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Challenges of Liberalization, Privatization, Globalization Introduction There is a famous quote by Aristotle, Man is by nature a social animal.

Interactions among people are prerequisite for a society. Phenomenon when these interactions are liberated from the dictates of state and spread across the boundaries all o er the world is also !nown as "iberali#ation, Pri ati#ation and $lobali#ation. Although these terns were initially associated with economy, they ha e impact in other areas as well. "iberali#ation is to ma!e the liberal policies and rules to allow mar!et forces to pre ail. Pri ati#ation is to open different mar!et segments which were initially restricted for only public sector only to pri ate sectors also. $lobali#ation is to allow flow of goods and ser ices between two nations with minimal restraint. $enesis of "iberali#ation, Pri ati#ation and $lobali#ation %. &orld 'an! Aid (onditionality In the last decades of twentieth century most of the African and Asian colonies were freed. )or achie ing the fast socio*economic de elopment these countries approached &orld 'an! to get the aid for their de elopment. (ondition of opening the mar!et to pri ate companies and other nations was attached to the aid pro ided by &orld 'an!. Although after +,-s, &orld 'an! ha e done some modifications in their policies and conditions to pro ide the financial aid. 'ut still there is tacit conditionality associated with the aid gi en. .ence aid conditionality is considered one of the reason for pre alence of "iberali#ation, Pri ati#ation and globali#ation. In India after the economic reforms of %++%, these changes are introduced and they are termed as "P$. /. 0mergence of &elfare 1tate &ith the emergence of welfare state concepts li!e transparency, accountability, equity and efficiency started to embolden. Traditional $o ernments were inefficient, incompetent and unable to deli er to the demand of peoples. 2ed*tape, nepotism, corruption, fa oritism and other irregularities crept in the public sector and financial crisis looms in many countries. 1o countries are compelled to open the mar!et for different players and lose their monopolies in some areas. This is one of the reasons that countries li!e 2ussia and others ha e to follow the liberali#ation, Pri ati#ation and $lobali#ation 3"P$4. Impact of "P$ on 0conomy 0conomy is related to the production and distribution of goods and ser ices among different indi iduals, groups, organi#ation or nations. 0conomic acti ities are as old as the human e5istence in the earth is. It wor!s on the ideology of mutual e5change with consent. As the ci ili#ation ad anced people created their !ingdoms and controlled arious economic

acti ities in their territory. These !ingdoms were the predecessor of current states and nations. Positi e impacts of "P$ on the economy of current states are as follows6 %. .igher $rowth in )inancial Terms6 &ith more pri ate firms and flow of capital from de eloped countries to de eloping countries, higher growth in terms of $ross 7omestic Product and Per (apita Income is obser ed in most of the countries. /. More employment opportunities6 More people were employed in arious multinational firms and pri ate companies. &ith a ailability of cheap labor arious firms from de eloped countries shifted their wor!ing location to de eloping countries. This created more opportunities of employment. 8. 'etter Infrastructure Pri ate sector also started funding the infrastructure pro9ects. :ational highways, Airports and other such pro9ects are contracted out to pri ate firms. 'etter infrastructure also in ited more in estment from other countries. ;. More welfare 1chemes6 &ith higher growth rate, states get more opportunity to in est in welfare schemes for betterment of poor and ignored section of the society and wor! for alle iation of po erty and inequality in the society. :egati e impact of "P$ on economy6 %. .egemony of de eloped nations o er de eloping nations6 7e eloped nations ha e been critici#ed for being enforcing policies on de eloping nations. Ideologies of de eloped nations are imposed on de eloping countries without gi ing consideration of the e5isting conditions of de eloping countries. /. 05ploitation of :atural 2esources6 Pri ate companies wor! with the moti e of profit earning. In the absence of any proper policies, pri ate companies e5ploited the natural resources ery badly. This has done some of the irreparable damages to the de eloping countries and their ecology. 8. Increased Inequality6 &ith concentration of wealth in few pri ate hands who ha e the moti e of more profit earning rather than society welfare, inequality has increased many folds in both de eloping as well as de eloped nations. Pri ate firms are also alleged of influencing politicians for ma!ing fa orable policies for them. ;. 7estructi e (ompetition6 (ompetition is considered good and constructi e for any economy till it increases the efficiency in a controlled circumstance. 'ut when it goes beyond certain limit, it has many unintentional side effects. 05amples of destructi e competition include cutting cost by polluting the en ironment, competing by reducing the wor!ers safety and

