Transcript Globalisation - Albert Christopher Dhas

Globalisation and Economic
Reforms in India
R.Albert Christopher Dhas
The American College, Madurai
[email protected]
Coverage of Presentation
•
•
•
•
•
•
•
Definition
Major Dimensions
World Profile
Major Players
Arguments For and Against
Challenges
Economic Reforms
Globalisation - Definition
“Globalization” is a process of
interaction and integration between
the people, companies, and
governments of different nations, a
process driven by international
trade and investment and aided by
information technology.
The movement towards the
expansion ties between
countries through the spread
of capitalist philosophy that
leads to the shrinking of the
world in economic terms.
• Globalisation is a global movement of
ideas, people and goods from one
region to others, benefiting the people
at large.
• Globalization refers to all those
processes by which the peoples of the
world are incorporated into a single
world society, global society.
• Globalization means the onset of the
borderless world.
• Globalisation is a deliberately adopted
economic policy towards the process of
international integration as a result of
acceleration in the flow of trade,
assets, technology, information and
ideas across national boundaries.
In short, Globalisation is the process
of integrating countries together
through International Trade.
Globalisation could involve all these things!
Globalisation
Integration of Economies- Features
• Interdependence: Increasing reliance of economies on each other.
• Wide Choice: Opportunities to buy and sell in any country in the
world.
• Advanced Technology: Technology development and transfer at
all levels.
• Mobility: Opportunities for labour and capital to locate anywhere
in the world.
• Reduction of Space: Distance and time is reduced for any
services. Fast and speedy travel.
• Specialisation: Reallocation of resources towards productivity
through specialisation
• No Barriers: Barriers between countries for trade and transfer of
products, ideas, resources are removed.
• Global Market: Growth of global markets in products & finance.
• Global Development: Aimed at world level growth.
Integration of Economies
• Made possible by:
– Technology
– Communication networks -Internet access
– Growth of economic cooperation – trading
blocs (EU, NAFTA, etc.)
– Collapse of ‘communism’
– Movement to free trade
Benefits of Integration
–Increased choice
–Greater potential for growth
–Increase international economies of
scale
–Greater employment opportunities
–Better use of ideas, resources and
potentials
–Global development
Problems of Integration
–Increase in gap between the rich
and the poor
–Dominance of global trade by the
rich/ developed nations
–Spread of Global Diseases & Risks
–Lack of opportunities for the poor to
have access to markets
–Exploitation of workers and
resources
–High social and economic costs
The Big Question of
Integration and World Profile
Is it possible to integrate different types
of countries?
Mango + Grapes = Mangograpes
If Yes,
How? How much? At what Cost?
If No,
Why? Then what?
World Map
World Map
Area of the World
Total area: 510 million sq km
(197 million sq mi).
Land area: 148 million sq km
(58 million sq mi).
Water area: 361 million sq km
(139 million sq mi).
Coastline: 356,000 km
(221,208 mi).
Note: 70.9% of the world is water,
29.1% is land.
Number of Countries in the
World
There are 196 countries in the
world today.
 195
Sovereign Nations
(excluding Taiwan)
 72
Dependent Areas, and
6
Disputed Territories.
Classifications of Nations
•
•
•
•
•
•
•
•
•
Landlocked, Peninsulas, Island
First World, Second World & Third World
Developed & Developing / Underdeveloped Nations
Traditional & Modern Countries
High Income, Newly Industrialised & Poor Nations
Capitalist, Socialist & Mixed Economy
Industrialised, Oil Producing & Agricultural Nations
Southern, Western, Eastern & Northern
African, Asian, European, Latin
American and Caribbean
Indicator based Classifications are many ……
World's Best Livable Countries
Based on UN HDI, 2007.
6. Sweden
11. Finland
United
16.
Kingdom
2. Norway
7. Switzerland
United
12.
States
17. Belgium
3. Australia
8. Japan
13. Spain
18. Luxembourg
4. Canada
9. Netherlands
14. Denmark
19.
5. Ireland
10
France
.
15. Austria
20. Italy
1. Iceland
New
Zealand
World's Least Livable Countries
Based on UN HDI, 2007
1. Sierra
Leone
6. Mozambique
11 Burundi
.
16 Angola
.
2. Burkina
Faso
7. Central African 12 Côte
Republic
. d'Ivoire
17 Rwanda
.
3. GuineaBissau
8. Chad
13 Zambia
.
18 Guinea
.
4. Niger
9. Ethiopia
14 Malawi
.
19 Tanzania
.
5. Mali
10 Congo, Dem.
. Rep. of the
15 Benin
.
20 Nigeria
.
The World's Best Countries
United
States
1. Finland
6. Norway
11
2. Switzerland
7. Canada
12 Germany
3. Sweden
New
8. Netherlands 13
Zealand
4. Australia
9. Japan
14
5. Luxembourg
10 Denmark
15 South Korea 20. Singapore
United
Kingdom
16. France
17. Ireland
18. Austria
19. Belgium
Largest Countries in the World
The top ten largest countries, in square miles, in 2012.
