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Syllabus<\/span><\/b>: GS 3 – Economy\u00a0<\/span>\u00a0<\/span><\/p>\nRelevance<\/span><\/b>:\u00a0\u00a0India is one of the countries that succeeded significantly after the initiation and implementation of\u00a0globalisation.<\/span>\u00a0<\/span><\/p>\n<\/div>\nSynopsis<\/span><\/b>:\u00a0<\/span>\u00a0<\/span><\/p>\nThe old globalization was essentially good for India. The new globalization could be a mix of good and bad news.\u00a0<\/span>\u00a0<\/span><\/p>\nBackground<\/span><\/b>:\u00a0<\/span>\u00a0<\/span><\/p>\nSome of the traditional forms of globalization (the free movement of goods, money, people,\u00a0etc) are in partial retreat.\u00a0<\/span>\u00a0<\/span>Globalization is transforming as new agendas come into focus. These\u00a0agendas\u00a0include\u00a0action on controlling climate change, taxing global companies, tackling terrorism, sharing vaccines, and the like.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\nTrends in Traditional elements of Globalization<\/span><\/b>:\u00a0<\/span>\u00a0<\/span><\/p>\n\n- Global Trade\u00a0is<\/span><\/b>\u00a0growing slower than global GDP. This<\/span>\u00a0significantly reversed\u00a0a long-term trend.<\/span><\/b>\u00a0<\/span>\u00a0<\/span>\n
\n- In 2019, global\u00a0<\/span><\/b>trade shrank in absolute terms for the first time in a decade, and did so again in 2020 because of the pandemic.\u00a0\u00a0<\/span>\u00a0<\/span><\/li>\n
- Protectionist walls have been going up in several countries, including India.\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ol>\n<\/li>\n
- Free Movement of People<\/span><\/b>: Europe and North America account for over half the total of world migrants.\u00a0Now\u00a0their numbers are\u00a0shrinking, though\u00a0by a small margin.\u00a0\u00a0<\/span>\u00a0<\/span>\n
\n- Brexit and Donald Trump\u2019s policies have signaled the reversal of a 70-year trend of immigration regimes getting progressively more liberal.\u00a0 Some West Asian countries too have begun tightening visa policies.\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ol>\n<\/li>\n
- Movement of Capital and Technology<\/span><\/b>: These elements of globalization continue unabated. They are helping in development of Thomas Friedman\u2019s \u201cFlat World\u201d thesis.\u00a0<\/span>\u00a0<\/span>\n
\n- It is world having level playing field in terms of commerce, wherein all competitors have an equal opportunity.\u00a0\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n
Impact of changing traditional trends on India<\/span><\/b>:\u00a0<\/span>\u00a0<\/span><\/p>\nIndia would be adversely impacted if global trade and movement of people gets reduced. The country is currently the world\u2019s No. 1 source of migrants and the No. 1 recipient of remittances.\u00a0<\/span>\u00a0<\/span><\/p>\nThe sustenance of capital and technology movement is beneficial for growth of India\u2019s IT sector. It enables an accountant in Bengaluru to work out tax calculations for someone in Boston.\u00a0<\/span>\u00a0<\/span><\/p>\nNew Globalization<\/span><\/b>:\u00a0<\/span>\u00a0<\/span><\/p>\n\n- It exists as government agendas on Global issues like terrorism, climate change, global taxation etc.\u00a0<\/span>\u00a0<\/span><\/li>\n
- Agenda-setting by governments is not great news for India because it is still essentially a rule-taker and not a rule-setter.\u00a0 Any benefit or cost to it therefore tends to be\u00a0<\/span>coincidental.<\/span><\/b>\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
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\n- For instance, the proposed\u00a0<\/span>new international corporate taxation regime<\/span><\/b>\u00a0will benefit India but its primary beneficiaries of the new regime would be the wealthy countries.\u00a0<\/span>\u00a0<\/span><\/li>\n
- Similarly, in terms of\u00a0<\/span>climate\u00a0change, India<\/span><\/b>\u00a0will get no assistance (financial or technical) to switch to new technologies and give up old ones like coal-based energy.\u00a0\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- At the same time, the countries responsible for much of the historical emission of carbon gases get a free pass under the Paris agreement.\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
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\n- Even on the\u00a0<\/span>international supply of vaccines,<\/span><\/b>\u00a0the numbers agreed on at the recent meeting of the rich club of G7 countries are unremarkable. Further India\u2019s push for a patent waiver on Covid vaccines awaits attention.\u00a0\u00a0<\/span>\u00a0<\/span><\/li>\n
- In the domain of\u00a0<\/span>social media<\/span><\/b>