Globalisation in India

GLOBALISATION: DEFINITION AND A BRIEF INTRODUCTION

Globalisation can be defined as “the closer integration of the countries and peoples of the world ...brought about by the enormous reduction of costs of transportation and communication, and the breaking down of artificial barriers to the flows of goods, services, capital, knowledge, and people across borders.”¹

Globalisation is a giant that has come in this world to stay. It cannot be said as to when globalisation started gripping this world. Experts believe that globalisation started to expand its claws all over the world in the late 19^th century. Globalisation is often called a necessary evil. There are many arguments that support globalisation, and at the same time many that oppose it.

GLOBALISATION AND ITS INTRODUCTION IN INDIA (IMPACTS AT THE TIME OF INTRODUCTION)

Beginning haltingly in 1980s, in India, globalisation got a real thrust from the new economic policy of 1991 and it was further pushed forward by the coming up of the World Trade Organisation in 1995. It was believed that globalisation would invite the entry of foreign capital, along with which updated technology would also enter the country which would help the domestic industries to expand technology-wise. It was also believed that with the setting up of Multinational Companies, more employment opportunities will be made available. In 1991, not only was there huge levels of unemployment, but also technological backwardness obstructed the industries to expand its capacities. Thus many steps were taken to promote globalisation. Some of them were:

· Convertibility of Rupee: In order to fully integrate an economy with the world, the currency has to be made fully convertible. As a first step towards it, Indian Rupee was devalued against major currencies twice in 1991. This was followed by the introduction of the dual exchange rate system in 1992-93 and full convertibility of the Rupee on trade account in 1993-94.

· Liberalisation of imports: Import liberalisation is a must to effect globalisation. In India as a measure to liberalise imports, the peak rate of customs duty was brought down from 150% to just 15% in stages and the tariff was brought down from 125% to 15% (in stages). As per the recommendations of the World Bank, free trade of all items except a negative list of imports and exports is allowed.

· Invitation to foreign capital: Many incentives were offered to the foreign investors and the Non-Resident Indians in the new economic policy. Foreign Direct Investment (FDI) up to 51 and 74 percent and even 100 percent were allowed in some of the industries like Drugs and Pharmaceuticals, hotels and tourism, etc.

POSITIVE IMPACTS THAT CAN BE SEEN TODAY

Globalisation has had many positive impacts on our country since it became a major part of our policies. They are:

· Better Technology: India now has a solid technological base, and its industries make use of modern and sophisticated machinery imported from all parts of the world. This state of better technology has not only helped India increase the quantity of production profitably, but it has also helped to increase the quality of production. India today boasts of having the second best technical manpower in the world.

· Foreign Trade and Foreign Exchange reserves: India’s participation in foreign trade has also increased by leaps and bounds which has only been possible due to import and export liberalisations. Our foreign currency reserves which were only about 5.8 billion dollars in 1991 now stands at 143.1 billion dollars.²

· Exports growth rate: The growth rate of exports has went up from -1.5% in 1991 to more than 20% per annum since 2001.³ Today exports finance as much as 80 percent of imports, compared to just 60 percent during the late 1980s.

· Consumer Satisfaction: The Indian consumer now has access to a wide variety of goods and services from all over the world. Thus the exact desires of the consumers can be satisfied completely. This has also given a good degree of competition to the domestic industries that have in turned improved the quality of their goods and services in order to survive the competition.

· Better education and wider scope of professional studies: With the integration of the Indian economy with the world, educational facilities have undoubtedly improved. With many foreign educational institutions setting up their branches in India, and Indian institutions recruiting foreign teachers, the quality of education has improved over the years. Also, various professional education bodies are cropping up in liaison with foreign professional education bodies to give the student only the best possible education.

NEGATIVE IMPACTS THAT CAN BE SEEN TODAY

Globalisation has been criticized on the grounds that it is a mere tool to redistribute economic power and make the powerful even more powerful, and the weak weaker. It is seen that the developed countries dominate the developing and the underdeveloped. In India, the major negative impacts visible are as follows:

· Domination by the first world countries: Globalisation allegedly redistributes economic power by making the first world countries far more powerful than the third world countries. There is no debate on the topic as to whether countries like USA are using their economic power to dominate the decision making of third world countries, which include India. Since a major inflow of technology and investment comes from these first world countries, we become dependent on them and do as they say, so that the inflow doesn’t cease.

· Growing Unemployment: Unemployment has risen steeply. This is ironical, as Globalisation is supposed to create more jobs. However due to globalisation the production technique has become more capital intensive, which has significantly reduced the amount of manpower employed.

· Increasing income inequality between nations: Globalisation has only increased the gap between the rich and the poor countries. It has lead to a spectacular growth of the developed country and a somewhat slower growth of the developing and the developed countries. The GDP of the developed countries are rising at an alarming rate, whereas the GDP rise of India is not that high.

· Unethical behavior of Multinationals: Lack of strictly enforced international laws means that MNCs may operate in a way that may be highly unethical. For example polluting the environment, running risks with safety or imposing poor working conditions and low wages on local workers. This has been the case in India as well. The labourers in many Multinational factories.

CONCLUSION

To conclude we can say that Globalisation, as we all know, has come to stay in India and the rest of the world. Though it has had many positive and negative impacts on the world, we must use it as a positive force. As we become a more developed nation, the negative effects will automatically diminish.

