Will 51% FDI in retail sector bring cheers to all classes of society?

Interesting discussion here. Most of the argument against FDI in retail are like:
- It is bad for neighborhood stores (like for every 100 jobs created by Walmart and others, anywhere between 200-1000 jobs will be lost)
- Foreigners will twist and manipulate the system to earn unfair profits and take it out of the country
- Farmers will get scr**d by the foreigners
- This will facilitate the flooding of the market with cheap Chinese goods.
All of these arguments and more are probably but only partially true. Anyhow, what I find interesting is the one important question that is not being asked, not only here but even in the TV debates. That is: Why are these -ve not applicable when Reliance, Sahara or More run the big retail stores? They can destroy the neighborhood kirana's as effectively as Walmart . I have been waiting through all the TV debates for someone to ask if Reliance can take over the neighborhood retail, what is wrong with Walmart doing the same. So far, I have not heard any as I don't see that in this thread too.
My theory is that this whole drama (by pro-poor, anti-FDI politicians) is well orchestrated by the Indian plutocrats who want to control indian retail business (like FDI in aviation was chased away in 90s by what is now one of the major domestic airline). These Indian businessmen are as bad as the colonial masters.
IMHO, if someone is really concerned about the small retailers, then they should be against Indian retail chain too. If one thinks that farmers are going to get a raw deal, then they should try to reform the mandi/middleman system in agri procurement which is dominated by the local politicians and their cronies.
Anyway, I liked this article in mint on FDI:
FDI ≠ economic reforms - Livemint
I agree with the author of this article.
 
But I am curious to know from you - is there a problem that is centuries old that is manifest in its original form in oppressing certain sections of society?
Rahul,
I think you misunderstood me. When I said allow me to disagree with you in previous post this is what I meant. There is no point in what were the facts (satis/scavengers/POWs) centuries ago. I am strong believer that history and figures can be manipulated either way over a long period of time. As we pick scholarly writings that agrees with us or rather we agree with them, vicious people also come up with some counter arguments and there is no end and serves no practical purpose. Only present matters. And we do have problems. See last para in this post for another example.
I agree that in the example you cited, the upper caste themselves should have taken the initiative to stop the practice as silly and stopped the ceremony.
Sorry dear, misunderstood again. Casteism and ceremony was the least of my concern. It was posted to say good number of people are still uneducated. And why this is so ?
The danger I alluded to is the creation of an aggrieved mindset amongst certain sections of society that they need to extract their pound of flesh for some perceived wrong doings in the past that no longer affect them in the same way as before. Rather than empower them to look forward and give shape to a constructive outlook to achieving success and prosperity in emerging opportunities in a new economy, certain think tanks are deliberately intent on creating a sense of victim hood about the past of X Y Z communities and politicizing compulsions of demanding compensation for past wrongdoings in various ways.
--G0bble
I am very much aware of politicians/think tanks/even pseudo intellectuals creating sense of victimhood in lower castes of society.
But hey!! we have elevated our selves from Upper vs Lower caste to Hindu-Muslim* to North-South Indians* to Maharastrians-Biharis* to Marathas-Brahmins*. People Do vote on these lines. So I repeat again we have problems and our glorious past is not helping us.
* All these divisions are very much real and we all are witnessing it.
Regards
Back to FDI please. :)
 
WalmartCartoon.jpg
 
My theory is that this whole drama (by pro-poor, anti-FDI politicians) is well orchestrated by the Indian plutocrats who want to control indian retail business (like FDI in aviation was chased away in 90s by what is now one of the major domestic airline). These Indian businessmen are as bad as the colonial masters.
IMHO, if someone is really concerned about the small retailers, then they should be against Indian retail chain too. If one thinks that farmers are going to get a raw deal, then they should try to reform the mandi/middleman system in agri procurement which is dominated by the local politicians and their cronies.
Anyway, I liked this article in mint on FDI:
FDI ≠ economic reforms - Livemint
I agree with the author of this article.

Yes I think so too that this is an attempt to polarise the population and gain a vote bank. Opposition for oppositions sake Kudos to Congi for pushing it finally!

