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The difference between internationalization and globalization is that the former does not exhibit the interconnected flows that affects different parts of the world one can observe in a globalized section of the world. is very often used to refer to economic globalization. however such usage is typically incorrect as 'global' implies 'one world' as a single unit. as a term. Globalization. languages. c c . Globalization can also be defined as internationalism. nations.  is the abstract phenomenon of various processes that has resulted in more interconnections of political. The market structure that is typically associated with the process of globalization is market liberalization while recent World Bank policies seemed to suggest that it is moving towards neo-liberalism. economies. borders. The implications of the different effects of globalization on different countries show the multi - faceted effects of the similar processes operating in the different countries that ar e related through globalization. foreign direct investment. while 'international' (between nations) recognizes that different peoples. socio -cultural and eas an uneven process that strengthens the dependency of major economies on each other while at the same time increasing the distance between economies that depart from the major economies of the world. migration. capital flows. that is integration of national economies into the international economy through trade. and ecosystems exist. cultures. and spread of technology.

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In a broader sense. privatization refers to transfer of any government function to the private sector including governm ental functions like revenue collection and law enforcement. privatizing a publicly traded stock. The term 'Privatization' also has been used to describe an unrelated.  is the incidence or process of transferring ownership of business from the public sector (government) to the private sector (business). of all shares of a public corporation or holding company's stock. nongovernmental interaction involving the buyout. In general. by the majority owner. .

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as in the case of the Prague Spring). abortion. In the arena of social policy it may refer to a relaxation of laws restricting for example divorce. usually in areas of social or economic policy. Liberalization of autocratic regimes may precede democratization (or not. homosexuality or drugs. especially trade liberalization or capitalmarket liberalization .  (or liberalisation) refers to a relaxation of previous government restrictions. Most often. the term is used to refer to economic libera lization. c .

c . but globalization's impacts are often best understood at the local level. its concepts did not permeate popular consciousness until the later half of the 1990 The term globalization encompasses a range of social. and how it affects global institutions like the UN. what drives the process. political. It is common to discuss the phenomenon in highly generaliz ed terms.cc ëë c c The word "globalization" can be traced back to 1944 . The materials ask what is new. however. we provide an introduction to the key debates. how it changes politics. noting how globalization affects real people and places. Within the section Defining Globalization. Cases of Globalization explore the various manifestations of interconnectedness in the world. The term has been used by economists since 1981. Globalization expands and accelerates the exchange of ideas and commodities over vast distances. and economic changes.

t t fl f i t it i i f t it St t i t l S t A i t t i t ill l t i ti f t t i t i l li i . i i t t . t i t t i t t if l tf f t i . ti t i q . i l t t B tt f t f i f li t ti li tit ti i t t t f l li ti . c . t 5 l t t t t t t l O i ti O. t I t ti lB f R t ti l t t l B t I t ti l t F . Ot i ltil t l t t .i l i ti fE ti t t t t A i F A t AF A l i i it f t l f i t iff i t t . i l t i f t t t i ti f t . i i ll t i f ÔA . liti i i t t i t it t ti i li i i t ti l i i t ti .cc 0  c ëc c Ôl li ti i t i l II fi t t lt f l i i t . t ti ti . I ff t. It f ilit t i t l i t t ft .

More and more foreign companies are investing in the Indian market to get more returns. New dynamic firms have displaced older and less dynamic ones: of the top 100 companies ranked by market capitalization in 1991. the change from the pre-reform situation is impressive. c c c . billion from US$ 2 . They have also res tructured through mergers and ac uisitions and refocused their activities to concentrate on areas of competence. Although this figure remains much below the levels of foreign direct investment in many emerging market countries (not to mention 4 pe rcent of GDP in China).1% in 2009 to US$ 46. about half are no longer in this group. The presence of foreign -owned firms and their products in the domestic market is evident and has added greatly to the pressure to improve uality. percent of GDP.cc ëë c c ë cë    c c ne of the main aspects of globalization is foreign investment. India today has emerged as one of the perfect markets for foreign investors due to its vast market base. Globalisation has created a very different competitive environment for Indian industry than existed in 1991. The foreign institutional investments ( II) amounts to around US$ 10 billion in Y 2008 -09.1 billion (2008). oreign investment inflows increased from virtually nothing in 1991 to about 0. which has led to significant changes. Indian companies have upgraded their technology and expanded to more efficient scales of production. while the rate of oreign direct investments ( DI) has grown around 8 .

