Globalization and its impact on agriculture and industry?

What is Globalization? Factors that have led to globalization in the 21st century Effects of globalization on the Indian farming sector both ositive and negative Effects on Indian industry W!" and Globalization Globalization and the future of the Indian economy# $ years ago %e ort &buse

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Globalization 0or Globalisation2 refers to increasing global connectivity and integration in the economic+ social+ technological+ cultural+ olitical+ and ecological s heres#In economics+ globalization is the convergence of rices+ roducts+ 5ages+ rates of interest and rofits to5ards develo ed country norms#627 Globalization of the economy de ends on the role of human migration+ international trade+ movement of ca ital+ and integration of financial mar'ets# !he International (onetary Fund notes the gro5ing economic interde endence of countries 5orld5ide through increasing volume and variety of cross8border transactions+ free international ca ital flo5s+ and more ra id and 5ides read diffusion of technology# !heodore 1evitt is usually credited 5ith globalization9s first use in an economic conte:t#1oo'ing s ecifically at economic globalization+ it can be measured in different 5ays# !hese centre around the four main economic flo5s that characterize globalization) Goods and services+ e#g# e: orts lus im orts as a ro ortion of national income or er ca ita of o ulation 1abor; eo le+ e#g# net migration rates< in5ard or out5ard migration flo5s+ 5eighted by o ulation 3a ital+ e#g# in5ard or out5ard direct investment as a ro ortion of national income or er head of o ulation !echnology+ e#g# international research = develo ment flo5s< ro ortion of o ulations 0and rates of change thereof2 using articular inventions 0es ecially 9factor8neutral9 technological advances such as the tele hone+ motorcar+ broadband2 Globalisation 0n2 is the > rocess enabling financial and investment mar'ets to o erate internationally+ largely as a result of deregulation and im roved communications> 8 to >ma'e 5orld5ide in sco e or a lication> 0Webster2# !he financial mar'ets+ ho5ever+ are 5here the story begins# In the late 1/?,s and early 1//,s+ the business model termed the >globalised> financial mar'et came to be seen as an entity that could have more than @ust an economic im act on the arts of the 5orld it touched# Globalisation came to be seen as more than sim ly a 5ay of doing business+ or running financial mar'ets 8 it became a rocess# From then on the 5ord too' on a life of its o5n# 3enturies earlier+ in a similar manner+ the techniAues of industrial manufacturing led to the

changes associated 5ith the rocess of industrialisation+ as former country d5ellers migrated to the cram ed but booming industrial cities to tend the ne5 machines# It is modern communications that ma'e it ossible< for the 4ritish service sector to deal 5ith its customers through a call centre in India+ or for a s orts5ear manufacturer to design its roducts in Euro e+ ma'e them in south8east &sia and sell them in north &merica# 4ut this is 5here the anti8 globalisation side gets stuc' in# If these ractices re lace domestic economic life 5ith an economy that is heavily influenced or controlled from overseas+ then the creation of a globalised economic model and the rocess of globalisation can also be seen as a surrender of o5er to the cor orations+ or a means of 'ee ing oorer nations in their lace# 1o58 aid s5eatsho 5or'ers+ G( seed ressed on develo ing 5orld farmers+ selling off state8o5ned industry to Aualify for I(F and World 4an' loans and the increasing dominance of BC and Euro ean cor orate culture across the globe have come to symbolise globalisation for some of its critics# Dot everyone agrees that globalisation is necessarily evil+ or that globalised cor orations are running the lives of individuals or are more o5erful than nations# Come say that the s read of globalisation+ free mar'ets and free trade into the develo ing 5orld is the best 5ay to beat overty 8 the only roblem is that free mar'ets and free trade do not yet truly e:ist# Globalisation can be seen as a ositive+ negative or even marginal rocess# &nd regardless of 5hether it 5or's for good or ill+ globalisation9s e:act meaning 5ill continue to be the sub@ect of debate among those 5ho o ose+ su ort or sim ly observe it# Globalization has various as ects 5hich affect the 5orld in several different 5ays such as) Industrial 0alias trans nationalization2 8 emergence of 5orld5ide roduction mar'ets and broader access to a range of foreign roducts for consumers and com anies Financial 8 emergence of 5orld5ide financial mar'ets and better access to e:ternal financing for cor orate+ national and subnational borro5ers Economic 8 realization of a global common mar'et+ based on the freedom of e:change of goods and ca ital# Eolitical 8 olitical globalization is the creation of a 5orld government 5hich regulates the relationshi s among nations and guarantees the rights arising from social and economic globalization# 6.?7 Informational 8 increase in information flo5s bet5een