Neo-Liberal Hyperglobalism

world-wideization is a major topic of debate of our era. Globalisation rear end be defined as the global growing interconnectedness between rescue, engineering, culture and political institutions (Lofgren & international ampere Sarangi, 2009, pg. 57). This essay will discuss how globalisation bunghole be impregnable for failing countries. By applying Neo-liberal Hyperglobalism, I will analyse and demonstrate the miscellaneous effective effects of globalisation through the case of India and the mitigate measures they exact recently taken towards globalisation.Globalisation jakes provide new opportunities for evolution countries collect to appendd access to developed countrified markets and technology, resulting in im come up productiveness and higher bread and butter standards (Balakrishnan, 2004). Following a major stinting crises, India liberalised its frugality in the early nineties. Inflation had rocketed to an annual rate of 17%, high fiscal deficit had bec ome unsustainable and impertinent investors confidence in Indian Economy was low (Goyal, 2006, p. 167). It was these factors that put pressure on the Indian goerning body to call for a complete revamp of their economical policies.Some of the major changes made, as part of the economic liberalisation and globalisation strategy, included disposals privatisation and dis investing in a majority of the public sector undertakings, allowing foreign direct investment funds (FDI) across many industries, the removal of quantitative restrictions on imports and the reduction of customs tariff from over 300% to 30 % (Goyal, 2006, p. 167). The principal(prenominal) purpose of Indias economic reform is to ultimately integrate Indian economy with world economy (Singh, 1995, p. 36).This liberalisation and globalisation of the economy displace help solve Indias major problems of unemployment and meagreness. Indias economic reform favours a to a greater extent open and market orientated economy (Goyal, 2006, p. 166). Indias new economic structure emulates the principals of neo-liberal Hyperglobalism. Neo-liberal Hyperglobalism celebrates the global dominance of market principals over produce power (Lofgren & Sarangi, 2009, pg. 70). This means that decisions about allocation, production and statistical distribution in the economy argon left to the global economy quite a than the government. Burke, Devetak & George, 2008, p. 299). States be increasingly the decision- takers and not the decision- come uponrs (Goldblatt, Held, McGrew & Perraton, 1999). Three keystone terms that come out of neoliberalism ar deregulation, liberalisation and privatisation all of which Indias new economic policies draw on. Neo-liberal Hyperglobalism favours globalism as beneficial process for a growth country. The take ins that Neo-liberal Hyperglobalism can provide atomic number 18 evident in India. Indias steps towards globalisation through new economic reforms substantiate pr oduced about significant benefits for the country.The privatisation of particular sound out-owned precedeprises provides the government with an cast upd amount of cash which they can then spend on increasing their citizens quality of conduct through plusd food supplies and the development of hospitals, schools, infrastructure etc in poverty stricken regions. The domestic economy has been freed up from state control, virtually abolishing state monopoly in all sectors (Panagariya, 2001). This has lead to greater competition in industries resulting in lower prices, a greater supply of goods which benefits the citizens (Goyal, 2006, p. 68). Another step towards globalisation that has proven beneficial for India is the decision to allow foreign direct investment in the Indian industry. The huge amounts of foreign investment that now enter India allow significantly boosted the countrys economy. Many foreign companies have set up industries in India, mainly in pharmaceutical, BPO, p etroleum, manufacturing and chemical sectors, which have created greater employment opportunities for Indian people, decreasing unemployment and poverty (Dwivedi, 2009).A further benefit of globalisation due to foreign investment in India is the advanced technology that the foreign companies bring with them (Dwivedi, 2009). Advancements in medicine which improve the health of citizens is an manakin how becoming more technologically advanced can be beneficial for the country. The economic reforms that cringe custom tariffs and remove restrictions on imports support the principals of neo-liberal Hyperglobalism. That is that measures should be taken that allow trade and finance to have unrestricted dejection (Burke et. al. , 2010).Removing taxes and quotas can summation international trade which in turn increases economic competition. Competition was rife in the economy, after Indias economic reform, as more imports were encouraged (Balakrishnan, 2004). Exports also significantly i ncreased as countries became more willing to accept Indias products due to the reductions in custom tariffs (Goyal, 2006, p. 170). This modify relationship between India and its trading partners can encourage low prices, reduce unemployment through the creation of more jobs and induce improved living standards.Improved relationships between developed and undeveloped economies can prove to be profitable and passing valuable for developing countries especially when future policies have to be negotiated. Overall, the economic reforms initiated in India since 1991 has helped the Indian economy to grow at a quicker rate and led to fiscal consolidation, control of inflation, and increased foreign investment and technology (Goyal, 2006). The reforms aimed to lliberalise and globalise the domestic economy have helped boost gross domestic product increase rates, which increased from 5. 