Indian Opposition Says No To Wal-Mart

Bloomberg reports on Indian opposition to corporate giants forcing open the lucrative retail market:

“Opposition parties and government allies rounded on Prime Minister Manmohan Singh’s bid to open India’s retail sector to foreign companies like Wal-Mart Stores Inc. (WMT), stalling parliament for a fifth day with their protests.

In a rare concerted attack on the ruling Congress party, Singh’s two largest parliamentary partners joined the opposition in criticizing the policy approved by the Cabinet last week, forcing both houses of parliament to adjourn. Overseas retailers stand to be barred from opening stores in at least 19 of India’s 45 largest cities with state assemblies set to veto their entry. “

I’m glad to hear this.   Even though it’s too little too late. The spineless Manmohan Singh has already opened up local mutual funds to foreign investment, with all the economic and other dangers of cross-border financial flows and hot money.

Of course, the globalist mouthpieces, (Time: Jyothi Thottam, “Why India Should Stop Fearing Walmart”), are anxious for it to happen.

The big media outlets like to put a local face on the policy (“India’s Wobbly Walmart Embrace’), but astute readers aren’t fooled.

One writes:

Let’s say our law says that Walmart will source 30% from small players. What about the rest, the 70%? Is it going to source 100% of it from India or is allowed to import the rest, i.e. 70%? According to the WTO you cannot stop them from importing.  The example the writer gave was from Bharti-Walmart which is a wholesale cash and carry store (like SAM’s) not Walmart – it is the consumer side which will kill the Kirana business and the Indian manufacturers. She talks about the food supply and global chains without even knowing what it means. …..

They are in the business of making money and lots of it for their US shareholders. They are not in the business of reducing cost for Indian consumers. If it happens that they buy in bulk in China and flood the Indian market with imports, so be it.  Today India is a net Export-Import deficit country with $85 Billion per year. This is the contribution of Dr. Singh…from a few billion a year trade deficit that we had before to having to borrow $85 Billion a year to pay our imports minus exports. So what do you think will happen when Walmart imports $100 Billion dollars worth of goods into India every year?

Now you have to somehow find current $85 Billion net deficit + $100 Billion = $185 Billion dollars PER YEAR.  In the case of the USA, it was simple. The USA borrowed $3 Trillion to pay the deficit. It has the luxury of printing dollars. So if China demands money, they can print it. They just recently printed $600 Billion. India can not do this and India will ultimately be screwed.  In the 17th Century, India was a net exporter. Then the Britishers came and India became a net importer and in turn a poor country. That will happen after a few years if our appetite for imports continues to grow and our exports dont keep up with the rise in imports as happened in the last many years. Today, we borrow soft money and hard money from the IMF, bonds, FDI in other sectors etc. to pay the difference of $85 Billion of dollars that we have to pay to import more than what we export. How long do you think this is sustainable? How long do you think we can continue to borrow either via the FDI route or via IMF loans to pay for our imports. India is one of the few countries where you can allow all these things, including changing our nuclear policy, allowing FDI, etc. without discussing this in Parliament first.

Remember also that Walmart started putting in RFID tags into their clothes from last year, August 1, 2010, making it possible at some point that you could be tracked anywhere you went, because of your clothes. This is incipiently fascistic.

India FDI Watch has a detailed report on what really happens when foreign lobbyists get big retail giants into the market, monopsony:

“Industrial licensing had brought monopolies to India but monopsony is a new phenomenon for India which has recently come to the forefront in the manufacturing goods sector due to the increased specialization in the global process of production. This has led to the concept of a single supplier to a large producer who obtains the goods at a ransom. The larger the amount of any commodity a large retailer can purchase, the greater the concession on price, delivery, it can extract. This is a demonstration of monopsonistic procurement and the awesome monopsonistic purchasing power which comes with it. This is unique to the modern world of digital instant communication (branding, streamlined logistics distribution can drive down prices still further) and hugely affects the agricultural commodities market also, as shown. The more of a commodity large retailers purchase in bulk, the lower the prices growers of agricultural commodities obtain!”

More in this report on how the globalists at WTO would like to destroy the decentralized production of food:

“The Bank has identified laws such as the Essential Commodities Act (1955) the Agricultural Produce and marketing Act (APMC 1972) and the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act (1980) which have defended the rights of farmers to a just price and the rights of the poor to a fair price for food, as having “prevented the free mobility of agricultural produce and thus segmented the Indian domestic market into many smaller markets.

