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Globalization Impact on Employment, Education, Culture and Rural Development in India

International trade has registered manifold increase (3-4 times or more) as a proportion to Gross Domestic Product (GDP) compared to eighties. Two decades earlier, restrictions were in force on foreign trade, exports, imports, foreign direct investment, technology transfer etc. to protect Indian economy for self reliance. With the implementation of New Economic Policy of Indian Government, many processes involving privatization, liberalization and globalization got automatically initiated. However, this action is understood to have taken place to get more financial assistance from international funding agencies like International Monetary Fund and World Bank.

Meaning of the term 'Globalization' may understood well by the basic aspects of globalization identified by the International Monetary Fund (IMF). These aspects of globalization include four basic aspects viz.,: trade and transactions, capital and investment movements, migration and movement of people, and the dissemination of knowledge.

Opening of Indian markets to multinational companies (MNCs) has helped introduction of new technologies though believed to take place at the cost of gradual withdrawal of farm subsidies. Globalization is expected to favorably affect most the earnings and the living standards of people in the urban areas.People describe its impact in relation to literacy, skills, growth and development mostly on urban life but its effect on rural livelihood that impacts more than 60 percent of Indian population is seldom discussed.Main source of income in rural India is from agriculture since 55% income in rural economy is contributed by farming that keeps fluctuating depending on monsoon, government policies and subsidies.

Dissemination of knowledge: Of the expected total 213 million mobile internet users in India by June 2015, the number in rural India is set to grow at a rate of 33 percent to reach 53 million by the same month as per the Mobile internet in India 2014 report. Rate of penetration of mobile internet, as per the report, is just less than a third of the mobile internet penetration in urban India.Social networking, email exchanges and messaging are considered important tools (of future) of knowledge exchange in rural India. Spread of landline phone infrastructure has been very dismal in rural areas and have limited scope in future in absence of other infra-structure facilities.

Life in rural India is miserable due to either non-availability or insufficient availability of electricity. India has achieved 44% electrification to rural households despite various attempts to achieve 100 percent rural electrification. Supply of electricity to villages already electrified is not more than 3-4 hours per day. It is big hindrance not only in economic development but also in implementation of ambitious projects like "Digital India", Model Village, PMKVY etc.,. Globalization is not going to make much difference to rural life until and unless electricity is supplied uninterruptedly 10-12 hours per days too these villages. Rural electrification presently provides minimal services like lighting and communication but use of modern equipments/appliances to make people literate would require accessibility, availability and affordability by maximum number of households in rural areas.

Standard of living: Rural population has very low purchasing power than its counterpart staying in urban areas. Occasional large scale purchases by few (affluent and cooperatives) are made from urban markets since rural markets are underdeveloped. People living in villages adjacent to cities have an edge over those living in interior areas in terms of income generation. People living in villages close to cities get an opportunity to work as construction workers, vegetable sellers and contractual laborers. Income generated in this way help them to purchase agricultural inputs to improve productivity and subsequently their purchasing power.

Rural infrastructure: In Indian villages, people still live in houses made of mud barring houses of few rich and progressive farmers. Houses constructed for people in the name of "Indira Awaas Yojna" are poorly designed and offer limited accommodation. These houses are in no way better than the houses in which poor villagers are already residing. Dwelling units made in the name of "Indira Awaas" are so small that a family of three to four people can not live comfortably in these houses. This appears sheer wastage of public money in the name of subsidy for helping poor people. An amount of INR 45000 was allocated for single unit earlier that has been recently increased to INR 70000. Even this amount is meager for construction of a house at prevailing building material and labor costs. The worst thing about the Indira Aawas is the location of these houses as land for construction of such houses is usually government owned land and it is mostly far away from the villages. People in villages prefer to stay in clusters and large spaced houses. They can stay in muddy houses but they can not stay in clumsy and one or two room houses. They may reside in open space but not in space constrained houses. Occupation of such houses has been taken by the people but majority of occupants are still staying in their "Kuchcha" houses. Farming communities are yet untouched from the wind of globalization.

