Today’s economic trend can be summed up in only three words – privatization, liberalization, and globalization. Will this trend harm the national interest of the poorer nations? In the changed economic scenario where the GATT is a moot question. Treaty was signed and accepted by most of the nations, the questions of globalization cannot be ignored. The proponents of the idea claim that globalization quickens development which will automatically lead to economic prosperity.
No doubt, boldness will be required while coping with a new challenge of geopolitical implications on a universal scale. The third industrial revolution has triggered off the era of globalization. The technological breakthrough in data transfers and telecommunication has virtually turned our planet into a global village. Companies are able to extend and control their production all over the world. Distances and gaps of information have shrunk to zero. The single global market becomes a reality.
No great power of imagination is needed to understand that only those who put in the best of human resources and develop the most ingenious set of command structures and logistics, and who are, above all, guided by the principle of producing goods and services of the highest quality at the most competitive price will succeed.
Some economists have predicted an era of merciless, Darwinistic competition. In the same spirit, others have detected in globalization an instrument of exploitation, hitting the poor nations of this world and making the rich become even richer. Even in industrialized nations globalization spreads fear and revives old anti-capitalist prejudices. Whenever a company is cutting down jobs as a result of outsourcing production to other parts of the world globalization gets blamed for it.
However, the wheels of history cannot be tuned beak. Whining or escaping realities will not help anyone anywhere in the world. The technical revolution, micro-chips, data highways online services, satellite communications, developments in air transport that have led to the era of globalization cannot and will not be disinvested. It has become essential to perceive the third industrial revolution not as a destiny, but rather as a challenge that harbors chances.
If all of us undertake to pool our resources, in particular, to mobilize creativity in order to create exponential improvements if we engage in global alliances producing the utmost of if we accept to contribute to a meaningful international division of labor to the best of our abilities we shall succeed in bringing about development, economic prosperity and political and social stability for all nations willing to stand up to the challenge.
What does it require to achieve these goods? First and above all it requires strict adherence to the principles of a free trade order. Here trade, of course, means a system that benefits everyone on the basis of a fair partnership. No one should be allowed to take advantage of the other. It simply will not work to get alarmed at protectionism in other parts of the world, while protectionism in one’s own environment seems to be perfectly desirable.
As far as India is concerned, it may be argued that she has tremendous chances at the threshold of the new era of globalization: an abundance of natural and human resources; fine entrepreneurial skills, and a stable political environment. What more does it take to become a global player? So, it is rightly predicted that India will emerge as a global economic power in the near future. The new economic policy with its effective reforms have come into force and have paved the way for Luards market economy, the ultimate goal of on may not be a curse if economic transactions are put into right action which may shower blessings on the nations.
IS TRADITION AN ENEMY OF PROGRESS? TRADITION can be defined as a practice, followed in the past, dating back to hundreds or thousands of years. Almost all the traditions are meaningless. Perhaps India is the only country that glorifies and practices traditions, whether good or bad, most of them bad to some extent. Examples are …