TABLE OF CONTENTS

ACKNOWLEDGEMENT INTRODUCTION CHAPTER 1- GLOBALISATION IN ECONOMIC ASPECT CHAPTER 2- CONSEQUENCE OF GLOBALISATION CHAPTER3- LEGAL EDUCATION TO MEET CHALLENGE OF GLOBALISATION CONCLUSION BIBLIOGRAPHY

INTRODUCTION Globalization (or globalization) describes a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Globalization as a spatial integration in the sphere of social relations when he said Globalization can be defined as the intensification of worldwide social relations which link distant locations in such a way that local happenings are shaped by events occurring many miles away and vice versa. Globalization generally means integrating economy of our nation with the world economy. The economic changes initiated have had a dramatic effect on the overall growth of the economy. It also heralded the integr he global economy. The Indian economy was in major crisis in 1991 when foreign currency reserves went down to $1 billion. Globalization had its impact on various sectors including Agricultural, Industrial, Financial, Health sector and many others. It was only after the LPG policy i.e. Liberalization, Privatization and Globalization launched by the then Finance Minister Man Mohan Singh that India saw its development in various sectors. Advent of New Economic Policy

After suffering a huge financial and economic crisis Dr. Man Mohan Singh brought a new policy which is known as Liberalization, Privatization and Globalization Policy (LPG Policy) also known as New Economic Policy,1991 as it was a measure to come out of the crisis that was going on at that time. The following measures were taken to liberalize and globalize the economy:

1. Devaluation: To solve the balance of payment problem Indian currency were devaluated by 18 to 19%. 2. Disinvestment: To make the LPG model smooth many of the public sectors were sold to the private sector. 3. Allowing Foreign Direct Investment (FDI): FDI was allowed in a wide range of sectors such as Insurance (26%), defense industries (26%) etc. 4. NRI Scheme: The facilities which were available to foreign investors were also given to NRI's. The New Economic Policy (NEP-1991) introduced changes in the areas of trade policies, monetary & financial policies, fiscal & budgetary policies, and pricing & institutional reforms. The salient features of NEP-1991 are (i) liberalization (internal and external), (ii) extending privatization, (iii) redirecting scarce Public Sector Resources to Areas where the private sector is unlikely to enter, (iv) globalization of economy, and (v) market friendly state.

CHAPTER -1

GLOBALISATION IN ECONOMIC ASPECT

Economic globalization refers to increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, service, technology and capital.[59] Whereas the globalization of business is centered around the diminution of international trade regulations as well as tariffs, taxes, and other impediments that suppresses global trade, economic globalization is the process of increasingeconomic integration between countries, leading to the emergence of a global marketplace or a single world market.1] Depending on the paradigm, economic globalization can be viewed as either a positive or a negative phenomenon. Economic globalization comprises the globalization of production, markets, competition, technology, and corporations and industries.[59] Current globalization trends can be largely accounted for by developed economies integrating with less developed economies, by means of foreign direct investment, the reduction of trade barriers as well as other economic reforms and, in many cases, immigration. As an example, Chinese economic reform began to open China to the globalization in the 1980s. Scholars find that China has attained a degree of openness that is unprecedented among large and populous nations", with competition from foreign goods in almost every sector of the economy. Foreign investment helped to greatly increase quality, knowledge and standards, especially in heavy industry. China's experience supports the assertion that globalization greatly increases wealth for poor countries.[61] As of 20052007, the Port of Shanghai holds the title as the World's busiest port.2 Economic liberalization in India refers to ongoing economic reforms in India that started in 1991. As of 2009, about 300 million peopleequivalent to the entire population of the United Stateshave escaped extreme poverty.[65] In India, business process outsourcing has

Riley, T: "Year 12 Economics", page 9. Tim Riley Publications, 2005 "World Port Rankings 2005". American Association of Port Authorities. 2005. Retrieved 15 September 2009

been described as the "primary engine of the country's development over the next few decades, contributing broadly to GDP growth, employment growth, and poverty alleviation".

CHAPTER 2- CONSEQUENCES OF GLOBLISATION The implications of globalisation for a national economy are many. Globalisation has intensified interdependence and competition between economies in the world market. This is reflected in Interdependence in regard to trading in goods and services and in movement of capital. As a result domestic economic developments are not determined entirely by domestic policies and market conditions. Rather, they are influenced by both domestic and international policies and economic conditions. It is thus clear that a globalising economy, while formulating and evaluating its domestic policy cannot afford to ignore the possible actions and reactions of policies and developments in the rest of the world. This constrained the policy option available to the government which implies loss of policy autonomy to some extent, in decision-making at the national level. Now for Further analysis we take up Impact of Globalization on various sector of Indian Economy.