protection measures and competing at socially irresponsible, damaging financial speculation.

Impact of "P$ on culture According to Anthropologist 0dward '. Taylor, (ulture is that comple5 whole which includes !nowledge, belief, art, law, morals, custom, and any other capabilities and habits acquired by man as a member of society. &ith economic e5change, e5change of culture also ta!es place, !nowingly or un!nowingly. This has ta!en place in earlier times also as claimed by many historians. Positi e impacts of "P$ on (ulture %. 05change of ideas $lobali#ation cause cultures to cross the boundaries. $ood practices are accepted from the cultures of other countries. <ne such e5ample is the women empowerment in different countries after being influenced from western countries. 1imilarly message of 1hrimad 'hagwad $eeta is being spread from India to different countries including western countries. /. 05change of good practices $ood practices are accepted by one nation from culture of other nations. <ne of such e5ample is the practice of =oga being spread in de eloping countries by =og $uru 'aba 2amde . 8. More a ailability of <pportunities &ith liberali#ation, pri ati#ation and globali#ation, more entertainment companies come up in the society to bring out the talent from different ends of the country. This gi es the opportunity and platform to the artists to showcase their talents. Increased numbers of reality shows are an e5ample of this.

:egati e Impacts of "P$ on (ulture %. 05change of 'ad practices6 Along with good practices, bad practices are also assimilated by people. Alcoholism, drug addiction and smo!ing among other things are some of the e5amples of bad practices accepted. 1imilarly pre alence of 9un! food in India can also be contributed towards "P$. /. 7issolution of (ulture &ith the acceptance of other culture people often forget their own culture. This is true mostly in case of de eloping countries where young generation doesn-t found any merit in accepting their age old culture and get attracted towards the culture of de eloping countries.

Impact of "P$ in 0ducation and Technology6 0ducation is a continuous process. It does not end with graduation day. 1imilarly the education system also !eeps on changing as the nation grows reducing redundant things and adding recent ad ancement. Technology has become one of the important parts of education in recent times. Positi e Impacts of "P$ on 0ducation and Technology6 %. Ad anced technology to de eloping countries 6 7e eloped countries ha e a ailability of ad anced technology as they spend good amount of money in 2esearch and 7e elopment acti ities. :ew technologies are necessity for fast de elopment because old technologies become redundant and inefficient with the rising population and decreasing resources. /. 'etter 0ducation 1ystem 6 &ith more number of 1chools and (olleges in the country le el of education also impro es. (onstructi e competition and inno ati e ideas brings in better methods to impart good education. A ailability of arious online portals and education ideos e5plaining arious concepts of different sub9ects succinctly is one such e5ample of impro ement in education. 8. >nowledge sharing across the borders 6 <ne nation may ha e e5pertise in some sub9ect and other nation may ha e in some other sub9ect. 05change of !nowledge between two nations may benefit both the countries. :egati e Impacts of "P$ on 0ducation and Technology6 %. 7e eloped countries imposing new technologies 6 7e eloped countries impose new technologies on de eloping countries through arious international organi#ations. )or eg. (hloro )luoro (arbons were used earlier as refrigerant which produce high amount of <#one depleting gases. .ydro (hloro )luoro (arbon 3.()(*//4 using refrigerants are introduced and de eloping countries are forced to switch to cleaner refrigerant. :ow America is pushing India for cleaner refrigerants, made of .ydro )luro (arbon 3.)(4. 1uch type of beha ior benefits the corporates of de eloped countries affecting the poor persons of de eloping countries. /. (on ersion of 0ducation into 'usiness Pri ate firms start using the opportunity of high number of young people and con ert education into a business. .efty amount of fees is collected by them and low quality of education is imparted. Presence of high number of 0ngineering colleeges in India without good teachers and any future perspecti e for students is one such e5ample.

