"It has been said that arguing against globalization is like arguing against the laws of gravity." Kofi Annan
We welcome globalization, we want IBM's, Microsoft's, Hyundai's and Ford's to open up their shops here. We are delighted American jobs coming into our country but we don't want them to come and partner with us or invest into any of our businesses. Doesn't this sound crazy, I would say its idiotic. We put caps on Foreign investors coming into our market. Today's most politicalized issue is FDI in retail. Why shouldn't we allow full FDI (Foreign Direct Investment) into our retail sector what's wrong in it?
I was watching a TV show in which a guest who opposes FDI in retail and Reliance Fresh stores stated they will kill local small businesses. I was amazed when this guy said "Small players cannot compete with big players since biggies would out do them in price" WOW what a brilliant thought. This guy never thought such competition will favor the consumer and ultimately consumer the KING would get benefited. Indian retail is biggest when compared with some of the other Asian countries but ours is most fragmented and unauthorized RESULT: Local shop owners and mom-pop owners enjoy the maximum benefit.
We are talking about improving the life of our farmers; we give free electricity, whopping subsidies and what not. Just look at it the other way round. Reliance procures products directly from the farmers. So no middlemen so more profit to farmers and reduced price to our consumers. Why should we oppose it then?
WTO is pressurizing India to lift the ban on FDI if India doesnt then they will cross retaliate by withdrawing tariff and trade privileges that we enjoy today under the new General Agreement on Tariffs and Trade.
Such was the cry couple of decades back when computers and computer operated machines came into play. Some looked at it as threats to job. What happened was totally different. It helped in productivity, it created more opportunities and it made us to compete with other global players. Had we not done that then today we would not be rated as the fastest growing economy. I strongly believe that this is an issue merely created and blown out of proportion by our self-centered politicians. I do not understand why communists and PMK oppose FDI in retail. Look at these communists, the so-called saviors of farmers and working class. They want globalized West Bengal for which they are ready to RED paint Nandhigram with human (farmer) blood but they would oppose globalization elsewhere. The biggest communist country China has opened up their market, even their leader has advised our communists not to oppose FDI (reported in media) when he visited India, but god only knows why they play politics in this issue.
2 comments:
Maran do you remember Goldspot, Torino, Trinka, Solidare, Dyanora, I am sure it must be somewhere in you heard of them till the 90’s we had them until our present prime minister under the narshima rao governmet brought in LPG the acronym that stands for Liberalisation, Privatisation and Globalisation. These Indian brands are no more- Reason globalisation. I agree that the cola scene might have benefited the customer earlier though today there is a nation wide resentment over the same. LPG has affected length and breadth of this country. I am not an economist to debate on this though my impressions on the world being a global village is very clear. Lets assume suppose a multinational invests 1000 crores and makes 200 crores in profit. On the other hand, assume that a domestic company invests 1000 crores and makes 100 crores in profit. It would thus seem that the MNC was more "efficient" - twice as much as the Indian company. But if half or more of the MNC's profits were repatriated to their foreign parent or to foreign shareholders, the relative benefit would be nil! And if the 100 crore in extra profit accrued only due to special tax breaks and other special favors granted to the multinational, the increase in 'efficiency' would be entirely fictitious. No one is arguing for India to remain aloof from the process of technological up gradation and modernization. Unless India adopts a stance of hard bargaining and selectivity in the manner it globalizes, globalization will take place on the terms of the world's most powerful nations - and is unlikely to bring widespread benefits for the Indian people. India's economic policies need to be restructured to give an impetus to the local development of key technologies that play a crucial role in the modern economy and satisfy the most pressing needs of the vast majority of the Indian people.
India Lives in its Villages. Lets question globalisation, challenge the ones who advocate it and scrutunize without any bias.
"scrutunize without any bias" I find these words very appropraite in your reply, Karthick. We should stop something to appease a section of people. In the process we may loose huge benefits. About the glodspot example I differ from your point. Though I do not know why these individual brands failed I can say onething here. Yes, Dynora and Solidaire failed but Videocon did survive and went global. Its a matter of how you stay competitive and sustain globalisation. Ranbaxy and BioCon are success stories and they are Global Indian company. I agree with the fact that the local products/industries would be affected but if we learn to stay competitive then we can overcome the challenges in Globalisation.
Post a Comment