What are the reasons of the anti-globalization calls in developed world in recent times? Discuss highlighting impacts of protectionism on India's interests.
Published: February 19, 2018
Anti-globalisation calls have gained a significant momentum in the developed world. Therefore strong tendencies of protectionism and isolationism are being observed in developed countries. The reasons for it are
- The developed countries are still languishing under the effects of economic slowdown of 2008.
- Increased post truth culture which is promoting a myopic view that protectionism and isolationism will aid in reviving of economies.
- The increasing north-south divide. The interests of the developing and developed world are seen as conflicting. The developed world wants to protect its market from influx of goods from developing countries.
- Stagnation in WTO. Various critical issues like SSM, Doha agenda are still to be resolved.
- Increasing sub-regionalism like TPP to achieve a coalescence of developed world to pressurize developing world.
- Rising unemployment and stagnation or declining growth rates in developing world.
India which is exploring the opportunities to earn the demographic dividend will be impacted adversely. Because
- Greater barriers in achieving access to markets due to protectionism.
- India has a surplus workforce. Protectionism and isolationism will be detrimental to interests of the country.
- A restricted FDI which will slow down the infrastructure development. As India’s is facing investment deficit.
- A limited access to technology and resources for clean energy initiatives. This will hinder India in fulfilling its commitment under Paris climate agreement.
Globalisation is a one way road which the world has traversed. Though there are certain shortcomings, more globalisation is a solution to address these shortcomings. Actions like protectionism and isolationism will aggravate the problems rather than offering respite from the shortcomings of globalisation.