Origin Oman Says the Future is Local
 According to HE Ahmed Al Dheeb, Under Secretary for Commerce & Industry, Ministry of Commerce & Industry, Origin Oman is a new think, buy and eat local business initiative from the Public Establishment for Industrial Estates (PEIE). The initiative aims to preserve and enhance the economic, human and natural vitality of Oman’s communities by promoting the importance of purchasing locally made products and services.
"Origin Oman certainly isn’t a militant 'buy only Oman' initiative. It’s a balanced and rational campaign that is more about educating consumers and institutional buyers as to the availability of Oman-made products and services and the internal success stories many of our manufacturers are enjoying in the international markets. We want to encourage people to think, buy and eat local," says HE Al Dheeb. "Indeed, we want to make sure consumers, businesses and government purchasing agents ask the right questions before spending Rials in a way that will hurt the economy: Is there a reasonably priced quality local alternative available?" says HE Al Dheeb.
But isn’t Origin Oman protectionist? "Not at all," argues HE Al Dheeb. "The Origin Oman campaign is entirely about the free choices of consumers, businesses and government purchasing agents. No one is being forced to buy local, and no tariffs or other burdens are being placed on non-local goods."
Some economists believe - incorrectly - that initiatives such as Origin Oman must mean putting up trade barriers or inducing consumers to buy more expensive goods and services. They also forget that economic models assume all consumers have perfect information. "One way of looking at the Origin Oman campaign is that it gives consumers better information - about the availability of attractive local goods and services, and about the significant economic, social and environmental benefits of buying local," remarks HE Al Dheeb.
Shouldn't we leave the market alone? "A healthy market requires, as Origin Oman insists, that consumers fully gather information about available local alternatives before they make purchasing decisions, in full awareness that every Rial spent locally will have two to four times more benefit than a Rial spent non-locally." "In fact", suggest HE Al Dheeb: “Origin Oman-style campaigns often turn out to be the best way to develop prosperous links to the global economy.” Export-led development usually means supporting a small number of globally competitive niches within a global economy. If one of these industries collapses then the entire local economy collapses with it, especially its export sectors. The work of new urbanist Jane Jacobs has shown import-replacing development, which underlies buy-local initiatives, tends to nurture hundreds of existing, locally owned manufacturers, some of which will then become strong exporters. Development led by import-replacement rather than export promotion can certainly help diversify, stabilize and strengthen any domestic economy.
"Buying locally made goods and services is sound economic sense," argues HE Al Dheeb. However, some critics have attempted to downplay the studies that have been carried out on the economic importance of buying local, but the results are driven by a simple fact: Local businesses spend more locally - on local management, on local advertising, on local services and on local profits.
"We need this type of nudge," says HE Al Dheeb: "I guess that once the average consumer realizes they already buy local to some degree, whether that’s washing powder, confectionary, car batteries, cooking oil or building materials, they will perhaps engage in the idea a lot more. Indeed, the overall economic impact of buying local is actually pretty astounding."
But does the "local" angle really matter? Yes, but perhaps not in immediate sales. Rather the local approach humanizes the interaction, and helps the consumer see that they may have more in common with a company or brand than they had imagined - shared values or environmental views, for example. And that "common ground" can only get stronger over time. |