GLOBALIZATION, LIBERALIZATION, PRIVATIZATION
.JPG)
By: Ram Krishna Tiwari
After Independent in 1947 Indian government have main
problem to develop our economic. The Growth Economics conditions of India in
that time were not very good, because we did not have proper resources for the
development, not in terms of natural resources but in terms of financial and
industrial development. At that time India need the path of economics planning and
for that we adopt ‘Five Year Plan’ concept of which we take from Russia and
feel that it will provide as fast development like Russia, under the view of
the socialistic pattern society. And India had practiced a number of
restrictions ever since the introduction of the first industrial policy
resolution in 1948.
Liberalization:
As we know that those period were known as License Raj. As
a result of the restriction in the past, India’s performance in the global
market has been very dismal; we have never reached even the 1% in the global
market. We have vast natural resources with high efficiency labor, but after
all this we were still contributing with 0.53% till 1992. There were many
problems in liberalization, but before that the definition of liberalization:
It is defined as making economics free to enter in the market and establish
there venture in the country.
IMPACT BEFORE LIBERLISATION (1)
- The low annual
growth rate of the economy of India before 1980, which stagnated around
3.5% from 1950s to 1980s, while per capita income averaged 1.3%. At the
same time, Pakistan grew by 5%, Indonesia by 9%, Thailand by 9%, South
Korea by 10% and in Taiwan by 12%.
- Only four or
five licenses would be given for steel, power and communications. License
owners built up huge powerful empires
- A huge public
sector emerged. State-owned enterprises
made large losses.
- Infrastructure
investment was poor because of the public sector monopoly.
- License Raj
established the "irresponsible, self-perpetuating bureaucracy that
still exists throughout much of the country" and corruption
flourished under this system
After liberalization India is in second world of
development and become the 7 largest economies which contributed 1.3 trillion
in the world’s GDP. Dr. Manmohan Singh our former finance minister open the way
of free economy in our country which leads to the great development of our
country.
PRIVATIZATION
Privatization is defined as when the control of economic is
sifted from public to a private hand then the situation is known as
privatization. India is leading towards privatization from government raj. As a
result it leads in the development of country 500 faster than previous. Now
India is in the situation of world fastest developing economy and may be chance
that India will be at top till 2050.
GLOBALIZATION
Globalization
describes the 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. However, globalization is usually recognized as being
driven by a combination of economic, technological, sociocultural, political,
and biological factors.(2)
LPG
Model of Development.
(a) This has a very narrow focus since
it largely concentrates on the corporate sector which accounts for only 10
percent of GDP.
(b) The model bypasses agriculture and
agro based industries which are a major source of generation of employment for
the masses. It did not delineate a concrete policy to develop infrastructure. Financial
and technological support, particularly the infrastructural needs of
agro-exports.
(c) By permitting free entry of the
multinational corporations in the consumer goods sector, the model has hit the
interests of the small and medium sector engaged in the production of consumer goods.
There is danger of labor displacement in the small sector if unbridled entry of
MNCs is continued.
(d) By facilitating imports, the
Government has opened the import window too wide and consequently, the benefits
of rising exports are more than offset by much greater rise in imports leading
to a larger trade gap.
(e) Finally the model emphasizes a
capital intensive pattern of development and there are serious apprehensions
about its employment-potential. It is being made out that it may cause unemployment
in the short run but will take care
1) Book Dreaming with BRIC 2050 by “Goldman
sach”
2)
Bhagwati, Jagdish (2004). In Defense of
Globalization. Oxford, New York: Oxford University Press.
3) http://www.slideshare.net/AjeetPandey/lpgdoc
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