in other words, where current day capitalism is intact with the government providing the means to thrive and the private sector maximising the advantages therefrom. As we all know, "Old Europe" is not a great place to look for textbook capitalism. Germany is comparable perhaps only to France among developed countries in terms of archaic labour laws - mistaking organised labour as representing the entire labour force. This leads them to enact laws (often with the best of intentions) to help the former but retarding growth in unorganised sector jobs in the process. Anyone following developments in the Indian economy knows this.

Anyway, this meant that Walmart competed on someone else's terms, not its own as happens in the US. I am not too sure if Walmart has ever succeeded abroad, though it is supposed to be growing in China.

This is not necessarily good news, except to the traditional Walmart haters, such as misguided good-samaritans, the communists and the inefficient retail sector. If this leads Walmart to rethink its non-US strategy for countries such as India (the article indicates the contrary view in fact), the losers are really the poor in those countries. Under-developed countries desperately need investment in the retail sector to provide better prices to farmers (and others lower down the food chain) and cheaper goods to consumers.