Globalization- A Blessing or A Curse

The 6th ministerial meeting of WTO at Hong Kong, once again brought to the frontiers, the proglobalization and anti-globalization campaigners. The globalization, when on one hand implies that when one part of the world gets into trouble, it can appeal to the rest for help; on the other, it implies that trouble in one part can quickly be exported to the rest. Globalization, as a phenomenon has been existing since ages, as is evident in trade relations with Roman world in ancient period, presence of silk route etc. The debate that is ensuing between the two groups is of more recent origin, starting in 1990s when WTO was formed as an embodiment of globalization. What the two groups are arguing over is the framework which globalization is following after the formation of WTO. The pro-globalization campaigners argue that * Globalization is the soul of the laissez faire economy and the spirit of the principle of relative advantage of Adam Smith, according to which each country would produce that which was most profitable in terms of its resources and through free international trade, an optimum allocation of goods would result. * It will benefit both the producers and consumers of the developing country. Greater technologytransfer will increase the growth of manufacturing sector and the services in the third-world. As more jobs will be outsourced, it will certainly help in increasing the consumption power of the consumer. * Now, the consumers have greater choice in picking the goods, increasing competition makes it compulsive for the producers to add quality. * The era of monopolies is coming to a halt. Thus, the third-world countries like India, China, Brazil and many more have become the major competitors of the developed world. So are more countries likely to follow in the future. * The privatization of the industries has not only helped in curbing red-tapism, but it has also encouraged greater entrepreneurship and venture capitalism. * Large amount of remittance flows to the developing world help in bringing greater amount of foreign currency to the country. * Outsourcing of jobs has not only checked brain drain but has resulted in reverse brain drain whereby many specialists, business-executives and technical experts are visiting the respective countries. * Benefits not only accrue through trade, but globalization of health services, education, has opened the floodgates of opportunities for people to avail the best possible health-care and education. * This will help in raising the overall standard of living of the poor. * No longer there will be technological isolation and as globalization marches, the geographical boundaries between countries will cease to hold meaning, resulting in the formation of one community, i.e. global community. * It was matter of past that everything American was being emphasized. It is the result of globalization alone, that Indian foods have made their way in the international market. * Traditional arts and crafts are not far from reaping the benefits of globalization. There is a revival of this cultural heritage and the work of fashion designers, who with a little blending to suit the new tastes, have popularized the precious but dying age-old art and craft. * The developed world is equally to benefit as it helps in checking rampant immigration and the consequent problems. But the anti-globalization campaigners argue that in the garb of providing benefits, globalization has done more damage to the majority of the population. * Globalization is the product of the crisis of the developed world whereby its capitalists are looking for bigger markets to invest their profits. * Uruguay Round was a non-negotiated round as the talks were between US and European Union and the decision was imposed on the rest of the world. * Those who are reaping the benefits are the upper and middle classes, not the bottom strata. In fact

globalization has resulted in greater insecurity of livelihood for the poor. * The high rates of suicides among farmers are a blot for our civilized society and sovereign nation. * Globalization was aimed at reducing the cost of inputs. However, the cost of seeds and other agricultural inputs have risen. So it has burdened the already suffering farmers. * Developed countries give a lot of subsidies to their farmers, whereby; farmers from the developing countries cannot compete with them and end up in losses. * Unemployment rates have reached an all-time high. Government has ceased to be a major employer. Jobless growth in the last decade provides a substantive proof to this. * The so-called 'labor reforms' actually aim to deprive the worker of his job security, and the hire and fire policy puts him at the mercy of the employer. * Treaties that are being signed in the name of free trade are actually treaties for benefiting pharmaceutical giants, agro-business and the like, not the poor farmer. So it is resulting in monopolies and closure of markets not opening of markets. * Those who boast that globalization provides a level playing field to all the players forget that level playing field has relevance only if all the players are equally strong at the beginning. Poor country and rich country cannot compete fairly due to the relatively better off position of the latter. * Those who argue that globalization will provide bigger markets to the capitalists of the developing countries need to be reminded that if we raise the consumption power of the domestic consumers, there is enough potential to tap in the domestic market itself. * Inferior quality goods are being dumped into the domestic market resulting in the exploitation of the consumers. * There is nothing to boast of the growth of ITES as they are catering to only a small chunk of the population, while majority of the population remains untouched. * Poverty, illiteracy continue to be the stark reality and third-world is not in the state for allowing foreign players on its soil with rights at par with the domestic producers. * Globalization has further widened the gap between the rich and the poor with poor becoming poorer. * In the name of cultural exchange, what is being imported is pornography, vulgarity and a number of foreign channels that hit at the very roots of our cultural values. Finally, it can be said that globalization per se is not bad. But to make sure that the benefits percolate to the grass root level, words of Mahatma Gandhi are befitting here, who said that when in dilemma about the rightfulness of the decision, think of the poorest man you have ever met, and ponder over, what benefit will the decision have for him, you will never end up making a wrong decision.

So the aim should be fair trade and not free trade.