--G0bble
 
All of these arguments and more are probably but only partially true. Anyhow, what I find interesting is the one important question that is not being asked, not only here but even in the TV debates. That is: Why are these -ve not applicable when Reliance, Sahara or More run the big retail stores? They can destroy the neighborhood kirana's as effectively as Walmart . I have been waiting through all the TV debates for someone to ask if Reliance can take over the neighborhood retail, what is wrong with Walmart doing the same. So far, I have not heard any as I don't see that in this thread too.
I dont think you get the difference between the two. If given a choice to be looted by a walmart or a reliance, i prefer to be looted by a reliance any day. A reliance will invest that money some where in india only. The money looted by walmarts is gone forever.
Second, how do you make a law against a reliance opening a retail store or chain. Any indian can open a store, even you.
My theory is that this whole drama (by pro-poor, anti-FDI politicians) is well orchestrated by the Indian plutocrats who want to control indian retail business (like FDI in aviation was chased away in 90s by what is now one of the major domestic airline). These Indian businessmen are as bad as the colonial masters.
I look at it the other way. The whole drama is well orchestrated by indian *crats who wants to give control of indian retail business to foreigners, just wait for another report from CAG:).
Nothing is as bad as our colonial masters. As compared to lors hastings and lord clives, rahul gandhi, narendra modi etc are saints. American businessmen are much much worse than indian businessmen, they have absolutely no morality what so ever.
IMHO, if someone is really concerned about the small retailers, then they should be against Indian retail chain too. If one thinks that farmers are going to get a raw deal, then they should try to reform the mandi/middleman system in agri procurement which is dominated by the local politicians and their cronies.
Anyway, I liked this article in mint on FDI:
FDI ≠ economic reforms - Livemint
I agree with the author of this article.

Yup, those are our politicians, but since they are the ones profiting, and they are the ones that need to bring in change, no hope of that.
I have lost complete faith in this government. I am really really sad that elections are another 2 years away. I just hope that sp and bsp show a little more guts and dont support this govt. I would gladly welcome fresh elections.

Funny thing is, both the principal parties have their hopes pinned on one man. BJP on modi, without him, they cant win. Congress also on modi, cause if he's not bjp's candidate, then there is no chance of congress getting hold of allies and forming a 'secular' platform. Rahul gandhi is absolute pits, they call him a national leader, but i dont know his stand on a single issue.
 
IMHO, if someone is really concerned about the small retailers, then they should be against Indian retail chain too.
The point is when Indian retailer operate money stays here. When GIANTS will come over a period of time big money will go out of India. Point is there is no need to hurry. Let us bargain hard for them to come :D
Regards
 
The point is when Indian retailer operate money stays here. When GIANTS will come over a period of time big money will go out of India. Point is there is no need to hurry. Let us bargain hard for them to come :D
Regards

Not really. The money flow has been liberalized for a quite a while now and every Indian can take the money (to certain limits) out and the Indian industry is allowed (rather freely) to take the money and invest abroad. So, even without FDI in retail, the 'Indian money' can go out of India (and I am not even talking about the Mauritius routed dark colored money).
This fear of money going out is not based on reality. With the free floating currency, trade balances, tax incentives and local sourcing requirements, the economy works quite differently today than strict inflows and outlflows. BTW, Reliance importing chinese goods require money to go 'out' too.
 
I dont think you get the difference between the two. If given a choice to be looted by a walmart or a reliance, i prefer to be looted by a reliance any day. A reliance will invest that money some where in india only. The money looted by walmarts is gone forever.
May I suggest that you don't get how Indian economy works. Reliance is free to take the money and invest anywhere in the world under the current regulations. And there is nothing wrong with that.
 
One man's meat is another man's poison.

I support FDI in retail since that will bring in economic development; mainly by transferring it from one section of socitey to another. But what i get concerned about is the subtle changes to the way we think, eat and spend these malls are bringing, and will bring. These foreign firms are masters of psychology and sociology and know how to arouse your primival instincts to their benefit.

If you look around the cases of indebtness, stress and health issues are increasing even among middle class. Is this development ? The middle class should not become cash generating zombies who walk around malls driven by their cravings. From simple living high thinking Indians we have become High living simple thinking indians.

