Paul Greenberg’s fish stories

AmericanCatchCoverMuch of what I know about seafood I’ve learned from Paul Greenberg. Paul is an acquaintance and a gifted writer whose new book, called American Catch: The Fight for Our Local Seafood, looks at three iconic American seafood species: New York oysters, Gulf shrimp and Alaska salmon. It’s a sequel of sorts to his previous book, Four Fish: The Future of the Last Wild Food, which I blogged about in 2010.

In the introduction to the new book, Paul describes the impact of globalization on the seafood that we catch and eat in the US:

By all rights this most healthy of food should be an American mainstay. The United States controls more ocean than any other country on earth. Our seafood-producing territory covers 2.8bn acres, more than twice as much real estate as we have set aside for landfood.

But in spite of our billions of acres of ocean, our 94,000 miles of coast, our 3.5m miles of rivers, a full 91% of the seafood Americans eat comes from abroad.

..It gets fishier still. While 91% of the seafood Americans eat is foreign, a third of the seafood that Americans catch gets sold to foreigners. By and large the fish and shellfish we are sending abroad are wild while the seafood we are importing is very often farmed.

…American consumers suffer from a deficit of American fish, but someone out there somewhere is eating our lunch.

Last week, I interviewed Paul by email for Guardian Sustainable Business. I asked him why trade in seafood differs from the global exchange of other goods, the prospects for restoring oysters to New York harbor and a couple of intriguing experiments with community-supported fisheries. You can read his responses here.

There’s encouraging news in Paul’s fish stories. Alaska’s salmon fishermen are in the midst of what could be a successful effort to protect the world’s most productive salmon fishery from Pebble Mine a massive gold and copper mine near Bristol Bay. (The EPA moved to block the mine last week.) Meantime, nonprofit groups in New York are laboring to bring back the oysters that were once plentiful up and down the east coast.

A lifelong fisherman, Paul brings to these stories and obvious passion for his subject and a zest for adventure. (He uncovers and consumes a New York oyster from the muddy waters of the East River.) More than passion, though, goes into a book like American Catch. In the acknowledgements, I learned that Paul’s editor put him through seven drafts of the manuscript. The result, a rarity in this world of 24-7 news, instant analysis, and blogging on the run, is a work of journalism that delivers both insight and enormous pleasure.

The upside of outsourcing

To match Insight INDIA-OUTSOURCING/I heard an excellent, in-depth interview this week with William Easterly, the development economist and author of a new book called The Tyranny of Experts: Economists, Dictators and the Forgotten Rights of the Poor. Easterly, a controversial figure, is critical of top-down development experts — he names Jeffrey Sachs and Bill Gates, among others — who push technocratic, centralized approaches to alleviating poverty. Instead, he argues that the best way to promote economic development is for westerners to push for democracy, human rights and free markets in the world’s poorest countries.

Easterly cites, among others, the Nobel laureate Amartya Sen, who has said: “No famine has ever taken place in the history of the world in a functioning democracy.” Others disagree, noting that parts of India came perilously close to famine just a decade ago. What’s more, China has lifted hundreds of millions of people out of poverty while suppressing human rights, but allowing economic freedom.

I’m in no position to try to adjudicate the debate about how poor countries become rich, but I was thinking about Easterly’s faith in markets and global trade as I wrote my story this week for Guardian Sustainable Business. The story looks at an idea called “socially-responsible outsourcing” or simple “impact sourcing,” and a nonprofit called DDD that tries to put that idea into practice. (DDD stands for Digital Divide Data.) DDD operates businesses in Cambodia, Kenya and Laos that employ young people, typically high school age, to provide information technology and web research, mostly to clients in the US. The goal of the enterprise is to provide economic opportunity to the poor, DDD’s founders told me.

Here’s how my story begins:

So much attention is paid to deplorable factory conditions in poor countries that it’s easy to forget that global supply chains for electronics, apparel and toys have helped lift masses of people out of poverty. Since 1980, 680 million people have risen out of poverty in China which has seen its extreme-poverty rate fall from 84% to about 10%, largely because of trade, reports The Economist.

Now, a small number of companies, nonprofits and foundations want to see if the rapidly growing global supply chains that process data and operate call centers — an industry usually described as business processing outsourcing, or BPO — can be deployed to help alleviate poverty in Africa and South Asia. Can outsourcing, a business driven by the search for cheap labor, reconfigure itself to do good?

“By responsibly and ethically employing hundreds of thousands of people, BPOs have a role to play in shifting the social landscape in emerging economies around the world,” says a report called Outsourcing for Social Good from Telus International, a Canadian outsourcing firm, and Impakt, a social responsibility consultancy.