In 1991. The main objective of the government was to transform the economic system from socialism to capitalism so as to achieve high economic growth and industrialize the nation for the well - being of Indian citizens. In the 1980s. when India recorded its hi ghest GDP growth rate of 9%. after the International Monetary und (IM ) had bailed out the bankrupt state.[6] The fruits of liberalisation reached their peak in 2007. Narasimha ao and his finance minister Manmohan Singh s tarted breakthrough reforms. The overall direction of liberalisation has since remained the same. India became the second fastest growing major economy in t he world. although no party has yet tried to take on powerful lobbies such as the trade unions and farmers. irrespective of the ruling party. deregulation. Indian government coalitions have been advised to continue libe ralisation. tax reforms. Prime Minister ajiv Gandhi initiated some ref orms. which has been liberali sing its economy since 1978. India grows at slower pace than China. c c c c c . or contentious issues such as reforming labour laws and redu cing agricultural subsidies. at 10 percent a year". % will double the average income in a decade. next only to China. the government of P. Today India is mainly chara cterized as a market economy. initiation of privatization. After Independence in 1947. India adhered to socialist policies. and more ref orms would speed up the pace. With this. An rganisation for Economic Co-operation and Development ( ECD) report states that the average growth rate 7.cc ë ëë cë cë ëc c c The economic liberalisation in India refers to ongoing economic reforms in India that started in 1991. and inflation -controlling measures. about 300 million people ²e uivalent to the entire population of the United States²have escaped extreme poverty. McKinsey states that removing main obstacles "would free India¶s economy to grow as fast as Chi na¶s. As of 2009. V. The new neo-liberal policies included opening for inter national trade and investment.

you can see the developments in all the sectors where every men in India 3 have mobile phone .Now after 17 years of liberisation .Indian economy stood resolutely against any odd .GDP growth is 9 % per annum .no telephone.housing.Dr Singh with great support of late PM P.no housing .This liberisation was duly supported by the then opposition leader .Chidambaram prese nted a great budget of economic liberisation .Despite world recession .GDP growth was standstill .300 doller foreign exchange reserve .Private entrepreneurship started coming up in a big way in Steel.License raj was controlling our all growth .With in 4 years of liberisation Indian foreign exchange reserve rose to 140 billion doller .Narsimha ao even against the wishes of Sonia Gandhi .another great man Atal Behari Bajpai of BJP . ur present PM Dr Manmohan Singh was M in 1991 and amids lot of criticism with in party and opposition .telephone and so many sectors and created a base for further developments .Capacity enhansements in all core sectors were stoped .cc º cë ëë c cë cë ëc c In 1991 our foreign exchange reserve was only 1 billion doller of Import . ur Gold was put to security to foreign countries for money to save India .virtually no decvelopment .America was about to kill economically . nly regret is India could not be free from ugly corruption in everywhere c c c c c .infrastructures.India needed desperately developmen ts in all sectors . oads.No private entrepreneurs were allowed to enter in G V controlled Industries .economy was in sambles .IT .V.No jobs.

Hindustan Zinc. although these are precisely the companies where privatization can generate large revenues. which was until recently the monopoly service supplier for international telecommunications. c An important recent innovation. Privatization is clearly not a permanent source of revenue. especial ly for public sector enterprises that are making losses or not doing well. This policy had very limited success. c In 1998. Disinvestment receipts were consistently below budget expectations and the average realization in the first five years was less than 0. though there was some expectation that private shareholders would increase the commercial orientation of public sector enterprises. not so much on the principle of privatization. However. VSNL. Initially. Many states have also started privatizing state level public sector enterprises. India¶s largest automobile producer which was a joint venture with Suzuki Corporation which has now ac uired full managerial controls. c c c . is the decision to earmark the proceeds of privatization to finance additional expenditure on social sector development and for retirement of public debt. This was followed by several similar sales with transfer of management: BALC .7 percent in seventeen countries reported in a recent study (see Davis et. but although privatization has been a prominent component of economic reforms in many countries. the government announced its willingness to reduce its shareholding to 26 percent and to transfer management control to private stakeholders purchasing a substantial stake in all central public sector enterprises except in strategic areas.The first such privatization occurred in 1999. an aluminium company. Lagan Jute Machinery Manufacturing Company. the government adopted a limited approach of selling a minority stake in public sector enterprises while retaining management control with the government. c The privatization of Modern oods and BALC generated some controversy. India has been ambivalent on the subject until very recently.2 percent of GDP compared with an average of 1. but even so. several hotels. was sold with full management control to Hindustan Lever. when 74 percent of the e uity of Modern oods India Ltd. (a public sector bread-making company with 2000 employees). IPCL. a major petrochemicals unit and Maruti Udyog. but it can help fill critical gaps in the next five to ten years while longer term solutions to the fiscal problem are attempted.al. there are several companies in the pipeline for privatization which are likely to be s old and this will reduce resistance to privatizing profit -making companies. an Indian subsidiary of the Anglo -Dutch multinational Unilever. there is little public support for selling public sector enterprises that are making large profits such as those in the petroleum and domestic telecommunications sectors. There was cl early limited appetite for purchasing shares in public sector companies in which government remained in control of management. The principal motivation was to mobilize revenue for the budget. Subse uent sales have been much less problematic and although the policy continues to be criticized by the unions.cc ëëë c c The public sector accounts for about 3 percent of industrial value added in India. Computer Maintenance Corporation. which may increase public acceptance of privatization. 2000). These companies are unlikely to be privatized in the near future. These are mostly loss making enterprises and are unlikely to yield significant receipts but privatization will eliminate the recurring burden of financing losses. a policy described as ³disinvestment´ to distinguish it from privatization. it appears to have been accepted by the public. bu t on the transparency of the bidding process and the fairness of the price realized.

