Sunday, October 21, 2012

FDI AND ITS CONSEQUENCES

Dear All

In continuation to the discussion made on the Foreign Direct Investment (FDI), see the comments made on the situation of Walmart in US (see more at: http://www.downtoearth.org.in/content/walmart-and-other-america) and expected consequences of FDI in our markets  as:
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Yes, the article on "Walmart and the other America" (DTE, 31st Oct. 2012) is the poor coordination among AVAILABILITY, ACCESSIBILITY and AFFORDABILITY. If this is the situation in developed countries, what will be fat of the people in developing Countries like India????? Certainly it will be more pathetic and only the creamy layer can enjoy the benefits at the cost of Poor and marginalized Groups of People.

For example, just see our PDS which meant to supply the critical needs to the Poor and other Marginalized Groups?? Most of the non-targeted people are getting the benefit in the name of POOR? It appears that the cost of service delivery of PDS is around 300% which is beyond imagination to bear in the name of WELFARE.

In addition, the recent approval for the FDI is the curse for the small scale business people, poor people and producers (Farmers). When the FDI is not going to give the benefit either to the Consumers nor the Producer (Farmers), then it is clear that third man is going to ear the cake and cream. Is it the motto of FDI to give opportunity for the business people to invest and get profit with out caring for the people and environment??

Certainly the approval of FDI and proposed highly attractive shops / malls are not going to give the benefit for the Consumers and Producers (Farmers) in respect of Availability, Accessibility and Affordability (3As).
The shift should be to move from BUSINESS to BUSINESS (B2B) to BUSINESS to People (B2P) which certainly helps in achieving the health & wealth of the People & Environment.

The best way is to promote Rytu Bazaars where the producer can sell the products directly to the Consumers which is more acceptable in respect of 3As. This model is quite popular in the state of Andhra Pradesh and other states might be working with different names.


Finally when the benefit is expected for the Producers and Consumers, then such systems should be continued with better participation of the stakeholders.
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Looking forward to share more on this key issue as it is going to affect our markets and people.

All the best 

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