Others agree. The Rockefeller Foundation has committed $100m to a project called Digital Jobs Africa that aims to improve one million lives in six African nations. A nonprofit called Samasource organizes poor women and youth in Africa and Asia to deliver data services to such businesses as Microsoft and Google. And a company called Cloud Factory that operates in Kenya and Nepal says digital outsourcing can “flatten the world, connect people into the global economy and raise up leaders to fight poverty and change their communities.”

The pioneer of what is called socially-responsible outsourcing or simply impact sourcing is DDD (Digital Divide Data), a New York-based nonprofit that operates for-profit data centers in Cambodia, Laos and Kenya. DDD and its impact-oriented peers set themselves apart from outsourcing giants such as Tata, Accenture and Infosys because, they says, they deliberately seeks out workers in the some of the world’s poorest places and provides them not just with jobs, but with the education, training and career counseling they need to rise into the middle class.

“Our ultimate mission is to alleviate poverty,” says Jeremy Hockenstein, 42, the founder and CEO of DDD. “We focus on students who are finishing high school, who are very motivated and very smart and who come from low-income homes.”

Having met Jeremy Hockenstein (via Skype) and his co-founder Michael Chertok (face to face), I have no doubt of their good intentions. Both gave up more lucrative careers to start the nonprofit. DDD is about helping its global employees, not exploiting them.

But their work raises an intriguing question about how much intentions matter when it comes to infotech outsourcing, or all of global trade, for that matter. Despite all the the abuses in the global manufacturing supply chain, it seems inarguable that the factory jobs created in China, Mexico, India and Bangladesh have benefited the poor in those countries. Is it possible the Walmart and Apple have done more to alleviate poverty than Bill Gates and Jeffrey Sachs?

You can read the rest of my story here.

The elusive fortune at the base of the pyramid

cimg7634It’s been an exceptionally busy week, beginning with the 2014 edition of Fortune Brainstorm Green (selected videos are online here) and ending with a holiday weekend visit from my new grandson, so I’m going to quickly post a link to my latest story for Guardian Sustainable Business.

It’s a long-ish story about doing business at the bottom of the pyramid, an idea popularized by the late C.K. Prahalad in a book published a decade ago. Here’s how the story begins:

When CK Prahalad‘s book, The Fortune at the Bottom of the Pyramid, was published in 2004, the book made an immediate splash. Its argument was irresistible: The world’s poorest people are a vast, fast-growing market with untapped buying power, Prahalad wrote, and companies that learn to serve them can make money and help people escape poverty, too.

Microsoft founder Bill Gates called the book “an intriguing blueprint for how to fight poverty with profitability”. BusinessWeek’s Pete Engardio described Prahalad, a professor at the University of Michigan business school, as a business prophet. He was awarded honorary degrees and sought out by CEOs.

Ten years later, businesses big and small continue to pursue profits at the bottom of the pyramid. The global uptake of mobile phones has proven that poor people will buy cell service if it’s available at low prices. (It costs a fraction of a cent per minute in India.) Single-serve packages of shampoo, toothpaste and soap dangle from shelves of tiny storefronts in rural villages. Products ranging from eyeglasses to solar panels are being designed and marketed to people earning $2 a day.

The bottom-of-the-pyramid (BOP) market leader, arguably, is Unilever, with its Anglo-Dutch colonial heritage and a chief executive, Paul Polman, who is determined to improve the world. Unilever generates more than half of its sales from developing markets, with much of that coming from the emerging middle class. Its signature BOP product is Pureit, a countertop water-purification system sold in India, Africa and Latin America. It’s saving lives, but it’s not making money for shareholders.

And there’s the rub. If there is a fortune to be made at the bottom of the pyramid, it remains elusive. Partly that’s because doing business with the poor is unavoidably complex, and partly that’s because the notion was oversold, says Mark Milstein, director of the Center for Sustainable Global Enterprise at Cornell’s business school and an expert on the BOP.

“I haven’t seen anyone making a fortune,” Milstein told me. “Unilever’s made money on some products, but they’ve been challenged. Other companies are making profits, but not enough to matter to their organization.”

The story goes on to report on successful and not-so-successful efforts to do business with the world’s billion or two poor people. We’ll be considering this topic again next month at the Guardian, with a live tweet chat on Tuesday, June 10, at noon. You can read the rest of my story here.

