[Reader-list] Two Articles: What FDI Did To Small Stores in UK.

[A. Mani]

(source People's Democracy)

IWA’S INVITATION TO INDIAN POLITICIANS



What FDI Did

To Small Stores in UK

Harsev Bains



PEOPLE of Indian origin living in Britain, having directly experienced
the devastation caused by the entry of big retail hyper markets, are
extending an open invitation to Indian politicians batting for FDI in
retail to visit Britain and study the situation.



Enterprising members of the Indian community began opening small
grocery stores in Britain since 1960s. These were initially targeted
at the newly arrived Indian immigrants. These family concerns, not too
dissimilar to the Kirana general stores in India, soon grew to serve
the entire local community by meeting the needs of the people with
whatever and whenever they needed it. Families invested their own time
and often the future of their offspring in making these stores a
success. The working week for operating the grocery stores increased
from five and a half days to seven, with early openings and late
closures.



The number of family run enterprises in UK witnessed a big jump
following the coming to power of Conservative government led by
Margaret Thatcher in 1979. In pursuing the ideological doctrine of
reducing the power of trade unions, Margaret Thatcher presided over
the destruction of the public sector manufacturing base in Britain.
People of Indian origin, who had been employed as unskilled and
semi-skilled workers in foundries and factories, were cast on the
scrap heap of the mountain of the unemployed. Some were given small
amounts of money as compensation to sell their jobs and future
prospects of the generations to come. With this money, supplemented by
additional loans secured on their homes, people turned to opening more
shops and small stores. By mid eighties, towns across Britain saw new
Indian run stores open on the corner of almost every neighbourhood.



This success in running the shops and being masters of their own
destiny was short lived. It was soon to be replaced by despair and
reality of the unforgiving savagery of FDI and the market place.



Foreign operators entered the retail sector in Britain in a big way
and it had an immediate effect on the small stores. The existing chain
of supermarkets started to open hyper markets in collaboration with
established big brand names from Europe and USA. They began slowly,
first opening in selected cities across Britain, that too in town
centres. After establishing their clientele, they began rapidly moving
out to the periphery of the cities. They took customers with them,
removing the critical mass necessary for small businesses to exist.
The hyper stores, occupying acres of land with parking lots and
offering every conceivable consumer goods under one roof, left a trail
of ghost towns behind.



The hard working, enterprising shop owners were forced to shut down
their shops. Some had their homes repossessed and found themselves
again among the unemployed. A number of them committed suicide.



The hyper stores’ feeding frenzy and their need to generate big
profits is unrecognisable from a local store serving the needs of the
local communities and eking out their livelihood. The new hyper
markets have created a new consumer for life --- before the cradle to
beyond the grave! Housing is now linked to new hypermarkets in UK.
These super stores offer extra services, including pharmacy, legal,
finance, banking, pensions, insurance, education and lots more.
Parents are invited to drop off their children for “education classes”
while they spend money on consumer goods, based more on desirability
than needs. Instant loans are available with cash back facilities,
allowing people to spend without care. People are conditioned and
cultured to serve the needs of the hyper store, not the store serving
the needs of the people!



In Britain today, people of Indian origin have been left scarred for
life by the devastation caused directly and indirectly by with the
entry of these giants of the retail sector. It is simply inconceivable
that the family run small Kirana stores in India can contemplate
competing with the Walmarts of the world.



The decision to even consider such an idea for India, where according
to the government of India’s own figures, 77 per cent of population
lives on less than Rs 20 per day, is incomprehensible.



There is an urgent need for the Indian political leaders, decision
makers and the media to consider the full consequences of allowing FDI
in retail sector. As well wishers of India, we invite, particularly
the lawmakers,  to visit Britain for a case study to investigate,
record witness statements and carry out an impact analysis before
deciding for India. After all, what is the rush!

___________________________________________________________________



Best

A. Mani




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A. Mani
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