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cement ind ustry and so on.  Globalization and liberalization has greatly influenced the Indian economy and made it a huge consumer market. c c c c c c c c c c c c c c c c c c . There has been an improvement in the manufacturing sector as well which grew from 8. According to a report by the World Bank. more and more new sectors are coming up and reaping profits such as IT services. the rate of employment is also increasing considerably. India is one of the well known industr ial markets in the Asia -Pacific region.64%.98% in 200 to around 12%. Today. Globalization and liberalization ha s also made a positive impact on various important economic segments. the service sectors. The condition is expected to improve further with more demand and increase in customer base. the Indian market is expected to grow at around 8% in the year 2010. Today. With the improvement of the market. most of the economic changes in the country are based on the demand supply cycle and other economic factors. Today. Around 4% of the annual Gross Domestic Product (GDP) of India comes from t he service industry while the industrial and agriculture sector contributes around 29% and 17% respectively. India is the world¶s 1 2th largest economy in terms of market exchange rate and 4th largest in terms of the Purchasing Power Parity. With the increase in the supply level. The yearly growth of the industrial sector has been around 6. industrial sectors and the agriculture sector have really grown to a great extent. chemical. textiles.8 % which will rise more in the future. The communication segment has gro wn up to around 16.

the key innovation . India has witnessed the dramatic benefits that come from the entry of private players. and the flow of budgetary support to these firms will cease. While Spicejet is a good airline. if not yet up to world - class. In these areas. which are only present in very muted fashion. which broke with the stasis of socialism was opening up entry barriers . The privatisation of VSNL [ Get Quote ] was critically important because it was part of the opening up of the ILD sector to competition: the government would arguably have been more tardy in opening up if it had a vested interest through ownership of VSNL. India will benefit because the private buyer will produce more GDP using the same resources. However. remain to be harnessed. the defining issue in policy is the removal of entry barriers. Telecom and airline services in India are now dramatically improved.cc ë  ccëëë c c c c When privatisation is achieved. ccccccccccccccccccccccccccccc c c . not privatisation. In both sectors.In both sectors the full benefits from permitting foreign competitors. The government should be happy to get these firms out of its hands with negative bids. by changing rules in a way that permitted limited entry to domestic and foreign players. The next and most interesting category comprises industries like telecom and airlines. there are bigger benefits waiting to be obtained by having domestic flights run by Lufthansa and Singapore Airlines.not privatisation.

privatization should be understood in a direct correlation with the globalization of capital under late or corporate capitalism. and that its implementation has been pursued purposely. Using a political economy analysis. or contentious issues such as reforming labour laws and reducing agricultural subsidies. To understand this direct relationship between change and continuity and between privatization and globalization. This has been happening despite evidence of extremely successful experiences with public enterprise management and government -owned enterprises worldwide. irrespective of the ruling party. it argues that. hence a change within the continuity of the process of surplus accumulation by global capitalism. ccccccccccccccccccccccccccccccccc c c . In India the overall direction of l iberalisation has remained the same. It argues that privatization has been conceived by design. The main objective of the government was to transform the economic system from socialism to capitalism so as to achieve high economic growth and industrialize the nation for the well -being of Indian citizens. The article also treats the phenomenon of globalization as a globally transcending process towards a more rapid accumulation of surplus value of advance or corporate capitalism. and then explain its corollary strategy of privatization worldwide. among other things. deliberately and vigorously around the world to accomplish the objectives of the globalization of capital. not by chance and haphazard events. we must first understand what globalization means. although no party has yet tried to take on powerful lobbies such as the trade unions and farmers. but most importantly.cc c c c c c ëëc ëc The phenomenon of sweeping privatization as a µstrategic instrument of globalization of capital¶. Today India is mainly characterized as a market economy.