[Hpn] Fw: [globalization] An overview from India

Tom Musselwhite hac@efn.org
Thu, 04 May 2000 22:44:09 -0700


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----- Original Message -----=20
From: Franco=20
To: Globalization E-Conference=20
Sent: Wednesday, May 03, 2000 5:07 AM
Subject: [globalization] An overview from India


I am Thomas Franco,a Banker by profession and an activist by practice.I =
am sending herewith a note on what has happened in India after =
globalisation.I am impressed by the note of Barry Coatesand of the =
opinion that there has to be an entirely new approach in which the poor =
and weak are kept in the forefront and not the powerful.
franco
When Mr. Manmohan Singh started the Economic reforms in 1991 he assured =
the nation that after 5 years things will improve. The Economy will =
flourish. But now after 10 years we see that the MNCS have flourished =
including the Indian ones who have become subservient to the TNCS. 10% =
of the population has also flourished. Pepsi and Coca-Cola have taken =
over Thumps up, Limca, Goldspot etc and eradicated the local soft drinks =
manufacturers. Gillette came in and Malhotra's are gone. Hindusthan =
Lever has taken over TOMCO, Ponds, Kissan, Brooke bond, Lipton, Kothari =
foods, Modern foods etc. Now they control the cosmetics, food and =
Beverage Markets [Fast Moving Consumer Goods-FMCGs-]. Even the public =
sector modern food has been swallowed. Smithline beachem has taken over =
Viva and Maltova and now they control 80% of the market in their field.=20


What all these and many other happenings have done to the local =
Economy?. Some people ask-Why don't you talk about the positive effects =
of globalisation also.=20

I see the effects on the majority of the people-the 70% -poor, absolute =
poor and lower middle class. Have they gained anything? What do they =
need? Kennutty fried chicken Or the Complan total energy food or a =
simple meal three times a day?.=20

Safe drinking water or aerated water for Rs.15 per litre or Pepsi & =
Coca-Cola? [1$=3DRS.43]Houses with Italian Marbles or two room house =
with a toilet?

Schools with roof, teachers and toilet or education in Cambridge, Oxford =
or Massechesuts?

Air-conditioned hospitals or PHCs with Doctors and medicine?

Daevoo, Ford and Mitshubhisi Cars or a good public transport system?=20

The reality is 100 million families are without water at home, 150 =
million households do not have electricity, 3.41 million are =
shelterless, 10.31 million live in unserviceable households, 58 million =
are unemployed and 1.33 crore go to college out of 33 crore in the 16-33 =
age group. 40% of villages are neither connected by reads nor do they =
have safe drinking water. Number of people living poverty line has =
increased from 37.3% in 93-94 to 45.2 in June 1998. [Businessline =
4.4.2000]


Let as analyse sector wise

Primary sector:

v With the liberalisation policy which has brought more than 800 goods =
under Open General License (OGL) and the removed of Quantitative =
Restriction (QR) on 714 items the farmers are the most affected.=20

v Import of Rubber has made Lakhs of small planters and rubber tappers =
poor when the cost of rubber came down to less than 50%. Big planters =
have stopped tapping rendering the labourers (tappers) jobless.=20

v Market is flooded with Chinese Garlic (big ones) upto the village =
level leaving the farmers in the hills of Tamilnadu and plains of =
Rajastan poverty striken.=20

v The poultry owners of Namakkal in Tamilnadu and the other parts of =
country are no match to the chicken legs imported at throw away price =
from USA. (Rs.28 whereas in India production cost itself is Rs.32/-). =
Already units are closing down.=20

v Same is going to happen to the Apple and Orange growers with the =
import of these items from Australia NewZeland and other countries.=20

v The tea plantation workers of Assam are going to be affected soon due =
to the competition from our neighbours as the import has just started. =
Last week there was an agitation in Nilgris in which more than a lakh of =
people participated demanding ban on the import.=20


SECONDARY SECTOR=20

As already mentioned at the outset many units are getting closed or =
taken over. Handloom Industry which is the second biggest employer after =
the agriculture sector is in the deathbed. Whether it is silk =
(competition from China) or lungis (competition from powerloom) or the =
bed sheets and Towels all are feeling the crunch. [frontline April -4]


