Globalization

Any economic phenomena emerges after the failure of government practices simultaneously in many areas within a country and in many countries. The failure could be because of many reasons but fundamentally all of them come under one broad 'reason' prevalent in that particular era. The seeds of Gloabalisation were sown at the beginning of post-colonial era. All the under developed nations were similar in that they were latecomers to industrialisation and wanted to catch up with the developed nations. So, they thought the best way to move forward was to protect their industries from foreign competition and the pursuit of industrialisation in most of the developing nations came to be based on the practice which we now know as Import Substitution. Here, the nations followed inward-looking policies and believed that the best way to make progress was to make everything on their own; from a safety pin to an aeroplane ..... everythng by them and for them. Nothing shall be imported and they would be completely self-sufficient. But the policy makers cudnt be more myopic in their views than this . This was one of the biggest blunder commited by India as well . Under Nehru, immediately after independence, we undertook a massive industrialisation programme which was totally based on Import Substitution. And it took us 40 years (until 1991) to realise what gr8 mistake we have been committing. All those big industries are either closed or running in red now (with few doing well aftr 1991 policy changes). Our policy makers missed out on the basic facts and importance of globalisation. Thus aftr years of backwardness , we finally strtd off with the policies focussed on Export Promotion.

Globalisation is a direct off-shoot of these Export Promotion policies. These policies along with the forward and backward linkages withing the country, in the form of Social Overhead Capital and Directly Productive Activities, led to the modernisation and globalisation of most of the nations. And soon the nations from being called less developed countries derisively, were addressed as Developing Countries . So much to pacify emotions !!


The sociologist, Anthony Giddens, defines globalisation as a decoupling of space and time, emphasizing that with instantaneous communications, knowledge and culture can be shared around the world.

Source : Chango on PaGaLGuY