Employment: Labor migration to cities from rural areas in search of employment is a common phenomena. There are various reasons for people movement from villages to cities. These include desire for more comfort, higher income and numerous job opportunities. Scarcity of labor has further worsened by the 'minimum wage act'. Earlier, wages were determined by different factors like demand and supply, nature of work and efficiency of the laborers.

Farmers are finding it difficult to hire workers on the wages determined by government and its ministries. Fund paucity has compelled them to perform farming activities using family labor. Government never allows foodgrain, petrol and crude prices to be determined by the market forces. A policy of minimum wages to daily paid labors is more a political move than the help rendered to poor people. Schemes like NAREGA or MNREGA need critical evaluation to make them welfare scheme before they turn game spoiler. Giving three months assured job in a year to needy people make them also the lazy as they earn good money in three month and use it for rest of the month. However, alcoholism, addiction to card games etc. allow them to spend this money in less time and migrate to seek job in towns and cities.

Roads: Government has initiated several developmental programs for uplifting of living standards of poor people but full benefits have not reached to the targeted population due to corruption prevalent in administrative and political systems.Pradhan Mantri Gramin Sadak Yojna has resulted in road connectivity in rural India but roads are of poor quality and without drainage support. Toilet and lavatory systems are not of standard quality and not even constructed in all houses of the village. Even today more than 90 percent people in villages attend the call of nature in open fields. Poor roads restrict movement of agricultural products from villages to goods markets in cities & towns. This disallow them to earn good price of their product.

Electricity: Life in rural India is miserable due to non-availability of electricity. Several states in India claim that 40, 50 or even 100 percent villages have been electrified. But supply of electricity to villages that have been electrified is not more than 3-4 hours per day. It is big hindrance in development. Globalization is not going to make much difference to rural life until and unless electricity is supplied uninterruptedly 10-12 hours per days too these villages. Population pressure will always be there in cities until and unless electric supply is made to a threshold level in rural areas.

Culture and social values: India’s real culture is still preserved in rural life. New advancement of technology has not much influence in rural areas. People still prefer to wear dresses of old fashion and celebrate festivals in old styles. Folk dances and folk songs are still popular among villagers. Culture is still untouched and unaffected by western influence. Globalization has no impact on rural life as standards of living are suboptimal but migration of people is taking place and poor people are moving to urban areas in search of employment.

Agriculture: Globalization does not have any positive impact on agriculture. On the contrary, it has few detrimental effect as government is always willing to import food grains, sugar etc whenever there is a price increase of these commodities. Government never thinks to pay more to farmers so that they produce more food grains but resorts to imports. On the other hand, subsidies are declining so cost of production is increasing. Even firms producing fertilizers have to suffer due to imports. There are also threats like introduction of GM crops, herbicide resistant crops etc.

Subsidies: India can not afford to protect its rural population from jerks of globalization and liberalization since it may have adverse effect on its economy. However, Indian government has to act judiciously considering long term impacts of its economic policies. Developed countries like USA provides over $ 18 billion subsidies to Indian farmers. Subsidies are vital to Indian agriculture too but subsidizing anything to its full value have a negative impact. None of the developmental programs can survive or attain its goal if it does not not involve any cost to the ultimate user. Providing free inputs to farming community may fetch few votes but not improvement in productivity. Hence, government should increase subsidies to inputs but subsidies should not be over 20-30 percent on any item. Misuse of subsidies by the farmers and government officials is not uncommon in India and needs to be curtailed using punishments and technological tools.

© 2008 Crusader


demudu on December 23, 2013:

thanks a lot !!

Aspesteve on March 08, 2013:

Scroll to Continue

We helpful to get high on living but recently We have accumulated a resistance.

