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Dalite Model C

Dalite Model C

Da-Lite Floor Model C Projector Screen

GLOBALINATION- NEITHER PLAGUE NOR PANAECEA

Globalization – neither plague nor panacea

Dr. G.Indira priyadarsini*, Dr.V. Sowbhagya Rani**(on PDF), Department of Law, Sri Padmavati Mahila Visvavidyalayam (Women's University), Tirupati.517502.

Introduction:

            Globalization marks a paradigm shift in economic thinking on the part of economic philosophers and policy makers and represents an on-going process of change and adaptation.

           International Monetary Fund defines globalization as "the growing economic interdependence of countries world wide through increasing volume and variety of cross other transactions in goods and services and of international capital flows and also through the more rapid and widespread diffusion of technology".  Charles U.L. Hill defines globalization as "the shift towards a more integrated and interdependent world economy".  Globalization has two main components.

ü      The globalization of markets

ü      The globalization of investment also includes globalization of technology and of investment.

Interpendency and integration of individual countries of the world may be called as globalization.  Thus globalization integrates not only economies but also societies.

Globalization in its broader sense encompasses all types of economic and cultural transfer between nations.  In narrow sense it refers to the economic exchange of goods and services internationally and international financial flows.

Globalization process was initiated to accelerate economic growth through enhanced internal and external competition, privatization and liberalization. Global trade and investment patterns are having drastic impact on employment relations around the world.  The impact would be both negative and positive but it differs by context, by industry, by trade and by employment status.

The global economic policy will not be successful if there is a vast difference in resources, expertise and negotiating power.  Because of unequal economic power the poor and small countries can ill afford the high costs of participating in the WTO.

  After the Uruguay Round, it was estimated that the new trade agreements would lead to an increase in global income, but it is a net loss to less developed countries and developing countries.  Due to resulted financial crisis, most of the developing countries experienced a substantial decline in formal employment and a concomitant rise in informal employment. Therefore Globalization is leading to an increase in informalization.

Globalization is a multidimensional process, encompassing economic, political, cultural and social dimensions.  Globalization affects developed and developing countries differently, while developed countries are concerned about marketing and protection of their domestic industries and agriculture.  The developing countries contend with increased poverty, vulnerability, inequalities and inequities generated by the globalization process on the poorer section of the population. The stabilization and structural adjustment programmes of the IMF and the World Bank, and the new trading regime of WTO, lead to fiscal compression, tariff reductions and cut backs of public provisioning of social services.  The negative social impacts are raising unemployment, rising prices, declining real wages and rising social unrest, though globalization creates certain opportunities of employment.

In India the globalization process showed that there is considerable improvement in increasing life expectancy and improving literacy rates.  However, the nature of social and economic debt had not been sufficient to reduce poverty or to make any meaningful difference in the lives of the majority of population.  In the era of globalization women entered the labour market in greater number than ever before but their work is casualized. The benefit of competitive markets and other mainstays of globalization such as information technology have been skewed towards the elite minority of women.

Globalization essentially involves pursuit of economic policies which encourage free and fair competition inter se among public enterprises and among private and public enterprises as well.  Globalization also involves release of the forces of competition within the economy which promote economic efficiency and result in an optimum allocation of resources.  Globalization requires the countries economic statesmanship to pursue a comprehensive reforms programme and setup appropriate administrative machinery to execute a series of economic tasks.  The success of countries globalization programme depend on how it takes suitable steps to improve the investment climate domestically while attracting foreign capital. 

Impacts of Globalization

            The impact of globalization as it becomes evident in economic sphere has not left social and political sphere untouched. In the economic sphere, there is greater emphasis on privatization and opening of economy for foreign capital. In political sphere too, the first world's institutions and standards are projected as a model. Individualism is re-emphasized in recognition of not only a form of individual's freedom of creating wealth and property but also as living a life of dignity that entails availability of basic necessities of life like food, water and shelter.