The entire softdrinks market is taken over by pepsi, coca-cola and the =
softdrinks from Thailand whereas we allow tons of fruits to go waste =
without preservation and processing support.=20


v Many SSIs which provide maximum employment are closed or closing. With =
the Power sector reforms they may not be able to afford electricity.=20

v Solidaire, Keltron, Elcot and many Public sector units which succeeded =
in the TV market have stopped production due to competition from Japan, =
Holland, Taiwan etc.=20

v Many two wheeler producers have wound up or gone for foreign partners =
to survive.=20

Now it is almost difficult to see anything which is 100% Indian.=20

Morning tooth paste, toilet soap, breakfast (Kellog's), TV, Music system =
and even the undergarments are all becoming foreign.=20

No doubt-Industrial production has slowed down. Voluntary Retirement =
Scheme, VSS and CRS are on .[Even coco-cola is going to send out 5200 =
people]. But the shelves of the supermarket are flooded with goods.=20


TERTIARY SECTOR

Today you get free internet time with city bank Card. Without fulfilling =
priority sector Norms - Violating laws of the land foreign banks =
concentrate in the cities and take away major business of Indian Public =
Sector Banks. Not even Cochin is a profitable place(Standard chartered =
closed down it's branch) for them. Banks have happily forgotten priority =
sector lending-especially to the poor and efforts are on to write off =
NPA's of big businessmen including Rahul Bajaj (CII) and Vijay Mallaya =
(United Brewaries) and hundreds of Millionaires.


Insurance bill has given way to private and foreign companies and soon =
LIC and GIC will be told they are not profitable and they should be =
privatised.=20

Hotel, tourism (SITA travels gone to a foreign company) Banking, =
Insurance, Power, Oil and even Roads are now going away to the private =
sector making the services very costly.

Health is becoming a big problem due to reduced budgetary support, =
privatisation, withdrawal from the public sector pharmaceutical =
industries and the new patenting regime.

In the name of providing credit to the poor the women groups are used as =
marketing outlets by Unilever and other MNCs- destroying  local =
micro-enterprises.=20


Still people survive. People's anger has not come out. Just because of =
good monsoon. Some vegetable, cereals and grains are available to =
sustain the people. If one monsoon fails there will be a catastrophe. =
(see what is happening in Gujarat today?).=20

Soon there will be riots.

There are alternatives.The growth of Kerala ,a small state in South =
India which mentioned by Dr.Amartya sen in many of his books offer new =
models.But who cares in WB,IMF, WTO AND THEIR SERVANTS-THE STATE =
GOVERNMENTS IN THE DEVELOPING COUNTRIES?.

