Essay, Paragraph or Speech on “Globalization” Complete Paragraph or Speech for Class 10, Class 12 and Graduation and other classes.

Globalisation

Essay No. 01

Globalization can be defined as the tuning of the economic policies of a nation with the current economic policies adopted and implemented by most nations of the world. It is a term coined basically by the western nations. It has become the most trusted philosophy for achieving economic prosperity of any nation. Globalization also means elimination of trade barriers, trade with most of the nations of the world and adoption of globally accepted duty structures and tariffs. Trade protectionism and supremacy of a few nations in world trade are eschewed by the propounders of this phenomenon. Trade barriers are minimized and import as well as exports of all types of commodities (barring only a few) can be effected by all the nations.

Globalization was the natural outcome of the creation of a free market system in the west. The Western markets do not value poor-quality products and services; they value merit of goods and people. Further, technologies plays a vital part in all the processes of industry, business and society. Free market economics was based on the concept of human efficiency; the Western nations expected it to be at its maxima. Quality was emphasised upon and the free market system followed the age-old maxim, “survival of the fittest”.

However, the west could not meet all the demands of their peoples.

So, Western nations moved out of their limited markets and headed towards the East, the Far East, the Orient and the African subcontinent. Thus, they took the concept of a free market system, along with their products, technologies and processes, to those nations. Therefore, the concept of a free market economics was transformed into a new phenomenon with this transition. This new phenomenon is fondly termed as ‘globalization’.

        In India, the free market system was introduced with some reluctance on the part of the government. Mr. Rajiv Gandhi took over the reins of the government in 1986. In 1987 he started the slow and painful process of economic reforms. In 1990 the government committed itself to the policies of economic reforms and the world welcomed these moves. In 1991 Mr. Narasimha Rao took over and continued economic reforms. The political upheavals during 1992-97 period did give some setbacks to the economic reforms but the process continued. The chief characteristics economic reforms process were as follows:-

1. Revival of loss-making PSUs.
2. Opening up of the Indian economy to global market system.
3. Stressing efficiency in PSUs.
4. Liberal international trade norms.
5. Flexible annual budgets.
6. Gradual elimination of subsidies.
7. Establishment of stock exchanges al over India.
8. Entry of MNCs on a large-scale.
9. Participation of foreign firms in projects related to infrastructure development.

The Indian Rupee was made to float freely vis-à-vis the US Dollar and

other hard currencies. During the tenure of Mr. A.B. Vajpayee, far-reaching decisions were taken regarding the implementation of WTO norms. On April 1, 2001 the norms of WTO were fully implemented. Thus, the nation became a “free country” for importing and exporting all the vital trade items, except only a few. The EXIM policy was revised in 2000. New EXIM policy was declared again in 2001. Further, the government sold off its shares in BALCO in a value of Rs. 525 crore. It also proposes to privatize many loss-making PSUs, like Air India. Cash-Reserve Ratio was monitored carefully by RBI and revised according to the needs of the economy. The finance minister put forth an ambitious target of Rs. 10,000 crore in terms of receipts of disinvestment. But this target could not be achieved. During the nineties of the last century, the GDP grew at the rate of 5-6 per cent per annum (average value). Voluntary Retirement scheme was implemented in several PSUs so as to make them efficient and cost effective.

        The reforms mentioned in the preceding text proved the commitment of the State to liberalise the economy. The private secor firms were allowed to make deep forays in those areas, which were hitherto the bastions of the PSUs. Banking and insurance are two glaring examples in this context. So much so, foreign firms were also allowed to operate in these two sectors as well as in power, infrastructure development and telecommunication equipment.

        Thus, we can conclude that the Indian economic system tried to align itself with the global economic system. This move has paid rich dividends. Although we are facing teething troubles, get the long term benefits accrued to our economy will far outweigh the costs of such changes. Thus, globalization of Indian economy would make her strong, stable and reversed around the world. These are, in sum, the positive implications of globalization for our economy.

