GLOBALIZATION IS ANTI-POOR

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By Deepthi.P.Anikar style Harsha Vardhan Naveen Kumar Rajaji Sunil

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What is Globalization?
Globalization is a process of greater integration within the world economy via increased openness to: International trade International capital and labor movements International flow of technology International flow of information, knowledge and ideas

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Globalization & India

India went through economic reforms from 1991. The major ones are:

Reductions in import duty Removal of restrictions on imports Devaluation of currency Removal of permissions on setting up enterprises and

expansion of capacity Removal of permission of controller of capital on share premium account on issues of shares Privatization of public sector units Membership of WTO Easier entry of multinationals
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Impact of Globalization
1) )

Economic Impact Widening income gap between the rich and the poor

The rich developed countries prosper with better opportunities while the poor developing countries face economic uncertainties like retrenchment Widening income gap can lead to social problems, increasing tension between the rich and the poor

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Impact of Globalization
2) )

Social Impact Increased Awareness of Foreign Culture

Travel, the Internet, mass media (products of globalisation allow you to learn more about foreign culture

Loss of Local Culture

Global (Western) brands dominate consumer markets in developing countries Creation of homogenous culture across the world Spread of pop culture and erosion or loss of local culture

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Impact of Globalization
3) ) )

Environmental Impact Depletion of natural resources by TNCs Concern over profits vs. protection of the environment Lack of funds to implement environmental protection Environmental Degradation

Deforestation and Related Problems Global Warming Environmental Management

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Impact of Globalization
3) )

Environmental Impact Environmental Degradation

Deforestation and Related Problems

Rainforests cut to make way for development Rainforests cut down for industries, agriculture, housing, forestry, cattle ranches Planting of cash crops Projects to achieve higher level of economic development

Global Warming Environmental Management

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Impact of Globalization
Economic Good Effects - Improvement in Standard of Living - Competition Among Nations (Investment & Market) Social Environmental Good Effects Good Effects - Increased Awareness of - Environmental Foreign Culture Management

Bad Effects Bad Effects -Competition Among - Loss of Local Culture Nations (Talent) - Widening Income Gap between the Rich and the Poor

Bad Effects - Global Warming - Deforestation and Related Problems

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Strategies to Maximize Opportunities and Overcome Challenges

Managing Resources Efficiently

Developing Attracting Managing

People

Foreign Talent the Environment

Managing Limited Land Resources Co-operation with Regional and International

Organizations
Public Education
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Strategies to Maximize Opportunities and Overcome Challenges

Managing Resources Efficiently

Promoting Local Entrepreneurship and Technopreneurship Amending bankruptcy laws to allow failed entrepreneurs to start again Recognizing outstanding entrepreneurs

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Transmission Mechanisms

Globalization affects poverty through many different channels: Growth Inequality International capital movement and labor migration

Technology Information Vulnerability

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First Channel Of Transmission

The first and most important of the mechanisms through which the process of globalization affects poverty directly and indirectly is the GrowthInequality-Poverty channel

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Globalization And Inequality And Poverty

If the policy of Globalization improves both growth and distribution poverty would unambiguously reduce. If growth is accompanied by adverse distribution effect, it would dampen the impact of growth on poverty. Simulation exercise to isolate the effect of inter personal, rural-urban inequalities and growth on poverty. 7/3/12

Facts on Poverty

Source:

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Facts on Income Distribution

Source:

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Advanta Increased ges free trade between nations

nations to invest in developing nations

Increased liquidity of capital allowing investors in developed

Corporations have greater flexibility to operate across borders Global mass media ties the world together Greater ease and speed of transportation for goods and people Greater interdependence of nation-states Reduction of likelihood of war between developed nations

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DISADVATA GES Increased flow of skilled and non-skilled jobs from developed to
developing nations as corporations seek out the cheapest labor

Threat that control of world media by a handful of corporations will limit

cultural expression
Greater chance of reactions for globalization being violent in an attempt

to preserve cultural heritage

International bodies like the WTO infringe on national and individual

sovereignty
Increase in the chances of civil war within developing countries and open

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business and has communication between various parts of the globe It has potential to make this world a better place to live in It is changing the political scenario thus deepseated problems like unemployment; poverty and shift in power are a chance the exhibit The marginal are getting coming to a to picture in the world market. The term brand is catching up in the Asian countries It, however, is not only modernizing but also westernizing and to an extent also Sinicizing the One Americannative cultures. out his billing is trying to sort

CONCLUSI ON Globalization has made way for free trade and

issue of his mobile phone with an Indian who is not 7/3/12 a direct employee of the service provider .