This is the term that we would all have heard in the early 90’s when our then Finance Minister Mr. Manmohan Singh had prepared us for this new turn in Indian history. Look at India, now, look at the consumerism that has resulted from Globalisation, and look at the improvement in products and the range of products. This has been one of the end results of the open economy and globalisation. Let us understand what is Globalisation and the results of the same.
Globalisation has no doubt bought about a huge transition and development to the developing economy, has increased the per capita income, purchasing power parity and overall standard of living, choice to the consumers, increased productivity and production. What is the other side of Globalisation? One is increased transition has bought about insecurity among the workers, because of new technology and new techniques in production, which is changing time and again. This has resulted in the erosion of non-skilled labour and other industries, which are not part of the boom (for instance IT). There is dearth of indigenous products, as other global products are available, in turn such industries and labourers are affected. There is less or no concept of unions at all, which again has resulted in lower wages and salary for the down trodden. What can be done to avoid such a situation? The answer is quite simple; the government must intervene and follow policy, which safeguards the interests of the labourers, as well as protect indigenous industry, for example the higher TRIMS security followed by India.We need to analyse the other aspects of Globalisation,later in my web log. Keep watching for those.