REFERENCES

1 Joseph Stiglitz from Globalization and its Discontents

2 RESERVE BANK OF INDIA PUBLICATIONS (URL: http://www.rbi.org.in/Scripts/PublicationsView.aspx?id=8051)

3 THE HINDU BUSINESS LINE INTERNET EDITION (URL: http://www.thehindubusinessline.com/2006/02/07/stories/2006020700211100.htm)

Pollution in Kolkata

“In an underdeveloped country, don't drink the water; in a developed country, don't breathe the air.” ~Changing Times magazine

Pollution is defined as “the introduction of pollutants (chemical substances, noise, heat, light, energy and others) into the environment which results in deleterious effects of such a nature as to endanger human health, harm living resources and ecosystems, and impair or interfere with amenities and other legitimate uses of the environment.^”1

Though it should be the responsibility of economically developed and developing countries to take steps towards global pollution control, ironically it is the most developed countries that contribute most towards pollution. Fortunately, India is not among the top ten most polluting countries of the world. However some of its metropolitan cities like Delhi, Mumbai and Kolkata exhibit alarmingly high pollution levels that are constantly on the rise.

EXTENT OF POLLUTION

Talking about air pollution in Kolkata, we constantly come across news articles in the newspapers and on the internet regarding the alarmingly high pollution levels in the metropolitan and the serious need to deal with it. Some of these are:

· Some 70% of people in the city of Calcutta suffer from respiratory disorders caused by air pollution, a recent study by a prominent cancer institute in India has concluded.²

· Pollution turns Kolkata's Victoria Memorial yellow.³

· Kolkata has the highest number of lung cancer patients. Seventy per cent of Kolkata’s citizens suffer some form of respiratory disease. ⁴

It is to be noted that pollution in Kolkata is especially acute during the winter, as the particulate matter can’t disperse easily due to low wind speed and high congestion. Following diagram (figure 1) shows the MEAN of the estimated present day pollution levels in Kolkata as compared to the mean of the normal levels of the pollutants.⁵ The overall levels of pollution show that the pollutants are present in the air in quantities far from normal and steps must be taken to improve the situation.

Figure 1

The next figure, (Figure 2)⁵ reveals a very important piece of information about the sources of air pollution in Kolkata. It shows that, while industries are chiefly responsible for SPM, domestic households are also guilty for high Co emissions.

Figure 2

The levels of noise pollution in the city are also alarming. Being one of the most populated cities, in the second most populated country of the world, Kolkata has a large road traffic, the sound of horns of which considerably add to the level of sound pollution. It becomes very difficult at times to even teach in schools and colleges that occupy busy streets. Not much heed is paid to the “Blow No Horn” or the “Keep Silence” signs.

For the water pollution in Kolkata, the residents of the city are to be held more liable than any industry. This is primarily due to the carelessness and nonchalance of the residents which they show towards maintaining proper standards of water. Apart from being a result of untreated sewage, chemical discharges, spillage of toxic materials, harmful materials leached from land disposal sites, agricultural chemicals and atmospheric pollutants dissolved in rainwater, in Kolkata, plastic bags are also a major source of pollution. The sewage system of Kolkata malfunctions a lot, primarily due to this reason and water logging takes place. Mr. Subhash Dutta, an eminent environmental activist had this to say in regard to polythene bags:

“Polybags which are less than 40 microns in thickness create severe drainage and sewerage problems. The bags clog the drains and cause water-logging. The filthy water accumulated on the streets mixes with clean water, and this when consumed creates a lot of health hazards”.

Taking serious consequences into consideration, the Government of West Bengal has banned polythene bags(less than 40 microns in thickness) in Kolkata with effect from June 5 2007.

CONTROL MEASURES

Serious control measures need to be adopted to correct the present situation that reflects the picture of an unhealthy present and an unhealthy future. Some of the steps that can be taken are as follows:

· Rainwater harvesting: Rainwater harvesting should be done in each and every household. This will not only reduce the scarcity of water, but will also guarantee the quality of drinking water, as rainwater is the purest form of water.

· Discontinuing usage of plastic bags: Though law has been passed by the Government of West Bengal, it is upon us to adhere to it. We should seriously discourage the usage of plastic bags, less than 40 microns in thickness in all forms of markets.

· Keeping adequate open areas: We know that Kolkata is a highly populated city. However provisions have to be made to ensure at least 20% open areas in the form of parks, gardens, etc. to maintain the hygiene of the environment.

· Disposal of old vehicles: It’s the old vehicles that cause maximum pollution in the air. Thus old vehicles, i.e. vehicles older than 15 years should be disposed off and a law should be passed to ensure the same.

· Regular monitoring of industries: Industries should be regularly monitored to check levels of particulate, gaseous and chemicals emissions made by them. Maximum permitted levels should be fixed by the Government and serious penalty should be imposed on those industries which emit more than the prescribed levels.

· Regulation of population pressure: The technique of Satellite Township should be used to regulate population pressure. A very important statistic revels that more number of people are settling in slums, than in other forms of settlement. Following figure (figure 3).This needs to be regulated.

Figure 3

· Polluters’ pay: Polluters’ pay is a newly emerging concept. Using this, fines are imposed on polluters whenever they are found polluting the environment. This is a very effective control measure, as it makes the public think ten times before polluting.

· Usage of public mode of transport: Public mode of transport should be used whenever possible. This will amount to a much lesser amount of pollution than what could be caused if every individual travels in a private car.

· Formation of Groups: Citizens should organize themselves into groups to act as watchdogs to any pollution creating ventures. For Example, if they see gaseous fumes coming out of any factory, they should report it to the concerned authorities, etc.

To conclude we can say that the level of pollution in Kolkata renders the city very unhealthy, and much needs to be done to bring the situation under control. Government, NGOs and we have an equal role to play in this regard.

“Only conscious behavior can protect this Earth. We must work together for protection of ourselves” - PROF. DR. A.K. MITRA