geogra hically remote locations 3ultural 8 gro5th of cross8cultural contacts< advent of ne5 categories of consciousness and identities such as Globalism 8 5hich embodies cultural diffusion+ the desire to consume and en@oy foreign roducts and ideas+ ado t ne5 technology and ractices+ and artici ate in a >5orld culture> Ecological8 the advent of global environmental challenges that can not be solved 5ithout international coo eration+ such as climate change+ cross8boundary 5ater and air ollution+ over8 fishing of the ocean+ and the s read of invasive s ecies# (any factories are built in develo ing countries 5here they can ollute freely# Cocial 8 the achievement of free circulation by eo le of all nations !rans ortation 8 fe5er and fe5er Euro ean cars on Euro ean roads each year 0the same can also be said about &merican cars on &merican roads2 and the death of distance through the incor oration of technology to decrease travel time# Greater international cultural e:change C reading of multiculturalism+ and better individual access to cultural diversity 0e#g# through the e: ort of Folly5ood and 4olly5ood movies2# Fo5ever+ the im orted culture can easily su lant the local culture+ causing reduction in diversity through hybridization or even assimilation# !he most rominent form of this is Westernization+ but Cinicization of cultures has ta'en lace over most of &sia for many centuries# Greater international travel and tourism Greater immigration+ including illegal immigration C read of local consumer roducts 0e#g# food2 to other countries 0often ada ted to their culture2 World85ide fads and o culture such as Eo'Gmon+ Cudo'u+ Duma Duma+ "rigami+ Idol series+ Hou!ube+ "r'ut+ Faceboo'+ and (yC ace# World85ide s orting events such as FIF& World 3u and the "lym ic Games# Formation or develo ment of a set of universal values !echnical;legal

Ievelo ment of a global telecommunications infrastructure and greater transborder data flo5+ using such technologies as the Internet+ communication satellites+ submarine fiber o tic cable+ and 5ireless tele hones Increase in the number of standards a lied globally< e#g# co yright la5s+ atents and 5orld trade agreements# !he ush by many advocates for an international criminal court and international @ustice movements# Cince World War II+ barriers to international trade have been considerably lo5ered through international agreements 8 General &greement on !ariffs and !rade 0G&!!2# Earticular initiatives carried out as a result of G&!! and the World !rade "rganisation 0W!"2+ for 5hich G&!! is the foundation+ have included) Eromotion of free trade) %eduction or elimination of tariffs< construction of free trade zones 5ith small or no tariffs %educed trans ortation costs+ es ecially from develo ment of containerization for ocean shi ing# %eduction or elimination of ca ital controls %eduction+ elimination+ or harmonization of subsidies for local businesses %estriction of free trade) Farmonization of intellectual ro erty la5s across the ma@ority of states+ 5ith more restrictions# Cu ranational recognition of intellectual ro erty restrictions# Globalization is also defined as the internationalization of everything related to different countries 6Internationalization ho5ever+ is a contrasted henomenon to that of Globalization7 It is only because of o ening the hitherto closed+ o ressive economy to globalisation that has hel ed Indian economy to gro5 ra idly in the last 1,812 years+ India9s economic gro5th has been high+ e: orts have boomed+ incidence of overty has been reduced+ India9s com anies are setting u com anies abroad+ India has better technological develo ment for the benefit of the common man 0 mobiles+ road trans ort+ chea clothes+ etcJonly because of globalisation# Effect of globalisation on Indian industry has been very ositive+ though some industrial firms 5ith the baggage of high cost+ inefficient lants and rocesses inherited from the ast because of closed economy9s government dictated industrial olicies and riorities had to face serious roblems in the beginning# 4ut soon most of the industries have become more and more efficient+ customer focussed and im roved their international com etetiveness in terma of costs+ rices+ roduct Auality and variety# Industrial gro5th has been very high and strong during the ast decade because of globalisation# E: orts have increased tremendously# Induan industries are also e: anding abroad# Foreign com anies have substantially increased their investments in Indian industries# Wages of industrial labour has increased substantially as they have become very roductive# 1oc' out and stri'es have declined to insignificantly lo5 levels because industrial labor is ha y# !hose 5ho cannot be efficient and ast their rime age tio retrain themselves in modern methods and rocesses have been retired 5ith very attractive voluntary retirement schemes# !he trade unions are finding it difficult to influence industrial 5or'ers into agitation because labor has started benefiting from the ositive fallout of globalisation on the ros erity and gro5th of the industrial sector# !alented and merited labor is commanding remium com