Biz Stone: A good guy who’s doing very well

Biz Stone, co-founder of Twitter, speaks at the Charles Schwab IMPACT 2010 conference in BostonI’m a big fan of Twitter. It’s how I keep up with  the news that I need to know, so I follow Jo Confino, Heidi MooreJoel Makower,  Andy RevkinBryan WalshTom PhilpottDavid Biello, Marcus Chung and Aman Singh. It’s also how way I keep up with the news that I want to know, so I follow Adam Kilgore, Buster Olney, Keith Law, Sam Miller@GioGonzalez47 and @ThisisDSpan. I follow colleagues at Fortune like Adam Lashinsky, economists who write for the public (thanks, @EconTalker!)Twitter has become what the newspaper industry once wanted to create on the Internet, a product informally dubbed “the daily me” that gave each reader news tailored to his or her interests.

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So when I heard that Biz Stone, the co-founder of Twitter, and author of a new book about values and business was coming to Washington, I decided to hear what he had to say. I wasn’t disappointed. I wrote about Biz’s talk and his new book, Things a Little Bird Told Metoday in the Guardian Sustainable Business.

Even if you have little interest in Twitter, the book is worth reading. Here is how my Guardian story begins:

How should we define success in business? Biz Stone, the co-founder of Twitter, says that to be judged successful, a company needs to make money, make the world a better place and bring joy to the people who work there.

“It’s a ridiculously high bar,” he says. “But if you don’t set the bar high, you’re never going to get there.”

Stone has written a new book called Things a Little Bird Told Me: Confessions of the Creative Mind. The book is less about the mind than the heart, less about creativity than values and less about Twitter (and that little bird) than about Stone, an unabashed idealist and, it would appear, a genuinely nice guy. This is the rare Silicon Valley story with little to say about technology, venture capitalists, monetizing users and IPOs but a lot to say about how listening, empathy and generosity can help build a sustainable business and change the world.

“It may sound like a lofty goal,” Stone writes,”but I want to redefine capitalism.”

You can read the rest of the story here. You also might want to check out Biz’s new venture, Jelly, whose ultimate aim is to “build worthwhile empathy.”

Yet another reason to eat less meat

chickens-4The more I learn about the way most chickens, pigs and cows are raised and slaughtered in America, the less appetite I have for meat. I’m not a vegetarian, and may never become one. But, hey, I’ve given up the NFL. I’d like to give up industrial meat, too.

I’ve long been aware of the negative environmental impacts of factory-produced meat. There’s plenty of evidence that the meat-heavy American diet isn’t good for our health. We’re learning than the overuse of antibiotics in animal agriculture puts human health at risk. And chickens and pigs raised for food are confined in cages and crates barely larger than their bodies. It’s not a pretty picture.

Last week. at a forum organized by the New America Foundation called The New Meat Monopoly: The Animal, The Farmer, and You in the New Age of Global Giants, I heard about another reason to avoid factory-farmed meat: Big meat companies, and in particular Tyson Foods, have grown so powerful that they have made life harder than it needs to be for small-scale farmers and ranchers. At the Washington event, farmers, ranchers, anti-trust experts and animal welfare advocates lined up to pillory the big guys.

Among the speakers at the event was  New America Foundation fellow Christopher Leonard, the author of a well-reviewed new book called The Meat Racket:  The Secret Takeover of America’s Food Business. Leonard argues in the book (which I haven’t read, but hope to) that companies like Tyson “keep farmers in a state of indebted servitude, living like modern-day sharecroppers on the ragged edge of bankruptcy.” They are able to do so in part because many farmers have only one or two customers to sell to, so the customers hold all the cards.

Subsequently, I read Obama’s Game of Chicken, an excellent 2012 article Lina Khan in the Washington Monthly about abuses of power by companies like Tyson and Pilgrim’s Pride, and how Obama’s USDA and DOJ have failed to curb them. Khan, who’s also affiliated with the New America Foundation, describes in rich detail what she calls “the stark and growing imbalance of power between the farmers who grow our food and the companies who process it for us, and how this imbalance enables practices unimaginable in any competitive market.”

I wrote about the New America event last week for Guardian Sustainable Business. Here’s how my story begins:

Like politics, industrial-scale meat production creates strange bedfellows. Animal welfare advocates are joining up with farmers, environmentalists and supporters of stronger antitrust laws in the hope of engaging consumers on the issues involving the meat they buy. The aim? To counter the power of big meat companies like Tyson Foods and JBS, the world’s largest protein company and the owner of brands including Pilgrim’s Pride and Kraft.

“Maybe it’s time for a citizens revolt,” said Barry Lynn, director of the markets, enterprise and resiliency initiative at the New America Foundation. Lynn was speaking at a half-day forum in Washington called “The New Meat Monopoly: the animal, the farmer and you in the new age of global giants“.

