WELCOME

GLOBALIZATION
&
ITS RELEVANCE WITH

DEVELOPMENT
POLICIES
SHARMU RAJAN
M.Sc(Ag).,
Discussion on..
1. Globalization

2. Its impact on India

3. Policy framework
Globalization

Means the free movement of capital,

goods, technology, ideas and people.

Any globalization that omits the last one

is partial and not sustainable.

- Branko Milanovic
Economist
PARAMETERS
1.REDUCTION OF TRADE BARRIERS

2.CREATION OF ENVIRONMENT:FREE
FLOW OF GOODS & SERVICES

3.FOR FREE FLOW OF TECHNOLOGY

4.FREE MOVEMENT OF LABOUR IN

DIFFERENT COUNTRIES
ADVOCATES OF
GLOBALISATION

ONLY FREE FLOW

DEVELOPED OF
COUNTRIES TRADE,
CAPITAL,
TECHNOLOGY!!

INCOMPLETE
WITHOUT DEVELOPING
COUNTRIES
“LABOUR FLOWS”
 ULTIMATE
AIM B A
GLO
L AG
GLOBALISATION L
VIL
signifies
E
INTERNATIONALISA
TION PLUS
LIBERALISATION
 PROMOTE
FOREIGN DIRECT INVESTMENTS

FASTER DIFFUSION OF
KNOWLEDGE
TO RAISE PRODUCTION &
PRODUCTIVITY
ARGUMENTS WIDENS
MAKING
IN SUPPORT THE
USE OF
OF ACCESS TO
TECHNOLO
TO REACH
GLOBALISATI EXPORT
GIES
ON STANDARDS OF
INTERNATIONAL
PRODUCTIVITY

REDUCES COST OF TRANSPORT &

COMMUNICATION
RAISING PRODUCTIVITY

TECHNICAL
ENLARGING EMPLOYMENT
GROWTH
ADVANCEMENT
POVERTY REDUCTION
+
MODERNISATION
ITS IMPACT ON

INDIA
World commission states

“the current path of globalization must change.

Too few share in its benefits. Too many have
no voice in its design and no influence on its
course”
INTERNATIONAL LABOUR ORGANISATION

We wish to make GLOBALISATION a

means to expand human well-being and
freedom, and to bring democracy and
development to local communities where
people live.
 DURING THE 15 YEAR PERIOD(1990-2005)

MERCHANDISE SERVICE SECTOR

EXPORTS EXPORTS

18.1%pa 18.6%pa
11.7% pa 18.2%pa

INDIA CHINA
INDIA CHINA
• No doubt,
INDIA
GAINED!

SOUTH
KOREA

MEXIC
O CHINA
• Increase of Imports far greater than increase of
Exports
• Foreign investment flows
Employment,
Flexibilisation &
impact on
LABOUR
INCREASE PROXY
IN INCREASE IN INDICATOR OF
UN SELF-EMPLOYED INCREASE IN
EMPLOYMENT INFORMAL
ECONOMY
In INDIA..

Worse employment situation during globalization

Negative
Negative growth
growth rate
rate ofof employment
employment in in
agriculture
agriculture
Shedding the excess employment in the public
Shedding the excess employment in the
sector
public sector
Organised sector “engine of growth”- failed to
generate enough employment
LABOURS
ORGANISED UNORGANISED
SECTOR SECTOR
GLOBALISATION

INFORMALISAT
ION
OF THE ECON
OMY
Objectives achieved by the
employers….
using the instrument
“LOCK OUT”
• Downsizing
• Increase workload per worker
• Greater casualisation of work force
• “no work,no pay”
• Force stringent norms of work
• Weaken trade unions
INEQUALITY
&
POVERTY
• The widening inequality has been the result of the
very high compensation paid by the MNCs, the
development of new business with a global reach
and global ‘superstardoms’

• PUBLIC PERCEPTION
Globalization has resulted in high degree of
concentration of wealth..
WINNERS…
Globalization LOSERS…
GROWING INEQUALITIES
IN INDIA…
Slowing down the process
of
POVERTY REDUCTION
KEY DETERMINANTS
> Agricultural yields
> Growth of non-farm sector
Double standardsidof es Developed
u ic
countries ber of s
u m h e u b le
e n b y t S d o
• Demand
a r g concession
e d E R and t h e
reduction of tariffs from
L m it t R M l t o f
c o m
developing F A
countries r e s u t h e
IA N e c t b y
IND he dfree
• Encouraging ir flow p te d of goods s & services??
t d o n t r ie
a r e d s a o u
d a r D c
t a n P E !!
s E L O C T S
D E V I R D U
H E P R O
Pushed the developing L L T L
countries
A to eliminate trade
S E T U R
barriers….but T O kept
U L up their own barriers!!
R IC
AG
FEMINISATION OF LABOUR
IN LOW WAGE JOBS
 Reducing labour costs
 Extending working hours
 Decreasing the number of formal
production workers

 Export oriented,low technology,high labour

based industries like garments,shoes,etc

 Home-based labourunfair treatment of

women labour(another category of degraded
labour)
GOAL OF FULL EMPLOYMENT
AND DECENT WORK

ILO pleads for…

“The promotion of opportunities for men and
women to obtain decent and productive
work, in conditions of freedom,
equality,security and human dignity”

World commission states..,

“There is no point to a globalization that
reduces the price of a child’s shoes but costs
the father his job”
Globalization results in

• Widening inequalities b/w forward and

backward states in India
• Declining earnings of unskilled labour
• Deprivation of human labour including the
right to work and rights at work place
• Failed to provide infrastructure
development in rural areas
• Triggered the process of privatization
• Lacks social responsibility
FAIR GLOBALIZATION

AND

POLICY FRAME WORK

PRIMARY CONCERN:
Globalization should benefit all countries and should raise
the welfare of the people throughout the world.
But Globalization has not worked for the interests of
the poor….led to inequalities across and within
countries!