ensation in the labor mar'et# Ceveral ne5 ty e of industries have also come u # Cmall scale industries of the ast has fast gro5n into medium scale com anies# Incidence of industrial sic'ness has gone done drastically# Fo5ever+ the communists 5ill not agree to this vie5 because 5ith industrial 5or'ers becoming richer follo5ing increasing demand for and the 5ages of industrial labour#resulting from liberalisation and globalisation# India has done very little reforms in agriculture to enable rivate and individual economic initiative that 5ould hel harness the benefits of globalisation# Ies ite this govt# created hurdles to globalisation+ Indian agriculture has benefited substantially from 5hatever little globalisation that has ben allo5ed in Indian agriculture#!he farmers that got the e: osure to global lin's of mar'ets+ technology and investment+ benefited in terms of im roving their yields+ getting better rices and secured offta'e# In many areas of the country+ tomatoe gro5ers+ otato farmers and fruit gro5ersfarmers benefited from tie8u and collaborations 5ith 'etchu + otato chi s+ fruit @uices+ etc# Indian agricultural e: orts have gro5n 5here Indian farmers in selected oc'ets are com etitive) these include s ices made from agricultural roduce+ flo5ers+ mangoes+ other

fruitsrice+ vegetables+ ic'els+ a ads+ tobacco+ etc# !he e8chou als net5or' created by an Indian com any and the s read of mobile tele hones have rovided on line mar'et rice and climatic information on on8line real8time basis and hel ed them to get the best rices and sell to the most attractive buyers and brought them freedom from the clutches of the middlemen and traders# 4ecause of the resistance from the traders and the oliticians+ more and more farmers are not getting the benefits of globalisation) vested interests are sto ing the entry of more rofessional and honest buyers of agricultural roduce of high Auality for su ly to urban areas through net5or' of malls# Fishermen in Kerala have increased their incomes using mobile hones to find out the best mandis 5here the rices are the highest on each day# !here have not been any negative effect of globalisation on Indian farming# 4ut faulty and restrictive olicies of Indian oliticians have made it difficult for farmers to consolidate their holdings for larger scale commercial farming+ acess to large+ high aying buyers 5ith retail chains+ su ort of 5ell8 organised trans arent mandis not ruled by traders# &s a result in many areas farmers have committed suicides because of cro failuers and high indebtedness# Bsing the old 4ritish Indian la5s of land acAuisition+ the state govts# are forcing farmers to sell their lands for industries at rices they consider @ustified rather than as'ing industrialists and com anies to bid for agricultural land 5hich 5ill increase the mar'et rices of land+# "nce these olicy im ediments are removed+ globalisation 5ill roceed in &griculture and farming in the ro er 5ay and benefit Indin agriculture and farming throughout the country# India does not need all the land under agriculture no5 for agricultural use) much less area 5ould suffice to feed the nation and e: ort if agricultural roductivity can be raise substantially through rivate investment in agriculture by com anies that need agricultural roduce for their business gro5th and India9s economic gro5th## For more information of both ositive and negative as ects visit htt );;555#aciar#gov#au; ro@ect;&IE;1//.L 555#navdanya#org; ublications;5omen8agL 555#aciar#gov#au; ro@ect;&IE;1//.;,2M 555#highbeam#com;doc;1G1811?$/?M11#htmL For research 5or'+ trash 5ritings 5ithout logical analysis and su erficial 'no5ledge may also be reAuired for that visit htt );;ans5ers#yahoo#com;Auestion;<JyltNL or 555#navdanya#org;ne5s;,*@an*#htm or aifo#it;english;resources;online;###;*81L 4ut these are useless trash and these su erficial 'no5ledge is hindering Indian Farmers9 ros ertity# Fo5ever to get good mar's in India you must 5rite some such trash !he World !rade "rganization 0W!"2+ 0 is an international organization designed to su ervise and liberalize international trade# !he W!" came into being on Oanuary 1+ 1//$+ and is the successor to the General &greement on !ariffs and !rade 0G&!!2+ 5hich 5as created in 1/.-+ and continued to o erate for almost five decades as a de facto international organization# W!" deals 5ith the rules of trade bet5een nations at a near8global level< it is res onsible for negotiating and im lementing ne5 trade agreements+ and is in charge of olicing member countries9 adherence to all the W!" agreements+ signed by the bul' of the 5orld9s trading nations and ratified in their arliaments# Ioha round 5as to ma'e globalisation more inclusive and hel the 5orld9s oor+ articularly by slashing barriers and subsidies in farming# !he initial agenda com rised both further trade liberalization and ne5 rule8ma'ing+ under inned by commitments to strengthen substantially assistance to develo ing countries#!he tal's have been highly contentious and agreement has not been reached+ des ite the intense negotiations # Devertheless+ in his re ort to the W!" General 3ouncil on February -+ 2,,-+ 1amy said that > olitical conditions are no5 more favorable for the conclusion of the %ound than they have been for a long time>#!he W!" is too often misunderstood+ sometimes genuinely+ often 5ilfully# &t the moment+ 5e are 5or'ing on a ac'age to hel the 5orld9s oorest countries rea greater benefits from the 5orld trading system# !his ac'age includes better access to rich8country mar'ets+ increased technical assistance+ and closer co8o eration bet5een the W!" and other global institutions that romote develo ment+ notably the World 4an'# &nd 5e are trying to ma'e the W!"9s 5or' even more accessible to the man and 5oman in the street# We are constantly im roving our 5ebsite+ 555#5to#org+ so that it offers an even greater 5ealth of