Impact of "P$ on Public Administration6 Public administration is the go ernment in e5ecution. Traditionally public administration has been transformed into a blac! bo5 wor!ing in a secret manner with least priority to public welfare and social impro ement. 1uch beha iour has made public administration passi e and inefficient. 2ecently due to pressure from media, ci il society and international financing bodies, public administration is changing itself. &ith the beginning of paradigm of :ew Public Management in public administration more stress is now gi en on the management side of administration which includes efficiency, effecti eness, transparency and output. (oncept of less go ernment and more go ernance is more pre alent all across the globe. "P$ can be credited as one of the reasons of genesis of :ew Public Management.

Positi e impacts of "P$ on Public Administration6 %. (hanging role of Administration 2ole of Administration has been changed from pro ider of ser ices to the one regulating ser ices and empowering (iti#ens. It has also become (ustomer oriented and result oriented branch of state from pre ious traditional, rigid and comple5 bureaucracy. /. Trend of contracting out6 Administrations across the world ha e started contracting out as much &or! to pri ate or public agencies as possible. <ne of the reasons of contracting out is that authority and accountability are easy to delegate and monitor. In India responsibility of PA: card printing is gi en to ?TI and :17". 8. "earning good practices from pri ate entities Public administration has learned to use better methods of pri ate companies. 1trict rules, management by ob9ecti e and use of detailed pro9ect reports are some such techniques now used in public administration as well. 1cientific and statistical methods are used with recent technologies to increase the efficiency and effecti eness. 2emuneration has also increased for public administration personnel. :egati e impacts of "P$ on Public Administration6 %. Increasing comple5ities "P$ has caused ad ancement in technology and increase in awareness of citi#ens. This has resulted in more scrutiny of Administrati e wor!. These impro ements ha e brought transparency and accountability in the administrati e wor!. 'ut they ha e also increased the comple5ity of wor! and put lot of restrictions on daily wor!ing of administrators. Public opinion is always desired as a feedbac! in Administration. 'ut it should not hinder the administrators in ta!ing any decision. Also as more players are coming out in the mar!et tas! of regulating and maintaining equal playing field for e eryone becomes more difficult.

/. 0mergence of international and regional multinational platforms Many groups and organi#ations ha e emerged with the "P$. As a result of this, decisions are now ta!en considering arious circumstances globally instead of 9ust local problems. India@s decision to implement food security bill recently is ob9ected by de eloped countries at &T< meet in 'ali and India has to con ince all the nations to reach an intermediate 1olution. 1imilarly groups at the regional le els are also emerging which effect the decision by Administration. (onclusion6 "iberalisation, $lobalisation and Pri atisation ha e affected all the countries economically, politically, culturally, and in all other aspects. They ha e brought many impro ements and changes in the 1ociety and citi#ens across the globe. .owe er it is ery important to loo! down into the ad ancement of "P$ both from positi e point as well as negati e point. &e need to critically scrutini#e any shortcoming in the approach of "P$, so that we can correct it in future. Problems li!e rise of inequality, en ironment degradation, and hegemony of de eloped countries o er de eloped countries ha e to be considered and sol ed with commitment from all the countries and sections of 1ociety. by Rajesh Garkoti 2eferences6

2. The (ompetition Paradigm6 America@s 2omance with (onflict, (ontest, and (ommerce * y !aul"ne #a"llan$ourt %osenau
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