Crusader (author) on May 19, 2012:

thanks pramodgokhle for the feedback and useful comments. It appears that country's with supporting policies and skilled manpower got benefited by globalization. However,it fired back due to non-supportive policies of some nations and lack of skilled labor as evident in many African countries. Mendela and others have found globalization non-worthy in African conditions.

mselu mandela on May 17, 2012:

globalization lead to the breakage of African culture and built bad behaviour to the youth

pramodgokhale from Pune( India) on May 13, 2012:

At present globalization is going strong in India.India's gennext is enjoying fruits of new process.Earlier India's private sector exploited skilled people but now the game is over.Every individual skilled and talented demands as per his/her capacity and corporates are willing to pay.

Outsourcing is a part of new process and western nations lost dominance on manufacturing, shifted manufacturing to low cost destination in Asia.

These avian countries were competent to take advantage and reaped benefits but some could not.

Though survival of the fittest is the law then i endorse Globalization

pramodgokhale from Pune( India) on May 12, 2012:

The topic is good.Globalization came here, not suddenly,long back there was GATT, Dunkel draft, later Globalization came into force,because West lost their dominance in manufacturing, low cost manufacturing destinations in Asia began to emerge,then came Outsourcing, that benefit China,India and other East Asian nations, they are competent enough to take advantage of the new process but other were not.

India took advantage of IT revolution and services outsourcing due skilled manpower and sources such as English speaking population.India under socialist regime at center ,restricted many things that blocked creativity and productivity,when MNCs entered India they found skilled manpower is cheap and productive,they started hiring them ,even posting abroad to save money.

The new hi-tech generation in India found that globalization has opened the door of prosperity and enjoy high life.

One thing is certain Globalization has opened new vistas and millions of Gennext

so enjoy Globalization.

Crusader (author) on April 25, 2012:

thanks omba for feedback on the effect of globalization in Africa.

omba okito nas on April 24, 2012:

globalisation he created many problems in African societies and he brought also many kind of sleekness, as my brother was saying that globalization affect Africa continent. today as we know Africa is the poorest continent in this world and globalization comes again to bury Africa, the rate of poverty was hingh and Globalization brought or add again it's rate on poverty

Crusader (author) on January 13, 2012:

thanks to everyone for the comments and the suggestions. Hannah, I've heard about the paragraph but ignored it anyhow. Thanks for the suggestion.In fact, people have copied this article even with errors, I thought many times to remove it but could not resist the heavy traffic.I'll try to improve and modify when I get time .

sandy on January 05, 2012:

usefull yar

Wayne on January 04, 2012:


I thought that more ideas and examples can make this a very useful piece of information, but what is here was very helpful when I was thinking of ideas for my essay.

sameer on December 03, 2011:

very "interesting" topic but very "disapppinting" for india.

aathiraa,,,, on November 27, 2011:

not so imformative...............

shruthi nair on November 20, 2011:

needs more pics. needs explained info

Dickson T.Williams on November 15, 2011:

Globilisation can best described as a wild way of leaving into a well tranquill environment were by the environ is adapted to the modernise system of living or soceity

Vizey on September 08, 2009:

Globalization has brought employment for many and unemployment for many. Total effect of globalization is that European countries and America have benefited & Asia and Africa have suffered loss.

Socio-Image on March 31, 2009:

(opinion) I believe the more India, Nepal, and Bangladesh rural areas are seemingly untouched; the more they become victem to globalization. For example the Bangladesh Genocide of 1971 was no mere fight for independence from Pakistan. India could have ended it before it begin, being the country that separated Pakistan and E. Pakistan (Banglaesh). Unfortunately, the less developed they are or retaining their culture, the more they are affected by globalization.

Erick Smart on March 09, 2009:

India is definitely a country on the move, and the government is taking action to control things. My brother has to go there on business in a couple of weeks and he was made to sign a contract by the Indian government that he would not seek to find employment while he is there.

nikhil_sun on February 24, 2009:

You have stated some neat facts.But I think the situation is changing gradually with manu people becoming innovators and social entrepreneurs and doing their bit for India's rural sector.You can read my hub 'India and Innovation' on the topic.

Crusader (author) on September 11, 2008:

Thanks solarshingles for positive feedback

solarshingles from london on April 19, 2008:

Very educational, yet very challenging topic.

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