No more McDonalds! No more Starbucks! No more Israel! While things have remained calm and rational in Singapore, emotions are running high in neighbouring Malaysia and Indonesia, with a wave of boycotting on the rise. Boycotting gives people a sense of empowerment, a way to express their dissatisfaction about the cause. But boycotting is not really effective, and here's why.
Boycotts do limited financial damage.
Boycotts do not directly harm the company's bottomline. Often, boycotts are neither large enough or long enough to hurt the companies. Consumers are human too, and everyone wants convenience and comfort. In 2010, American consumers planned a boycott of BP's oil stations in response to the company's sluggish response to an oil spill. The group managed to gain over 350,000 members. And still it failed. BP stations were simply too conveniently placed on highways, and there were no good alternatives. Similarly, it is only a matter of time before Starbucks and McDonalds' branches in Malaysia and Indonesia see their footfall return.
Israeli's main economic drivers are hard to boycott.
A majority of Israel's exports are high-technology, and increasingly so. Israel is an important link in the global semiconductor supply chain - crucial chips that power our computers, phones, and AI-based systems we simply cannot live without.
Another huge industry for Israel is the arms trade. The trade was worth US$12.5b in 2022. The trade value has increased by 50% since 2019, and trade volume has doubled since 2012. Decisions about military assets concern the survival of countries, and governments never worry about boycotts in such serious conversations.
Boycotts backfire.
The McDonalds boycott rose because McDonalds Israel said it would be providing free meals to Israel. However, McDonalds Indonesia has announced that it will be providing aid to the Palestinians. In addition, most McDonalds around the world are locally-owned, which means they are part of the domestic economy, providing jobs and economic value for locals. Boycotting these franchises only hurt the boycotters themselves.
So...how?
To be clear, we also sympathise with Palestinian civilians suffering in Gaza. And we're still figuring out the best way to add constructively to the situation. But one thing is for sure: it's not through boycotts.
Comentários