Monday, July 28, 2008
I had a Coke in Africa, at the foot of the Ngong Hills
Remember this ad? Well, the ambition in the ad is reflected in the theory that Coca-Cola is a leading indicator for Africa's stability:
Finally, a political indicator I can get behind. Coca-Cola sales are a key signal of peace and prosperity in Africa, according to an intriguing theory from Jonathan Ledgard, The Economist's Africa correspondent.
Africans buy more than 36 billion bottles of Coca-Cola each year, and the price is low enough that many even in the most impoverished villages can afford a bottle now and then. Folks love their Coca-Cola: As the largest private employer on the continent, Coca-Cola is so entrenched in hearts that people go to the grave with the stuff. And since Coca-Cola tracks its sales and distribution in Africa down to the most minute details, any swift drops in sales or problems in the distribution chain can point to real-time economic hardship and instability.
In other words, if Coke sales drop off swiftly and suddently in parts of, say, Kenya, there is a good chance that either the area has become too dangerous for deliverymen to make their rounds or that something catastrophic is happening to peoples' incomes. Either way, bad news.
It turns out that Cokes and smiles really do go together. Links through the link.
7 Comments:
By 
Purple Avenger, at
Mon Jul 28, 02:21:00 PM:
I use billboards as a leading indicator of US economic climate.
When highway billboards start showing up empty, advertising budgets for marginal payback exposures are grow tight. This usually leads any press mention of an economic downturn by several months.
By D.E. Cloutier, at
Mon Jul 28, 03:12:00 PM:
This comment has been removed by the author.
By D.E. Cloutier, at
Mon Jul 28, 03:15:00 PM:
NPR launched a series about China's new pivotal role in Africa. Two quotes:
1. "Despite its large investments in Africa, China steers clear of moral issues."
2. "Instead of hemming and hawing on the sidelines about good governance and transparency, China came ready to play by Congo's rules."
My view: Chinese pragmatists will win. American idealists will lose. Fortunately, America still has some pragmatic entrepreneurs and corporate executives.
Link:
http://www.npr.org/templates/story/story.php?storyId=92990229
By Purple Avenger, at
Mon Jul 28, 05:54:00 PM:
Most reputable major American corporations have trouble doing business in highly corrupt environments due to corporate policies against bribery, kickbacks and such.
The Chinese won't feel similarly constrained.
By 
, at
Mon Jul 28, 05:54:00 PM:
The Coca-Cola is good.
It's the Coke bottles that are bad! Just watch "The Gods Must Be Crazy!"
QED, or something clever in Latin.
I rest my case.
P.S.: Is DEC running for President or Secretary of State? Make up your mind, man!
-David
By D.E. Cloutier, at
Mon Jul 28, 06:40:00 PM:
To David: As I indicated before, I would rather be sheriff of Clark County, Nevada. Who would want to be President or Secretary of State when you can be the sheriff in Las Vegas? (Being the top lawman in Macau might be fun, too.)
By davod, at
Mon Jul 28, 06:42:00 PM:
"It's the Coke bottles that are bad! Just watch "The Gods Must Be Crazy!""
I used to love the old Coke bottles. The Coke tasted so much better.
