Introduction
Liberalization,Privatizationand Globalization (LPG) have become a much talked
of subjects among politicians, economists and businessmen in modern days.
Archaic Globalization
Andre Gunder Frank argued that a form of globalization has been in existence since the rise of trade links between Sumer and Indus valley civilization in the third millennium BC (BCE). An early form of globalized economics and culture, known as Archaic globalization existed during the Hellenistic Age. An early form of globalization in the trade link between the Roman Empire, Parthian Empire and the Han Dynasty made the commercial links between these powers inspired the development of the Silk Road.
Proto Globalization
The next phase is known as proto -globalization. It was charterized by the rise of
maritime European empires, in the 16 th and 17 th centuries, first the Portugues and Spanish Empires, and Dutch and British empires. In the 17 th century, globalization became private business phenomenon like British East India
Company[founded in 1600] described as the first multinational company, and the first Dutch East India Company [found in 1602] were established
The Portuguese
The Portuguese under the leadership of Vasco da Gama landed at Calicut on May, 1498. Profits of goods brought by Vasco do Gama to Portugal were to 60 times cost of the entire expedition to India. The second trip of Vasco da Gama in 1502 led to the establishment of trading station at Calicut Cochin and Cannanore.Cochin was the early capital of the Portuguese in India.
The British
On 31 st December, 1600, Queen Elizabeth granted charter to The East India Company.On the south-eastern coast, the English established at Masulipatnam in 1611 and near Pulical in 1626. The Sultan of Golconda granted the English the “Golden Fireman”in 1632 by which they were allowed to trade freely in their “Kingdom Ports”. In 1639, built a fortified factory in Madras which known as Fort
St.George, which soon displaced Masulipatnam as headquarters of the English settlement on the coromandel coast.
The French
The first French factory in India was established in 1668 by obtaining permission
from the Sultan of Golconda. In 1693, the Dutch captured Pondicherry but was handed back to the French. In 1701, Pondicherry was the headquarters of the French.
Globalization in India
In India the period after 1980-81 wasmarked by severe balance of payment difficultiesmainly due to hike in oil price and Gulf war in1990-91 and hostilities in West Asia.With the downgrading of India’s credit rating by some international agencies, there was heavy flight of capital out of India.Since India lost its credit worthiness in the international market, the government mortgaged 40 tons of gold to the Bank of England. Under these circumstances, the government for 1991-92 presented its budget in July 1991 with a series of policy changes which underlined globalization, liberalization and privatization. This has come to be called as
India’s new economic policy. This policies were strengthened when India signed the Dunkel Draft in 1994.
globalization in the trade link between the Roman Empire, Parthian Empire and the Han Dynasty made the commercial links between these powers inspired the development of the Silk Road.
Challenges of Globalization
@The benefits of globalization extend to all countries that will not happen automatically.
@ The fear that globalization leads to instability in the developing world.
@The industrial world that increased global competition will lead in race to the bottom in wages, labour right, and employment practice.
@It leads to global inbalance.
@Globalization has led to an increase in activities such as child labor and slavery.
People started consuming more junk food. This caused, the degradation ofhealth andspread of diseases.
@Globalization has led to environmental degradation.
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