Globalization – India's Response (GS 3,GS 2,UPSC IAS mains )

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What is the issue?
  • The increasing protectionism in the West is leaving way for arguments against the relevance of globalization at present.
  • It is essential that India evaluates its policies and approaches at this transitioning juncture.
What results has globalization created?
  • Flows from private sector in the form of FDI and FII have become more important than flows from World Bank Group and ADB.
  • Globalization has made the world more inclusive.
  • The big gainers have been Asian countries, led by China, but India is also in this group.
  • These countries have grown faster than the industrialized countries, and increased their share in global GDP.
  • Also, there is a huge reduction in global poverty and inter-country inequality, even if inequality within countries has increased.
What are the recent anti-globalisation signs?
  • Movement of people – The movement of people, an important aspect of globalization, is now increasingly being restricted.
  • The US administration is restricting H-1B visas, turning back Mexican migrants, and making work visas for foreign students more difficult.
  • There is opposition to non-European immigration in many European countries .
  • Brexit is an example of turning down a treaty in order to restrict European immigration.
  • Trade – This is an area most governed by treaty obligations, and there is clear evidence of regression in this.
  • Many countries introduced protectionist measures after the 2008 financial crisis.
  • The US, once the flagbearer of trade liberalization, is withdrawing from trade agreements agreed earlier.
  • This include the Trans-Pacific Partnership, North American Free Trade Agreement, and the free trade agreement with South Korea.
  • The withdrawal of such commitments are increasingly influencing other countries’ stance on multilateral agreements.
What lies before India?
  • Globalization is not outdated yet.
  • It only seems to need reformation and reset.
  • India should therefore push to build support for a new inclusive second phase of globalization.
  • It has to address the problems with the changing nature of globalization.
  • This includes problems such as land acquisition, forest clearances, environmental impact clearances, etc.
  • Working in these fronts is essential to attract the private capital market to finance infrastructure projects.
  • India needs to remain committed to maintaining an open trade policy and not be distracted by the increasing protectionism in the West.
  • Industrial policy should go beyond tariff reduction and focus on providing infrastructure and a supportive policy environment.


Source: xaam.in

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