In 1991, the then financed minister Mr. Manmohan singh pitched for an era of globalization in indian subcontinent, bringing various financial reforms. It was the most spectacular reform of 20th century. To open up our domestic market to bring inflow of FDI (foreign direct investment) which in turn will help in increasing the domestic GDP(gross domestic product). But in 21st century, the voice for anti-globalization, or say protectionism especially by western countries is becoming very loud. To protect domestic market vis-a- vis their own people is now a new emerging trend on global platform.
India will be the youngest nation in the world by 2020, having an average age of population, merely 29! India has a large demographic dividend, which according to many economists, the big advantage in global economic terms. By 2020, India will have 45 million surplus workforce where world will be in dire need of nearly 40 million workforce by that time. Hence for Indian this anti globalization/PROTECTIONISM movement is not good at all.
What is anti-globalization/protectionism? It is apparently a civil as well as political movement raised for detachment from world in many sectors. The unsatisfied and turbulent youths facing unemployment are behind this movement. As nearly 169 countries of the world are democratic, people’s voice can’t be neglected by their government. Hence protectionism is becoming burning question of this era.
As per Collins dictionary ‘BREXIT’ has become the most visible word of 2016. It is of course the word of the year. But what brexit signify? Britain wants to leave EU(European Union), to have economic freedom. UK(united kingdom) was one of the founder member of EU, and this move surely put EU in limbo. The foremost proponent of globalization is now on the verge of closing its door to world so as to protect its own economic interest.
A wallonian movement in Belgium against CETA(comprehensive Economic and Trade agreement) is another example. Belgium trying to derail the CETA between EU & Canada which was in discussion from last few years . As this agreement is in finalizing stage, the movement has been raised to protect own interests. NO one in Wallonia wants this trade because they think that it will drain out their resources and bring unemployment and poverty.
USA pitching voice against globalization though indirectly. Mr. Trump has hinted to terminate TPP (trans pacific partnership) deal . He also said that he will not allow China to dump their products in America. This means that he wants to pacify home grown people, want to give them jobs which are reeling under unemployment and poverty in anger. Following this comments now China has warned against potential tariff barriers which might destabilize the world peace.
China became WTO member in Dec 2001. But a restriction of 15 years for import barrier was imposed (as china were manipulating their domestic manufacturing and not letting market to decide the rates) by WTO and allowed other members to impose trade barriers to protect their own domestic market. After this period, every country was supposed to treat china on equal terms. As this period of restriction coming to an end in Dec 2016, many countries sharing as apprehension and are not willing to let china free access to their own domestic market. This is another act of Protectionism.
In service sector , Many countries have shown tough stand. New President of USA has already signaled its policies against H1B visa which allow immigrant to work in USA. This move will not facilitate immigrant to do job in USA. A visit of Theresa May to India rekindled the hopes of Indian industrialist amidst fear of BREXIT. But against pacifying the fear she choose to harden the Visa policy. Now UK has put Higher Salary threshold in UK for Visa which clearly goes against India’s interests. Also the recommendation for ‘London Only Visa’ is acme of protectionism.
The growing turbulence in middle east has led to critical problem of Immigrants and refugees. This crisis has plagued the Europe. As it is tough to find job in Europe due to economic slowdown, youths in simmering anger have turned against immigration. USA has raised stance against Mexicans ( which they say the main reason of increased crime in USA) and want them to deport Mexicans out of country. Even trump has promised to build wall on US Mexico boundary. This is a new kind of protectionism. In Asia, Bangladesh has closed its border for Rohingya muslim community which has been persecuted for not being myanmarese in origin. They are forced to flee with nowhere to go!!
When we think of sustainable growth, the recent achievement of PARIS climate deal seems commendable. But the stance taken by developed countries specially US is questionable. USA is continue to oppose Common But Diffrentiated Resposibility(CBDR). US shying away from taking the responsibility of highest emission and contributing more. The promise of raising $100 billion Green Climate fund has remained on paper only! New president has also pitched his voice against this climate deal and say that every country have equal role to play! If we look back in history of industrial revolution, these western countries were first to eat fruits of development, now they want to protect domestic grown industries in garb of opposition to comply, a protectionist move indeed!
The western world countries developed first. To raise the revenue they brought the concept of imperialism & then globalization which was neo imperialism in disguise. Now, when all world (specially India) learning language of globalization & doing well, these So called DEVELOPED nations want to shut globalization out.(Again to protect their interests)
This PROTECTIONISM wave is does not augur well for India. India’s GDP fuelled nearly 50% by service sector. The stand of western countries has immense impact on our IT and other service sector & on enthusiastic demographic dividend.
Government of India has doing best to curb this. Actively engaging herself in many bilateral and multilateral agreements . She has already shown interest in NSG, SCO (Now member of), APEC as well as OECD to secure its interests as well as the interest of developing countries of the world.
I personally feel, in such a global scenario there is scope for integration of third world countries on economic, environment and humanistic front and against protectionism. Developing countries have to fulfill the dream of becoming developed countries, they also need to fulfill the aspirations of their growing population as well. Non Alignment Movement (NAM) like platform is good to unite against any such anti-globalization move. And India is the obvious choice as Leader.