Throw some light on the positive and negative impacts of globalization on developing countries like India.

Globalisation refers to the process of closer integration of countries across the world and free flow of goods, information and people such that it presents inter-connectedness, with events in one part affecting other parts and vice versa. It is incredibly efficient yet incredibly unjust.

Effectiveness of globalization:

• Greater diffusion of goods and services, information, etc, leading to economic efficiencies through specialization, global division of labour, global supply chains, etc.
• For example – Indian IT professionals working in the US, products manufactured in Bangladesh and Vietnam sold in the west.
• Greater access of information in developing countries – leads to a more knowledgeable youth, exposure to liberal ideas like LGBTQ rights, etc.
• Global value chains leading to complex interdependence among nations – reduce likelihood of wars.

Injustice by Globalization:

• Developing countries on periphery of global economy.
• Neocolonialism – developing and poor countries becoming dumping grounds of western products.
• Westernization causing backlash in other countries – threat to indigenous culture.
• Rising inequality in developing countries – most of the benefits being reaped by selected few.

Thus, globalization has both advantages and disadvantages. Only if its benefits are made broad-based through an inclusive, multi-stakeholder approach, balancing interests of all sections of society, can it achieve its full potential.

Topics: GS-I: Effects of Globalization On Indian Society • GS-III: Effects of Liberalization On Indian Economy