FDI in Retail

[dhu]

[size="3"]A political article but with a few notes on the potential impact of FDI upon agriculture..



[url="http://www.dailypioneer.com/columnists/item/50599-historic-chance.html"]Historic chance[/url]

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The last original thinker in the RSS, Dattopant Thengadi, who enjoyed respect even in Left circles, had predicted the BJP's doom as early as 2001 when its ministers took to wearing tuxedos to the CII's luncheons, and stripped the middle class Indian of his job, savings, investments and finally, self-esteem through public sector disinvestment. ...

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The attack on retail FDI must focus on the history of Walmart, a corporate entity larger in scope and logistical complexity than any other in human history. It's 9,700 stores, says Orville Schell in the latest issue of The Atlantic, is supplied by a network of 100,000 sources in 60 countries, are staffed by some 2.1 million employees serving 200 million customers. Walmart's annual revenue equals the GDP of the top quartile of nation. In many ways, Walmart is a country, says Schell. Its CEO, when abroad, is treated like a visiting head of state. Senior executives in charge of overseas operations function like diplomats, signing agreements with governments.



In the West, Walmart has the reputation of a rapacious, anti-labour, un-environmental "big box" which destroys small towns and independent businesses. People are unable to resist its seductive bargains. In 2005, a documentary film by Robert Greenwald, Walmart: The High Cost of Low Price, exposed the unscrupulous tactics played against small firms and medium-to-large farms (after killing the small ones) to extract their produce at low rates. A deeper look brings out the absurdity of the Manmohan Singh government's argument that mega retail firms help farmers get just prices. Actually the opposite happens and in India there is a real threat of distortion of the existing government efforts to raise farm incomes. It’s indeed tragic that after ignoring agriculture all these years, the UPA should outsource problem solving to retailers.

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