FRANCO=20


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<DIV>&nbsp;</DIV>
<DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
href=3D"mailto:franco@md3.vsnl.net.in" =
title=3Dfranco@md3.vsnl.net.in>Franco</A>=20
</DIV>
<DIV><B>To:</B> <A href=3D"mailto:globalization@lists.worldbank.org"=20
title=3Dglobalization@lists.worldbank.org>Globalization E-Conference</A> =
</DIV>
<DIV><B>Sent:</B> Wednesday, May 03, 2000 5:07 AM</DIV>
<DIV><B>Subject:</B> [globalization] An overview from India</DIV></DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>I am Thomas Franco,a Banker by =
profession and an=20
activist by practice.I am sending herewith a note on what has happened =
in India=20
after globalisation.I am impressed by the note of Barry Coatesand of the =
opinion=20
that there has to be an entirely new approach in which the poor and weak =
are=20
kept in the forefront and not the powerful.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>franco</FONT></DIV>
<DIV>
<P align=3Djustify>When Mr.<B> </B>Manmohan Singh started the Economic =
reforms in=20
1991 he assured the nation that after 5 years things will improve. The =
Economy=20
will flourish. But now after 10 years we see that the MNCS have =
flourished=20
including the Indian ones who have become subservient to the TNCS. 10% =
of the=20
population has also flourished. Pepsi and Coca-Cola have taken over =
Thumps up,=20
Limca, Goldspot etc and eradicated the local soft drinks manufacturers. =
Gillette=20
came in and Malhotra&#8217;s are gone. Hindusthan Lever has taken over =
TOMCO, Ponds,=20
Kissan, Brooke bond, Lipton, Kothari foods, Modern foods etc. Now they =
control=20
the cosmetics, food and Beverage Markets [Fast Moving Consumer =
Goods-FMCGs-].=20
Even the public sector modern food has been swallowed. Smithline beachem =
has=20
taken over Viva and Maltova and now they control 80% of the market in =
their=20
field. </P>
<P align=3Djustify></P>
<P align=3Djustify>What all these and many other happenings have done to =
the local=20
Economy?. Some people ask-Why don&#8217;t you talk about the positive =
effects of=20
globalisation also. </P>
<P align=3Djustify>I see the effects on the majority of the people-the =
70% -poor,=20
absolute poor and lower middle class. Have they gained anything? What do =
they=20
need? Kennutty fried chicken Or the Complan total energy food or a =
simple meal=20
three times a day?. </P>
<P align=3Djustify>Safe drinking water or aerated water for Rs.15 per =
litre or=20
Pepsi &amp; Coca-Cola? [1$=3DRS.43]Houses with Italian Marbles or two =
room house=20
with a toilet?</P>
<P align=3Djustify>Schools with roof, teachers and toilet or education =
in=20
Cambridge, Oxford or Massechesuts?</P>
<P align=3Djustify>Air-conditioned hospitals or PHCs with Doctors and=20
medicine?</P>
<P align=3Djustify>Daevoo, Ford and Mitshubhisi Cars or a good public =
transport=20
system? </P>
<P align=3Djustify>The reality is 100 million families are without water =
at home,=20
150 million households do not have electricity, 3.41 million are =
shelterless,=20
10.31 million live in unserviceable households, 58 million are =
unemployed and=20
1.33 crore go to college out of 33 crore in the 16-33 age group. 40% of =
villages=20
are neither connected by reads nor do they have safe drinking water. =
Number of=20
people living poverty line has increased from 37.3% in 93-94 to 45.2 in =
June=20
1998. [Businessline 4.4.2000]</P>
<P align=3Djustify></P><B>
<P align=3Djustify>Let as analyse sector wise</P>
<P align=3Djustify>Primary sector:</P></B>
<P align=3Djustify><FONT face=3D"Monotype Sorts">v</FONT> With the =
liberalisation=20
policy which has brought more than 800 goods under Open General License =
(OGL)=20
and the removed of Quantitative Restriction (QR) on 714 items the =
farmers are=20
the most affected. </P>
<P align=3Djustify><FONT face=3D"Monotype Sorts">v</FONT> Import of =
Rubber has made=20
Lakhs of small planters and rubber tappers poor when the cost of rubber =
came=20
down to less than 50%. Big planters have stopped tapping rendering the =
labourers=20
(tappers) jobless. </P>
<P align=3Djustify><FONT face=3D"Monotype Sorts">v</FONT> Market is =
flooded with=20
Chinese Garlic (big ones) upto the village level leaving the farmers in =
the=20
hills of Tamilnadu and plains of Rajastan poverty striken. </P>
<P align=3Djustify><FONT face=3D"Monotype Sorts">v</FONT> The poultry =
owners of=20
Namakkal in Tamilnadu and the other parts of country are no match to the =
chicken=20
legs imported at throw away price from USA. (Rs.28 whereas in India =
production=20
cost itself is Rs.32/-). Already units are closing down. </P>
