Globalization has ushered rapid GDP growth but it is also making world more and more unequal. Analyse.
Globalization is the process of international integration of nations, economically and socio-culturally.
It has been an efficient tool for GDP growth:
- Globalization can increase the trade and growth of countries. With the formation of WTO, world trade grew by 64 times in a decade.
- Globalization leads to the arrival of grants for developing nations by the world bank, NGOs, etc.
- It can lead to the borrowing of best practices and efficient technology to improve local problems.
However, the fruits of globalization are not equally distributed among nations.
Hence it is sometimes criticized as being unjust:
- In India, globalization has led to restrictions on subsidies that government gives to the poor and farmers due to WTO rules.
- It has brought many businesses in loss due to better and more efficient competition from foreign markets.
- Use of traditional indigenous knowledge without giving patent rights.
- Insensitive development – Often infrastructure projects come at cost of displacement of local communities and environmental degradation.
- Loss of traditional culture, as people are moving towards western cultures.
Thus the process of globalization must be reoriented to achieve SDG 17 of sustainable productive partnerships.