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POLITICAL IMPACT OF GLOBALIZATION

POLITICAL IMPACT OF GLOBALIZATION

CHANGING NATURE OF GOVERNANCE:

  • NATION- State has undergone transformation from its traditional structure; it has lost some of its traditional meaning.
  • Globalization has led to processes like de-territorialization in which there has been thorough reconfiguration of geography so that social space is no longer wholly mapped in terms of territorial places, territorial distances and borders.
  • In lieu of benefits of globalization state has surrendered some of its sovereignty critics argue. Emergence of international organizations like IMF, World Bank, etc has led to myriad checks and controls over internal policies of nations.
  • One relevant example is the structural package of IMF which led in first place India to adopt Liberalization, Privatization and Globalization.
  • Similarly WTO dictating the amount of subsidies government can provide to its farmers; or amount of import it can lay on the goods being imported are examples that transnational organizations are the new political order in current political system.
  • Emergence of supranational governance institutions like European Union, Military unions like NATO carrying out anti terrorist operations etc. bear testimony to this fact.
  • Another dimension of political impact of globalization is increasing role of Non Governmental Organizations; recent spurious activities of International NGOs like Greenpeace, 350.org have come under the scanner for their alleged role in impeding the development activities of government.
  • Not only in environmental legislations but in the matters of humanitarian justice organizations like American Justice Centre, Amnesty international have played proactive roles.

NEW POLICY DIMENSIONS

  • Globalization makes it impossible for a country to gauge the impact of its policies on other countries in the face of increased political and social interconnectedness. Newer dimensions to policies have come up. Globalization has led to development of Rights based approach to governance.
  • For half a century, developing nations have been arguing at United Nations sessions for the need to recognise the right to development as a human right.
  • With growing globalization process and severe political changes around the world, and with increasing pressure from developing countries, United Nations General Assembly adopted the Declaration on Right to Development which read as follows:
  • “The right to development is an inalienable human right by virtue of which every human person and all persons are entitled to participate in, contribute to, and enjoy economic, social, cultural and political development, in which all human rights and fundamental freedoms are fully realised.”

Principles that have evolved with new form of Globalized governance in light of rights based approach are:

  1. Universality: Human rights are inalienable, in that they cannot be taken away from someone. This universality principle is what differentiates Human rights from other common rights like citizenship rights.
  2. Non Discrimination and Equality: Everyone is entitled to all rights and freedoms set forth in this Declaration, without distinction of any kind, such as race, colour, sex, language etc.
  3. Indivisibility: Rights are indivisible and should be taken in a holistic way.
  4. Interdependence and Interrelatedness: All human rights are closely interrelated and interdependent and affect one another. The right to education affects the right to work and right to good health and vice versa.
  5. Participation: Participation is an essential right; this is stated on the article of the UN Declaration on the right to development. It means that everyone is entitled to freely fully contribute to, enjoy political, economic, social and cultural development of their communities.
  6. Rule of Law: Rights must be protected by strong legislations and independent judicial system to ensure that law is fair and is applied to all people.
  7. Accountability: There is an obligation to give these rights; the right holders and take other people accountable if they fail to deliver their rights.

IMPLICATIONS OF RIGHTS BASED GOVERNANCE APPROACH

  • The changing normative status of sovereignty has led to the understanding of nation-state as ‘welfare-state’. At the most basic level, the welfare state is taken to encompass a range of public policies undertaken by governments to provide social security, a safety net to the citizens of that state.
  • However, over the last thirty years, the welfare state has been under attack in many developed democracies. A range of policy options which were previously available to state actors no longer are. I would argue this is due to the increasing scope and extent of political globalization.
  • Key examples include the devaluation of currencies, the high regulation of capital markets, the nationalization of domestic industries to protect them from going bust, extensive public spending leading to expensive public deficits.
  • Yet as the markets have become more integrated and pressures from international competition encouraged states to take risks, opening up fiscal markets, and considering the implications of high labour costs on goods and services in the global economy.
  • More explicitly, political globalization, in its most recent form, has been limiting the capacity of states to determine their own policy outcomes in three main ways: through trade and economic integration; financial markets; and the competition for employment.
  • Due to the increasing pressure of international competition in trade markets as well as the increased mobility of capital and multi-national corporations, states are incentivized to cut labour costs, to reduce the price of goods and services, reduce taxation to make their domestic market more competitive, and to decrease the size and scope of the welfare state.
  • Thus in the face of decreasing scope of welfare based approach the newer Right based approach tries to fulfil the role of providing empowerment to disenfranchised sections of society. This is done by Rights based Approach in following way:

Rights based approach has also led emphasis on duties since rights and duties are part of the two faces of same coin: This emphasis on duties has led to policy implications like evolution of CSR. The United Nations Industrial Development Organisation (UNIDO) has defined corporate social responsibility (CSR) as a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is a way in which companies achieve a balance of economic, environmental and social imperatives.

