India's new reforms have no meaning for the poorest



For eight days, Bhagwan Das, a 15-year-old boy who lives with his grandmother in the village of Barkadih in the heart of India's Jharkhand province, lay in bed, felled by a particularly bad bout of malaria.

All the able-bodied men and women of the family had long ago migrated to Varanasi, Mumbai and Delhi in search of work, so there was no one to take him to the local doctor. Last week, as his conditioned worsened on the ninth day of his illness, a cousin was summoned from Varanasi to take the boy to a hospital.

In India's big cities, meanwhile, the news was all about the increasing political fragility of the government led by Congress Prime Minister Manmohan Singh.

He had announced a second wave of economic reforms, the media reported: allowing foreign behemoths to enter retail trade, increasing the price of diesel, and opening aviation and broadcasting to foreign investment.

But Bhagwan Das and his family (including his aunt, Ramani, a maid in my home) seemed immune to the political crisis. Mamata Banerjee, head of the Trinamool Congress in West Bengal, withdrew from the Congress-led government; the news was received with a shrug.

Mr Singh's argument that foreign investment is desperately needed cuts little ice with people like Bhagwan Das and his family. If 20 years of reform have hardly improved their hand-to-mouth existence, how would another wave make a difference? There are not one but several Indias, and most of Delhi has little connection with many of them.

India's poor and marginalised are much more likely to understand the astoundingly vulgar figures being bandied about in scandals: $32 billion (Dh117.5bn) in the telecom sector and now $33.5 billion in the coal trade. The venality of the political class is not news, but the coal scandal shows that Mr Singh, known for impeccable financial integrity himself, has presided over one of the darkest and most corrupt periods in Indian history.

This raises a question: If the corrupt were brought to book, would India still need global retail giants like Walmart and Carrefour and Tesco to increase prosperity?

No matter what Mr Singh says, these huge retail enterprises are going to change India. Some changes will be for the better: investments in cold storage and supply-chain efficiency will reduce the toll of food waste, for example.

Still, some analysts note that modern supply chains already exist in much of India for milk products, and that food and vegetables account for only about 10 per cent of household expenditure. Does India really need Walmart?

Others doubt the claim that Walmart and the others will improve farmers' profits by cutting out middlemen. India is a complicated country, and those "middlemen" are part of the vast unorganised population. Lack of education or skills keeps these people out of manufacturing or other sectors, leaving them to be small-time vendors, a cohort that has increased from 39 million in 2000 to 47.8 million in 2005. These people are extraordinarily vulnerable to large retail enterprises.

Moreover, studies have found some interesting results when multinational corporations begin to control the complete supply chain, as has happened in the coffee industry in Ethiopia and Nicaragua, for example. When big companies integrate vertically - from owning the land on which the coffee is grown through to marketing and retailing, destitution and starvation can increase, because the multinational in question tightly controlled costs at all stages, to increase its profit.

And here is another factor: analysts point out that Indians rarely realise that Walmart's unprecedented global success is directly proportional to its success in China; in 2010, 70 per cent of its $420 billion turnover came from its 352 stores in 130 Chinese cities.

But with the trade gap between India and China widening every month - in favour of China - the truth is that the flood of cheap Walmart goods that will be coming into India will have been made in China. Already, analysts point out that the lighting and toy industries in India have been almost obliterated by cheap Chinese goods.

To be sure, the Congress policy of allowing majority foreign ownership (51 per cent) in areas such as "multi-brand retail" could help modernise India, by enhancing skill development: pushing small farmers into forming cooperatives, even as small shopkeepers learn to compete with the behemoths by personalising their service even more. The chairman of the PM's Economic Advisory Council, C Rangarajan has admitted that the new foreign direct investment in retail will certainly "displace" small traders, but that they must learn to fight back.

Can India take on Walmart? In November 2011, when this intended policy was first announced, Time magazine pointed out that India's agriculture sector was so primitive that there is room for all players, including for Walmart to bring 35,000 Indian farmers into its supplier fold by 2015.

Just as the Big Mac has of necessity been transformed in India into the McAloo (potato) burger, perhaps India's incredible diversity will also persuade Walmart to change its tactics here.

As for people like Bhagwan Das, perhaps Manmohan Singh and his cabinet will find it in themselves to target this section of India's citizens by universalising health care and food as well as education. If they do, it will at last give the lie to those who insist that policy initiatives such as those in retail are almost exclusively aimed to help India's rich and famous.

Jyoti Malhotra is a political and foreign affairs analyst based in Delhi

On Twitter: @jomalhotra

How to avoid crypto fraud
  • Use unique usernames and passwords while enabling multi-factor authentication.
  • Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
  • Avoid suspicious social media ads promoting fraudulent schemes.
  • Only invest in crypto projects that you fully understand.
  • Critically assess whether a project’s promises or returns seem too good to be true.
  • Only use reputable platforms that have a track record of strong regulatory compliance.
  • Store funds in hardware wallets as opposed to online exchanges.

Take Me Apart

Kelela

(Warp)

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

Profile

Company name: Jaib

Started: January 2018

Co-founders: Fouad Jeryes and Sinan Taifour

Based: Jordan

Sector: FinTech

Total transactions: over $800,000 since January, 2018

Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EAlmouneer%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Dr%20Noha%20Khater%20and%20Rania%20Kadry%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EEgypt%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E120%3Cbr%3E%3Cstrong%3EInvestment%3A%20%3C%2Fstrong%3EBootstrapped%2C%20with%20support%20from%20Insead%20and%20Egyptian%20government%2C%20seed%20round%20of%20%3Cbr%3E%243.6%20million%20led%20by%20Global%20Ventures%3Cbr%3E%3C%2Fp%3E%0A
COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now

The specs

Engine: 3-litre twin-turbo V6

Power: 400hp

Torque: 475Nm

Transmission: 9-speed automatic

Price: From Dh215,900

On sale: Now

Dubai works towards better air quality by 2021

Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.

The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.

These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.

“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.

“We’re in a good position except for the cases that are out of our hands, such as sandstorms.

“Sandstorms are our main concern because the UAE is just a receiver.

“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”

Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.

There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.

“There are 25 stations in total,” Mr Al Daraji said.

“We added new technology and equipment used for the first time for the detection of heavy metals.

“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”

Hotel Silence
Auður Ava Ólafsdóttir
Pushkin Press

Civil%20War
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Alex%20Garland%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Kirsten%20Dunst%2C%20Cailee%20Spaeny%2C%20Wagner%20Moura%2C%20Nick%20Offerman%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A