Wednesday, June 16, 2010

Operation Bwezani: Economic and Trade Laws.

I have been reading a book: Mastering Commerce by R.R. Pitfield published by MacMillan Press in 1982 and reprinted in 1983. ISBN 0 333 31065 9. It is in very simple english and easy to understand.

Chapter 22 from section 5 talks about consumer protection. It would have been better if I could put in the whole text but I will try to summaries.

Consumers are supposed to buy wisely but their wisdom is as far as the seller's/advertisers integrity. Consumers are therefore in need of protection by:
- acts of parliament.
- consumer advise services
- industries following codes of practice
- indicating standards by labelling.

With the introduction of capitalism with liberalised economic laws, most regulatory authorities have found themselves crippled unable to act for lack of understanding or fear of breaking liberal economic laws. As a result so much consumer exploitation has gone into this country Malawi unchecked and unregulated in such a maner that it seems to be the norm of operating with everyone having complained and gotten tired, and most do not who to complain to to get help.

The book states laws of protection from:
- situations where companies might agree not to compete against one another so as to keep prices extremely high(these I have seen starting from minibuses/taxis operators, sole traders to big companies like Zain and TNM, for example - my suspicion).
- Misleading price qoutes(Game Store is really guilty).
- Inferior products(chilichonse chalowa china).
- Harmful/adultered ingredients.
- Unjust quantities.
- Dishonest advertising
- Undisclosed conditions on credit agreements (Banks are very guilty, NBS being one I have known).
- Refusal to replace or repair faulty products (with china products almost every china trader is guilty).

There is an Office of Fair Trading and a Fair Trading Act 1973(must be of the British Laws) this act should still be intact and active under the Laws of Malawi and should still be applicable today. This enforces the different consumer protection and fair trade laws.
-It describes obligations and rights on sale of goods both for the buy
and seller.
-It also defines what amounts to violation of the laws and this is reviewed periodically to catch up with trade evolution.

I would include adulteration as Zain has been doing under violation of fair trade.

Commerce students have learned all these. Why do we still suffer?

They, like all other educated staff on issues of trade, are employed by profit making organisations who's goal is to maximise profit as much as possible. Because of these consentrations of expertise, consumers(like employees on labour laws) find themselves at a very big disadvantage because of exploitation if there is no equally qualified regulatory authority to regulate companies against consumer/employee exploitation.

Workers in these companies with their division of labour do their duties to the best of abilities getting bonuses and promotions for good work done not knowing their good work is hurting fellow human beings all over.

Humans in cubicles driving big beasts called companies very efficiently not knowing these beasts are feeding on fellow human beings for fuel. What a tragedy!

WTO wants our trade laws to be aligned with international trade laws. I feel it would be very unwise to copy these laws whole sale.
- There is no, if not, very small Africa Representation to talk welfare of Africans.
- Most of the Laws might be devised to benefit already rich nations which are very vocal than poor nations(for obvious reasons).

On issues of trade, the rich would always have an upper hand over the poor.

I would agree with the conclision of capitalistic or socialist economy that it needs to be well regulated. That is to say, an economy must be regulated. Free trade or liberal economy gives very huge room for exploitation. And in this view it is only good for governments to prioritise native investments than multi-national ones. For multinational ones would really act as syphons of other countries economies to the companies' native country. Countries like Malawi find themselves then at a big disadvantage. They would have to compete at international level and again at national level. Even for international companies, it is only fair that their investiments and profits stay within the countries of operation.

Again in a regulated economy, it should be noted that the business community are very vocal than the people themselves such that they advance their interest more than the people. The outcome is that the people may still suffer even under a regulated economy if the government itself does not play the primary role of safe-guarding its people.

Most economic commentators are of the view of establishing companies to create more jobs I think this advances slavery of human beings to companies than to let them live their lives. Life is meant to be lived not to work in companies, with unfair conditions and dump ears to the suffering cries of humanity.

I hope for heaven on earth.

--
Accept The Challenge God Will Guide - Phwezi Sec. School.