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The liberalisation of the economy was best manifest by the arrival of various brands of foreign goods and services. In fact, at times, it is difficult to distinguish between Manhattan and Mumbai or Delhi.
Economic discussions invariably talk of further hastening reforms,
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But globalisation today is nothing but disguised imperialism the imposition of the West’ over the rest of the world on a seemingly fair and just canvas. The players, however, are not equal; or rather some are more equal.
Historical dialectics spoke of imperialism being the ultimate result of unbridled capitalism, which sowed the seeds for socialism or communism. With glasnost and perestroika in the USSR and the fall of the Berlin wall. Communism all but came down. Capitalism has come to be accepted world wide,
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A look at how these forces operate. Everyone likes better living and easy flow of foreign goods at the right prices is more than welcome. So the OGL (open general licence) is expanding and our pockets bulging with Hersheys chocolates or Wrigley’s chewing gum.
The upper and middle classes benefit; Indian producers complain and the poor (a realistic level of 400 million people) are fed the hope that it would one day all trickle down to them too,
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Prof Joseph Stiglitz,
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The developed countries have hit the growth ceiling, which cannot go beyond 1 2 per cent per annum. Population growth is low, and the society saps domestic demand and dampens the economy.
Therefore,
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A look at the ideas that are either thrust by the globalisation process. Governments should not run deficits, and subsidies are a bane. Never mind that the US runs the highest deficit followed by Japan,
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The Euro zone and the US provide farm subsidies that are a hundred times as that provided by the developing countries,
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In fact, the WTO talks broke down in 2003 precisely on this issue. Customs duty rates have been reduced on grounds of efficiency and even the Indian average rate of 28 per cent is considered high relative to the single digit figures of other countries. Butthe level of growth and development should be the starting point for reduction in duties,
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Developing countries, including India, have been told to privatise and be more open to foreign investment. Hence,
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On the other hand, the US has made foreign (Indian) domination of BPO and ITES a major election issue. Movement of people across borders should logically also be a part of the globalisation process. But are the Western nations open to this idea? If goods and services are mobile across nations,
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In fact, the biggest success of globalisation has been the strong reaction of domestic monetary policies to the actions of the US fed chief,
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Policies such as capital account convertibility, flexible exchange rates and free trade have caused considerable turmoil in Mexico, Argentina,
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There is a feeling that the discontent with capitalism and globalisation would keep rising, albeit gradually,
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Even in India, there is the realisation that while economic reforms have delivered, a large section still remains left out,
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It would be interesting to conjecture whether or not the system would gravitate back to socialism , especially in the lesser developed countries, albeit in a more moderate form, as this euphemistic process of globalisation spreads. A possible continuation of the dialectic process?
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