FDI in Retail ----Boon or Cuse
Union Cabinet has decided to permit Foreign Direct Investment upto 51% in retail sector. When India got independence from Black rule of British in 1947, leaders of the country promised to make India self dependent , they told the Nation that they will use its own resources to build India strong and give Indians all comforts which they deserve for respectful living.
More than half a century has elapsed; Indian instead of becoming a self sufficient Nation has now become dependent on FDI for survival. Indian leaders go for foreign tours begging FDI in India in different sector. Perhaps Indian leaders has as per their comforts redefined Independence and self dependence.
Positive thinkers in political circle, leaders of UPA and great economist say that FDI in retail sector will create four million jobs; some over enthusiastic leaders in the government say that FDI in retail will create one crore new job opportunity and give enormous benefits to farmers. They do not talk of how many Indians will become unemployed when giant of retail sector like Walmart of USA or Tesco of Europe come in India. If Walmart and Tesco like companies can create millions of jobs, why not domestic companies in retail sector do the same thing.
Yes I also agree a few thousands of educated youth will get job in retail chain and get handsome salary too , a few corporate brokers will also get opportunity to earn considerable amount of brokerage but millions of poor and middle class families who survive on small scale retail business will be rendered workless and constrained to starve or become slave in the hands of English people, the same slavery which their forefathers had to adopt and practice under the colonial rule of British before we got freedom in 1947.
Rahul Gandhi asks loudly people of Uttar Pradesh, “How long you people will prefer going Mumbai for begging”. He does not think it fit to ask cabinet ministers and Doctor Manmohan Singh “How long India will survive on FDI and FII” . He does not ask Chief Ministers of Congress Party led states, how long they will go to Bangalore or Hyderabad or Mumbai or Delhi for higher study and for attractive jobs. Lacs of educated youth from the state of Rajasthan, Maharashtra, Kerala, West Bengal, Harayana are working in IT sector in the state of Karnataka, Andhra Pradesh and also in foreign countries .
Stock Market in our country depends on FII and when FIIs start selling stock, the entire market bleeds and it is ultimately the weak Indians who become the victim and who have to suffer huge losses on their investment. Rahul Gandhi does not advise Manmohan Singh led government to make stock market self reliant and not depend upon foreigners.
Big corporate depends on External commercial Borrowings and their business depends on exports and imports. When other countries commit economic blunder, they economy collapses and ultimately India also become victim even if our country is headed by great economists. It is crystal clear our survival now depends less on our performance and less on our intrinsic values but more on foreign buyers and sellers,FDI and FII and the policies of the world.
Our leaders are very much hopeful that if FDI is allowed in retail sector, millions of job will be created and poverty of Indian rural folks and farmers will be eliminated or at least help in reduction of poverty of India.
Here It is worthwhile to mention here that the Walmart which originated and prospered in USA failed to create considerable job opportunities in USA and Tesco which has its root in Europe failed to create even a lac job opportunity in Europe . USA is facing the problem of unemployment and passing through bad days. Financial crisis which erupted in USA and Europe in the year 2008 still persists.
Poverty level in USA has gone up. People of USA has left farming and have to depend on other countries for even vegetables , pulses, wheat ,rice and other cereals . People of USA have to depend on India and China even for packed food, junked food, cloth and goods of daily uses.
To open the eyes and ears of leaders of UPA government I submit hereunder the conclusion arrived at by an renowned economist Mr. Stephen M Ciccarella Jr. who is a professor in Cornell University - Department of Economics; Public Policy Institute of California .this is the abstract and finding arrived at by this great men after prolonged research on the life of US farmers, poverty in rural areas of USA before and after entry of Walmart retain chain in US market.
Abstract:
We estimate the effects of Wal-Mart stores on county-level retail employment and earnings, accounting for endogeneity of the location and timing of Wal-Mart openings that most likely biases the evidence against finding adverse effects of Wal-Mart stores. We address the endogeneity problem using a natural instrumental variables approach that arises from the geographic and time pattern of the opening of Wal-Mart stores, which slowly spread out from the first stores in Arkansas. The employment results indicate that a Wal-Mart store opening reduces county-level retail employment by about 150 workers, implying that each Wal-Mart worker replaces approximately 1.4 retail workers. This represents a 2.7 percent reduction in average retail employment. The payroll results indicate that Wal-Mart store openings lead to declines in county-level retail earnings of about $1.2 million, or 1.3 percent. Of course, these effects occurred against a backdrop of rising retail employment, and only imply lower retail employment growth than would have occurred absent the effects of Wal-Mart
If anyone is inclined to know more about poverty of USA, change in fate of farmers in USA after entry of companies like Wal-Mart, they should thoroughly read the book /article namely “Concentrated Poverty in America”
One may also use this link to have a fair view of the positive and negative impact on American economy , American retailers, farmers and Super Markets and American farmers and American society .
https://pantherfile.uwm.edu/sdrewian/www/Wal-MartAndLocalLaborMarkets.pdf
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=958704&http://www.google.co.in/url?sa=t&rct=j&q=wallmart%20poverty%20stefen%20ge%20goetz&source=web&cd=2&sqi=2&ved=0CCcQFjAB&url=http%3A%2F%2Fpapers.ssrn.com%2Fsol3%2FDelivery.cfm%3Fabstractid%3D958704&ei=10nQTqyJN87RrQectZC5DA&usg=AFQjCNHvmGt1xB2YoiBmuMHZv2j4hxFkJA&sig2=VC_ZImJW_sbp8yN3SPTOLw
Farmers in America and European countries have left farming and this is why agricultural production in these countries is gradually coming down and down. Unemployment has become a headache for US administration and other developed countries. By adopting FDI in retail India is going to invite a chain of problems, farmer may discard farming due to lesser realization of their products , existing retailers will be reduced to zero and local vendors will become slave in High profile retail chain sponsored by Foreign based Walmart and Tesco.
