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

The question here is how to meet the challenge of these trends in globalization and how countries like India can figure and fit in it. There is no doubt that developed countries are today led by the United States and collectively dominate this globalization process. Furthermore, nowadays a large number of developing countries follow the lead of the US. This can be seen today in any international conference. Hence, there is a challenge for countries like India and China, ancient nations that cannot be followers, but which are not yet sufficiently economically developed to be by themselves significant factors to command either co-option by the developed countries, or in the alternative be in a position to form a parallel economic order.

One thing is perfectly clear to me, that is, it is not wise to opt out of the globalization process today since the process has already acquired a near universal acceptance and almost an irresistible momentum. The WTO, for example, has a membership of 146 countries, as of 1.1.04, who are ready to accept its rigorous rules, and thus enjoy automatically, the mutual Most Favoured Nation (MFN) status. To exit the WTO would hence mean negotiating bilateral trade treaties for exports, a horrendous and tough exercise, in which there will be few takers ready to sign such treaties leave alone grant MFN status.

Hence, it is prudent to stay with the globalization process and search for ways and means to carve out one’s own corner and niche in it. That is what I advocate for my country. (I dare say that the logic for India applies in large measure to Iran too for the same reason as I will summarise below). This is one parameter that has to be a marker or “bottom line” to meet the challenge of globalization. Not to quit!

to be continued...

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