Thursday, September 16, 2010

“Globalization” – Why is it a bad word in the West?

Once the Americans were propagating Globalization to whole of the world, all of a sudden after the recent slump in their economy and subsequent (Jobless) Recovery, it has become anti national which steals away high end American Jobs.

Globalization and Liberalization are not one and the same as many of us believe, these are two different phenomena which we mistook to be one and the same.. In 1991 when India was Bankrupt, what the country required was Liberalization i.e. the abolition of License Raj to encourage domestic entrepreneurs and industrialists, contrarily what the Narasimha Rao led Congress Govt introduced was pink Globalization which ultimately crushed many small and medium scale companies due to unfair competition by huge Multi Nationals which ultimately led to job losses across the country..!! We had to bear the human cost then in the early 90’s which was thrust on us.

The Americans advocated Globalization to India and other 3rd world countries in the 90’s so that they can expand the market reach for their products produced by American companies which were saturated otherwise. The same Americans resort to Protectionism by way of giving tax breaks to companies which doesn’t outsource, hike H1B fee to curtail Indian skilled professionals to work in the US, bans Govt projects being given to Indian companies.

So let us wake up and understand, the Americans imposed on us the so called growth engine LPG not to help us but to help themselves, to sell their products, to produce goods which they were tired and bored of producing so that they can happily consume. Since highly paid technology jobs are outsourced to India the same globalization has become a foul word for the Americans and they resort to protectionism..!! America is taking a different attitude. This is not a betrayal of an ideology. It is merely a re-definition of self-interest — and self-interest was always the name of the game anyway.

I might sound like a communist for my views but fortunately I am not :-), my point is that globalization is a great idea indeed, but all nations would do whatever furthers their own interests. Let us not get emotional and curse the Americans for their current policies or praise them as we did in the late 90’s for spearheading globalization, it’s better if we stick to our rationale and do what would best suite us.

Your views and comments are invited.

3 comments:

  1. I accept few of your views. But after globalization, India has become strong economically. There are many multinational companies which still give jobs for Indian graduates.

    I would say Globalization is the best idea ever. We were aware of many technologies which was developed across the countries. People get to know how it works, where it comes from and who are working on it. It not only gives money to the companies, but also knowledge to the society.

    I would recon Indian government should also lift the ban posed on Foreign retailers who are wishing to directly invest in India. If you take wal-mart, they operate as wholesale cash and carry business, parterning with Bharti Enterprises, in India. Our farmers are getting benefited by wal-mart since they are paying huge sum of money compared to other local retailers and thats what our farmers are interested too.

    We would tend to say globalization is bad since current situation is like that. But it is actually good. Just that it needs some more time to pick up.

    If we stick to our rationale, we may survive in short-term but not in longterm.

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  2. Quite thought provoking matter Bala.

    No doubt that "Globalization" is a great idea and primarily it has been initiated by countries like America etc. Definitely we should not get emotional for any reason at any point or action of theirs as with every action is attached their "own interest". Rather what I think is that once we learned the "concept" with its pros and cons, we should take it further to the whole world so that our businesses including the most basic one i.e. agriculture (which constitutes quite major share of our GDP)should get benefitted. If they can think of their interest and why can't we?

    With the help of correct policies by the Government, we can also become one of the fastest growing country in the world. As we have all the capabilities starting from resources till manpower which bases for any country to become World Power.

    But last but not the least, above all we require ONE STABLE GOVERNMENT capable of taking very apt decision for country's goodwill.

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  3. Dear Balaji,

    1.My observation is that 'you are right',but also 'Wrong'.
    2.It is true that USA wanted Globalisation for their own economic growth.You are right.
    Did they ask you to 'crush' your Kali soda for Pepsi/ Cococola? Our own Govt.(Central/ State) failed to protect/give necessary incentives to our small scale industries/enterprises; how can we blame USA for that?
    4.While we import oil/wheat/Sugar/pulses/Cola etc,( which are all consumable items ) we export Steel/manufactured textiles and ofcorse 'Indian Brains'. Whom are we to blame for this?
    5.Why can't we use our steel/ cement for infrastructure development? Why should we convert Agricultural lands into Special Economic Zones/ Industrial estates?
    6.When we were young, sugar/rice even clothing was rationed.Professional colleges were very few.Job oppurtunities were far less. Definitely we have improved in many areas.
    7.This is a country where everybody wants to be'backward'; Recent case is that of 'Jats'. A country where every other person wants to be backward may NOT march forward; thats why the brainy and those who get an ooppurtunity to move to greener pastures move out. Do you have any moral right to blame USA/ West for this?
    8.Again I observe that there is absolutely no corruption at all in USA; if your scheme is viable,you automatically get all licence/ permits; Not even a slight violation of the rules and regulations is tolerated.
    You know as much as I do regarding India.
    So without looking internally we are blamimng USA.Here you are 'wrong'.
    8.When British ruled us for 200 years , do you think they ruled to uplift Indians? East India Company came to India to do business and make money;when they got an oppurtunity to rule us they did that too.
    9.As Indians we have to admit that the best benefit of British Rule was " English". Even Japanese and Chinese have started learning English .
    10.A mother always cares more for her own children ,than for her neighbour's.Likewise all of us,including you and me,should do our best for our country.
    11.USA is a big country and Europe is fairly well united.You know very well our inter state disputes.
    12.I personally feel we have a long way to go;I am hopeful that a day would come when an Indian youth could become a Dr/Engineer/auntrepruner etc, as they wish.

    Keep posting; all the best.

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