  • CSR has been practiced by companies in the developed world in a big way. Most of the large private universities in the United States (US) were setup as a part of CSR activities undertaken by large corporate.
  • A lot of multinational companies contribute towards the development of societies in which they operate. A most notable example is Shell, an Anglo-Dutch multinational oil and gas company, which supports the local communities in Nigeria.  POLITICAL IMPACT OF GLOBALIZATION
  • In India, large scale philanthropic activities were undertaken post-independence, which led to the setting up of some of the most prestigious institutions of professional education.
  • It is less known fact but Gates Buffet model of philanthropy has been one of the major causes of CSR provision being made mandatory for Indian industries.

CSR MADE MANDATORY

  • In order to streamline the philanthropic activities and ensure more accountability and transparency, the government of India made it mandatory for companies to undertake CSR activities under the Companies Act, 2013.
  • The concept of CSR is defined in clause 135 of the Act, and it is applicable to companies which have an annual turnover of Rs 1,000 crore or more, or a net worth of Rs 500 crore or more, or a net profit of Rs 5 crore or more. Under this clause, these companies are supposed to set aside at least 2% of their average profit in the last three years for CSR activities.  POLITICAL IMPACT OF GLOBALIZATION
  • The law has listed out a wide spectrum of activities under CSR, which cover activities such as promotion of education, gender equity and women’s empowerment, combating HIV/AIDS, malaria and other diseases, eradication of extreme poverty, contribution to the Prime Minister’s National Relief Fund and other central funds, social business projects, reduction in child mortality, improving maternal health, environmental sustainability and employment enhancing vocational skills among others.
  • CSR has been a result of growing global culture based on Gates Buffet philanthropic model. There was increased emphasis by billionaire philanthropists Gates and Buffet to Indian industrialists to adopt more vigorous corporate social responsibility.
  • Indian industries have shown recent initiatives under new government about increased sense of duty towards public. TCS, Vedanta, Bharti Enterprises and Larsen & Toubro will construct toilets across the country to strengthen government’s “Swachh Bharat” campaign.
  • Earlier, Sunil Mittal led Bharti Enterprises’ development arm Bharti Foundation had also announced investment of up to Rs 100 crore in constructing toilets in Ludhiana over the next three years.
  • Tata Consultancy Services (TCS) had pledged Rs 100 crore towards financing hygienic sanitation facilities for girl students across 10,000 schools while Vedanta Group announced to build 10,000 more toilets in addition to 30,000 which they are already building in collaboration of Rajasthan government.
  • Effect of globalization on CSR has been evident: as initiatives taken by foreign companies towards CSR have encouraged domestic companies to increase their CSR assistance. As seen in following figure due to competition by foreign companies, CSR by domestic companies have increased in past few years.
  • There has also been a significant increase in the average CSR expenditure by domestic firms as compared to foreign firms.
  • Average CSR expenditure by domestic and foreign firms was Rs 3.79 and 8.5 million respectively in 2011-12, but this increased to Rs 22.6 million and 19.5 million respectively in 2012-13. With Globalization there has been development of Rights based approach in policy making instead of needs based or charity based.
  • Rights based approach guarantees grievance redressal mechanism which entitles aggrieved party to approach higher authorities and tribunal which was absent in earlier welfare based approach.
  • Thus we see cropping up of various tribunal boards like Intellectual Property Appellate Board which hears cases regarding trademark infringement, National Green Tribunal etc post globalization era. Prominent example of policy initiative under this direction is enactment of IPR laws.
  • Intellectual property (IP) is the creation of human intellect. It refers to the ideas, knowledge, invention, innovation, creativity, and research etc, all being the product of human mind and is similar to any property, whether movable or immovable, wherein the proprietor or the owner may exclusively use his property at will and has the right to prevent others from using it, without his permission. The rights relating to intellectual property are known as ‘Intellectual Property Rights’.
  • The issue of Intellectual Property Rights was brought on an international platform of negotiation by World Trade Organization (WTO) through its Agreement on ‘Trade Related Aspects of Intellectual Property Rights’ (TRIPS).
  • This agreement narrowed down the differences existing in the extent of protection and enforcement of the Intellectual Property rights (IPRs) around the world by bringing them under a common minimum internationally agreed trade standards.  POLITICAL IMPACT OF GLOBALIZATION
  • The member countries are required to abide by these standards within stipulated time-frame. India, being a signatory of TRIPS has evolved an elaborate administrative and legislative framework for protection of its intellectual property.
  • India has a functioning legal regime in each of the IPR mechanisms such as patents, designs, trademarks and geographical indications and these are administered by the Indian patent office. All these and especially the legal regime on patents were arrived at after an extensive debate that took place both inside and outside Parliament.
  • In the recent past, there have been many instances of India taking a decisive stand on patents to the advantage of domestic manufacturers and consumers. This, for example, is in the granting of a compulsory licence for the domestic manufacture of an anti-cancer drug on grounds of unaffordable prices being charged by the patent holder.
  • A further example is the denial of a patent for another anti-cancer drug by the Supreme Court on the ground that the application did not meet India’s higher bar on the criteria of inventiveness contained in the amended Indian Patent Act of 1970.
  • The office of the United States Trade Representative (USTR) published a special report in 2014 which, based on an analysis of the strength of India’s IPR regime, has continued to place India along with nine other countries on a priority watch list.
  • Priority watch list countries are judged by the USTR as having “serious intellectual property rights deficiencies” that require increased USTR attention.
  • Hence complying with TRIPS provisions, we have individual legal acts on patents, trademarks, designs and geographical indications, all of which were suitably amended in the last 20 years or so to comply with TRIPS.
  • Further, we have the Indian patent office (although not officially denoted as such) in the form of the Controller General of Patents, Designs, Trademarks and Geographical Indications and a tribunal in the form of the IPAB.
  • These interventions are examples of grievance redressal Mechanism based on rights and welfare. Globalization has also inspired devolution and decentralization of political powers at local levels. since 1992, following the 73rd constitutional amendment Panchayats have acquired a new meaning as “institutions of local self-government” with the specific task to prepare and implement “plans for economic development and social justice” [Article 243G of the Indian Constitution].