The government has also imposed restrictions on foreign investment in the retail of agricultural commodities, and on both foreign and domestic private investment in wholesale. These restrictions have collectively discouraged and/or prevented the private sector from undertaking large-scale investment in agricultural storage, marketing, or processing activities – an example of horizontal fragmentation preventing desirable vertical integration. The result is that today there is no large, organized, efficient pan-Indian supply chain in the agricultural sector, including in horticulture. What the Bank defines as “fragmentation” is in fact self-organized local systems of production and trade which are not controlled by a centralized store or by centralized, monopolistic corporations. And the repeated attack on India’s “geography” shows how anti-nature World Bank’s basic economic thinking is. Not only the World Bank like to wish away India’s diversity and geography, it would like to destroy India’s food sovereignty.

Thus, the Bank takes apples grown in Himachal and says it would be cheaper to import them for Chennai. This was exactly the argument the trade liberalisers had used to justify wheat imports. However, the imported wheat turned out to be twice as costly as domestic wheat. Navdanya has filed a case in the Supreme Court against wheat imports.”

Note:

I’ve shopped at Walmart, and they have great prices, true. But in the US I don’t have that much of a choice of smaller shops.  In India, however, there are plenty of choices….and it should stay that way.  Anyway, I don’t think I should be shopping at Walmart, even if the prices are low.  It’s a question of choosing smart self-interest over self-defeating self-interest. I like cheap prices, but I also want to live in a country of small shops and farms, not one of huge commercial farms and supermarkets.

It’s time to buy from local retailers, wherever possible.

The American-made Retail E-guide features over 2500 American-made products from over a dozen popular retail stores like Dillard’s, Home Depot, TJ Maxx, and Costco.

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On this issue, I agree with OccupyWallStreet.

If we can’t lower taxes to bring companies back, we can boycott multinationals with predatory practices. Giant corporations of this kind have nothing to do with the free market.

From TowardFreedom:

“The shiny happy people featured in Wal-Mart advertisements, as well as the company’s continued PR claims of corporate responsibility (“We at Wal-Mart take an active interest in conserving the environment!”), simply doesn’t match the frustrating reality of their corporate behavior. Even the largely toothless Environmental Protection Agency, for example, a federal regulatory outfit that sometimes seems to exist simply to provide permits for giant corporate polluters, has managed to prosecute Wal-Mart for Clean Air Act violations in nine states, due to the company’s stubborn insistence on storing lawn fertilizer and other toxic chemicals in parking lots located near local watershed areas.

Greenwald even takes us to Wal-Mart’s global factories in where Wal-Mart workers put in 14 hour days 7 days a week and brush their teeth with fireplace ashes because their salaries don’t allow them to buy tooth paste. Implicitly in this global tour is the fact that, while wrapping itself in the American flag and a shallow sham version of patriotism, Wal-Mart cares very little for the health and well being of its workers, the environment, or the health of the U.S. economy as a whole, beyond the short-term dollar value it can extract to increase its profit margin.

While all of this is deeply sobering, Greenwald wisely chooses to end the film on a powerful high note, spotlighting and interviewing several citizen/activists – normal people just like you and me – who have chosen to organize their communities to oppose Wal-Mart’s predatory behavior and fight for more just and sustainable local economies.”

State Terrorism: The Ukrainian Genocide, 1933

The Ukrainian genocide at the hands of Stalin was as great as the Holocaust engineered by the Nazis, but is much less well known. The silence of prominent Western journalists is one reason why.  Walter Duranty of The New York Times, a Pulitzer prize-winner, admitted privately that ten million or so peasants had been intentionally starved and/or killed, but in public he dismissed reports of this as exaggeration and anti-Soviet propaganda. It turned out later that Duranty was being sexually blackmailed by the KGB.

Estimates of how many people died in Stalin’s engineered famine of 1933 vary. But they are staggering in their scale — between seven and 11 million people.

But despite the horrific number of people who died, the world is relatively unfamiliar with this grisly chapter in Soviet history which claimed lives on the same scale as the holocaust. One of the main reasons is that the Germans were eventually defeated, and thousands of eyewitnesses told  their stories  about concentration  camps and massacres.  The experience  was also  captured  unforgettably in photographs, film, and written accounts, and many of those responsible for the genocide were captured and put on trial………

British historian Robert Conquest is an expert on the period and his 1986 study of the famine, “Harvest of Sorrow,” brought much information about the tragedy to Western audiences for the first time. Conquest said another contrast between the famine and the holocaust is that while Adolf Hitler had written down much of what he intended to do, Stalin did not go on record about the famine.

