The Strategy for Economic Reform in a Globalised World continues....


Globalization has five dimensions: Internationalization of production, liberalization of regulations, universal standardization of weights, measures, and quality, de-territorialisation and westernization of tastes. In order to make the process socially tolerable and morally adequate in all the five dimensions, The Indian and Iranian civilizations have a special responsibility in spelling out the boundaries and its markers within which the process of globalization will be circumscribed. Unbridled globalization will most likely erode the binding sense of community, interpersonal trust, and the traditional family-based acceptance of responsibility of the underprivileged that is the hallmark of Indian and Iranian society. This is because the implied acquisitive and materialistic individualism which is at the core of unbridled globalization, undermines the values of social conscience or even tribal loyalties that exist in traditional cultures.

Hence, in the name of sailing along with the globalization process, it is imperative that Laissez Faire is not adopted. On the contrary, it is all the more essential that the State step in as and when it is necessary to prescribe limits to the reach of globalization and impose reasonable justiciable restrictions to correct the abuses. Survival of the fittest, the core of Laissez Faire, must decisively be rejected as a social doctrine. Modern society has to provide safety nets for the weak or under privileged.

This parameter in the strategy to meet the challenge of globalization will require a new governance that requires a very alert government because globalization means much greater financial volatility, shorter boom bust cycles, employment insecurity due to relocation, and even health hazards such as from AIDS: in 1996, there was just one case of HIV positive in India; in 2004, it was 5 million! All these leave a very short reaction time for Government intervention. The potential of destabilized economies due to globalization is thus large and hidden. The East Asia Crisis of 1997 and the recent Argentinean crisis are clear warning signals in this regard.


to be continued...