In the US average savings are down to 1% of income. Imaging saving only Rs.1000 in Rs 1 Lac income. Most US companies want us Indians to become the same cash cows. We should live our lives on principals of one spiritual guru, Vivekanand's teaching are fantastic. Thats what makes us Indians.

Experience: 4 years of studying US macro and micro economic data during the recession time of 2007-2011.
 
First, I am always pleased (and surprised, actually!) that Indians really do not harbour bad feeling to us Brits. There are many ex-colonies in the world where the ex-colonisers are hated even several generations after independence. However true it may be that it was not all bad, I am shocked, though, when I find people claiming that the colonial era was good for India, albeit that India as such would not have existed without the British takeover and amalgamation of the princely states.

My history/economics is pretty poor (classes that I used to sleep in :eek:) but I do know that Britain really did a double-whammy on India. First, looting it of everything it could, and second, destroying its remaining local industries such as textiles by imposing the import of its own cheaper products. There is stuff on the internet about India's net worth before and after colonisation, and India's place in world trade before and after. Stuff that I'd really like to be able to quote, but I'm just no good at remembering it.

Foreign capital has become a mantra, and a point that I seldom see raised is, what's wrong with Indian capital? There's surely plenty of it. In fact, Indian capital is buying foreign businesses now. There are Indian supermarkets, chain stores, etc: where is the need for foreign ones?
Sometime back I read somewhere that Indian Industrial sector is sitting on surplus cash to the tune of Rs. 80 K Crores. Industry is holding this cash in lack of conducive and investment friendly atmosphere going on due to indecisiveness of the government for ongoing corruption issues. So the argument of need of foreign money is unsustainable.
 
Not really. The money flow has been liberalized for a quite a while now and every Indian can take the money (to certain limits) out and the Indian industry is allowed (rather freely) to take the money and invest abroad.
So can they. What do you think about share markets where FII's coming every 6/8 months make 5-10% profit pull back and wait for the markets to fall. Can we do that in their market with Dollar at 56 Rupees.
(and I am not even talking about the Mauritius routed dark colored money).
Bro, you are talking about corruption. Which can be controlled if one has the will.
This fear of money going out is not based on reality. With the free floating currency, trade balances, tax incentives and local sourcing requirements, the economy works quite differently today than strict inflows and outlflows.
So when do you suppose we will get over the trade deficit and make profit as a nation.
BTW, Reliance importing chinese goods require money to go 'out' too.
Not a rule as such but buy least amount of chinese product as possible. Support Indian manufacturing.
Offtopic : Will never trust ------- people who eat dog meat.
Regards
 
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First digression...
What really worries me about the Indian economy is how any forward movement is stalled by vested interests. Too many people have veto power. When one of the biggest business houses isn't able to find a place to open a factory (because one b*tch was having pe**ods), we are in trouble. Airports and metros take decades to build, steel plant never gets built (POSCO). In fact it is shame that the world's top man in steel is an Indian and he has no Indian presence.
When farmland can be grabbed at minimal agricultural rates by a nexus of industrialist/official/politician for industrial use, we are in trouble.

Even less relevant second digression...
For another account of colonialism, read Joseph Conrad's "Heart of Darkness". One of the great novels of the 20th century. Adapted into a turgid and boring film called 'Apocalypse Now' in the late 70's.[/url]
I'm not a movie person and never have been, and Heart of Darkness is one of the handful of Conrad's books that I have not actually read*. However, I still think that the film is brilliant. It is almost as much about psychedelics as anything else (albeit something of a bad trip); the music, and the way it is used, is fantastic. Some might think that Conrad's writing is turgid and boring. I don't, but I think that the film conveys the sense of terrible fatalistic movement towards an inevitable disaster of Conrad's writing amazingly well. It feels like a Conrad novel!

Digression return to topic...

FDI? The horror... The horror.

:cool:


*I got into Conrad because, at the time, I was mad to read all stories about sailing and ships. I read all his sea-going stuff but not his other books.
 
