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Monday, Dec 23, 2002

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`Time to assess globalisation dispassionately'

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DR Abid Hussain, Professor Emeritus at the Indian Institute of Foreign Trade, has advised developing nations to undertake imperative studies on globalisation so as to identify the negative factors, which in their perception have de-estabilished their society and distorted their economy.

However, stating that it was wrong to assume that globalisation implied a weaker State and led to diminution of sovereignty of the State, Dr Hussain said, in fact, pooling of sovereignties and assertion of a State would be the logical demands of globalisation.

Globalisation involved two conflicting demands on the developing nations which should have a strategy of a statecraft to subordinate on one hand the global forces of exploitation and on the other, accelerate forces which would protect and serve the genuine national interests. The art of globalisation lay in keeping these conflicting demands constantly in balance, he said.

Addressing the Convocation programme of the Institute of Chartered Financial Analysts of India (ICFAI) here, Dr Hussain said the multinationals were prone to exploit the disadvantaged, weak and poorly endowed countries in the globalisation process.

"Since the process of globalisation has an inbuilt advantage for the most efficient and competitively superior corporations, the process of integration could prove adverse to the interest of the less developed countries, which have little political or economic clout to offer resistance to unfair deals and practices which could foreclose progress," Dr Hussain said.

However, he advised the developing countries not to spurn the challenge of globalisation by describing it as the return of imperialism by other hands. Instead, he said, these developing nations should work to upgrade their productive skills, reconstruct or improve their institutional arrangements, devise policies to effectively control activities that violate fundamentals of free trade and fair practices. The process of globalisation should, therefore, not overwhelm them.

According to Dr Hussain, globalisation should not be at the cost of developing countries and States cannot abdicate their social and constitutional responsibilities. In this context, the state intervention should not be deemed as a primitive force opposing a progressive process. Increase of production and pursuit of social goals are the necessary characteristics of a modern state. If this is not taken care of by a state, only a narrow segment of population might be integrated to profit from globalisation, while a large percentage of people would be marginalised even further, he said.

The ICFAI Chairman, Dr A. Besant C. Raj, said over 750 students were given their Charters and Certificates at the Convocation. With this, the total number of management graduates from the ICFAI Business School (IBS) has grown to 2,809. Stating that the IBS had enriched the lives of these alumni, he said they were placed in more than 600 organisations in the country and abroad.

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