FDI vote in Parliament

It is true that the government has won the game of defeating the motion for withdrawal of FDI in retail trade moved by the leader of the opposition in the Lok Sabha, Mrs. Sushma Swaraj. But it is not a matter of gratification or joy, but an indication of degradation morality and lack of clean politics, Together with the DMK President M.Karunanidhi, the BSP supremo Mrs. Mayawati and the SP supremo Mr. Mulayam Singh Yadav, the Congress party and the UPA government have enacted the most foul scenes of dinner diplomacy, inducement, cajoling and bullying, besides arm twisting and blackmailing of   the above regional political parties by using CBI. Politics in this country has fallen deep into  decay and lip service, double speak, blustering, time serving, ditching, switching sides, finding scapegoats have become the order of the day, which shows the  state of Indian Politics.  But it is gratifying to note that all the political parties except the Congress Party and headed by Mrs. Sonia Gandhi and Nationalist Congress Party headed by Mr.Sharath Pawar is opposed to the move to allow the multinational retail giants to set up retail shops in the country. Of course all these three leaders (the DMK President M.Karunanidhi, the BSP supremo Mrs. Mayawati and the SP supremo Mr. Mulayam Singh Yadav) are time servers and dishonest persons. Therefore, the people of the country never expected that they will stand firmly on their policy of opposing FDI in multi-brand retail trade.  But many believed that at least on this anti-people and anti-national issue, they may stick to their stand. Mr. Karunanidhi has always been saying that his party was totally against FDI in multi-brand retail trade. In fact executive council of the DMK party passed a resolution stating that it will not support the government on FDI in retail trade. And participating in the discussion on the motion against FDI in the Lok Sabha on 04.12.2012 the DMK MP, Mr. Ilangovan, stated that his party was totally against FDI in multi-brand retail trade because it would affect the livelihood of millions of traders. But in a manner characteristic of his party leader, he stated that DMK will not vote against the government. What an absurd stand? SP Chief Mulayam Singh Yadav stated categorically and emphatically that FDI in retail is not in favour of the country. He also said that the retail in FDI would not create jobs in the country and therefore his party was totally opposed to the move of the government to allow multinational retail giants to open shops in India. Yet he said his party will not go with all the arguments made by the opposition. What a comical stand? BSP leader Dara Singh Chauhan said: “Poor people are anxious over the impact this policy can have on their lives. They fear the multinational companies will take away their livelihoods. The government should not rush with it."  But BSP abstained from voting thereby paving the way for the victory of the government. What a ludicrous position? People should bend their head down for voting such parties into power.

In allowing FDI in retail trade, India is sold in the hands of US & Europeans, paving the way for economic colonialism. Empirical studies have shown that consumer prices in supermarkets in Latin America, Africa and Asia have remained higher than the open market by 20 to 30 per cent after the entry of Walmart and other multinational retail giants.  The Indian retail market is estimated to be around $400 billion with more than 12 million retailers employing 40 million people. Ironically, Wal-Mart’s turnover is also around $420 billion, but it employs only 2.1 million people all over the world.  Recently New York Times exposed showed how Wal-Mart had captured nearly 50 per cent of Mexico’s retail market in 10 years. As per the NYT disclosure “the Mexican subsidiary of Wal-Mart, which opened 431 stores in 2011, had paid bribes & an internal enquiry into the matter has been suppressed at corporate headquarters in Arkansas.” As per a disclosure statement made in the U.S Walmart alone has spent US$ 260 million in two years to lobby for FDI in retail trade in India.  Therefore, all right thinking Indians should fight for the scrapping of the decision to allow 51% FDI in retail trade. India is only country in the world which thinks that the foreigner is better for us than a local. For a country that has experienced colonial rule, this is bizarre. No doubt, FDI in retail trade will eventually lead to economic colonialism. Therefore, we have to fight to emancipate our country form falling into colonial control under the multinational corporations of America and the Western countries. Indeed our fight against FDI in retail is akin to second freedom    struggle. All of us should be prepared to sacrifice to attain the goal of scrapping the notification on FDI.

Now coming to realities, actually, Dr.Manmohan Singh and the so called votaries of FDI in mutli-brand retail trade   know very well that “FDI in retail trade will not serve any purpose. It will do more harm than benefit the people.” In fact, in 2002, as leader of the opposition in Rajya Sabha, Dr.Singh fought tooth and nail against the introduction of FDI in retail. His colleague Mr. Priya Ranjan Munshi castigating the BJP, which was in power then and who tried to bring FDI in retail, said “it is anti-national to bring FDI in retail.”  Now, Dr. Singh says that FDI in retail is pro- national and is to be welcomed, irrespective of merits or demerits. What is cause for the somersault by Dr.Singh and the Congress party? Is it not true that they have fallen prey to the powerful lobbying by Walmart and other multinational retail giants and the pressure exerted by their home governments? Does it not mean that erroneous factors and extraneous considerations have played foremost roles?

The government’s propaganda that FDI in multi-brand retail will bring benefit to farmers and consumers is   nothing but deceptive misinformation, which is not supported by facts. The argument that FDI in retail trade will lead to generation of employment opportunities is fallacious and not supported by historical evidences. On the contrary crores of people who earn their livelihood from the millions of existing retail outlets may be put out of business by the retail biggies. Most ridiculous contention of the government is that it be possible to bring down inflation by allowing FDI in retail trade.  There is scarcely any evidence to show that foreign investment, especially FDI, has acted as an enabling factor for controlling inflationary pressure anywhere in the world. On the contrary, there are ample proofs of foreign investment causing inflationary spiraling of prices in the host countries. The government has not explained how and in   what manner FDI in retail trade will lead to fall in prices; and how long the fall in prices, if any, will be sustained. Is there any guarantee that prices will be stabilised and thereby the real income of the people will increase on a long-term basis? Moreover, many recent research studies have shown that FDI in retail trade will be disastrous for the country. A most recent study by this commentator, the results which have been published in the form of a book entitled, “FDI in Retail Trade in India: a Retrograde Step” by M/s RAC Publications, No. 38 (Old No. 76-A) Choolaimedu, Chennai-60094, concludes as follows: “  Evidences from various parts of the world indicate that   widespread   emergence of big format retail super stores have lead to extensive  ruin of  retail stores/shops thereby resulting in the loss  of employment and livelihood to millions of persons involved in retail trade. Research findings have exposed that large scale unemployment has proved to be social dynamite. That is, increase in unemployment leads to a series of social problems, like rise in poverty, alcoholism, domestic violence, indebtedness, suicides and crime in general, leading to a chaotic situation in the society. In sum, the inescapable conclusion is that any disruption of the prevailing system of retail trading will affect all sections of Indian society.  FDI in retail trade will not serve any purpose. It will do more harm than benefit the people, especially to the unorganised/informal retail sector, which is a vital source of occupation and livelihood for the multitude unemployed people of the country, besides being the cushion for those who are displaced from their occupations/employment for various reasons.”

Thus, the vote on the motion to withdraw FDI in muti-brand retail trade has proved beyond doubt that the country is passing through a serious moral crisis. The dishonest and corrupt politicians will stoop to   any level to safeguard themselves. They do lip service that they are for the welfare of the people. Who will save our country from further decay? How are we going to achieve clean and honest politics? Time alone will tell!  My only request is that let these so called champions of the downtrodden people ponder over for a while before deciding to vote for or against the motion to   withdraw FDI in retail trade in the Rajya Sabha.

Dr.C.Murukadas, Hindustan Times, Dec.6, 2012