        The negative implications are also worth a careful study. The global recessionary trends have affected Indians too. As we are fully aligned with the major economies of the world. We will sink or swim along with them. The crashes of stock markets in New York, Tokyo and Shanghai reflect themselves within twenty-four hours in the fall of the sensex at Mumbai Stock Exchange. Transnational trade is also affected by the economic health of other nations. The software industry has seen the maximum number of lay-offs from April to August, 2001. These lay-offs would make our programmers redundant. There were major job cuts in manufacturing sector during the month of August, 2001. They were precisely due to global recession. So unemployment or partial employment may be more prominent. Further, the Rupee is getting weakened vis-a-vis other hard currencies. In the absence of globalization, the Rupee could have fetched higher values (say Rs. 26 to a US Dollar). But today, it threatens to hit and abyss; it could reach the ratio of Rs. 50 to a US Dollar within six months. Further, the government has not been able to sell its loss-making PSUs. Finally, the MNCs are walking out of infrastructure projects, especially power projects. Enron is on its way out as it could not give good rates per kWh to the government of Maharashtra. Congentrix is another firm that has faced rough weather in India and will walk out forever. If such types of incidents continue, we may not be able to maintain a healthy image of ä dependable nation to invest in”. And as on dates what we need is investments by FIIS and MNCs. The Chinese, despite their bad image and communist policies, have been able to garner better financial support from FIIS for their industries and trade.

        Every rose has a few thorns. We have learned from the mistakes of the past and would not repeat them in future globalization, would be the key to success of every economy of the world. We cannot ward it off by stating that it is a western concept. We have to embrace it fully. For this purpose, we may have to shut down old and sick PSUs (like NTC). We may also have to reduce the human inventory in the profit-making PSUs to optimum levels. The ration card system has been eliminated for the privileged sections of our society. The prices of fuels also in line with those in other developing nations. The State would not provide easy loans. subsidies and grants-in-aid to individual, firms and manufacturing units with some strings. Every firm or individual would be required to be efficient, productive and a part of the real economic growth of the nation.

        Even if some critics may eschew the concept of globalization, the economic liberalization process would continue. Ultimately, it would lead to nearly 100 per cent globalization of the Indian economy.

Essay No. 02

Globalization

 The term `globalization’, evokes several concerns in the minds of many people. People are afraid that it could lead to political and economic hegemony, if not in physical but in ideological terms. But globalization is in one sense not a new phenomenon. It is being examined now as if it is a new plant or tree. In fact, its roots extend, farther and deeper than the visible part of the plant.

Recent developments in computer and communicatio4 technologies have made the process of integration quick. It is making’ geographic distance less. It is a boon and part of Geography. As result of globalization knowledge of the whole world would the computerized. It would make easy to contact any part of world.

In other words, globalization of the world would bring cooperation and unity. With modern technologies we would be h contact with political, economic and cultural spheres. This openness will help in several cases to bring down political suppression. It economic sphere, the capital flowing across borders would be utilized for future growth and development. But we have to be careful i: handling such sources and issues.

The Asian crisis is not in argument against capital account liberalization. The lesson to draw from the crisis is that capital account liberalization and reform of the financial system should move i carriage. The process of internationalization is thus not without in threats. A crisis anywhere can become a crisis everywhere. Each country must prepare itself to meet the new- challenges so that it not bypassed by this huge wave of technological and institution changes.

Globalization as a phenomenon has to be distinguished from globalization as a process. Globalization leading to breaking dove of distances as measured by time is a fact. This is a phenomena which will only gather further momentum as the technologic changes will push the world even harder in this direction in the coming years.

Globalization as a process will need to absorb these changes. But it will not necessarily lead to uniformity. Even in the industrially advanced countries, the pattern of economic structure is not identical. The state market has a mixture of variety and can vary from country to country. All ideologies would start out with the claim of having a universal appeal. This would hold good in case of capitalism as well as communism.

Every economic system in the new millennium must be capable of meeting the challenges posed by globalization. NO country would be able to insulate itself from the rest of the world. This would lend some common colour to all the economic systems. Thus, we will continue to live and enjoy a multi-civilized world in terms of both economic and cultural. But the task of coping with the global changes will remain there. All the benefits and risks will also remain. No country can stand in isolation in this respect.