Impact of Globalization on Agricultural Sector: Agricultural Sector is the mainstay of the rural Indian economy around which socioeconomic privileges and deprivations revolve and any change in its structure is likely to have a corresponding impact on the existing pattern of Social equity. The liberalization of Indias economy was adopted by India in 1991. Facing a severe economic crisis, India approached the IMF for a loan, and the IMF granted what is called a structural adjustment loan, which is a loan with certain conditions attached which relate to a structural change in the economy. Essentially, the reforms sought to gradually phase out government control of the market (liberalization), privatize public sector organizations (privatization), and reduce export subsidies and import barriers to enable free trade (globalization). Globalization has helped in:

 Raising living standards, Alleviating poverty, Assuring food security, Generating buoyant market for expansion of industry and services, and Making substantial contribution to the national economic growth.

Impact of Globalization on Industrial Sector: Effects of Globalization on Indian Industry started when the government opened the country's markets to foreign investments in the early 1990s. Globalization of the Indian Industry took place in its various sectors such as steel, pharmaceutical, petroleum, chemical, textile, cement, retail, and BPO. Globalization means the dismantling of trade barriers between nations and the integration of the nations economies through financial flow, trade in goods and services, and corporate investments between nations. Globalization has increased across the world in recent years due to the fast progress that has been made in the field of technology especially in communications and transport. The government of India made changes in its economic policy in 1991 by which it allowed direct foreign investments in the country. The benefits of the effects of globalization in the Indian Industry are that many foreign companies set up industries in India, especially in the pharmaceutical, BPO, petroleum, manufacturing, and chemical sectors and this helped to provide employment to many people in the country. This helped reduce the level of unemployment and poverty in the country. Also the benefit of the Effects of Globalization on Indian Industry are that the foreign companies brought in highly advanced technology with them and this helped to make the Indian Industry more technologically advanced.

The negative Effects of Globalization on Indian Industry are that with the coming of technology the number of labor required decreased and this resulted in many people being removed from their jobs. This happened mainly in the pharmaceutical, chemical, manufacturing, and cement industries.

Impact on Financial Sector: Reforms of the financial sector constitute the most important component of Indias programme towards economic liberalization. The recent economic liberalization measures have opened the door to foreign competitors to enter into our domestic market. Innovation has become a must for survival. Financial intermediaries have come out of their traditional approach and they are ready to assume more credit risks. As a consequence, many innovations have taken place in the global financial sectors which have its own impact on the domestic sector also. The emergences of various financial institutions and regulatory bodies have transformed the financial services sector from being a conservative industry to a very dynamic one. In this process this sector is facing a number of challenges. In this changed context, the financial services industry in India has to play a very positive and dynamic role in the years to come by offering many innovative products to suit the varied requirements of the millions of prospective investors spread throughout the country. Reforms of the financial sector constitute the most important component of Indias programme towards economic liberalization.

Growth in financial services (comprising banking, insurance, real estate and business services), after dipping to 5.6% in 2003-04 bounced back to 8.7% in 2004-05 and 10.9% in 2005-06. The momentum has been maintained with a growth of 11.1% in 2006-07. Because of Globalization, the financial services industry is in a period of transition. Market shifts, competition, and technological developments are ushering in unprecedented changes in the global financial services industry. Impact on Export and Import: India's Export and Import in the year 2001-02 was to the extent of 32,572 and 38,362 million respectively. Many Indian companies have started becoming respectable players in the International scene. Agriculture exports account for about 13 to 18% of total annual of annual export of the country. In 2000-01 Agricultural products valued at more than US $ 6million were exported from the country 23% of which was contributed by the marine products alone. Marine products in recent years have emerged as the single largest contributor to the total agricultural export from the country accounting for over one fifth of the total agricultural exports. Cereals (mostly basmati rice and non-basmati rice), oil seeds, tea and coffee are the

other prominent products each of which accounts fro nearly 5 to 10% of the countries total agricultural exports. MERITS AND DEMERITS OF GLOBALISATION There is an International market for companies and for consumers there is a wider range of products to choose from. Increase in flow of investments from developed countries to developing countries, which can be used for economic reconstruction. Greater and faster flow of information between countries and greater cultural interaction has helped to overcome cultural barriers. Technological development has resulted in reverse brain drain in developing countries.

Demerits of Globalization (Challenges): The outsourcing of jobs to developing countries has resulted in loss of jobs in developed countries. There is a greater threat of spread of communicable diseases. There is an underlying threat of multinational corporations with immense power ruling the globe. For smaller developing nations at the receiving end, it could indirectly lead to a subtle form of colonization. The number of rural landless families increased from 35 %in 1987 to 45 % in 1999, further to 55% in 2005. The farmers are destined to die of starvation or suicide. COMPARISON WITH OTHER DEVELOPING COUNTRIES Consider global trade Indias share of world merchandise exports increased from .05% to .07% over the past 20 years. Over the same period Chinas share has tripled to almost 4%. Indias share of global trade is similar to that of the Philippines an economy 6 times smaller according to IMF estimates.

