The Hindu Business Line : The downside of globalisation

Globalisation is a process of economic expansion targeting the elimination of virtually every barrier and speed bump to competitive marketing. All other interests such as social, cultural, and environmental parameters are sullied and sacrificed at the altar of internationalisation of the economy. The products, services, resources, artefacts, and ideas of every country are being exposed to the dog-eat-dog competition of the global market.

Measuring success

Success in this rat race is measured by the one and only paradigm — profitability — and no other factor is reckoned as relevant. Human rights, living wages, hygienic working conditions, and environmental safeguards are all deemed as unnecessary costs that come in the way of winning the game.

The primary criteria that emerge from this process are those that support and stand by the never-ending need for more improved performance of the bottomline in the balance-sheet. These translate into an unchecked drive to increase output, slash wages, reduce jobs, avoid environmental expenditure, and jettison such social programmes that fail to fare in obtaining a better margin. Values and ethics pertaining to social needs and cultural considerations take the back seat.

Role of multi-national corporations

What comes under the cloak, cleverly camouflaged, as globalisation is, in fact, the suzerainty over the developing economy by the multinational corporations operating from the Northern Hemisphere, invariably to their advantage. This scheme of things has little concern for the damage it causes to other cultures and countries, apart from the dent on the planetary life and ecology.

A significant shift has taken place as the production and distribution of goods and services have been internationalised, while the monolithic multi-national corporations have come to dominate the national economies and the lives of native citizens.

Some of these conglomerates have such enormous economic power that their annual turnover exceeds the gross national product of several smaller nations in the world.

Sustainable economic development

In order to counteract and mitigate the destructive effect of this phenomenon, it is necessary to create new forms of economic organisation at the global level. These organisations will not only be productively efficient, but also based on business ethics. They will be capable of delivering high quality goods and services with an edge over their rivals and, at the same time, preserving human dignity and protecting global environment.

Launching such sustainable forms of economic development will warrant determining when and where economic growth must stop; when and where it must be restrained from overrunning human and social considerations.

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