Sunday, December 04, 2011

India ends shopmarket globalisation idea

Small shops throughout India keep 100,000,000s from falling in to povery, photo by Gail Orenstein
India's government is reported to have put on hold plans to open up the retail market to global supermarket chains.
Just days after approving long-awaited proposals to raise the limits on foreign investment, a government ally said he had been told the policy was suspended.
The decision to allow chains such as Walmart and Tesco into India has sparked fierce opposition.
Critics fear the move would destroy millions of jobs and businesses.

BBC News - India 'suspends' plan to open up to global supermarkets

In a promising sign about the death of the neo-liberal free market fetish and some sane thinking about globalisation India has decided to not throw millions of small shop owners out of business in order to allow massive public traded firms to do to India what has been done to shop owners in the UK and the US.

Tesco has essentially killed the smaller grocer in England, leaving an exploitative firm that produces few jobs, pushes 'express' stores on poorer communities that charge more money, and as I have learned even refuse to allow homeless access to food waste. Tesco is a sad case, but Walmart is perhaps even worse. Walmart has essentially made it impossible for a mom and pop shop to function in America.

India's common sense move should please both Occupy movement and right wingers. Occupy will clearly be happy about multi-national global public companies not being allowed access to India market which produces jobs for millions of small shop owners. But free market types have to start actually reading their Adam Smith. Adam Smith said that Monopoly always produces the highest price that could be had, where as heavy competition produces the lowest. The Indian small shop market is pure competition, with tens of millions of players entering the market. Tesco and Walmarts work towards Monopoly power.

As a strong supporter of Occupy I am not looking for a socialist regime, I certainly don't think one is possible. What I want to see is the break up of much of the monopoly power that has developed which has created risk and made our world rather sterile and dead.

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