The Hindu Business Line : Fear not the globalisation

Discussions on globalisation happen broadly under four headings — growing inequality between nations and among different sections within a country; the possibility of some sort of an economic imperialism becoming a reality; the possibility of crass capitalism setting in to reign; and the harm done to ecology.

Views of liberals and Marxists apart, an objective understanding of globalisation will help appreciate its impact on world affairs. Starting from air, water, atmosphere, and global warming, down to the spread of dreadful infectious diseases such as SARS and bird flu, people would admit that these are problems common to entire mankind. So, are these local phenomenon of global dimensions? Curiously, only economic activities happening within political boundaries appear to decide the globalisation connotation.

A shrunk world

Globalisation is a somewhat new name for the old theory of free trade. Of course, with changing times, the scope and area of applicability of any concept change. In fact, in different eras were created different 'waves', including economic. This era of information and technology has shrunk the world, or rather, globalised economies. But have there been any ill-effects of globalisation?

Inequality is touted as the major problem. Indeed, even as poverty does not decline steeply in India, the number of billionaires and millionaires is rising steadily. But it should not be ignored that the standard of living at the bottom rung is moving up albeit slowly. Evident is also the all-round rise in the living standards of the people.

MNC benefits

Multinational Corporations are said to be the major beneficiaries of globalisation. If MNCs flourish it is because they are able to coordinate production across the world, leveraging the advantages available at various places. The other side of this coin is the efficient use of resources that might otherwise idle. Indeed, many a poor corner grows economically due to the operations of MNCs and is beneficiary of globalisation rather than being its victim.

As for the fears of imperialism, it is quite baseless. It is an idea a couple of centuries too late. There is no chance of another `East India Company' emerging, even in a different garb, as no country is likely to yield to such subjugation tactics.

Equally, globalisation need not necessarily lead to crass capitalism. Democracy and social welfare are not likely to go out of style. Certainly not due to globalisation.

As for ecological degradation, it is caused by numerous factors — reckless exploitation of natural resources, rapid industrialisation, and all the attendant ill-effects, and even increase in human and cattle population. Globalisation may warm the world but not lead to global warming.

Surely, globalisation per se is no major threat.

(The author is a Bangalore-based freelance writer.)