Saturday, February 17, 2007

Walmart, Reliance and Kirana shops

Surjit S Bhalla writes in BS
Thankfully, technology changed and the world became flat. Which meant that politicians, across the world, had less and less influence on the activities of individuals in the service of themselves (aam aurat is too aam to be selfless like the Gods). So the economies started to grow, and this further diminished the size, and the effectiveness, of the Bombay Club.

But old habits die hard; most likely because people are loath to let go of “unearned” profits. It is in this context that some of the major initiatives of the UPA government have to be viewed. Let us start with the most blatant of them all—the recent missive by Ms Sonia Gandhi, the political leader of the government. She has been “reading in the media about Wal-Mart’s proposed entry into India … the desirability to first study the possible impact of ‘transnational supermarkets’ on the livelihood security of those engaged in small-scale retail operations … you may consider having the relevant issues properly examined before further decisions are taken” (emphasis in the original Sonia Gandhi letter to the PM). This gentle reminder to the PM has put protection of the poor aam fruit- and vegetable-selling aurat as the top concern of this government. Economic reforms (globalisation) have only helped the rich. Time for aam aurat to have her day. Such a nice government you say. Let us elect them again (provided they have electorally correct sleeping partners).

But wait a minute. Nowhere in this high command directive is mention made about big Indian businesses entering the retail trade of selling “fruits, vegetables and the like”. Last I heard Reliance had entered the fruit- and vegetable-selling market, and even by international standards, Reliance is Big Time Big. So how does the Reliance entry into the retail trade not hurt your kirana shopkeeper but Wal-Mart does? Sorry, one never gained an answer by asking logical questions from our “in the name of the poor” politicians.

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