The accusations thrown at the global meat giants were mostly familiar. By raising and slaughtering chicken, pigs and cattle on a large scale – about eight billion chickens will be raised and killed this year in the US – these companies squeeze out family farmers, treat animals cruelly, create waste and air pollution, and feed their livestock antibiotics that, over time, put human health at risk and raise healthcare costs, at least according to their critics.

What’s more, these critics argue, is that the meat industry’s consolidation and power have been supported by government policy. Subsidized corn and soy reduce the price of meat. Bank loans to farmers are backstopped by the USDA’s Farm Service Agency. Government regulations make it harder to build and operate small-scale slaughterhouses.

You can read the rest of the story here.

Costco, Trader Joe’s, QuikTrip and the “good jobs strategy”

zton_book-257x300As the issue of income inequality takes center stage in Washington, creating risks to the reputations of some of America’s biggest employers, such as Walmart and McDonald’s, Zeynep Ton’s new book, The Good Jobs Strategy, could not be more timely.

Ton, who teaches at MIT’s business school, argues that smart companies invest in their employees, who provide superior service to customers, who become loyal, thus generating profits and shareholder returns. What’s more, she says, this strategy works in the brutally competitive, low margin retail industry, at such companies as Costco, Trader Joe’s, QuikTrip and the big Spanish retailer Mercadona.

I met Zeynep Ton last week at the Hitachi Foundation in Washington, and wrote about her book, and her ideas, today in Guardian Sustainable Business.

Here’s how my story begins:

About 46 million Americans, or 15% of the population, live below the poverty line, and about 10.4 million of them are the working poor. They bag groceries at Walmart or Target, take your order at McDonald’s or Burger King, care for the sick, the elderly or the young.

Conventional wisdom says that’s unavoidable: to stay competitive, keep prices low and maximize profits, companies, particularly in the retail and service industries, need to squeeze their workers. But in a provocative new book, The Good Jobs Strategy, author and teacher Zeynep Ton argues that the conventional wisdom is wrong. Instead, she says, smart companies invest in their employees, and they do so to lower costs and increase profits.

Of course, the idea that companies need to properly reward their key employees is hardly radical. That’s how business works on Wall Street and in Silicon Valley, where the competition for talent is fierce. But Ton, who teaches at the MIT Sloan School of Management, says that a good jobs strategy can also work in retail. In fact, she makes her case after a close study of four mass-market retailers who invest in their employees, keep costs low and deliver superior shareholder returns.

“It’s not the case that success comes from cutting labor costs,” Ton says. “Success can come from investing in people.” What’s more, she says, executives need to understand that that treating workers well “does not depend on charging customers more”.

You can read the rest here.

Regular readers will not be surprised to hear that I’m inclined to agree with Ton. Ten years ago, in my own book, Faith and Fortune, I reported on companies like Southwest Airlines, Starbucks and UPS that pursue their own version of a “good jobs strategy.” To her credit, Ton has shown that the strategy works in retail, and that it can actually help drive prices lower–a potentially valuable lesson for companies like Walmart and McDonald’s.

Zeynep Ton

Zeynep Ton

That said, her book raises a question that is hard, at least for me, to answer: If the good jobs strategy is so good, why don’t more companies embrace it? For that matter, why haven’t those companies that treat their employees well trounced their competitors? In theory, the companies that practice a “good jobs strategy” should be able to attract the best people, deliver the best customer service and force their rivals to copy them or suffer. That’s the way markets are supposed to work.

I put this question to Ton and she offered two answers. First, markets are imperfect. Second, the “good jobs strategy” is hard to execute because it requires redesigning workplaces, providing lots of training, finding the right balance between standardizing tasks and empowering employees, and so forth. Maybe. But I suspect there are other reasons why the “good jobs strategy” has not swept across America. Your thoughts are most welcome.

The future

9780300176483The bet between the biologist Paul Ehrlich and the economist Julian Simon, which was described as  “the scholarly wager of the decade” by the Chronicle of Higher Education, was settled without drama–or graciousness. As Paul Sabin writes in The Bet: Paul Ehrlich, Julian Simon and Our Gamble over Earth’s Future:

One day in October 1990, Julian Simon picked up his mail at his house in suburban Chevy Chase, Maryland. In a small envelope sent from Palo Alto, California, Simon found a sheet of metal prices along with a check from Paul Ehrlich for $576.07. There was no note.

