Global Economy, Global Climatic Change, National Politics
Globalisation induces competition, not just in trade but also in innovation and technology. Now no country can remain calm if the other country discovered/invented a new technology.
Black Hole Image – a great example of Global Collaboration and Synergy.
Fodder Points —
World Wars and rise of US | shift from English Hegemony to American Hegemony
1991 reforms in India
Fall of USSR and consequently that of Communism.
Rise of China and its model of development
IT Boom | Social Media
Shift of leadership — to fill the vacuum left by the US — filled by China
Chinese Strings of Pearls and BRI — right timing
The real globalisation in the form of free trade was initiated in the 19th century after the industrial revolution by the repeal of the Corn Laws in England in 1840s and corn was allowed to be imported into Britain to overcome a shortage.
Over 2003-2013, the global median level of real income nearly doubled. This was essentially an Asian effect, the only region to experience sustained productivity growth and catch-up this century.
China is likely to overtake the United States soon as the world’s largest economy and the World Economic Forum predicts that India will become the world’s third-largest economy by 2030.
2000s — Period of Hyper-Globalisation and then 2008 GFC happened!
Asian Economies and the Reshaping of Global Finance?
Post-Crisis — globalisation took a plunge and all the major economies, except India, slowed down.
More fundamentally, developments since the GFC have challenged assumptions of ever-growing globalisation.
How Globalisation is helping keeping a check over the functioning of national governments —
The International Agencies, from time to time, publish reports over various issues — these reports can serve as a good benchmark to judge the working of the governments.
Recent example — Swiss Bank releasing the report revealing that the Indian money has increased by 50% — this has put the work done against black money by the government at the back-foot. This has again open up the debate over this issue.
WB and IMF reports over the performance and prospects of functioning of economy also serves as a good indicator and policy making instrument.
Pros —
Technological Exchange
Cheap Labourers and push to manufacturing
Exchange of ideas | People-to-people connection
Sense of competitiveness
Strengthen the global trade — benefits of hyper-globalisation boom reaped by all.
Better connectivity | Global Village
Global consensus on imp issues — terrorism and environment
Push to Urbanisation
Inflow of FDI, FPI, cheap capital etc — developmental works
Global Health issues | Human Rights
Rise of Asian Hegemony — Sino-Indian
Development of ASEAN
Technological boom!
Free Trade Agreements — NAFTA
New markets are to be explored — the untapped African Market
Problems —
Rising Inequalities | Stratified society | unequal distribution
Lower wages to labourers | Stagnancy
Illegal migration and refugee crisis — havoc in the US and EU — BREXIT
Financial Crisis and problems
Westernisation of the Eastern world
Rise of Consumerism
Trade wars — recently, as a response
Winners and losers — the great divide of haves and have-not
India is somehow blessed by its huge size and resources which means a big domestic market and a growing prosperous middle class.
Globalisation has increased growth no doubt and added variety to most Indians’ everyday life and consumption pattern, but there are many who have not been votaries of globalisation like the Bombay Club in the past.
But now most industrialists concede that globalisation has enhanced competitiveness and have led to the improvement in the quality of their products.
India is also undertaking foreign investments in other countries. Outgoing FDI is important for many Indian companies.
Rise of Remittence to India — largest in the world.
Rising Inequalities among the public
Need of private investment to fill up this inequality gap. Private investment more foreign and domestic capital — thus growth of globalisation.
Since attracting FDI seems to be a focal point, it can be targeted to industries that are labour intensive. This may lead to job creation for the unskilled.
India’s manufacturing sector is small (16 percent of the GDP) as compared to China — Push to development of manufacturing sector — more job creation and regional balance
India’s global trade — promotion to exports — India accounts for only two percent of the global trade. India can look towards Africa, South Asia and Latin America as export destinations because as long as the world remains full of poor people, there will always be demand for labour intensive cheap consumer goods, electronics, chemicals, machinery and pharmaceuticals– India can fill the gap which China is likely to vacate.
On the whole globalisation is likely to continue in a different and perhaps more beneficial form. China and India can play important roles even as US wishes to behave more protectionist and retreats behind tariffs and walls and move towards the Asian century.
