Essays

Globalization is denned as "the development of an increasingly integrated global economy through reduction of barriers to international trade and is marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets,"

This means globalization is a process by which regional and local economies,   societies,   and   cultures   integrate   through communication, transportation and trade- The term also refers to the transnational circulation of ideas, languages, or popular culture through music or films.

However, globalization is largely associated with its economic sense i.e. the integration of national economies through free flow of trade, foreign direct investment, capital flows, migration, spread of technology and military equipments.

The process of globalization has been an integral part of the recent economic progress made by India. The economic reforms of 1991 have enabled India to emerge as an open economy with no restrictions on exchange of goods and services. Resultantly, the past two decades have witnessed the commerce of everything— from steel to Hollywood, to cars to IT. Indian economy has thus emerged robust, leading to the enlargement of the job market in India.

One of the major forces of globalization in India has been in the growth of outsourced IT and business process outsourcing (BPO) services. The last few years have seen an increase in the number of skilled professionals in India employed by both local and foreign companies to service customers in the US and Europe in particular. Taking advantage of India's lower cost but educated and English-speaking work force, and utilizing technology such as voice processing, email and the internet, international enterprises have established their outsourced knowledge-worker operations in India and likewise many Indian companies have expanded their business in other countries- For example, IT giant Infosys has 65 offices and 63 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland. Netherlands, Poland, Canada and many other countries. The company's Global Delivery Model (GDM) is based on the principle of taking work to the location where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk. Also, telecom connoisseur Airtel currently has 181 operators in 78 countries and is expanding its base to Africa to capture the unsaturated and lucrative markets there. In contrast, international companies like Pepsi. KFC and McDonald's, have been well accepted by Indians at large.

Globalization has also played a major role in export-led growth, and India's foreign exchange reserve as on August 2011 amounts to 3,17,226 million US $.

While globalization has brought prosperity for a few countries and sections, it has also led to the deepening of poverty and inequality, and marginalization and exclusion of a vast majority. The dark side of globalization cannot be ignored as the distribution of capital remains highly asymmetrical. The rapid growth of global markets has not seen the parallel development of social and economic institutions to ensure balanced, inclusive and sustainable growth for all. There is a growing divergence in income levels between countries and peoples, with widening inequality among and within nations. Also, globalization has accelerated the transnational flows of terrorism, human and drug trafficking, organized crime, piracy, and pandemic diseases.

However, the outright rejection of globalization and a retreat into closed economy is neither practical nor desirable. There is a need to find balance between openness and regulation. Absence of regulation leads to exploitation of natural resources, illegal trafficking, terrorism and other related crimes. It is important to keep a watchful eye on the influx and out flux from a country to prevent crimes that thrive in the free exchange between the national and the international. The growth in transnational flows should be matched by an equivalent growth in governance mechanisms to regulate them.