The Struggle for a Fair Globalization
Fair Globalization means equal and fair opportunities for all the economies nationwide. Fair Globalization makes sure that it includes the welfare of all. It should not only benefit the richer and more powerful section of the country but should benefit each and everyone to call it a healthy and fair globalization.
Units of India have been facing problems like strong competition, least secure jobs, uncertainty in employment and so on which makes it unfair for a specific section of the society. There is a strict need to protect the interests of the ones who are suffering and not favor only the richer section.
Role of Government for Fair Globalisation
- First of all, the government should take care of the fact that the labor laws are implemented in a proper way so that no worker has an unfair or biased experience. It is the duty of the government only to ensure that the rights of the workers do not get compromised in any case.
- Secondly, the government can provide better opportunities to the manufacturers who produce at relatively fewer scales. It should encourage and strengthen them till they don’t become sufficiently strong to be in competition with large-scale producers. Otherwise, large producers can easily dominate these small producers.
- Thirdly, the government should extend assistance to these small producers in a way that government helps them in enhancing their efficiency and performance. All types of subsidies, training and development programs, and lending easy loans i.e. at a low rate of interest would definitely help the small producers to improve.
- Fourthly, governments of developing countries can collaborate and can come together to create resistance against the predominance of developed countries. Government can fix onto some specific items, goods, and services which can only be produced by these small-scale producers only. Restricting goods and services for small producers allow these small producers to not only be able to grasp new opportunities but at least be in a safe zone to produce what is being restricted for them.
- Fifth, the government can make good use of the WTO organization. WTO (World Trade Organization) is basically an organization that came into existence with the purpose of liberalizing trade globally. WTO is majorly responsible for making policies and rules regarding international trade. So, the government in negotiation with the WTO can land on some better and fairer resolutions.
- Sixth, barriers to trade and investment are usually used to restrict trade and investments entering any country like a quota system and import restrictions. But under the persuasion of WTO, developing countries usually lift these to allow free trade. So, in the case when some developed countries keep back those trade and investment barriers, it is essential to bring a balance and promote fairness. So, if required barriers in regard to trade and investment can be put to use.
But not only government responsible for sustaining the fair effect of globalization but the public in general that is people of any country are equally responsible for that. In many countries, people have been demonstrating on roads, holding campaigns, and striking peacefully sometimes aggressively to put a difference when it comes to taking decisions at the large.
So, the people from the past few years have been really active about their right to fair competition. This awareness has been affecting the very important decisions of the country regarding trade and investments of the country. Hence, people are also significant when it comes to the struggle for fair Globalization. Following is an example to illustrate the bad impact occurring due to unfair globalization.
Case of Rising Competition
Many small-scale producers have been hit hard due to the advent of globalization. Let’s discuss it more with the case of an industrialist named Mohan from a small town in Andhra Pradesh.
Mohan in the year 1991 started manufacturing electric connectors by borrowing a loan from a local bank. Electric connectors are used in almost every electric appliance like home and commercial appliances, televisions, tube lights, etc. Also, gradually Mohan extended his business and could employ around 15-20 employees under him within the span of 4 years. But then in 2001, governments of the countries had to agree with WTO to lift the restrictions on importing connectors from foreign countries.
This import policy challenged the production of every small-scale producer of electric connectors like Mohan all over the country because television companies now buy these connectors from foreign companies now as these are available at half of the prices which earlier they used to order in large quantities from Mohan. Then the production of the year 2000 has drastically reduced to a lesser quantity in 2001, also the employees have reduced to almost half. Many production houses like Mohan’s in varied cities and states have been shut down. Not only market of these have been facing challenges but also markets for toys, capacitors, dairy products, food markets, clothing, batteries, etc. are struggling. Many have lost their jobs and suffered losses, especially in the labour intensive countries like India.
FAQs on Fair Globalization
Question 1: What do you understand by “Fair Globalization”?
Globalization is said to be fair when it creates equal and fair possibilities for every producer countrywide. These producers could be anyone operating either at small or the large level. Fair globalization ensures that the benefits arising out of its implementation incorporates welfare of everyone.
Question 2: What is meant by trade barriers? And how trade barriers are related to globalization?
As the name suggests, trade barriers like import quota, tax on imports are basically the barriers or the restrictions being enforced by any government to stop any of the trade entering to the country from the countries outside. The purpose of enforcing trade barrier is nothing but to increase the prices of the imports so that only those who can afford actually purchase them from outside the country.
Trade barriers and globalization have an indirect relation with each other that is globalization implies free trade areas i.e. lifting trade barriers from the country. Government can adjust the trade barriers when it comes to protect the small producers of the country.
Question 3: Explain WTO.
WTO stands for World Trade Organization, an organization which is responsible to ensure free and fair trade practices nationwide. This initiative was taken with the purpose to make the international trade more liberalized. All the rules and regulations in regard to international trade are made by WTO. All the developed and developing countries have to follow the rules made by the organization. WTO is also responsible for removing trade barriers to allow free trade.
Question 4: How can the government ensure fair globalization?
Government ensures fair globalisation to it’s people by ensuring labour laws of country followed so that the workers are not exploited, supporting small producers to improve their performances so that they remain relevant against the competition of MNCs.
Question 5: How can government solve the problem of globalization?
By providing better education, apprenticeships, career training and less rigidness for labour markets.
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