Published by MBA Skool Team, Published on August 11, 2011
Rising per capita income, higher purchasing power, a better standard of living and more job opportunities. These are some of the things which have visibly increased due to globalization. The Indian economy, which is predominantly agricultural based, has seen a revolution in the fields of manufacturing, IT, medicine, business etc ever since the liberal policies were adopted by the Government. Globalization has certainly made trade, import-export and business an integral and pivotal part of the economy and has provided opportunities to prosper to the people. But despite the advantages, there is a darker side of globalization which needs to be taken care of.
Globalization has certainly improved trade and business opportunities. However, majority of these opportunities are limited to the people who already lead a respectable life. Educated and wealthy people from the urban areas have made the most of opportunities to study, start businesses, get employment in MNC's etc, which has further enhanced their standard of living. But the population in the rural areas, which forms the majority of the citizens of the country, is deprived of even the basic needs of living. In India, even today, the people in the rural areas struggle for basic amenities like drinking water, hygienic food, medical facilities, electricity, roads etc. The benefits of globalization are mainly limited to the rich class in the urban areas and haven't percolated to the people living in the semi-urban and rural areas.
Globalization has affected the poor people severely. Big international companies have entered in the untapped Indian market, and they use the agricultural land for setting up industries, offices etc. Even here, there is tremendous partiality shown against the farmer, which further neglects the agricultural sector. This causes a socio-economic divide amongst the people of the country which causes an increase in crime, migration to cities, drug-dealers, human trafficking etc. All these factors have been on the rise due to the huge gap that globalization has created amongst the haves and the have nots.
Another ill effect of globalization is the excessive use of technology. If the technology is used for developmental purposes it becomes a great tool for prosperity. But the same technology in the wrong hands becomes a curse. Growth in terrorism and crime has also been fueled by the growing parity between the rich and the poor. Terrorists often use the normal mobile technology, which was primarily created to help people connect, to spread terror.
Also, due to globalization, developed countries as well as emerging economies have their economies interlinked. This is the reason why if there is an economic depression or financial fluctuation in one country, it creates a huge panic globally. The markets in all the countries go for a toss creating an economic instability in the world of business.
With the advent of more in technology, the world will continue to become a smaller place to do business in. The word globalization too, after a short while would become insignificant as the boundaries between countries would be erased. Globalization would certainly create more opportunities and provide for a better standard of living for the people. But governments of all countries must also be prepared to face the consequences of the darker side of globalization.
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