The fault does not lie with globalization,but the way it has
been managed.

Economy  GLOBAL
Social & political institutions  remain largely LOCAL
or regional
 AGENDA FOR FAIR &
INCLUSIVE GROWTH
• Economic reforms
• New Industrial policy
• National Renewal Fund(1992-93)
• OBJ: retraining and deployment of workers
• PDS
• 93%NRF  Globalization
• Winners & losers
MACRO ECONOMIC &
EMPLOYMENT GENERATION
POLICY
• Macro-economic policy Emplyment growth
• VRS,Downsizing No public sector expansion
• Private sector investments
• Major source of employment

strengthen marketing,infrastructure for irrigation & water

management DRY!!!
Agriculture
MNCs reduce the scope for enlarging employment
IMPROVING THE
PRODUCTIVITY OF
EMPLOYMENT
• TOTAL UNEMPLOYMENT = 7.32%
• UNDER EMPLOYMENT = 4.41%
• Jawahar Rozgar Yojana, Prime
minister’s Gram Rozgar Yojana
• Integrate objectives of growth &
employment
• Judicial mix of sectors should be promoted
• Not to end up with “JOBLESS GROWTH”
BALANCED REGIONAL
DEVELOPMENT

• Widened regional disparities

• No foreign direct investments, bank credits
• Efforts to bring about  agricultural modernisation, rural
industrialisation & rapid human development
• Provision of basic infrastructure facilities
• Promotion of public and private sector investment
 BETTER
EXTENSION SERVICES

MINOR
WATERSHED
IRRIGATION
MANAGEMENT IN
WORKS IN
CENTRAL INDIA
EASTERN INDIA

IMPROVES PRODUCTIVE
CAPACITY IN
AGRICULTURE
PROGRAMMES ON
RURAL
INDUSTRIALISATION
SOCIAL SECTOR

• HUMAN CAPITAL FORMATION

• Education,Health & Poverty alleviation programmes
• Globalization  need for acquiring new skills
• Increase public investment in social sector
• Monetary & non-monetary resources

to promote employment growth,social

security,health and an effective poverty reduction
programme
EMPLOYMENT GUARANTEE
PROGRAMME

A MAJOR STEP
UNEMPLOYMENT
POVERTY
NREGA,2004
OR UNDER EMPLOYMENT

SCHEMES..!!
“RIGHT TO
WORK”
GUARANTEE?
CRITICISMS
• Could be for both rural and urban
• Only for casual labours….
HOW ABOUT

EDUCATED SKILLED

LABOURS

• Not only for lean season

• Agriculture growth and overall growth as well!
RAISING THE
PRODUCTIVITY IN
INFORMAL SECTOR
• INFORMAL SECTOR-major source of employment in developing
countries.
• Small manufacturing enterprises, services
• vending in urban areas,
• Domestic work, agricultural work in small plot of land
• Excluded from the opportunities of GLOBALIZATION
• Raise productivity of informal sector
• Shift informal activities to formal sector
PROMOTION OF SKILL
DEVELOPMENT RETRAINING OF
EXISTING EMPLOYEES
NEW
TECHNOLOGIES +
SKILL DEVELOPMENT
OF THE NEW
ENTRANTS

NEW REDESIGNING THE

INSTITUTIONS TRAINING PROGRAMS

+
RE-ORIENT THEIR
COURSES
STEPS for skill development..

• UNIVERSITY-INDUSTRY PARTNERSHIP
• TRAINING IN COMPUTER COUSES
• FEE CHARGED:HIGH-lower and middle class
• NGOs ROLE
ORGANISATIONS OF THE
WORKING POOR!
• Exploitation by Indian capitalists and MNCs

Government
&
Employers

Weakening of trade unions

Harmonious structure
• Integrate the objectives of growth,employment and
equity.
• Regional disparity-building social & economic
infrastructure in backward regions
• So far negelcted AGRICULTURE has to improve
and grow
POLICY FRAMEWORK FOR FAIR
GLOBALIZATION

DEVELOPING
COUNTRIES
DEVELOPED
&
GLOBALIZATION COUNTRIES,
LESS
RICH
DEVELOPED
&
COUNTRIES
POWERFUL

REAL
WIDEN EFFECTS INSTRUMENT
OF OF POVERTY
GLOBALIZATION REDUCTION
INDIA has such a
“

domestic huge
domestic market
that it need not rely
on the overseas
market for growth,
but to realize that
potential, people
need to have
incomes”
-BUSINESS LINE,15 February 2005
 THANK YOU
FOR YOUR
KIND ATTENTION!