Over the past decade FDI flows into India have averaged around 0.5% of GDP against 5% for China and 5.5% for Brazil. FDI inflows to China now exceed US $ 50 billion annually. It only US $ 4billion in the case of India. LEGAL EDUCATION TO MEET CHALLENGES OF GLOBLISATION: In a democratic country like India, where rule of law is the driving force of the Government, legal education assumes great significance. In Keshvanand Bharati VS. State of Kerala , Honble Supreme court held that rule of law is the basic foundation of our democracy. Rule of law says that Be you ever so high, the law is above you. Education has wider implication. It stands for development. Education makes men perfect. In the words of Swami Vivekananda it is the manifestation of perfection already in man. Again, legal education makes men law- abiding and socially conscious. Legal education helps in bringing and establishing socio-economic justice. Change is the law of nature and law is the regulator of social change. It is sine qua non for the development of rule of law and a sustainable democratic order. In other words, legal education is the heart and the very soul of the society for administering rule of law in a democratic country like ours. Therfore, quality legal education is to be imparted to the people taking into consideration the changing needs of the society and in the changing era of globalization. In Manubhai Vashi Vs. State of Maharashtra Honble Supreme court held that ---the legal education should be able to meet the ever growing demands of the society and should be thoroughly equipped to cater to the complexities of different situations. As per C.Rajkumar , legal education and its importance to establish a rule of law society did not receive any serious priority or attention in the traditional Universities, although due to the sheer motivation of students themselves the departments were successful in producing many of the brightest lawyers and some of the best academics in the country. According to him, various law schools in India, however, successfully challenged this institutionalized mediocrity and succeeded in attracting serious students to the study of law. But the lack of researchers in law and absence of due emphasis on research and publications in the existing law schools have led to the absence of an intellectually vibrant environment. The reforms of the higher education system are central to developing a knowledge based society in India. Within the paradigm of such reforms, drastic steps need to be taken to address the numerous challenges facing legal education in India .Because, law and legal education has an important

role to play in protecting rule of law and the democracy as a whole. Lawyers are the backbones of the society and they are social engineers. WTO agreement and Globalization: The World Trade Organization had come into effect from 1st January, 1995 with support of 85 founding member countries including India. India signed the agreement as one of the founder members. The General Agreement on Trade in Services (GATS) of WTO agreement consists of six parts, xxix Articles and 8 Annexure . GATS impose number of general obligations on signatory countries. All signatory countries are bound to abide by the rules of the WTO. GATS require nations to accord most favoured nation status. As per this agreement a member country must provide both market access and national treatment to other member countries. As a consequence, we cannot prevent the entry of foreign lawyers into India. If we do so that will amount to an infringement of the provisions of GATS and WTO. Globalization has brought a tough competition in educational service sectors. We are facing tough competition not only from within but also from outside the country. Internationalization and Globalization of the legal profession and the probable entry of foreign lawyers into India in the near future, posses a serious threat to the legal professionals in India. We have to compete with the knowledge of foreign lawyers. Globalization of the legal profession is likely to introduce a sea- change in the entire fabric of law teaching and legal profession in India. The profession of law, today to a large extent, requires lawyers to represent clients not only within but also outside national frontiers. After the establishment of WTO and India gets actively involved in trade liberalization, including trade in legal services (under GATS), there is no escape from allowing equal treatment to law persons from other jurisdictions . As a result of the unprecedented changes induced by technology and globalization, all professions including legal profession are forced to re- think their method of management and delivery of services . Curriculum of Legal education and Globalization: The legal education in India is regulated by multiple agencies including University Grants Commission (UGC), Bar Council of India (BCI), The Government and the respective University authorities. For numerous reasons the quality of legal education in the 1970s was not satisfactory. Several attempts were made to reform curriculum and stricter controls were imposed by the Bar Councils Of India at various times but no substantial results were achieved in terms of quality, professionalism and competitiveness in legal education. To

