FDI in multi-brand retail - The QUESTIONS
yashas nataraj
are the problems plaguing it - First of All, Are there problems? if
so, do different players agree on the problems or are there divergent
opinions on the actual problems? Also, are the problems according to
one - not issues according to another?
How is single brand different from multi-brand? What about Wal-mart
et al in whole-sale?
ISSUE of MONOPOLY and RESTRICTION of CHOICE! Can the Govt formulate
policies to PREVENT MONOPOLY and PRICE DETERMINISM Mechanism IN THE
SHORT AND LONG RUNS? - inherent to this issue is that the GOVT, in the
first place, wuld be beholden to these companies as the INVITATION is
FROM the GOVT to the MNCs? Could this formulation be rolled back in
case of the Worst dreams coming true?
Is a MIDDLE ground possible within the POLITICAL-ECONOMIC framework?
LIKELY POSTURES of Middle ground:
Scaling down from 51% to 26%.
Phased/staggered implementation - Here, how would implementation in
one state/select set of states which are favourable (both politically
and also among the stakeholders) affect other
states/regions which do not implement this scheme!
Is CO-EXISTENCE possible between the Kirana stores and the MNCs?
Ramifications:
a. Food Security
b. Security as a whole
What changes(process,People, institutions) would occur in this Supply
chain arrangement(SCA) by the entry of FDI? OVERALL,Cost-benefit
analysis? How would these changes affect people at differnt ends of
the SCA - Disruptive for some, Beneficial for others etc? If
disruptive for some, how can they be rehabilitated? Is this the case
of a MINORITY holding the interests of a MAJORITY in the SCA to ransom
to protect its own interests?
What should the ROLE of the Govt be? If the principle of SUPPORT to
the weaker sections as the Govt's responsiblity is valid, then how
should the Govt provide safeguards while allowing free rein to the
market for CAPABLE/ABLE STAKEHOLDERS?
Can technology and other CAPACITY building mechanisms(to prevent
wastage) NOT be ushered in WITHOUT FDI? If so, WHY - Is it due to
the inefficiencies inherent which SEEM INSURMOUNTABLE?
Is this again part of the REFORM BY STEALTH or REFORM by FORCE?
RELATED DOCUMENTS : ACTUAL GOVT REPORT(pib)Parliamentary Standing
Committee report, NCAER report, NIPFP, Planning comision, Independent
sources, Cross-Country experiences, ICRIER report, Organised Retial,
WTO issues(Question of Sourcing of products - Domestic or
International - given that in the safeguards of the Govt 30% should be
from Domestic sources), Business-standard, The Hindu - C P
Chandrashekhar, IFPRI, IIFT - Institute of Foreign Trade, World bank,
IndExpress etc
Many a time, MORE SOURCES and OPINIONS muddle thinking and
decision-making and GIVEN such a DIVERGENCE of positions FROM INFORMED
and EXPERT SOURCES(Not just the people on the street) itself creates
POLICY PARALYSIS - The issue being PUBLIC POLICY embodies issues with
NO CLEAR CUT YES or NO(Recursively Enumerable).. Hence, can be
debated endlessly!
POLITICAL aspects:
Why now?
If this is such an issue which affects a lot of people, WHy is the
Govt which is already
unpopular and besieged hellbent on denting its VOTER BASE FURTHER?
The STATE-CENTRAL mechanism structure - If FDI sees the light of the
day and mostly the Cong ruled states will be the first
implementors..How will the distribution look like?
POLICY and PARLIAMENT? Bigger issue - POLICY and the VOTERS? Can
every policy have a referendum? L K Advani's SUGGESTION of SENSITIVE
POLICY ISSUES being subject to Parliamentary scrutiny- apt for the
moment!
BJP in a fix - Just political one-upmanship and not a policy
divergence - But, the BJP has to couch this as a Serious Policy
Prescription as it wuld NOT intend to project itself as a NON-SERIOUS
ARBITRARY PARTY to the INDIAN VOTERS - But, of course, This has its
own relevance!
Story of U-Turns(Political rhetoric): PR Dasmunshi termed FDI as
Anti-National etc