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Rahul,
I think you misunderstood me. When I said allow me to disagree with you in previous post this is what I meant. There is no point in what were the facts (satis/scavengers/POWs) centuries ago. I am strong believer that history and figures can be manipulated either way over a long period of time. As we pick scholarly writings that agrees with us or rather we agree with them, vicious people also come up with some counter arguments and there is no end and serves no practical purpose. Only present matters. And we do have problems.

I agree about manipulating history. This is already well documented in multiple discourses and you can sample one here: The Peer-Review Cartel | Rajiv Malhotra

In brief its is about consensus building within a privileged and closed group of academics that resemble a mafia and then using power and authority to
maintain a fake credibility for ones substandard scholarship using syndicated publishing channels for spreading ones agenda driven by prejudices masquerading as academic discourse.

But I disagree about not studying the past as this is against the priciples of diagnosis. Which disease is diagnosed without studying the history of illness, its symptoms, the patients lifestyle, habits of consumption? You are negating the entire reason for the study of history on the premise that one has to be pragmatic. But pragmatism is not possible if there is a mis-diagnosis of the illness and you shove what you believe is a solution to their problems on the masses. And then are you saying we should accept whatever we hear or is written about us regardless of its truth? I am not impressed by arguments that express an unwillingness to probe the truth about the past masquerading as a more practical and pragmatic and enlightened philosophy. Sorry. It is a common ruse nothing more.

Here is a peep into the past:
According to hard data collated by Dharampal in the field of education in terms of the content and proportion of those attending institutional school education, the situation of India in 1800 is certainly not inferior to what obtained in England then; and in many respects Indian schooling seems to have been much more extensive The content of studies was better than what was studied in England. The duration of study was more prolonged. The method of school teaching was superior and it is this very method which is said to have greatly helped the introduction of popular education in England (p. 20). Superiority to the British system also existed in the proportionate numbers attending school, the conditions under which schooling took place and in the quality of the teachers. Basic reading, writing and arithmetical skills were widespread due to the prevalence of village schools where education was imparted at nominal cost according to the paying capacity of the parents. But the general impoverishment that followed upon turning India into a colony led to the fact that the middle and lower classes were no longer able to defray the expenses for the education of their children, who were instead put to labour to help them eke out a living.

From: https://sites.google.com/site/sastudycentre/towards-indigenous-education

If you read the original article by Dharampal you will see how there was no exclusion of communities from education based on caste or religion or whatever. :) The original article will be enlightening. It will tell you that it wasnt always the case that we have been wallowing in dirt and superstition all these centuries.

On the side but not relevant to the main point, One thing people seldom do is question how many negative practices arose after the widespread economic destruction, hunger and famines and killings took place. Think about how easy it is for a single bad manager to destroy the joy and spirit of employees working and living in a organization. Then extrapolate it to a culture where the entire countryside that is ravaged over generations.

The reviewer in the article does not believe in your approach of ignoring the past either:

Today if we want to embark upon the struggle to set up an indigenous education system in a society that is free of colonial and neo-colonial values and which is internally democratic it is important to understand the following facts unearthed by Dharampal:<snip>

dear, misunderstood again. Casteism and ceremony was the least of my concern. It was posted to say good number of people are still uneducated. And why this is so ?

A study of history will tell you that it started because the foundation of education has ben destroyed from village to village at the tip of a bayonet and arson as a tool. And a study of the history of modern politics will reveal that the same influences persists today although we attained freedom and supposedly in control of our destiny. Or do you want to deny that? And also deny that the Deobandi or Wahabi school of thought influences minds in India and Pakistan because India is supposedly in control of her borders? Or that protestant or catholic or secular ideology does not influence our education (regardless of their merits or demerits) :)

Here is a look at how it happened:
In pre-British times education and medical care, like the expenses of the local police and the maintenance of irrigation facilities, had primary claims on revenue. Such a system made it affordable and accessible to most people. The British diverted this revenue for their own purposes leading to a neglect of the large-scale school education provided through pathshalas, madrasahs and gurukuls and a variety of other kinds of schools and schooling and higher educational institutions and learning processes. The British preferred to set up and promote anglicized secondary and higher schools premised on the theory that if Western education was introduced among the upper classes it would filter down by a natural process to the lower classes. High fees were charged in these government-aided schools excluding poorer students by a natural process. These poorer sections began to be provided education by some Christian missionaries which had the effect of incorporating them too into the colonial framework. The strong divide in the educational field between the rich and the poor today is a legacy of British intervention, but is being nurtured today by the Indian elite.