come out the problem the Bar Council of India itself decided to establish a model law school in the private sector or joint sector to bring reform in the legal education. As a result, the National Law School of India University was established in Bangalore in 1986. However at present, the number of national law schools has increased. At various times, curriculum of legal education was changed by the Bar Council of India. But these were not sufficient to meet the new challenges of globalization in the 21st century. The National Knowledge Commission (NKC) was, however, established by the Prime Minister of India in 2005 to recommend and undertake reforms in order to make India knowledge based economy and society. The National Knowledge Commission, while deliberating on issues related to knowledge concepts recognizes legal education as an important constituent of professional education. The working Group on legal education, inter alias, identified the problems and challenges relating to curriculum and recommended changes and reforms relating to curriculum .The report recommends the development of contemporary curriculum, which is integrated with other disciplines and also ensures regular feedback from stakeholders .The curricula and syllabi must be based in a multi disciplinary body of social science and scientific knowledge .Curriculum development should include expanding the domain of optional courses, providing deeper understanding of professional ethics, modernizing clinic courses, mainstreaming legal aid programs and developing innovative pedagogic methods . With the advent of globalization, it has become increasingly important to include international and comparative law perspectives . According to C. Rajkumar , in the era of globalization, we should pay attention in four important factors to improve the standard of legal education. These are: Global curriculum, Global faculty, Global degrees and Global interactions. We have to think globally but act locally. Law is one of the most dynamic subjects of the world. Dynamism is the life blood of law .A law which is static cannot survive for long and will be rejected by people for whom the law will be implemented. So, to keep pace with the changing situation of the world we have also to change, by addition, subtraction, or cancellation, of the existing curriculum of the legal education in India. Otherwise, in future, it will loose its importance and will turn into a relic of the past.

CONCLUSION

India gained highly from the LPG model as its GDP increased to 9.7% in 2007-2008. In respect of market capitalization, India ranks fourth in the world. But even after globalization, condition of agriculture has not improved. The share of agriculture in the GDP is only 17%. The number of landless families has increased and farmers are still committing suicide. But seeing the positive effects of globalization, it can be said that very soon India will overcome these hurdles too and march strongly on its path of development. The legal education in 21st century should consider the globalization and its implications on legal field at national and international levels. The Bar Council of India, the State Bar Councils, the State Governments, the University Grants Commission and the Universities have a great role to play for improving the standard of legal education in the country. They should work in a comprehensive manner without any conflict. New avenues should be explored by the Bar Council of India and The University Grants Commission in the era of computer applications and information technology in the legal fields and potential uses of internet in the practice of law and legal education. They should find out the ways and means to meet the new challenges and provide better tools of research and methodology of learning for the generations to come. Bar Council of India, constituted under section 4 of the Advocates Act, 1961, is an apex body for the entire legal profession in India. The advocates Act, 1961, invests BCI with wide ranging powers to prescribe standards of legal education for the practice of law. In the opinion of Dr. N. R. Madhava Menon , legal education in India should be liberated from the dominant control of the Bar Councils and entrusted to legal academics with freedom to innovate, experiment and compete globally.

The recommendations of the National Knowledge Commission, in this regard, deserve attention of the Bar, the judiciary and the Government. The reforms initiated in few law schools all over India have made only a small dent. However, the vision of legal education is to provide justice- oriented education essential to the realization of values mentioned in the Indian Constitution. In keeping with this vision, legal education must aim at preparing legal professionals who will play decisive leadership roles maintaining the highest standards of professional ethics and a spirit of public service. Legal education should also prepare professionals equipped to meet the new challenges and dimensions of internationalization, where the nature and organization of law and legal practice are undergoing a paradigm shift . Existing curriculum should be immediately changed as per recommendation of National Knowledge Commission. Any further delay in this regard will be suicidal. According to Justice A.M.Ahmadi ----- We have waited long enough to repair the cracks in the legal education system of this country and it is high time that we rise from arm- chairs and start the repair work in right earnest. The lesson of recent experience is that a country must carefully choose a combination of policies that best enables it to take the opportunity - while avoiding the pitfalls. For over a century the United States has been the largest economy in the world but major developments have taken place in the world Economy since then, leading to the shift of focus from the US and the rich countries of Europe to the two Asian giants- India and China. Economics experts and various studies conducted across the globe envisage India and China to rule the world in the 21st century. India, which is now the fourth largest economy in terms of purchasing power parity, may overtake Japan and become third major economic power within 10 years. To conclude we can say that the modernization that we see around us in our daily life is a contribution of Globalization. Globalization has both positive and as well as negative impacts on various sectors of Indian Economy. So Globalization has taken us a long way from 1991 which has resultant in the advancement our country. Before I finish, I must opine that any overnight solution in this regard is not possible. But, at the same time, any dogmatic adherence to the old, traditional and existing system would be suicidal in the days ahead. So, a balance should be maintained in order to change the entire fabric of legal education system in India, keeping in mind the necessity of Globalization. Let us gird up the loins, to make necessary changes in the existing system, so that Indian legal education can face the Global challenges.

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Economic Geography Globalization and Health

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