globalization and policy implications

8/14/2019 Globalization and policy implications

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WELCOME


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SHARMU RAJAN

M.Sc(Ag).,

GLOBALIZATION&

ITS RELEVANCE WITH

DEVELOPMENTPOLICIES


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Discussion on..

1. Globalization

2. Its impact on India

3. Policy framework


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Globalization

Means the free movement of capital,

goods, technology, ideas and people.

Any globalization that omits the last oneis partial and not sustainable.

- Branko Milanovic

Economist


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PARAMETERS

1.REDUCTION OF TRADE BARRIERS

2.CREATION OF ENVIRONMENT:FREEFLOW OF GOODS & SERVICES

3.FOR FREE FLOW OF TECHNOLOGY

4.FREE MOVEMENT OF LABOUR INDIFFERENT COUNTRIES


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ADVOCATES OFGLOBALISATION

ONLY FREE FLOW

OF

TRADE,

CAPITAL,

TECHNOLOGY!!

INCOMPLETE

WITHOUT

LABOUR FLOWS

DEVELOPED

COUNTRIES

DEVELOPING

COUNTRIES


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ULTIMATEAIM

GLOBALISATIONsignifies

INTERNATIONALISATION PLUSLIBERALISATION

GLOBA

L

VILLAG

E


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ARGUMENTSIN SUPPORTOFGLOBALISATION

PROMOTE

FOREIGN DIRECT INVESTMENTS

MAKINGUSE OFTECHNOLOGIES

WIDENSTHEACCESS TOEXPORT

REDUCES COST OF TRANSPORT &

COMMUNICATION

FASTER DIFFUSION OF

KNOWLEDGETO RAISE PRODUCTION &PRODUCTIVITY

TO REACH

INTERNATIONAL STANDARDS OF

PRODUCTIVITY


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ITS IMPACT ON

INDIA


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World commission states

the current path of globalization must change.

Too few share in its benefits. Too many haveno voice in its design and no influence on itscourse


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INTERNATIONAL LABOUR ORGANISATION

We wish to make GLOBALISATION a-means to expand human well being and

,freedom and to bring democracy anddevelopment to local communities where

.people live


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DURING THE 15 YEAR PERIOD(1990-2005)

MERCHANDISE

EXPORTS

18.6%pa11.7% pa

INDIA CHINA

SERVICE SECTOR

EXPORTS

CHINAINDIA

18.2%pa18.1%pa


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No doubt,INDIA

GAINED!

MEXIC

O

SOUTH

KOREA

CHINA


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Increase of Imports far greater than increase of

Exports

Foreign investment flows

Employment


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Employment,

Flexibilisation &impact on

LABOURINCREASE

IN

UN

EMPLOYMENT

INCREASE IN

SELF-EMPLOYED

PROXY

INDICATOR OF

INCREASE IN

INFORMALECONOMY


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Worse employment situation during globalization

Negative growth rate of employment in agriculture

Shedding the excess employment in the public

sector

In INDIA..

Negative growth rate of employment in

agriculture

Shedding the excess employment in thepublic sector


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Organised sector engine of growth- failed to

generate enough employment

ORGANISED UNORGANISED

SECTOR SECTOR

LABOURS

GLOBALISATION

INFORMALISATIONOFTHEECONOMY

ec ves ac eve y e


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Downsizing

Increase workload per worker

Greater casualisation of work force

no work,no pay

Force stringent norms of work

Weaken trade unions

ec ves ac eve y eemployers.using the instrument

LOCK OUT


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INEQUALITY

&

POVERTY


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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 PERCEPTIONGlobalization has resulted in high degree of

concentration of wealth..


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Globalization

WINNERS

LOSERS


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GROWING INEQUALITIES

IN INDIA

Sl i d th


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KEY DETERMINANTS

> Agricultural yields

> Growth of non-farm sector

Slowing down the processof

POVERTY REDUCTION


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Double standards of Developedcountries

Demand concession and reduction of tariffs from

developing countries

Encouraging free flow of goods & services??

Pushed the developing countries to eliminate trade

barriers.but kept up their own barriers!!

Largenumber

ofsuicid

es

committ

edbythe

INDIAN

FARMER

S

arethe

directre

sultofth

edouble

standardsa

dopted

bythe

DEVELO

PEDcountries

TOSELL

THEIR

AGRICULTU

RALPRODU

CTS!!