6% in 1990-91 to a peak train of 77. % in 1996-97 (Balakrishnan, 2004). The new economic policies have also proven to increase citizens living standards with increased employment opportunities and a decrease in poverty from 36% in 1993-94 to 26. 1% in 1999-2000 (Fox, 2002). The new policies can be used to further support the countrys citizens and develop the country. The Indian governments strategy to globalise their economy has revealed that globalisation can be beneficial to a developing country by aiding the nation to a more favourable financial position. However, there are also negative effects of globalisation.A significant negative effect is the increase in inequality that can arise from globalisation. There have been arguments that state an increase in GDP can in fact increase income inequality. Wealth is still concentrated in the hands of a some individuals and a common man in a developing country is yet to see any major benefits of globalization (Lovekar, 2010). Also multi-national corporations (MNC) can worsen income inequality by generating jobs and producing goods that primarily benefit the richest portion of the universe (Positive and Negative Effects of Multinational Corporations, 2010).This means that the richer are getting richer and the poorer are getting poorer. Many employees are working in awful conditions where trifling health and safety regulations apply. This is an example of globalisation can develop an exploitative nature. Furthermore, the market economy seems to be more concentrated on the growth of consumerism to attract the high income groups who are mostly in the cities in the developing countries (Malik, 2010, p. 4). The globalisation strategy paid little attention to the rural economy and the agricultural sector, which is essentially the backbone of the Indian economy.The tillage sector is a major provider of food and nutrition to the people as wellhead as raw materials to industries and to export trade (Malik, 2010). A further contact the globalisation strategy has had on agriculture sector is the decrease of agricultures s hare in GDP, which has resulted in a decrease of the per capita income of the farmers and an increase of rural indebtedness (Malik, 2010). Indias era of reforms exhibit many themes that are parallel those of Neo-liberal Hyperglobalism.Since 1991, India has experienced the strong inroad of neoliberalism (Lofgren & Sarangi, 2009). The new economic reforms intimate a strong movement towards deregulation, privitisation and liberalisation of the Indian economy. These three factors are all examples of neoliberalism (Burke et. al. , 2010). A neo-liberal hyperglobalist state would believe that rather than the government trying to regulate and control the market through strict policies, the government should make policies to accommodate and open up the market.Indias new policies indicate the governments willingness to adopt this thinking and it is through this thinking that has marked Indias steps towards the real integration of the Indian economy into the global economy (Malik, 2010, p . 1). In other words India is taking steps towards globalisation. India is an example of how the globalisation of a developing country can be positive and beneficial. Although there are some unfavourable effects such as income inequality, the boilers suit benefits a developing country can receive from globalisation surmount the negatives.India has proved how applying neo-liberal hyperglobalist principals to the domestic economy of a country can prove to be advantageous. With a greater focus on further developing a globalised economy, developing countries can aim to increase the working and living standards for the countrys citizens and subsequently become a healthy and wealthier state. A more liberal and global market can achieve improved living standards and wealth through the promotion of competition, efficiency, productivity, technological-upgradation and growth (Singh, 1995).Hence I believe, similar a hyperglobalist, that globalisation is good for a developing country. summo nss Balakrishnan, C. (2004). Impact of Globalisation on Developing Countries and India. Retrieved October 10, 2010, from http//economics. about. com/od/globalizationtrade/l/aaglobalization. htm Burke, A. , Devetak, R. , & George, J. (2008). An Introduction to foreign Relations Australian Perspective. New York Cambridge University Press. Dwivedi, M. (2009). South Asia Security. India Kalpaz Publications. Fox, J. W. (2002).Poverty in India Since 1974 A soil Case Study. 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Retrieved October 10, 2010, from http//www. ibre2fashion. com/industry-article/8/738/impact-of-globalization7. asp Panagariya, A. (2001). Indias Economic Reforms What Has Been Accomplished? What rest to Be Done? ERD POLICY BRIEF SERIES Economics and Research Department,(2). Retrieved October 10, 2010, from http//www. adb. org/Documents/EDRC/Policy_Briefs/PB002. pdf Positive and Negative Effects of Multinational Corporations. (2010). Retrieved October 11, 2010, from http//www. socialscience. gardner-webb. edu/Faculty/craymond/Devdocs/DevMNCposn