information# W!"9s mandate of o ening u mar'ets re resents an essential contribution to the develo ment of so many human beings on our lanet# !he im act of the World !rade "rganisation 0W!"2+ established in 1//$+ has gone largely unnoticed by the ma@ority of oliticians+ DG"s and citizens# !rade+ ho5ever+ is an im ortant as ect of the current 5ave of globalisation and its influence is felt from the global level to eo les9 daily ractices# W!" has to coo erate 5ith the World 4an' and the I(F 95ith a vie5 to achieving greater coherence in global economic olicy8ma'ing9# 3oo eration agreements bet5een the W!"+ the World 4an' and the I(F have been signed but there is no high level macro8economic co8 ordinating mechanism to deal 5ith debt+ trade imbalances and budget deficits 8 all obstacles to 5ea'er economies benefiting from 5orld trade# 3o8o eration seems to occur mostly at the o erational and country level such as e:changing information and e: ertise at meetings and among officials 0e#g# on balance of ayment roblems of a articular country2# %ecently+ the World 4an' and the I(F have been involved in efforts to coordinate technical assistance for each of the 11I3s 0see belo52# Cuch co8o eration increases the danger of @oint conditionality to5ards total free trade in develo ing countries# !he ministers at their 3onference in Cinga ore envisaged 9a 5orld 5here trade flo5s freely9# !he W!" is considered instrumental for furthering globalisation+ a rocess 5hich the ministers and trade officials claim has the ca acity to increase economic gro5th and em loyment### and 9hel ut a tele hone in every village 8 something that can ma'e the difference bet5een life and death9 0W!" Iirector General9s o ening s eech in Cinga ore2#!he reamble of the W!" states that trade relations should contribute to raising standards of living+ ensuring full em loyment+ increasing income+ and e: anding roduction and trade 5hile res ecting the environment and the different needs of the member countries at different levels of economic develo ment# De5 agreements are being ushed through+ such as on liberalising information technology roducts+ in the interest of the BC and the EB on the assum tion that chea er rices increase economic gro5th+ 5ithout an assessment of the im act on em loyment and on develo ing countries# !he W!"9s !rade Eolicy %evie5 (echanism 0!E%(2 does not evaluate the im act of its rules on 5or'ers+ consumers+ eo les lives and sustainable develo ment# !E%( is biased to5ards ensuring im lementation of W!" rules+ trade liberalisation and enhancing trade# Furthermore+ trade olicy8ma'ers and W!" staff lac' the ca acity and interest to incor orate gender analysis in the !E%(# !he W!"9s basic assum tion is that its rules contribute to trade and investment liberalisation 5hich leads to more com etition+ better allocation of resources+ economic gro5th+ more em loyment and better living standards+ including environmental conservation# &lthough the W!"+ and G&!! in the ast+ have incor orated s ecial measures for 5ea'er economies+ there are many itfalls in the current system# !he W!" considers the distribution of the benefits of trade to be not a matter for the W!" but for each country individually# (any facts and figures sho5+ ho5ever+ that the current global economic and trade system incor orates an uneAual distribution of benefits# !rade figures need to give information on the actual trade o erators+ the com anies+ es ecially those 5hich have been ushing for globalisation and lobbying hard for the Bruguay %ound to finish# !hese multinationals cover most of the 5orld9s commodity trade+ investment and intellectual ro erty rights 0see !%IEs belo52# .,P of 5orld trade concerns trade 5ithin multinationals and around a third of 5orld trade relates to trade among multinationals# (ore information on 5or'ers+ consumers and com anies might hel the W!" meet its original aims# &t the Cinga ore (inisterial conference many eu horic statements 5ere made about the achievements of globalisation and the W!"9s contribution to this rocess# Globalisation is not only the result of technical innovations+ ca ital concentration+ the geogra hic s read of roduction rocesses and other com any strategies to im rove rofit8ma'ing 5orld5ide 2. hours a day# Eolitical decisions by governments to remove institutional barriers to international trade and ca ital flo5s and to rovide incentives for com anies have also su orted the globalisation rocess) at national level through unilateral liberalisation and structural ad@ustment for e: ort8led gro5th+ and through labour and social olicy reform< at regional and multilateral levels+ through agreements on trade and investment liberalisation#

