In 2003, shortly after Guillermo de Rueda became general manager of the Fundación Solidaridad de Carrefour, the foundation of the Spanish subsidiary of the French retail giant Carrefour S.A., he started to consider how the foundation could contribute to poverty alleviation in developing countries - in a way sustainable and scalable way. De Rueda was used to receiving enquiries of NGOs that focused on helping poor peasant farmers commercialise products as Fundación Solidaridad de Carrefour was known to operate in a respective manner. But instead of arbitrarily funding various projects, de Rueda thought of including poor population groups from the developing world to Carrefour's supply chains.

De Rueda knew that, for poor peasant farmers, supplying goods to retailers in the developed world would be a feasible way to surmount poverty; a way that could lead them to sustainable socio-economic independence; and, a way that could also be scaled up as a concept for poverty alleviation. But he also knew that turning poor peasant farmers to world markets suppliers was a complex challenge. Why? Quality levels of the developed world had to be met by the farmer; which would be costly for them. And: Tapping consumer markets in the developed world is risky business. Product fall-out ratios are high. So, even if products would make it to supermarket shelves they might not make it to the trolley. And poor producers can't absorb the accordant financial risk.

How was de Rueda going to cope with that challenge?
In 2003, shortly after Guillermo de Rueda became general manager of the Fundación Solidaridad de Carrefour, the foundation of the Spanish subsidiary of the French retail giant Carrefour S.A., he started to consider how the foundation could contribute to poverty alleviation in developing countries - in a way sustainable and scalable way. De Rueda was used to receiving enquiries of NGOs that focused on helping poor peasant farmers commercialise products as Fundación Solidaridad de Carrefour was known to operate in a respective manner. But instead of arbitrarily funding various projects, de Rueda thought of including poor population groups from the developing world to Carrefour's supply chains.

De Rueda knew that, for poor peasant farmers, supplying goods to retailers in the developed world would be a feasible way to surmount poverty; a way that could lead them to sustainable socio-economic independence; and, a way that could also be scaled up as a concept for poverty alleviation. But he also knew that turning poor peasant farmers to world markets suppliers was a complex challenge. Why? Quality levels of the developed world had to be met by the farmer; which would be costly for them. And: Tapping consumer markets in the developed world is risky business. Product fall-out ratios are high. So, even if products would make it to supermarket shelves they might not make it to the trolley. And poor producers can't absorb the accordant financial risk.

How was de Rueda going to cope with that challenge?

Next >>