I suppose you want to say it has no relevance to today and we should just get on with the business of fixing our education? What if I am a millionaire and come to you with a blind promise - I will educate the entire population of your country in the next 50 years, provided no questions are asked. Then I open madraasas all across India that teach the Saudi wahabi school of thought. Would you accept it blindly because I am showing practical results here and now today? What will be the consequences of India 200 years down the line? :) The business of public administration and its efficiency are separate from the process of intellectual debate and argument. The two sets of people who participate on the ground versus those who set the direction also need to be different except at the policy level. Why are you confusing debate with the urgent need to get on with the business of educating the nation? The only legitimate cause for censoring a debate of this nature here is that it is OT :D

I do not disagree that our political leadership has failed to address the need for education and it is not disputable. But I would attribute at least in part, their lack of drive, impetus, motivation and nation building frevor to a lack of study of history and suitable perspectives on their own past. At least thats one side of the coin. The other motivation is that there appears to be an economic incentive (greed, short term profit) to actually keep things the way they are. I would speculate that our population does not join hands for collective nation building today because their psyche and collective pride has been damaged by a colonial mis-education. An argument to the contrary is like saying that an American kid should not be taught to feel pride in the marvels of engineering and nation building of his country, its sky scrapers and bridges and buildings but should derive from thin air a concept of the greatness of his nationhood. Or if the same standards that apply to India are used - feel a permanent sense of shame for his ancestors having genocided the native Americans and be reminded at every step how he doesnt deserve to enjoy anything that his modern nation has provided, without giving an arm and leg as compensation for the misdeeds of his ancestors :eek:hyeah:

I am very much aware of politicians/think tanks/even pseudo intellectuals creating sense of victimhood in lower castes of society.
But hey!! we have elevated our selves from Upper vs Lower caste to Hindu-Muslim* to North-South Indians* to Maharastrians-Biharis* to Marathas-Brahmins*. People Do vote on these lines. So I repeat again we have problems and our glorious past is not helping us.
* All these divisions are very much real and we all are witnessing it.

Back to FDI please. :)
Regards

I am sorry if you think all this debate is about glory shouting. Todays problems exist because whatever education exists is insufficient in creating a sense of unity and a better understanding of our past and history and how we are all connected. It is because of this that the misguided Marathi Manoos feels the need to get aggressive with Biharis or South Indians or "Dravidians" against North Indian "Aryans". As for voting "along these lines" show me a protestant white citizen in the USA that votes against a leader that propagates their immediate interests ... or a catholic, or an Islamic :) It is a silly point to argue and show we are more backward because of it. This cannot be debated and won. One has to take an interest in it as a hobby and join the dots and see the connectedness of things to appreciate the subtler points.


and finally - one of the points argued by our communist friends in particular is that these companies will come and take money out of India - which is true if they make profits.

What is the alternative? few select people are looting our country and keeping the proceeds at overseas tax havens anyways:mad:

So either which way - money is going out of India :clapping::clapping::clapping:

Well I am a strong believer in the allegory of Orwells "Animal Farm" and I have seen instances where they have play out in real life in Indian organisations and politics. The communists are equally guilty of bad governance in their states as the parties they oppose. Aren't they? :)

--G0bble
 
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So can they. What do you think about share markets where FII's coming every 6/8 months make 5-10% profit pull back and wait for the markets to fall. Can we do that in their market with Dollar at 56 Rupees.

Bro, you are talking about corruption. Which can be controlled if one has the will.
I am not about corruption. That is why I explicitly said I am not talking about it.

So when do you suppose we will get over the trade deficit and make profit as a nation.
There is no when. If your exports are increasing, even before you make 'profit', the currency would appreciate which would make exports pricey in the foreign markets putting cost pressure on Indian goods and make imports cheaper. which then would cut down the inflows making indian currency cheaper. and so on.
Not a rule as such but buy least amount of chinese product as possible. Support Indian manufacturing.
Offtopic : Will never trust ------- people who eat dog meat.
Regards :)
Dude, even with a smiley, this veers into 'prejudice' territory. I am out of here.
 
