Kimberly-Clark Comes to Venezuela’s (Toilet Paper) Rescue

Contrasting with the anti-imperialist stance of his predecessor Hugo Chavez, Venezuela’s President Nicolas Maduro is ready to accept US investment in the country. The oil-rich nation has a troubled economy, marked by nationwide shortages of basics, including toilet paper. Kimberly-Clark, a US company that controls 15 percent of Venezuela’s market for toilet paper, is planning to invest $37 million to expand its operations, reports Benedict Mander for the Financial Times. The investment is expected to boost its local capacity by up to 40 percent over the next two years. Such product shortages and public discontent are pushing the government toward new trends of development. For example, failure to develop food processing plants under state control is spurring a deal with the largest private company in the country, Polar, for operations help. The investments also allow companies to use cash trapped in an economy with high inflation. – YaleGlobal