<P align=3Djustify><FONT face=3D"Monotype Sorts">v</FONT> Same is going =
to happen to=20
the Apple and Orange growers with the import of these items from =
Australia=20
NewZeland and other countries. </P>
<P align=3Djustify><FONT face=3D"Monotype Sorts">v</FONT> The tea =
plantation workers=20
of Assam are going to be affected soon due to the competition from our=20
neighbours as the import has just started. Last week there was an =
agitation in=20
Nilgris in which more than a lakh of people participated demanding ban =
on the=20
import. </P>
<P align=3Djustify></P><B>
<P align=3Djustify>SECONDARY SECTOR </P></B>
<P align=3Djustify>As already mentioned at the outset many units are =
getting=20
closed or taken over. Handloom Industry which is the second biggest =
employer=20
after the agriculture sector is in the deathbed. Whether it is silk =
(competition=20
from China) or lungis (competition from powerloom) or the bed sheets and =
Towels=20
all are feeling the crunch. [frontline April -4]</P>
<P align=3Djustify></P>
<P align=3Djustify>The entire softdrinks market is taken over by pepsi, =
coca-cola=20
and the softdrinks from Thailand whereas we allow tons of fruits to go =
waste=20
without preservation and processing support. </P>
<P align=3Djustify></P>
<P align=3Djustify><FONT face=3D"Monotype Sorts">v</FONT> Many SSIs =
which provide=20
maximum employment are closed or closing. With the Power sector reforms =
they may=20
not be able to afford electricity. </P>
<P align=3Djustify><FONT face=3D"Monotype Sorts">v</FONT> Solidaire, =
Keltron, Elcot=20
and many Public sector units which succeeded in the TV market have =
stopped=20
production due to competition from Japan, Holland, Taiwan etc. </P>
<P align=3Djustify><FONT face=3D"Monotype Sorts">v</FONT> Many two =
wheeler producers=20
have wound up or gone for foreign partners to survive. </P>
<P align=3Djustify>Now it is almost difficult to see anything which is =
100%=20
Indian. </P>
<P align=3Djustify>Morning tooth paste, toilet soap, breakfast =
(Kellog&#8217;s), TV,=20
Music system and even the undergarments are all becoming foreign. </P>
<P align=3Djustify>No doubt-Industrial production has slowed down. =
Voluntary=20
Retirement Scheme, VSS and CRS are on .[Even coco-cola is going to send =
out 5200=20
people]. But the shelves of the supermarket are flooded with goods. </P>
<P align=3Djustify></P><B>
<P align=3Djustify>TERTIARY SECTOR</P></B>
<P align=3Djustify>Today you get free internet time with city bank Card. =
Without=20
fulfilling priority sector Norms - Violating laws of the land foreign =
banks=20
concentrate in the cities and take away major business of Indian Public =
Sector=20
Banks. Not even Cochin is a profitable place(Standard chartered closed =
down it&#8217;s=20
branch) for them. Banks have happily forgotten priority sector=20
lending-especially to the poor and efforts are on to write off =
NPA&#8217;s of big=20
businessmen including Rahul Bajaj (CII) and Vijay Mallaya (United =
Brewaries) and=20
hundreds of Millionaires.</P>
<P align=3Djustify></P>
<P align=3Djustify>Insurance bill has given way to private and foreign =
companies=20
and soon LIC and GIC will be told they are not profitable and they =
should be=20
privatised. </P>
<P align=3Djustify>Hotel, tourism (SITA travels gone to a foreign =
company)=20
Banking, Insurance, Power, Oil and even Roads are now going away to the =
private=20
sector making the services very costly.</P>
<P align=3Djustify>Health is becoming a big problem due to reduced =
budgetary=20
support, privatisation, withdrawal from the public sector pharmaceutical =

industries and the new patenting regime.</P>
<P align=3Djustify>In the name of providing credit to the poor the women =
groups=20
are used as marketing outlets by Unilever and other MNCs- =
destroying&nbsp; local=20
micro-enterprises.&nbsp;</P>
<P align=3Djustify><B></B></P>
<P align=3Djustify>Still people survive. People&#8217;s anger has not =
come out. Just=20
because of good monsoon. Some vegetable, cereals and grains are =
available to=20
sustain the people. If one monsoon fails there will be a catastrophe. =
(see what=20
is happening in Gujarat today?). </P>
<P align=3Djustify><FONT face=3DArial size=3D2>Soon there will be =
riots.</FONT></P>
<P align=3Djustify><FONT face=3DArial size=3D2>There are =
alternatives.The growth of=20
Kerala ,a small state in South India which mentioned by Dr.Amartya sen =
in many=20
of his books offer new models.But who cares in WB,IMF, WTO AND THEIR=20
SERVANTS-THE STATE GOVERNMENTS IN THE DEVELOPING COUNTRIES?.</FONT></P>
<P align=3Djustify><FONT face=3DArial=20
size=3D2>FRANCO&nbsp;</FONT></P></DIV></BODY></HTML>

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