Rahul,
Reading your posts I understand better.
Todays problems exist because whatever education exists is insufficient in creating a sense of unity and a better understanding of our past and history and how we are all connected.
same thing I said in post #51. You want to say to study the past to diagnose the problems culminated which we are having right now for a better tomorrow. But somehow I feel in our multicultured society it will take more time. I am not well read but I guess Kamal atturk did reform his country in short period of time.
@ raj,
you have combined my first two questions. Anyway the point was developed countries have upper hand when it comes to international trade.
I have removed the offending smiley. I am serious about buying Indian goods. And sometimes prejudice is good. Particularly when enemy is breathing down the neck. I am sure there are good people in -----.
Regards
 
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I think this is brilliant for the country. Being a corporate myself, I am heavily in favour of corporatization and globalization. I honestly believe that the people of the country will benefit more. Politicians are screeming because of vote-bank politics. For all you know, you'd find our politicians and their families shopping at these outlets :))
 
Rahul,
Reading your posts I understand better.

same thing I said in post #51. You want to say to study the past to diagnose the problems culminated which we are having right now for a better tomorrow. But somehow I feel in our multicultured society it will take more time. I am not well read but I guess Kamal atturk did reform his country in short period of time.

Regards

Dear Hiten
Yes there are challenges. I dont foresee anything good happening in the next 20 years, but the fortress walls of leftist/Marxist/American power hegemony in South Asian and Indic studies are slowly being demolished since the beginning of the last decade. Their influence on Government policy making however is still very strong.

Regards
--G0bble
 
Our current education system is a still a direct descendant of the system implemented by the brits. Their goals were simple, to destroy all creativity and self employment and create babus. Thats what our education system still teaches. What good is a worthless B.Sc, B.Com, or MA that is given in our colleges. You cant even find a job except for being a clerk or something like that. Most of the skills imparted are for all practical purposes useless. If a person passes 10th and drops out, he is considered uneducated, as if the BA will educate him and make him a better person. The attitude is such that a carpenter, ironsmith, mechanic etc are actually considered belonging to a lower category than a clerk.

Most of our education system and history is actually controlled by the leftists. Most of our prominent historians actually take pride in degrading our own history and culture and showing mindless capitulation to the western ideology and that includes who's who of our historians. Anyone trying to show otherwise is immediately branded a communalist. I wonder what these two have to do with each other.

I remember someone once asked gandhi what he thought of western civilization, he replied, good idea, when do you plan to start one. I personally dont like the dude, his intentions were good, but the policies were something i could never agree to. Many of our modern day problems can be placed at the door step of gandhi and nehru.
 
Just now a realisation occurred to me. FDI or education we dont have much say in our democratic system. Do we ?
Regards
 
Just now a realisation occurred to me. FDI or education we dont have much say in our democratic system. Do we ?
Regards

The root cause is a flaw in our democracy. forget fdi or education, we cant even elect our govt. we can only elect mlas and mps. and then those bums go and form whatever crap govt they can. I am pretty sure if 50 crore people vote and elect a PM, he will be good. Why do they think that I am not good enough to vote for a PM and only the mps can elect/select/nominate.

Consider this. What if I want say bjp at center, but in my area, the congress candidate is better and the bjp one is a moron. If i vote for a good local candidate, I am also voting for rahul gandhi to become PM. If I dont want that, I have to live with voting for a moron. What if a guy from kerala or chennai wants bjp govt at the center. He doesnt have a local bjp guy to vote for et al as there is no bjp presence there. If tomorrow, the whole country wants anna to become the PM, it wont work because then anna will need some 500 candidates, a party, thousands of crores of rupees to win elections. Just because he is wanted by the whole country is not enough. He needs those stupid mps. We need direct voting capabilities for the PM. Otherwise we will again get a gujral, a gowda and a manmohan as a PM, people who have no right to become PM and have only come through back door.
 
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