Foreign brands — the new colonialism?

PriceSmart was a good idea for a developed country concept to transplant its gigantic economies of scale/purchasing bulk — to then be sold to satellite stores placed in the Third World Latino and Caribbean markets, with comparatively minute populations, and it worked. But did it do anything for national morale, to promote entrepreneurs, to inspire production or creativity? Likewise, Prestige Holdings Ltd, which is a restaurant management company that successfully operates the KFC, Pizza Hut, TGI Fridays, and Subway restaurants, has now opened the Starbucks brand here in TT . Their arrival may be a death sentence to many local companies, killing their chances as they simply cannot compete with evolved concepts from larger and often more astute globally exposed economies.

This influx of foreign brands many perceive as an increase in selection to consumers but this is an illusion. As big businesses monopolise the market and drive out local industry, they also drive out all the creative evolution/innovation and improvement born from competition, leaving consumers with no choice at all.

Locally owned businesses make more local purchases, require less transportation, operate on a smaller scale and are generally more sustainable, contributing less to environmental degradation and our growing pollution problems.

Local businesses reflect our local identity, develop integrated local support services, grow our economy through local service partners, help locals financially through the “multiplier effect”, and build our communities’ unity and cohesiveness, something Trinidad needs now more than ever.

Some experts argue that local businesses also generate more tax revenue per sales dollar, meaning a greater percentage of local independent businesses keeps our taxes lower.

TT , as we mark our 54th anniversary of independence from our colonisers, let us also strive to liberate ourselves from corporate colonialism that is simply not patriotic, and quite frankly is piggy-backing on the success of foreign entrepreneurs. To succeed as a people, we must come together as a nation and support each other’s local content.

The New Economics Foundation, an independent economic think tank based in London, states, “Money is like blood. It needs to keep moving around to keep the economy going.” It notes that when money is spent at non-locally owned utilities and services such as online retailers, “it flows out, like a wound.” Prestige Holdings can and must do better.

Gary Aboud via email