|Demand of the question |
Introduction. Contextual Introduction.
Body. Reason for various countries’ action against globalisation. It’s impact on India.
Conclusion. Way forward.
Globalisation is the global circulation of not only goods, services, and capital, but also of information, ideas, and people. Its root lies in the concept of comparative advantage. The countries are able to gain more by being part of a globalised world. However we are witnessing signs of de-globalisation.
Reasons for turning away from globalisation by some countries:
- Rise of Asia: Developing nations like India, China and Japan have grown rapidly over the last few decades. The economic power has been shifting from the West to these Asian Nations. This has not only worried Western policy makers but also the general public.
- Developed nation’s worry: Although western nations have benefitted immensely from globalisation by expanding the reach of their MNC’s and by the acquisition of talented individuals, public support towards it has been waning fast. Developed nations now have more to lose than to gain. The people of these nations are are worried about consequences of globalisation.
- Security issues: One of perceived consequences of globalisation is rising security concerns. Increased exchange and mutual trade between nations have made it increasingly tough to maintain global security. Terrorist organisations like ISIS and Al-Qaeda that are anti-globalisation at their core, use tools of globalisation such as the internet to propagate their agenda. Each terrorist attack that takes place in these developed nations brings more people in support of de-globalisation.
- Refugee crisis and Self-Protectionism: Another factor that plays a role in support of de-globalisation is refugee crisis. The Syrian civil war and constant unrest in western Asian nations have caused a severe refugee crisis. The majority of the citizens from these nations have taken refuge, legally or illegally in European nations. This is a huge cause of concern for these debt-stricken economies. When these economies are unable to grow or create enough employment opportunities for their own people then the voice against globalisation grows stronger.
Impact on India:
- Economic impact: It will lead to reduction in the rate of economic growth of India.
- It will lead to protectionism with reduced cooperation among countries that will hurt Indian trade and exports.
- It will lead to reduction in competition and rise in general prices of the goods and services.
- It will destroy employment opportunities because as it will prevent outflow of skilled people due to protectionist measures like visa regulations. This will impact their employability and remittance to the nation.
- It may lead to increased import costs due to lesser choice and options and manufacturers and producers would have to pay more for equipment, commodities, and intermediate products from foreign markets.
- Social impact:
- It will lead to decrease in standards of living as it will impact exports and economic growth impacting welfare of poor and their standard of lives.
- It will lead to rise in conflicts economically and politically.
- Political impact: It would affect polity leading to instability in political framework of nations due to rise in prices and cost of living may lead to civil Uprisings.
- Impact on Environmental conversation: Due to non-cooperation among nations it will impact environment conservation efforts in India. It will reduce required funding and would jeopardise efforts to conserve environment and tackle environment change. It would lead to lack of coordination at international organisation like UN where countries may not come at a common point to various problems like environmental change. It destroys the international order. This would impact India’s interest which
- Impact on women empowerment: Deglobalisation would impact women empowerment efforts as it will impact women movements across the globe. Lack of coordination will reduce opportunities for women across the world.
- Impact on security: Due to lack of coordination among various nations, security around the world along with India would impact. It will not only increase economic risks, but would provide an opportunity for terrorists to carry out violence due to lack of coordination among various law enforcement agencies.
- Impact on farmers: A less coordinating world means impact in agricultural exports and Indian farmers. Indian farmers would face double whammy of environment change and deglobalisation.
Multiple factors are causing this shift from globalisation to de-globalisation. As economic power shifts from the Western to Asian nations, the U.S. and the U.K. have adopted self-protection policies. Rising security concerns and refuge crisis also play a role in creating support for de-globalisation. What is required is to develop self sufficiencies so as to prevent major impact of such tendencies.