“In the first place, [the Germans] were caught, so it ended and they had themselves got into an operation where they said what they were doing. Stalin never said he was trying to starve anyone to death. He just took away their food. He never went on record. It was all done under the auspices of humanist talk, socialist talk — or else denied altogether. The operations were different. And in other ways they were different, too. Hitler did many horrible things but he didn’t torture his friends to tell lies. The operation was a different one.”

Conquest is in no doubt that the famine was primarily aimed at Ukrainians and that Stalin hated not only the country peasants but even senior Communist leaders, like Mykola Skrypnyk, who eventually killed himself…………

“[Stalin] was trying to break the Ukrainians, as you know, with the leading Ukrainian Bolshevik Skrypnyk committing suicide under the pressures that were put on them when they tried to defend just the ordinary alphabet of the Ukrainians. Here [Stalin] was trying to alter it, things like that. I think he also proved he never trusted Ukrainian Communists. The whole Ukrainian Central Committee was totally purged in 1937, even the ones who supported him. He had this terrific distrust of everybody, but particularly of Ukraine.”

Luciuk of the Ukrainian Canadian Civil Liberties Association has a different theory for why news of the famine never reached the West. He blamed a number of Western journalists based in Moscow at the time who knew of the forced starvation but chose not to write about it or deliberately covered it up.

The journalist he says played the most influential role in the cover-up was “The New York Times” correspondent Walter Duranty. A drug addict with a shady reputation, Duranty was also an avid fan of Stalin’s, whom he described as “the world’s greatest living statesman.” He was granted the first American interview with the Soviet leader and received privileged information from the secretive regime.

Duranty confided to a British diplomat at the time that he thought 10 million people had perished in the famine. But when other journalists who had traveled to Ukraine began writing about the horrific famine raging there, Duranty branded their information as anti-Soviet lies. Conquest believes that Duranty was being blackmailed by the Soviet secret police over his sexual activities, which reportedly included bisexuality and necrophilia.

The year before the famine, in 1932, Duranty won the Pulitzer Prize, America’s most coveted journalism award, for a series of articles on the Soviet economy. Luciuk says members of the Ukrainian diaspora, as well as Ukrainian politicians and academics, earlier this month launched a campaign to have Duranty’s award posthumously revoked. He said he hopes the campaign will make more people in the world aware of the famine….”

Vatican Moves Away from Frankenfoods

The head of the Pontifical Council for Justice and Peace, Cardinal Peter Turkson, has moved away from his predecessor’s support for developing genetically modified food to alleviate hunger in poor countries. Instead, he argues that adoption of the “precautionary principle” is warranted:

“There are a lot of claims that are disputed (like) that GMOs never call for the use of pesticides or insecticides or anything because they are resistant,” he said. Such claims have been challenged, he said, and some say “at a certain point (these crops) require insecticides whose chemicals break up later in the soil and render the soil less fertile.”

Given the disputed claims and doubts, “I think that we should go easy and probably satisfy all of these objections to the full satisfaction of those who raise these objections,” he said.

Because of the companies’ control over the patented seeds, “what is meant to alleviate hunger and poverty may actually in the hands of some people become really weapons of infliction of poverty and hunger,” Cardinal Turkson said.

Previously, opponents of GM carried the burden of proving that some harm was being inflicted. Under the PP, companies that planned on introducing genetic changes into an organism would have to bear the burden of proving that it was safe.

While this might seem counter-libertarian, I would argue it is not.

1. Since changes in genetics are impossible to regulate post facto, they cannot be subject to the usual economic arguments available to libertarians. The potential devastation is so irreparable that the principle of liberty demands that the bar be raised ahead of the event.

2. Biotechnology as an industry is concentrated in so few and such large companies, that free market conditions do not prevail at all in other respects. The companies owe their position in the market to their influence on government regulations and laws, to begin with. That suggests that there will be little in the way of normal market forces to check their natural profit-seeking from turning into rent-seeking based on preferential treatment, captive markets/monopoly, and government enforcement.  PP is simply a thoughtful mechanism to prevent profit from careening into plunder.

Bottom line, PP prevents looting or theft.

That makes it libertarian.