Explain the impact of globalisation on governance.
Ans: Globalisation is a process of integration or interconnection between economies. This affects environment, culture, political systems, economic development, and human physical well being in societies around the world. Globalisation indicates that the world today is more connected than before. Globalisation in its basic economic sense, refers to the adoption of open and unfettered trading markets.
technology, LPG reforms, faster transportation, rise of World Trade
Organisation, improved mobility of capital and rise of multinational
corporations led to the rise of globalisation. Developed countries have been
asking developing countries to liberalize the trade and allow more flexibility
in trade policies to provide equal opportunities to transnational firms in the
Liberalisation began to hold its foot on
developing countries like India by means of reduction in excise duties on
electronic goods in a fixed time frame.
Government liberalized the trade and investment due to the pressure from the
World Trade Organisation. Import duties were cut down to allow MNCs to operate
in the country on equality basis. As a result, globalisation brought new
technologies, new products and also the economic opportunities.
In spite of red
tape, lack of infrastructure and ambiguous policy framework that adversely
affect the MNCs operating in India, they
are looking at the country in a big way and are making huge investments to set
up research and development centres in the country. The country made giant
strides in IT, business processing, and R and D investments. There are positive
and negative effects of globalisation on social, cultural and economic values
has led to more number of jobs, consumers are given more choice and high
disposable incomes, With improvement in standard of living, and rising income
levels, the food habits of people changed.
People began taking more protein intensive foods. This shift in dietary pattern led to an
overwhelming demand for protein rich food, causing inflation. Traditional foods
like cereals, pulses and oil seeds have been neglected.
also led to shrinking of agriculture with farmers increasingly dependent on
seeds and fertilizers sold by MNCs. WTO
guidelines and multinational companies norms have reduced the government
support to agriculture causing crisis in the farm sector which is witnessing large
number of suicides by farmers.
also led increasing healthcare costs and emergence of nuclear families. Indian
cuisine, clothing, Indian performing arts, pervasive media and walmartization
have also underwent drastic changes.