More than half a century has elapsed; Indian instead of becoming a self sufficient Nation has now become dependent on FDI for survival. Indian leaders go for foreign tours begging FDI in India in different sector. Perhaps Indian leaders has as per their comforts redefined Independence and self dependence.
Positive thinkers in political circle, leaders of UPA and great economist say that FDI in retail sector will create four million jobs; some over enthusiastic leaders in the government say that FDI in retail will create one crore new job opportunity and give enormous benefits to farmers. They do not talk of how many Indians will become unemployed when giant of retail sector like Walmart of USA or Tesco of Europe come in India. If Walmart and Tesco like companies can create millions of jobs, why not domestic companies in retail sector do the same thing.
Yes I also agree a few thousands of educated youth will get job in retail chain and get handsome salary too , a few corporate brokers will also get opportunity to earn considerable amount of brokerage but millions of poor and middle class families who survive on small scale retail business will be rendered workless and constrained to starve or become slave in the hands of English people, the same slavery which their forefathers had to adopt and practice under the colonial rule of British before we got freedom in 1947.
Rahul Gandhi asks loudly people of Uttar Pradesh, “How long you people will prefer going Mumbai for begging”. He does not think it fit to ask cabinet ministers and Doctor Manmohan Singh “How long India will survive on FDI and FII” . He does not ask Chief Ministers of Congress Party led states, how long they will go to Bangalore or Hyderabad or Mumbai or Delhi for higher study and for attractive jobs. Lacs of educated youth from the state of Rajasthan, Maharashtra, Kerala, West Bengal, Harayana are working in IT sector in the state of Karnataka, Andhra Pradesh and also in foreign countries .
Stock Market in our country depends on FII and when FIIs start selling stock, the entire market bleeds and it is ultimately the weak Indians who become the victim and who have to suffer huge losses on their investment. Rahul Gandhi does not advise Manmohan Singh led government to make stock market self reliant and not depend upon foreigners.
Big corporate depends on External commercial Borrowings and their business depends on exports and imports. When other countries commit economic blunder, they economy collapses and ultimately India also become victim even if our country is headed by great economists. It is crystal clear our survival now depends less on our performance and less on our intrinsic values but more on foreign buyers and sellers,FDI and FII and the policies of the world.
Our leaders are very much hopeful that if FDI is allowed in retail sector, millions of job will be created and poverty of Indian rural folks and farmers will be eliminated or at least help in reduction of poverty of India.
Here It is worthwhile to mention here that the Walmart which originated and prospered in USA failed to create considerable job opportunities in USA and Tesco which has its root in Europe failed to create even a lac job opportunity in Europe . USA is facing the problem of unemployment and passing through bad days. Financial crisis which erupted in USA and Europe in the year 2008 still persists.
Poverty level in USA has gone up. People of USA has left farming and have to depend on other countries for even vegetables , pulses, wheat ,rice and other cereals . People of USA have to depend on India and China even for packed food, junked food, cloth and goods of daily uses.
To open the eyes and ears of leaders of UPA government I submit hereunder the conclusion arrived at by an renowned economist Mr. Stephen M Ciccarella Jr. who is a professor in Cornell University - Department of Economics; Public Policy Institute of California .this is the abstract and finding arrived at by this great men after prolonged research on the life of US farmers, poverty in rural areas of USA before and after entry of Walmart retain chain in US market.
Abstract:
We estimate the effects of Wal-Mart stores on county-level retail employment and earnings, accounting for endogeneity of the location and timing of Wal-Mart openings that most likely biases the evidence against finding adverse effects of Wal-Mart stores. We address the endogeneity problem using a natural instrumental variables approach that arises from the geographic and time pattern of the opening of Wal-Mart stores, which slowly spread out from the first stores in Arkansas. The employment results indicate that a Wal-Mart store opening reduces county-level retail employment by about 150 workers, implying that each Wal-Mart worker replaces approximately 1.4 retail workers. This represents a 2.7 percent reduction in average retail employment. The payroll results indicate that Wal-Mart store openings lead to declines in county-level retail earnings of about $1.2 million, or 1.3 percent. Of course, these effects occurred against a backdrop of rising retail employment, and only imply lower retail employment growth than would have occurred absent the effects of Wal-Mart
If anyone is inclined to know more about poverty of USA, change in fate of farmers in USA after entry of companies like Wal-Mart, they should thoroughly read the book /article namely “Concentrated Poverty in America”
One may also use this link to have a fair view of the positive and negative impact on American economy , American retailers, farmers and Super Markets and American farmers and American society .
https://pantherfile.uwm.edu/sdrewian/www/Wal-MartAndLocalLaborMarkets.pdf
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=958704&http://www.google.co.in/url?sa=t&rct=j&q=wallmart%20poverty%20stefen%20ge%20goetz&source=web&cd=2&sqi=2&ved=0CCcQFjAB&url=http%3A%2F%2Fpapers.ssrn.com%2Fsol3%2FDelivery.cfm%3Fabstractid%3D958704&ei=10nQTqyJN87RrQectZC5DA&usg=AFQjCNHvmGt1xB2YoiBmuMHZv2j4hxFkJA&sig2=VC_ZImJW_sbp8yN3SPTOLw
Farmers in America and European countries have left farming and this is why agricultural production in these countries is gradually coming down and down. Unemployment has become a headache for US administration and other developed countries. By adopting FDI in retail India is going to invite a chain of problems, farmer may discard farming due to lesser realization of their products , existing retailers will be reduced to zero and local vendors will become slave in High profile retail chain sponsored by Foreign based Walmart and Tesco.
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