Most realize this new constitutional change as bringing a third stratum of government in Indian federal polity. An important function is assigned to the Gram Sabha, ‘the assembly of the citizen voters’ as a deliberative and deciding body. In this manner an element of direct democracy is introduced at the lowest level. That is one way to broaden downward accountability as well.  POLITICAL IMPACT OF GLOBALIZATION

  • Uniform three-tier structure across the country with the Village, Block (intermediate) and District as appropriate levels.
  • Direct election at all levels is made regular and mandatory. An independent State Election Commission is established for superintendence, direction and control of the electoral process and preparation of electoral rolls as well as to conduct five yearly elections.
  • In all the Panchayats, seats are to be reserved for SCs and STs (Scheduled Castes or Dalits and Scheduled Tribes) in proportion to their population. One third of the total seats is to be reserved for women. One-third positions of presidents of Panchayats at all levels also will be reserved for women.
  • Obviously these are ways to empower the under privileged on rights based approach.
  • For assigning expenditure responsibilities to the Panchayati Raj Institutions (PRIs) an illustrative list of 29 subjects are mentioned in the Xlth schedule of the constitution. This list of functional assignments is prepared to identify the areas for planning for economic development and social justice. Each state legislature is required to make, not only functional devolutions keeping the list as illustrative guidelines, but also to provide adequate power and authority to the PRIs to enable them to function as ‘institutions of local self-government’.
  • Setting up of a State Finance Commission once in five years to review the financial position of the local “moments and to make suitable recommendations to the state on the distribution of funds among Panchayats.
  1. Another benefit of creating rights is the administrative mechanism also grows to fulfil its duty and matches the requirements of implementation of scheme.
  2. Legal rights keep authorities more responsive and alert because non fulfilment of requires action MI lead b legal odor.  POLITICAL IMPACT OF GLOBALIZATION

 

 ALSO READ : https://www.brainyias.com/the-national-human-rights-commission/

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