Act of one greedy could despair many

BY WORKU BELACHEW 

Genre: Editorial 

Published on 4th April on The Ethiopian Herald

Unfair and greedy trade practice is a huge burden to consumers. However, sooner or later, business that relays solely on making money, ignoring all social responsibilities, gets itself in a deadlock. To understand this, one could not be expected to refer studies decorated with bars and charts. A simple observation of most businesses that entertain a short lifespan, due to lack of scientific trade system, would be enough. As anyone could agree, such business owners' ultimate aim is not securing genuine profits, rather revealing their inhumane character. Business entities and individuals of such type do anything abusive so far as it quenches their desire for accumulating money. Their venomous practice creates too much burden to the community challenging its very survival. We have only few, very few, in the business community who lives by the sweat of their own brow meeting customers' satisfaction.

 

The price hike which is escalating almost on a daily basis, challenges the survival of consumers. Take the price of Teff, a staple food of majority of Ethiopians. Plainly speaking, the net salary of a fresh degree graduate is far less than a price of a quintal of Teff. How can one endure the cost of a locally and largely produced cereal which is almost equal to the sum total of two fresh degree graduates monthly salary? This is nonsense by anyone's standards. Likewise, the cost of most food commodities has already become beyond one's imagination.

 

When we see the price of imported basic consumer goods, the scenario becomes even worse. Take clothing for instance, a civil servant cannot buy quality clothes with his/her own salary which may range between 800 to 5,000 where the majority falls in between. Due to this, most people have to save money for long time to respond the question of clothing. This is so terrifying.

 

There is a cruel virus which is infecting most in the business community and spreading fast: “short cut”. Individuals infected by a “short cut” virus always dream to surcharge consumers by every means possible. Their egocentric attitude tell them that Rome was built over night. But, it is unsafe to conclude as they always fail to materialize their dream. In short time, most of them own skyscrapers, luxurious automobiles and the likes. However, the reality on the ground proves that their greed is driving the majority to desperation.

 

One dare say that profit margins these days have been kept below ground. Is it hyperbolic to say 'no one except God knows the profit margins'? Some would go as far as securing a 700 per cent markup per commodity. In countries where ethical trade system functions well, traders would not get over 10 per cent net profit. But, the maximum markup is said 20 per cent, and when one gets the maximum per percentage, they call such individuals or companies “butchers”. No word can, therefore, express traders in this country that make over 700 per cent net profit!

 

Several reasons complicate our trade system and account for its unhealthiness. Low awareness about healthy trading could be one. Most whole sellers or retailers have engaged in a kind of business just to collect money as much as they can. They do not have a clear understanding to what extent their practice impacts the community. Due to that, some just rush to attain their brute aspiration. But, with no doubt, their business is a short lived one. Increasing demand also plays a major role. No confusion, if consumer “A” ignores a commodity, consumer “B” will soon come and take it. Accordingly, the traders have also fossilized a mentality as their goods would not be wasted. A third reason for the rising hike can be our investors choice. It is clear that most would like to build skyscrapers and collect rent with no extra fuss or engage in importing luxury goods and distributing them here to get a quick return, for instance. That is, in fact, their right. But, for the good of the society, if they engage in other sectors such as manufacturing, agriculture ... the advantage is double and triple. That could be in stabilizing the market by satisfying increasing demand for basic consumer goods, in curbing unemployment and the likes.

 

In a nutshell, the issue under discussion demands lots of efforts from every stakeholders before the hiking goes to an unmanageable stage. It could be: better enforcing the trade practice and consumers' protection law, educating the business community about its responsibilities, taking strict measures on individuals that deliberately limit production or hoard commodities and so on. In line with this, we have a holiday that most Christians celebrate in the coming weeks. And there would be plots to rocket cost of commodities such as onion. Thus, relevant bodies need to prevent such mess in advance.