The rising poverty and unemployment, the mal-treatment of dalits and women in society, rampant child labour, illiteracy, high dropout of children from school, burgeoning corruption, nontransparent bureaucracy and unaccountable police force all have come to stand out in light of fruits of globalization in form of acquired and manifested riches of a section of society that has benefited from the opening of economy and privatization.

The bells heralding death of socialism, injected capitalism with a new vigour which assisted in assuming a new form that is globally pervasive in the form of Globalization. One would agree with the post soviet socialism experience, that socialism does not generate wealth to the extent capitalism does. Even the Indian experience with mixed economy, with state having a significant part in the economic affairs and failing miserably, testifies to this contention. But to the credit of socialism, it presents with a mechanism of distribution of whatever little it produces. Even if one accepts the argument that the Globalization would usher an era of prosperity, an even distribution of wealth among the nations, regions and people of the world would be a real challenge before it.

Indian constitution sets out goal for the nation to strive forward to a democratic and socialist republic securing social, economic and political justice for its citizens.  A welfare society involves the concept of social justice wherein the marginalized sections of society and the working class get protection from the state. For this it is pertinent that welfare measures of the state as a matter of policy and strong labor laws for the protection of the working class are in place. Any deviation from such a policy would place these sections in a state of vulnerability of exploitation at the hands of big business. State must meet the challenge of striking the fine balance between the economic interests of its people and forces of globalization.

Mixed fortunes of globalization:

            The globalization made the world a global village, narrowed down geographical distances and of barriers in thinking patterns between developed and developing countries. 

            Most people have strong opinion on globalization and all of them express an interest in the well-being of the world's poor.  The financial press and influential international officials confidently assert that global free markets expand the horizons for the poor. 

            Since IInd World War most of the developing countries insulated their economies from the rest of the world and most have opened their markets.  From 1980 to 2000; trade in goods and services employed from 19 to 30 percent in India.  Such changes have caused many hardships for the poor in developing countries but have also created opportunities that some nations utilize and others do not, largely depending on their domestic political and economic institutions.

            Free traders believe that the rising field of international specialization and investment lifts all boats.  Others point out that many poor people lack the capacity to adjust, retool and relocate with changing market conditions. Poor people everywhere are handicapped by their lack of access to capital and opportunities to learn new skills and workers in some developing countries are losing their jobs.  At the same time, foreign investment has also brought new jobs.  Anti globalizers central claim is that globalization is making the rich richer and poor poorer but proglobalisers assert that it actually helps the poor.

            Integration into the international economy brings not only opportunities but also problems.  Even when new jobs are better than the old ones, the transition can be wrenching.  The major constraints they usually face are domestic such as lack of access to credit, poor infrastructure, unaccountable regimes, lopsided wealth distribution, corrupt politicians often combine to block out the opportunities for the poor.  The result is deepened poverty.  Therefore antipoverty programmes initiated by government need not be blocked by the forces of globalization, infact social and economic goals can be mutually supportive.  Thus globalization is not the main cause of developing countries problems, contrary to the claim of critics of globalization. Similarly globalization is often not the main solution to these problems, contrary to the claim of overenthusiastic free traders.

            The markets, tools and rules of this global era have failed to alleviate poverty. Richer and educated have gained from globalization but the vast majority has so far been sidelined in the global system.  As a matter of fact, globalization tends to increase income inequity between different sectors and groups.  In addition, it is expected that unemployment will increase due to down sizing associated with the race to become more competitive.

Conclusion:

            The success of a countries globalization programme depends on how it takes suitable steps to improve the investment climate domestically while attracting foreign capital.  Globalization is no bed of roses and requires the countries economic statesmanship to pursue a comprehensive reforms programme and set up appropriate administrative machinery to execute a series of economic tasks. If globalization has to succeed, the country has necessity to build suitable financial architecture which involves banking and insurance sector reforms.  Although globalization is no magic word, its success has to be assessed in terms of its impact on the growth of GNP and alleviation of the deep seated problems of poverty and unemployment.  Thus globalization is neither plague not panacea.      

Da-Lite Floor Model C Projector Screen

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