Sunday, July 15, 2012

Obama As Usual Advise Indian PM to Promote FDI But Advises US Companies Restrict Outsourcing

Union Cabinet had decided to permit Foreign Direct Investment upto 51% in retail sector but failed to put the same into action because of pressure from Mamta. But now Obama US president has also built pressure on Manmohan Singh to promote FDI in Retail and allow Walmart like Companies to spread their network in India and to speed up reformation of economy. There is no doubt that India government which seeks advice from USA on all fronts including foreign sponsored terrorism will sooner of later accede to FDI in retail . And I may say here that such suicidal step will be beginning of end of so called reformation and beginning of end of liberlisation, privatisation and globlisation in India.

Already several domestic companies have wither closed their business or are on the verge of doing so. After the entry of FDI in retail , even small traders will have to shut their shops and accept the slavery of multi-national companies like Walmart.When pain of common men will reach its peak and become unbearable , there will be mass revolt against the suicidal policies of the government . 

It is only after mass destruction and violence through public movement that Manmohan Singh will understand that his policy of reformation has created a few  thousand billionaire but made 110 billion Indians poorer than what they were before launch of called reformation era. Employment opportunities will further shrink and give rise to crime and crime only. Gap between poor and rich will widen to intolerable extent and then the poor and middle class people will come together and force politicians of all non -congress colour  to unite to remove the corrupt government led by Manmohan Singh.

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.

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 .

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.

BJP, CPM criticise Barack Obama's remark on retail FDI

NEW DELHI: Opposition parties have slammed US president Barack Obama for his remarks on 'deteriorating' foreign investment climate in India. They said the Centre should not be pressured into opening the retail sector after his statements. 

BJP leader and former finance minister Yashwant Sinha described Obama's statements on India as irresponsible and said the country did not need his advice on the investment climate or FDI in multi-brand retail. "If we have a problem it will be sorted out among ourselves. As far as FDI in multi-brand retail is concerned, his advice is completely unsolicited. He has not strengthened the cause by making such remarks," he said. 

Obama had in an interview to PTI suggested more economic reforms, particularly in the retail sector to enable FDI and entry to American companies. Sinha said Obama, who was campaigning for presidency, was making uncalled for statements, first on outsourcing and then investment climate. "The state of economy is matter of concern, there is no doubt about that. But this has to be sorted out by the people of India," he said. Party spokesperson Nirmala Sitharaman said the statement reflected the 'policy paralysis' in government, but US "need not in any way dictate the Indian decision-making process". 

CPM, which has been fighting against the entry of foreign players in the retail sector, also objected to the remarks and said the UPA government should not succumb to such pressure. The issue was discussed in detail in CPM polit bureau meeting on Monday morning. Objecting to Obama's remarks, CPM said: "The statement by Obama is a brazen attempt to pressure the UPA government to adopt such steps as opening multi-brand retail to FDI. The Manmohan Singh government should not succumb to this pressure. CPM wants the government not to open up retail trade to foreign supermarket chains, which will endanger the livelihoods of lakhs of small shopkeepers and traders." 

FDI in multi-brand retail sector has been a political hot potato for UPA-II. The Centre's move to allow FDI was checkmated by Trinamool Congress and DMK, ruling Congress' alliance partners. Though it is a policy decision which does not require Parliament's stamp, allies' opposition ensured shelving of the decision. 

The hint of more pressure from the US has even seen opposition from UPA's new-found ally Samajwadi Party. SP spokesperson Shahid Siddiqui said the interests of the Indian economy must be kept above everything else. 

Congress' Manish Tewari said whatever decision India takes is keeping in mind its own interests. "I don't think there is any need to get hot under the collar if certain statements are made by certain distinguished people or even if comments are made by certain newspapers or magazines," he said. Tewari said such issues have been responded to periodically and as a "matured democracy, we should factor in these observations in our stride and move on."

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