S O O O


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FEMINISATION OF LABOURIN 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 labourunfair treatment of

women labour(another category of degraded

labour)


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GOAL OF FULL EMPLOYMENTAND DECENT WORK

ILO pleads forThe promotion of opportunities for men and

women to obtain decent and productivework, in conditions of freedom,equality,security and human dignity

World commission states..,There is no point to a globalization thatreduces the price of a childs shoes but coststhe father his job


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FAIR GLOBALIZATION

AND

POLICY FRAME WORK

CO C


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PRIMARY CONCERN:

Globalization should benefit all countries and should raisethe welfare of the people throughout the world.

But Globalization has not worked for the interests ofthe poor.led to inequalities across and withincountries!

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

Economy GLOBALSocial & political institutions remain largely LOCAL

or regional

AGENDA FOR FAIR &


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Economic reforms

New Industrial policy

National Renewal Fund(1992-93)

OBJ: retraining and deployment of workers

PDS

93%NRF Globalization

Winners & losers

AGENDA FOR FAIR &INCLUSIVE GROWTH

MACRO ECONOMIC &


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Macro-economic policy Emplyment growth

VRS,Downsizing No public sector expansion

Private sector investments

Major source of employment

strengthen marketing,infrastructure for irrigation & watermanagement

MNCs reduce the scope for enlarging employment

EMPLOYMENT GENERATIONPOLICY

AgricultureDRY!!!

IMPROVING THE


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TOTAL UNEMPLOYMENT = 7.32%

UNDER EMPLOYMENT = 4.41%

Jawahar Rozgar Yojana, Prime

ministers Gram Rozgar Yojana Integrate objectives of growth &

employment

Judicial mix of sectors should be promoted Not to end up with JOBLESS GROWTH

PRODUCTIVITY OFEMPLOYMENT

BALANCED REGIONAL


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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


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BETTER

EXTENSION SERVICES

MINOR

IRRIGATION

WORKS IN

EASTERN INDIA

WATERSHED

MANAGEMENT IN

CENTRAL INDIA

IMPROVES PRODUCTIVECAPACITY IN

AGRICULTURE

PROGRAMMES ON

RURAL

INDUSTRIALISATION


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EMPLOYMENT GUARANTEE


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EMPLOYMENT GUARANTEEPROGRAMME

UNEMPLOYMENT

OR UNDER EMPLOYMENT

POVERTY

SCHEMES..!!

RIGHT TO

WORK

GUARANTEE?

A MAJOR STEP

NREGA,2004

CRITICISMS


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CRITICISMS

Could be for both rural and urban

Only for casual labours.

Not only for lean season

Agriculture growth and overall growth as well!

HOW ABOUT

EDUCATED SKILLED

LABOURS

RAISING THEPRODUCTIVITY IN


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PRODUCTIVITY ININFORMAL SECTOR

INFORMAL SECTOR-major source of employment in developingcountries.

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


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PROMOTION OF SKILLDEVELOPMENT

NEW

TECHNOLOGIES

RETRAINING OF

EXISTING EMPLOYEES

+

SKILL DEVELOPMENT

OF THE NEW

ENTRANTS

NEW

INSTITUTIONS

REDESIGNING THE

TRAINING PROGRAMS

+

RE-ORIENT THEIR

COURSES

STEPS for skill development..


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STEPS for skill development..

UNIVERSITY-INDUSTRY PARTNERSHIP

TRAINING IN COMPUTER COUSES

FEE CHARGED:HIGH-lower and middle class NGOs ROLE

ORGANISATIONS OF THE


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ORGANISATIONS OF THEWORKING POOR!

Exploitation by Indian capitalists and MNCs

Government

&Employers

Weakening of trade unionsHarmonious structure


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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 FAIRGLOBALIZATION


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GLOBALIZATION

DEVELOPING

COUNTRIES

&

LESS

DEVELOPED

COUNTRIES

DEVELOPED

COUNTRIES,

RICH

&

POWERFUL

GLOBALIZATION

WIDEN EFFECTS

OF

GLOBALIZATION

REAL

INSTRUMENT

OF POVERTY

REDUCTION


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INDIA has such adomestic hugedomestic marketthat it need not relyon the overseasmarket for growth,but to realize that

potential, peopleneed to haveincomes

-BUSINESS LINE,15 February 2005


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THANKYOUFOR YOUR

KIND ATTENTION!

globalization and policy implications

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