It was a victory not just for Simon but for optimists everywhere, and so a fitting way to start the year of 2014. The two men–who did not like one another–had in 1980, at Simon’s urging, placed a $1,000 bet on the price of five metals ten years hence. Ehrlich, whose book The Population Bomb warning of a coming global catastrophe had made him a celebrity, as well as one of the most influential environmentalists of all time, believed that food, energy and commodities would all grow scarce, and thus more expensive over the decade. Simon, a free-market economist, had enormous faith in the power of markets, prices and innovation to solve problems. (Before the bet, Simon was best known as the inventor of the auction system used by airlines to pay passengers not to take overbooked flights.) Between 1980 and 1990, the prices of the five minerals–chromium, copper, nickel, tin and tungsten–had fallen by an average of almost 50 percent.

Simon was lucky as well as smart. A global recession in the early 1980s depressed the prices of metals, and they never recovered. As Sabin reports in his first-rate and very readable book, economists who ran simulations of the bet during every 10-year period between 1900 and 2008 found that Ehrlich would have won the bet 63 percent of the time. Yet the history of the past 45 years, since Ehrlich published The Population Bomb, weighs heavily in favor of Simon’s worldview. Market signals, human ingenuity and technological progress have solved problems that Ehrlich said would doom us all. [click to continue...]

Our misguided fetish for “natural” foods

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Fresh Frozen Vegetables: Which is it?

The supermarket has become a festival of oxymorons.

Fresh-frozen peas. Jumbo shrimp. Boneless ribs. Chanukah ham.

And the most common of all:  Natural food.

If you are eating wild-caught fish or mushrooms gathered from the woods, you’re eating natural food.

Otherwise, probably not.

There’s nothing “natural” about agriculture, whether it’s practiced on the industrial-sized soy and corn fields  in the midwest, on the sprawling fruits and vegetable farms in the Salinas Valley of California or on the local and regional farms whose owners truck their crops to the  7,800 farmers’ markets across America. Agriculture is, by definition, about the management of nature– fertilizing the soil, getting rid of weeds, insuring that crops get the water they need. Even if you grow a few tomatoes or cucumbers in your backyard, you’re enjoying the product of decades of selective breeding.

The misguided fetish for the “natural” is a problem for a couple of reasons, as I’ll explain. But first, if you doubt that the claim of “natural” is a selling point, take a look at a few of the labels that I came across the other day at the Whole Foods Market in Bethesda, Md., where I live: [click to continue...]

Cows save the planet

Cows Save the Planet coverCows Save the Planet. How can you resist a book with a title like that? I couldn’t. The subtitle is Unmaking the Deserts, Rethinking Climate Change, Bringing Back Biodiversity, and Restoring Nutrients to Our Food, and the author is Judith D. Schwartz, a freelance writer who lives in Bennington, Vermont, and a colleague of mine through the Society of Environmental Journalists (SEJ). The book looks at our many environmental challenges from the perspective of soil–an under-appreciated resource, and one that could be a key to addressing the climate crisis. Surprisingly, one way to improve soil on a large scale is through cattle ranching.

I’ve written just a bit about this myself. (See my March post, Meat lovers, rejoice! Cattle could be a climate-change solution). Jim Howell, a rancher and entrepreneur who appears in Judith’s book, spoke in May at Fortune Brainstorm Green. While the science of what is known, awkwardly, as Holistic Planned Grazing, remains controversial, I’m convinced that the idea deserves more attention. So Judith kindly agreed to answer a few of my questions about her book.

Marc: Judith, in your introduction, you write about the issue of carbon emissions:

The trouble isn’t the carbon itself; it’s that there’s too much of it in the air rather than in the ground, where it lends fertility to the soil. Soil, it turns out, is the natural and most cost-effective carbon sink.

Can soil store enough carbon to matter? [click to continue...]

Mark Tercek: The business case for nature

Tercek-Adams-Natures-FortuneThe value of nature is astonishing, when you stop and think about it. Marshes protect coastlands. Urban trees clean the air. Forests provide timber. Oceans give us seafood.  Snow-capped mountains store drinking water. Some might say nature is priceless.

Not Mark Tercek, the former investment banker at Goldman Sachs who became CEO of The Nature Conservancy in 2008. His new book, Nature’s Fortune: How Business and Society Thrive by Investing in Nature (Basic Books, 2013), argues that nature provides enormous economic benefits to society, business and consumers, and that, if we can figure out how to value and pay for those benefits, we can slow down and even reverse the degradation of nature that threatens our well-being.

It’s an important and potentially controversial argument, as Tercek acknowledges. While the 20th century conservation was all about protecting nature from people, Tercek and some of his allies in the environmental movement would like the future to be about protecting nature for people. If nothing else, he argues, recognizing the economic value of nature will expand the base of the environmentalist beyond the white, college-educated and relatively affluent folk, the backpackers and hikers and birdwatchers at its core. [click to continue...]