1. Russia
6,601,668
6. Australia
2,988,901
2. Canada
3,855,102
7. India
1,269,219
3. United States 3,794,100
8. Argentina
1,073,518
4. China
3,705,407
9. Kazakhstan
1,052,089
5. Brazil
3,287,612
10. Algeria
919,595
Smallest Countries in the World
The top ten smallest countries, in square miles, as of
2012.
1. Vatican City
0.17
6. Liechtenstein
61.78
2. Monaco
0.75
7. Saint Kitts and Nevis
100.77
3. Nauru
8.11
8. Maldives
115.83
4. Tuvalu
10.04
9. Malta
122.01
5. San Marino
23.63
10. Grenada
132.82
Highest Population Density
The top ten most densely populated countries, in
square miles.
1. Monaco
42,143
6. Bangladesh
2,850
2. Singapore
18,645
7. Taiwan
1,849
3. Malta
3,229
8. Mauritius
1,738
4. Maldives
3,099
9. Barbados
1,686
5. Bahrain
2,923 10. Nauru
1,639
Lowest Population Density
The top ten least densely populated countries, in
square miles.
1. Western Sahara
2.7
6. Botswana
7.3
2. Mongolia
4.7
7. Iceland
7.7
3. Namibia
6.4
8. Mauritania
8.0
4. Australia
6.9
9. Libya
8.7
5. Suriname
7.0
10. Canada
9.3
Highest GDP Per Capita
The countries with the highest gross domestic
product per capita in U.S. dollars, in 2011
1. Qatar
$98,900
6. Jersey
57,000
2. Liechtenstein
89,400
7. Faroe Islands
55,400
3. Luxembourg
80,600
8. Norway
51,600
4. Bermuda
69,900
9. Brunei
49,500
5. Singapore
59,700 10. Hong Kong
49,400
Lowest GDP Per Capita
The countries with the lowest GDP per capita in
U.S. dollars, in 2011.
Congo, Democratic
1.
Republic of the
300
6
Eritrea
700
7
Central African
Republic
700
2 Burundi
300
3. Liberia
500 8. Malawi
800
4. Somalia
600 9. Togo
900
5. Niger
700 10 Sierra Leone
900
Countries with Highest
Inflation
The countries with the highest inflation in 2009.
1. Seychelles
31.8%
6. Sao Tome and Principe
16.7
Congo, Democratic
Republic of the
16.7
2. Afghanistan
30.5
7
3. Venezuela
27.1
8. Ukraine
15.9
4. Eritrea
20.0
9. Uzbekistan
14.1
5. Ghana
19.3
10. Angola
13.7
Countries with Lowest Inflation
The countries with the lowest inflation in 2009
1. Qatar
–4.9%
6 Faroe Islands
-1.1
2. Ireland Marino
-4.5
7. Senegal
-1.0
3. San Marino
-3.5
8. Thailand
-0.9
4. Japan
-1.4
9 Taiwan
-0.9
5. Belize
-1.1
10. Macedonia
-0.8
Highest Infant Mortality Rate
The countries with the highest infant mortality
rate (deaths per 1,000 births) in 2010.
1. Angola
178.1
6. Mozambique
103.8
2. Afghanistan 151.5
7. Central African Republic
101.6
3. Niger
114.5
8. Guinea-Bissau
98.0
4. Mali
113.6
9. Chad
97.0
5. Somalia
107.4
10
Nigeria
.
92.9
Lowest Infant Mortality Rate
The countries with the lowest infant mortality
rate (deaths per 1,000 births) in 2010.
1. Monaco
1.7
6. Hong Kong
2.9
2. Singapore
2.3
7. Macau S.A.R.
3.2
3. Bermuda
2.4
8 Iceland
3.2
4. Sweden
2.7
9. France
3.3
5 Japan
2.7 10. Spain
3.4
Countries with the Highest
Number of Newborn Deaths, 2007
1. India
1,919,000
6. China
467,000
2. Nigeria
1,043,000
7. Afghanistan
370,000
3. DR Congo
589,000
8 Bangladesh
274,000
4. Ethiopia
509,000
9. Uganda
200,000
5 Pakistan
473,000
10. Angola
199,000
Highest Life Expectancy, 2012
The countries with the highest life expectancy
(in years).
1. Monaco
89.7
6. Andorra
82.5
2. Macau
84.4
7 Guernsey
82.2
3. Japan
83.9
8. Hong Kong S.A.R.
82.1
4. Singapore
83.7
9. Australia
81.9
5. San Marino
83.1
10. Italy
81.9
Lowest Life Expectancy, 2010
The countries with the lowest life expectancy
(in years).
1. Haiti
29.9
6. Zimbabwe
47.5
2. Angola
38.4
7. Swaziland
47.9
3. Mozambique
41.3
8. Chad
47.9
4. Afghanistan
44.6
9. Guinea-Bissau
48.3
5. Nigeria
47.2
10. South Africa
49.2
Lowest Literacy Rates
The countries with the lowest literacy rate in
2008.
1. Burkina Faso
23.6%
6. Benin
34.7
2. Mali
24.0
7. Sierra Leone
34.8
3. Chad
25.7
8. Ethiopia
35.9
4. Niger
28.7
9. Mozambique
38.7
5. Guinea
29.5
10.