!he W!" is the most im ortant regulator of trade at international level and also sets the terms 5ithin 5hich regional agreements can be signed# In this 5ay+ globalisation is managed at 5orld level from a trade ers ective# !he significance of the W!" for globalisation is that more than 1*, countries must @ointly o en u their economies to each other and abide by common rules ma'ing it easier to trade and invest# !he W!" also brings a 5ide range of economic sectors into the ambit of the global economy# W!" members have to im lement a series of agreements and obligations 5hich they negotiated in the Bruguay %ound) the agreement on trade in goods) tariff cuts and liberalisation of industrial roducts< liberalisation of te:tile and clothing im orts in the industrialised countries over 1, years< reform of trade and domestic olicies in agriculture 5ith some reduction in government e: ort subsidies< rohibition of conditionality on investment measures that restrict trade 0!rade %elated Investment (easures8!%I(s2< tightened rules on subsidies+ safeguard measures 05hich allo5 a country to halt im orts if an industry is in danger2 and anti8dum ing 0against sales belo5 roduction cost2# the agreement on trade in services 0G&!C2) a series of obligations such as ma'ing information on la5s that concern services easily accessible 0trans arency2< mar'et access and a lication of the G&!C obligations to foreign com anies in the service sectors selected by a given country from a list# the agreement on trade related intellectual ro erty rights 0!%IEs2) inforcement in all W!" member countries+ during a s ecified eriod+ of co yrights+ trademar's+ industrial designs+ atents+ trade secrets+ etc# registered in one of the member countries# !he W!" continues to broaden its reach as a forum for continuing negotiations on liberalisation and rule8ma'ing# (any of the above agreements included the timing for ne5 negotiations) &greements 5ere reached in Cinga ore to eliminate duties on information technology roducts 0e#g# com uters+ fa: machines2 and to give an additional .,, harmaceutical roducts duty free access in some countries# Degotiations to liberalise trade in basic telecommunications 5ere concluded early 1//-# Further liberalisation of financial services 0e#g# ban'ing+ insurance com anies2 is to be decided by the end of 1//-# De5 W!" 5or'ing grou s are e: loring future multilateral agreements on investment and com etition olicy# !he W!" ma'es an im ortant contribution to globalisation by covering so many sectors and allo5ing greater interaction of national economies+ foreign direct investment and ca ital mar'ets# !he W!" is a small governance system 5here 5e already have a fe5 elements in lace) 5e have a multilateral system that recognizes different values+ including a consensus on the benefits resulting from mar'et o ening+ but also other values such as the need to res ect religion or the right to rotect the environment and it is no5 clearly recognized that non8trade values can su ersede trade considerations in some circumstances# We have a system that is based on state and government but 5hich has been able to ada t to ta'e into account ne5 actors on the international scene< and 5e have a system that has a o5erful mechanism to solve dis utes# 4ut the international trade system and the W!" are far from being erfect and many things could be im roved# For the o ening u of mar'ets to roduce real benefits in the everyday lives in the countries concerned 5e need rules that rovide for a level laying field+ that ensure ca acity building+ and that enable (embers to im rove their domestic governance# 4ut 5hile the o ening u of mar'ets stimulated by the W!" has the otential to roduce benefits for many+ it also has its costs+ 5hose distribution is largely beyond the W!"9s control# We cannot ignore the costs of ad@ustment+ articularly for the develo ing countries+ and the roblems that can arise 5ith the o ening u of mar'ets# !hese ad@ustments must not be relegated to the future) they must be an integral art of the o ening8u agenda# We must create a ne5 QGeneva consensusR) a ne5 basis for the o ening u of trade that ta'es into account the resultant cost of ad@ustment# !rade o ening is necessary+ but it is not sufficient in itself# It also im lies assistance) to hel the least8develo ed countries to build u their stoc's and therefore adeAuate

roductive and logistical ca acity< to increase their ca acity to negotiate and to im lement the commitments underta'en in the international trading system< and to deal 5ith the imbalances created bet5een 5inners and losers from trade o ening S imbalances that are the more dangerous to the more fragile economies+ societies or countries# 4uilding the ca acity they need to ta'e advantage of o en mar'ets or hel ing develo ing countries to ad@ust is no5 art of our common global agenda