tag:blogger.com,1999:blog-5043138489010794057.post6043437195130479892..comments2024-03-27T15:57:09.192+05:30Comments on Urbanomics: Why the retail trade issue is more nuanced?Urbanomicshttp://www.blogger.com/profile/16956198290294771298noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5043138489010794057.post-68420741459957673082011-12-27T17:40:23.634+05:302011-12-27T17:40:23.634+05:30Dear Gulzar,
I enjoyed reading this column, parti...Dear Gulzar,<br /><br />I enjoyed reading this column, particularly this :<br /><br />"I think this is pretty lazy, even specious, scholarship. Unfortunately, it is also widely prevalent in academic discussions on reforms. There is a reluctance or inability to think through the real world problems that come in the way of pushing through such reforms, especially in democracies. It is all the more surprising since these supporters do identify the potential challenge. But they refuse to think beyond stage one."<br /><br />Retail reform and its equivalence to FDI is unexplained -other than as an exit option to existing investors. <br /><br />Pivoting the case for FDI around cold chain / supply chains / better prices for farmers - is all fine - but the trust in our politicians is at an all time low, and there is cynicism when a politician talks free market / reforms - its application is selective. <br /><br />From a purely theoretical stand point cartelisation and consolidated buying power as beneficial to farmers is non- sequitur. And heres a nice article whose argument is directly opposed to the position that the paper that you refered takes.<br /><br />http://www.downtoearth.org.in/content/retail-fdi-myths<br /><br />There is deep disdain for theoretical constructs that define free markets ( well, 2+2 is what you want it to be - ask an accountant doing the sums..)- so competition can mean consolidation or fragmentation in front ends - depending on what you want it to be.<br /><br />The effect of reforms are unequal / disproportionate - while to many of the winners in the financial market it is one more opportunity to gain from the financialization of the market - and to them it is a painless transition to the next big financial opportunity.<br /><br />A more balanced view surprisingly is from KSA Technopaks Arvind Singhal - a long time player in the retail consulting business<br /><br />http://economictimes.indiatimes.com/opinion/comments-analysis/indias-retail-sector-missing-the-wood-for-the-trees/articleshow/11088075.cms<br /><br />I say balanced, because we seem to implicitly buy the idea that anything good for the stock markets is good policy - and using that as the touchstone for public good / value is all there is to policy.<br /><br />What is missing is both credibility and empathy - and if it means that the political class needs to revisit and explain and restructure the transition so that it can carry more than just the elite - we should be happy that in some strange instances our democracy does work.<br /><br />Our democracy - a combination of majoritarianism / elite centric policy - the complete absence of debate - needs more push back and more debate - notwithstanding all the hue and cry about policy paralysis.<br /><br />regards, KP.KPhttps://www.blogger.com/profile/06553866275918658507noreply@blogger.com