Senegal
39.3
Population Living Below $2 a Day
The percentage of the population living below the
specified poverty line: $2 a day—at 1985 international
prices
1. Zambia
92.4 6 Niger
85.8
2 Tanzania
89.9 7 Madagascar
85.1
3. Rwanda
87.8 8. Bangladesh
84.0
4. Burundi
87.6 9. Central Africa Republic
84.0
5. Nigeria
87.2 10 Zimbabwe
83.0
World's Most Corrupt Nations,
2012
Based on the annual survey by the Berlin-based
organization Transparency International. The scores
range from 100 (clean) to zero (highly corrupt).
1. Somalia
8
6. Uzbekistan
17
2. North Korea
8
7. Turkmenistan
27
3. Afghanistan
8
8. Iraq
18
4. Sudan
13
9. Venezuela
19
5. Myanmar
15
10. Haiti
19
World's Least Corrupt Nations,
2012
Based on the annual survey by the Berlin-based
organization Transparency International. The scores
range from 100 (clean) to zero (highly corrupt).
1. Denmark
90
6. Switzerland
86
2. Finland
90
7. Australia
85
3. New Zealand
90
8. Norway
85
4. Sweden
88
9. Netherlands
84
5. Singapore
87
10. Canada
84
With all these diversities and
differences or variations in
socio- economic and cultural
characteristics among
Nations, Globalisation is an
attempt to integrate all
nations together
Players of Globalisation
Pro Globalisation
• Organisations
–
–
–
–
–
–
–
–
–
–
–
–
• Anti-Globalisation
• Organisations
World Trade Organisation(WTO)
– Green Peace
World Bank (WB/IBRD)
– Trade Associations (Affected)
International Monetary Fund
• Environmentalists
Organisation for Economic
– World Wildlife Fund
Cooperation and Development
– Centre for International
United Nations Council for Trade
Environmental Law
and Development
– Friends of the Earth
World Growth
• Social Development Agencies
World Economic Forum
– OXFAM, World Vision
Institute of Economic Affairs
• Critics of Capitalism
International Policy Network
– World Social Forum
International Chamber of
– Global Policy Forum
Commerce
– People’s Global Action
World Business Council for
– Global Solidarity Dialogue
Sustainable Development
Liberty Institute, Delhi
Challenges
• Accountability of Global
businesses
• Potential terrorist reaction
• Ethical responsibility of business
• Emergence of Monopoly Power
• Exploitation of Resources
• Efforts to remove trade barriers
• Protection of National Identity,
Culture and Traditions
• Gaining advantages
• Reducing the disadvantages
Economic Reforms
• Reforms refer to structural changes.
• Economic Reforms refers to structural
changes in economic policies initiated
in countries.
• India’s economic reforms are born out
of series of crisis in the economy that
reached its climax in 1991.
Areas of Economic Reforms
• Agriculture Sector
• Industry Sector
• External Sector
• Fiscal Sector
• Financial Sector
• Health Sector
• Insurance Sector
• Education Sector
• Infrastructure Sector
• Administration
and
so on.
Ultimate Aim of Reforms
• Revolutions in Outcome
– Production
– Consumption
– Trade (domestic and international)
Revolutions in India
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Black Revolution
Blue Revolution
Brown Revolution
Golden Revolution
Golden Fiber Revolution
Green Revolution
Grey Revolution
Pink Revolution
Red Revolution
Round Revolution
Silver Fiber Revolution
Silver Revolution
White Revolution
Yellow Revolution
•
•
•
•
•
•
•
•
Black Revolution
Blue Revolution
Brown Revolution
Golden Revolution
Golden Fiber Revolution
Green Revolution
Grey Revolution
Pink Revolution
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Red Revolution
Round Revolution
Silver Revolution
Silver Fiber Revolution
Silver Grey Revolution
White Revolution
Yellow Revolution
•
•
•
•
•
•
•
Petroleum production
Fish production
Leather/cocoa production
Honey Production
Jute Production
Food grain production
Fertilizer production
Drugs/Onion/Prawn
production
Meat / Tomato production
Potato production
Egg/Poultry production
Cotton production
Aging Population
Milk/Dairy production
Oil Seeds production
Main Features of Economic
Reforms
Economic
Reforms
Privitisation
L
P
G
Liberalisation
Free the economy from all direct
and physical controls imposed by
the Government
Licensing System
Import & Export Controls
Price Controls
Foreign Exchange Controls
Restrictions on Investments
Privatisation
Allowing Private Sector in areas that
were previously reserved for Public
Sector.
Change of Ownership
Joint Venture
Liquidation & Disinvestment
Workers Cooperative
Globalisation
Process associated with increasing
openness, interdependence and
integration of nations.
Free Flow of
Information
Goods & Services
Capital & Investment
Technology
Resources
Questions on L P G
• Do you think L P G is necessary for
India? Justify your view.
• Enumerate the advantages and
disadvantages of L P G in Indian
context.
In sum,
The debate on LPG is still
on.
The need is to reduce the
negative effects and
maximise the benefits of
LPG.