GD-globalization vs Nationalization

[Shifa S]

Globalization vs Nationalization

The process of globalization not only includes opening up of world trade, development of advanced means of communication, internationalization of financial markets, growing importance of MNCs, population migrations and increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution. The term globalization refers to the integration of economies of the world through uninhibited trade and financial flows and through mutual exchange of technology and knowledge. Ideally, it also contains free inter-country movement of labour.

Besides bringing new opportunities, globalization brought new challenges to developing countries. Earlier, the process of globalization of the Indian economy was constrained but in 1990s, major policy changes were made. The new economic reform (Liberalization, Privatization and Globalization) aimed at making Indian economy globally competitive and more efficient. The period of economic transition had a great impact on the overall economic development of almost all major economic sectors and started the integration of Indian economy into global economy. 

merits

There is an increase in flow of investments, from developed to developing countries that can be used for economic construction.

For companies, there is an International market and for consumers, there is a wider range of products to choose from.

Lower inflation, productivity expansion and technological advancement are also the positive outcomes of globalization.

Faster and greater flow of information between countries and greater cultural interaction has helped to overcome cultural barriers.

demerits

The outsourcing of jobs from developed countries has resulted in loss of jobs in developed countries.

At the receiving end, it could indirectly lead to a subtle form of colonization for smaller developing countries. Larger countries can affect national market and labour force of the smaller countries.

There is an underlying threat of multinational corporations with immense power ruling the globe.

Nationalization

Nationalization refers to the process of taking assets or industry into the public ownership of a State or National Government. Besides private assets, it means assets owned by lower levels of Government like municipalities being transferred to the public sector to be owned or operated by the State.

Though Indians predicted to be a very prosperous nation in a few years, the reality may not be as rosy as it seems. The suicide of several farmers shows that GDP growth has been unable to achieve a welfare state.Indiais in dire need of a uniform cultural, social and economic growth. There is a scarcity of labor in villages as more people are migrating to cities, in search of livelihood. 

Though Globalization favored the growth of the service and manufacturing sectors immensely, it did not benefit the agriculture sector much, which plays an important role in the supply of raw material to industries and to export trade.

India's nationalism has been questioned many times in the recent years. The meteoric rise of non-secular political believes, division of states on the basis of regionalism and religious riots question our nationalist sentiments. Our cosmetic nationalism and our affinity to blindly follow the Western models in our economy have prevented us from reaping the benefits of Globalization. However, nationalism does not mean preventing global companies from participating in the Indian economy, instead we should develop our economy in a way to compete and grow without falling prey to global MNCs and giving them the opportunity to bully our National policies and structure our economy.

Justly as Mahatma Gandhi had said "it is impossible for one to be an internationalist without being a nationalist. It is not nationalism that is evil, it is the narrowness, selfishness, exclusiveness which is the bane of modern nations which is evil."

Globalization has brought unique opportunities for both the developed and developing countries, under the extraordinary growth of information technology. It has been used to promote economic growth in some groups within a country and in some countries.

--

shifa