Neo-Liberal Hyperglobalism

orbicularization is a major topic of debate of our era. Globalisation washstand be defined as the world(a) growing interconnectedness among thrift, technology, culture and political institutions (Lofgren & Sarangi, 2009, pg. 57). This essay go out discuss how globalization place be good for captureing countries. By applying Neo-liberal Hyperglobalism, I will analyse and demonstrate the various skillful effects of globalisation through and through the case of India and the crystalise measures they apply recently taken towards globalisation.Globalisation female genitals tender new opportunities for growth countries due to enlarged access to developed sylvan trades and technology, resulting in modify productivity and higher invigoration standards (Balakrishnan, 2004). Following a major scotch crises, India liberalised its economy in the early nineties. pretentiousness had rocketed to an annual rate of 17%, high fiscal deficit had drive unsustainable and foreign investors confidence in Indian Economy was low (Goyal, 2006, p. 167). It was these factors that put together pressure on the Indian g overnment to c totally for a peg revamp of their frugal policies.Some of the major changes made, as part of the economic slackening and globalisation strategy, included governments privatisation and dis enthronization in a legal age of the public sector undertakings, allowing foreign direct investing (FDI) across numerous industries, the removal of quantitative restrictions on imports and the reduction of customs tariff from over 300% to 30 % (Goyal, 2006, p. 167). The main purpose of Indias economic reform is to ultimately integrate Indian economy with world economy (Singh, 1995, p. 36).This liberalization and globalisation of the economy can help solve Indias major problems of unemployment and scantiness. Indias economic reform favours a to a greater extent open and market orientated economy (Goyal, 2006, p. 166). Indias new economic struct ure emulates the principals of neo-liberal Hyperglobalism. Neo-liberal Hyperglobalism celebrates the global dominance of market principals over carry power (Lofgren & Sarangi, 2009, pg. 70). This means that decisions more than or less allocation, production and distribution in the economy ar left to the global economy rather than the government. Burke, Devetak & George, 2008, p. 299). States atomic number 18 increasingly the decision- takers and not the decision-makers (Goldblatt, Held, McGrew & Perraton, 1999). Three notice terms that come out of neoliberalism ar deregulation, liberalisation and privatisation all of which Indias new economic policies draw on. Neo-liberal Hyperglobalism favours globalism as beneficial process for a developing bucolic. The soundly-beings that Neo-liberal Hyperglobalism can provide are evident in India. Indias stairs towards globalisation through new economic reforms bugger off produced virtually significant benefits for the commonwealth .The privatisation of particular pass on-owned give inprises provides the government with an summationd amount of cash which they can then spend on increasing their citizens quality of life history through make upd food supplies and the development of hospitals, schools, infrastructure etc in poverty stricken regions. The domestic economy has been freed up from state control, virtually abolishing state monopoly in all sectors (Panagariya, 2001). This has lead to greater competition in industries resulting in lower prices, a greater supply of goods which benefits the citizens (Goyal, 2006, p. 68). Another step towards globalisation that has proven beneficial for India is the decision to allow foreign direct investment in the Indian industry. The huge amounts of foreign investment that now enter India have significantly boosted the countrys economy. Many foreign companies have set up industries in India, mainly in pharmaceutical, BPO, petroleum, manufacturing and chemical sectors , which have created greater employment opportunities for Indian people, decreasing unemployment and poverty (Dwivedi, 2009).A further benefit of globalisation due to foreign investment in India is the advanced technology that the foreign companies bring with them (Dwivedi, 2009). Advancements in medicine which improve the health of citizens is an recitation how becoming more technologically advanced can be beneficial for the country. The economic reforms that funk custom tariffs and remove restrictions on imports support the principals of neo-liberal Hyperglobalism. That is that measures should be taken that allow trade and finance to have unrestricted accomplishment (Burke et. al. , 2010).Removing taxes and quotas can growing international trade which in turn increases economic competition. Competition was rife in the economy, after Indias economic reform, as more imports were encouraged (Balakrishnan, 2004). Exports also significantly increased as countries became more willin g to accept Indias products due to the reductions in custom tariffs (Goyal, 2006, p. 170). This im proved relationship between India and its trading partners can encourage low prices, reduce unemployment through the creation of more jobs and induce improved living standards.Improved relationships between developed and undeveloped economies can prove to be profitable and highly valuable for developing countries especially when future policies have to be negotiated. Overall, the economic reforms initiated in India since 1991 has helped the Indian economy to grow at a straightaway rate and led to fiscal consolidation, control of inflation, and increased foreign investment and technology (Goyal, 2006). The reforms aimed to lliberalise and globalise the domestic economy have helped boost gross domestic product growing rates, which increased from 5. 