VI must beware of the 'Amazons' of the world- Hon Penn
'We have to ensure that there is a fair and levelled playing field in the consumer markets, in the business arena," he told legislators during the Eighth Sitting of the Second Session of the Fourth House of Assembly (HoA) at the Save the Seed Energy Centre in Duff's Bottom, Tortola.
With regards to the VI, Hon Penn said currently wholesalers are still competing with the retailers for the same market and selling the same products which can be uncompetitive.
Legislative Framework to protect businesses
"That can't lend itself to unfair competition, you need a legislative framework to be able to guard against that type of behaviour and ensuring that there is no unfair competitive advantage to persons who are trying to survive in the business market," he said.
He added that the United States, as big as its economy is, has measures in place to ensure businesses are protected in that economic environment.
"We in the BVI as a small economy, also have to be very careful... how we allow big businesses to come into our Territory, how we allow them to set up shop in the BVI and manage and understand the implications of those businesses operating within our economic environment," he said.
Watch out for big businesses - Hon Penn
Pointing to large global companies like Amazon, an online retailer, and its ability to use economies of scale to gain a competitive advantage over small business, Hon Penn said the Territory should be aware.
"We already have the advent of the Amazons of the world, and what Amazon has done in terms of its impact on small businesses functioning within an environment."
Hon Penn said the balance is not to restrict the free market from having variety, rather, examining the impacts that large companies can have on grassroot businesses that drive the economy.
He called for education of the population on how consumer behaviour can sometimes impact the local economy.
"We also have to help our businesses to step up their game as well to be able to be innovative, [and] to offer the variety," Hon Penn said.
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15 Responses to “VI must beware of the 'Amazons' of the world- Hon Penn”
Kind of embarrassing. Sit down Marlon. Is the Syrian you trying to say in a smart way. Why not just say it out your mouth.
Moreover, it depends heavily on external investment and trade and is susceptible and vulnerable to external economic and environmental shocks. Producing very little, it has to import almost a 100% of its needs, including food, clothing, construction material, furnishing, automobiles, construction equipment, tools and appliances, electronics.......etc. This high import rate puts it at a trade disadvantage and allowing foreign entities, ie, MNCs and others to penetrate the economy and drives prices. Foreign entities have the capacity and ability to develop economies of scale and scope, providing them with an absolute competitive advantage.
Nonetheless, government to the maximum extent practical and reasonable should take action(s) to lower the playing field for local businesses to thrive. Businesses too despite the stiff competition must do their part to deliver variety and provide high quality goods and services at reasonable prices. True, it is a high bar but businesses have to work harder to scale it.
You burst the people bubble by telling them the VI is a resource-poor country. Now, you know that we believe that the VI is a wealthy territory. We confused income with wealth. True, may 1% of the population commands a high a high income but that is not wealth. True, a few people live in mansions, and drive expensive cars but that is not a true indication of wealth. Perhaps, the Statistics Office can give us a breakdown of average wealth in the VI. A few weeks into the Covid-19 many residents were screaming for help. The bottom line is that the VI is not a wealthy locale and it is not experiencing a resource curse.