Wednesday
Aug112004
Puerto Rican Economist says Walmart has Harmful Effects on the Economy
Wednesday, August 11, 2004 at 06:10AM
Wal-Mart stands amid praise and lawsuits in Puerto Rico
By Leonardo Aldridge
SAN JUAN (AP) -- The Puerto Rican Chamber of Commerce on Tuesday came out in staunch defense of the Wal-Mart interest on the island and declared that the decline of small business cannot be blamed on a single company.
Those views, given by Chamber of Commerce vice-president Cirilo Cruz, diverged from those give by the Association of Community Pharmacist and an independent economist, who assured that the expansion of the meg-store chain on the island has had harmful effects on the economy.
Before the House Economic Development and Planning Committee, Cruz said that "no small retailer goes under simply because a bigger chains enters its market," and reminded that the chamber of commerce opposes protectionist measures.
Cruz warned that campaigns directed at individual companies, mainly by competitors, send foreign investors the message that they are not welcomed to do business on the island.
"We are telling foreign businesses that wish to do business here to go home, that they are not wanted here," said Cruz.
The Economic Development and Planning Committee chair, Ferdinand Perez, said he plans to meet with all the parties involved in the dispute to ascertain the effect Wal-Mart and its subsidiaries, which include Sam's Club and Supercenter, have had on the local economy.
In Tuesdays hearing, a study by economist Jose Alameda, said that Wal-Mart's expansion between 1993 to 2002 cause 86 retailers and wholesalers to go bankrupt.
"Our estimate is that for every $15.8 million in sales made by Wal-Mart one small to medium business in Puerto Rico goes under," reads Alameda's study.
The Association of Community Pharmacist president, Julie Hurtado, said Wal-Mart has solicited permits, thru its subsidiary supermarket chain Amigo, to establish pharmacies. Reneging on a pledge not to open pharmacies in Amigo supermarkets.
Hurtado blamed Wal-Mart for the closing of dozens of pharmacies who could not compete, due to the megastore's ability to buy products in larger quantities which allow to offer consumers lower prices.
"I'm saddened by the fact that La Fortaleza missed the opportunity to curve Wal-Mart's growth in the island, I am left wondering whether if anyway will save us from this economic extermination we are going through," said Hurtado.
Hurtado referred to the green light given by outgoing Secretary of Justice Anabelle Rodriguez to the Wal-Mart/Amigo merger, with minor restriction that are being minimally enforced.
Business sectors have criticized Rodriguez's decision to allow the merger, even when, to their knowledge, it violated anti-trust laws in Puerto Rico and 20 states stood in solodidarity with the island against the merger.
- Originally published by the Associated Press on Wednesday, August 11th, 2004.
By Leonardo Aldridge
SAN JUAN (AP) -- The Puerto Rican Chamber of Commerce on Tuesday came out in staunch defense of the Wal-Mart interest on the island and declared that the decline of small business cannot be blamed on a single company.
Those views, given by Chamber of Commerce vice-president Cirilo Cruz, diverged from those give by the Association of Community Pharmacist and an independent economist, who assured that the expansion of the meg-store chain on the island has had harmful effects on the economy.
Before the House Economic Development and Planning Committee, Cruz said that "no small retailer goes under simply because a bigger chains enters its market," and reminded that the chamber of commerce opposes protectionist measures.
Cruz warned that campaigns directed at individual companies, mainly by competitors, send foreign investors the message that they are not welcomed to do business on the island.
"We are telling foreign businesses that wish to do business here to go home, that they are not wanted here," said Cruz.
The Economic Development and Planning Committee chair, Ferdinand Perez, said he plans to meet with all the parties involved in the dispute to ascertain the effect Wal-Mart and its subsidiaries, which include Sam's Club and Supercenter, have had on the local economy.
In Tuesdays hearing, a study by economist Jose Alameda, said that Wal-Mart's expansion between 1993 to 2002 cause 86 retailers and wholesalers to go bankrupt.
"Our estimate is that for every $15.8 million in sales made by Wal-Mart one small to medium business in Puerto Rico goes under," reads Alameda's study.
The Association of Community Pharmacist president, Julie Hurtado, said Wal-Mart has solicited permits, thru its subsidiary supermarket chain Amigo, to establish pharmacies. Reneging on a pledge not to open pharmacies in Amigo supermarkets.
Hurtado blamed Wal-Mart for the closing of dozens of pharmacies who could not compete, due to the megastore's ability to buy products in larger quantities which allow to offer consumers lower prices.
"I'm saddened by the fact that La Fortaleza missed the opportunity to curve Wal-Mart's growth in the island, I am left wondering whether if anyway will save us from this economic extermination we are going through," said Hurtado.
Hurtado referred to the green light given by outgoing Secretary of Justice Anabelle Rodriguez to the Wal-Mart/Amigo merger, with minor restriction that are being minimally enforced.
Business sectors have criticized Rodriguez's decision to allow the merger, even when, to their knowledge, it violated anti-trust laws in Puerto Rico and 20 states stood in solodidarity with the island against the merger.