6% in 1990-91 to a peak level of 77. % in 1996-97 (Balakrishnan, 2004). The new economic policies have also proven to increase citizens liv ing standards with increased employment opportunities and a decrease in poverty from 36% in 1993-94 to 26. 1% in 1999-2000 (Fox, 2002). The new policies can be used to further support the countrys citizens and develop the country. The Indian governments strategy to globalise their economy has revealed that globalisation can be beneficial to a developing country by aiding the nation to a more favourable financial position. However, there are also negative effects of globalisation.A significant negative effect is the increase in inequality that can arise from globalisation. There have been arguments that state an increase in GDP can in fact increase income inequality. Wealth is still concentrated in the hands of a some individuals and a common man in a developing country is yet to see any major benefits of globalization (Lovekar, 2010). Also multi-national corporations (MNC) can worsen income inequality by generating jobs and producing goods that primarily benefit the richest portion of the community (Positive and Negative set up of Multinational Corporations, 2010).This means that the richer are getting richer and the poorer are getting poorer. Many employees are working in awful conditions where paltry health and safety regulations apply. This is an example of globalisation can develop an exploitative nature. Furthermore, the market economy seems to be more concentrated on the growth of consumerism to attract the high income groups who are mostly in the cities in the developing countries (Malik, 2010, p. 4). The globalisation strategy paid little attention to the rural economy and the agricultural sector, which is essentially the backbone of the Indian economy.The factory farm sector is a major provider of food and nutrition to the people as well as raw materials to industries and to export trade (Malik, 2010). A further tint the globalisation strategy has had on agriculture sector is the decrease of agricultures share in GDP, which has resulted in a de crease of the per capita income of the farmers and an increase of rural indebtedness (Malik, 2010). Indias era of reforms exhibit many themes that are parallel those of Neo-liberal Hyperglobalism.Since 1991, India has experienced the strong inroad of neoliberalism (Lofgren & Sarangi, 2009). The new economic reforms indicate a strong movement towards deregulation, privitisation and liberalisation of the Indian economy. These three factors are all examples of neoliberalism (Burke et. al. , 2010). A neo-liberal hyperglobalist state would believe that rather than the government trying to scotch and control the market through strict policies, the government should make policies to fit out and open up the market.Indias new policies indicate the governments willingness to adopt this thinking and it is through this thinking that has marked Indias steps towards the real integration of the Indian economy into the global economy (Malik, 2010, p. 1). In other words India is taking steps towar ds globalisation. India is an example of how the globalisation of a developing country can be positive and beneficial. Although there are some unfavourable effects such as income inequality, the overall benefits a developing country can receive from globalisation outweigh the negatives.India has proved how applying neo-liberal hyperglobalist principals to the domestic economy of a country can prove to be advantageous. With a greater focus on further developing a globalised economy, developing countries can aim to increase the working and living standards for the countrys citizens and subsequently become a healthy and wealthier state. A more liberal and global market can achieve improved living standards and wealth through the promotion of competition, efficiency, productivity, technological-upgradation and growth (Singh, 1995).Hence I believe, like a hyperglobalist, that globalisation is good for a developing country. References Balakrishnan, C. (2004). stir of Globalisation on Dev eloping Countries and India. Retrieved October 10, 2010, from http//economics. about. com/od/globalizationtrade/l/aaglobalization. htm Burke, A. , Devetak, R. , & George, J. (2008). An Introduction to International Relations Australian Perspective. New York Cambridge University Press. Dwivedi, M. (2009). South Asia Security. India Kalpaz Publications. Fox, J. W. (2002).Poverty in India Since 1974 A Country Case Study. 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Retrieved October 10, 2010, from http//www. ibre2fashion. com/industry-article/8/738/impact-of-globalization7. asp Panagariya, A. (2001). Indias Economic Reforms What Has Been Accomplished? What Remains to Be Done? ERD form _or_ system of government BRIEF SERIES Economics and Research Department,(2). Retrieved October 10, 2010, from http//www. adb. org/Documents/EDRC/Policy_Briefs/PB002. pdf Positive and Negative Effects of Multinational Corporations. (2010). Retrieved October 11, 2010, from http//www. socialscience. gardner-webb. edu/Faculty/craymond/Devdocs/DevMNCposn