Globalization and the Role of India
The actions of the U.S. President have impacted international agreements and institutions such as the Paris Climate Accord, WHO, UNESCO, and potentially the WTO. It emphasizes the need for India to take a leadership role in salvaging globalization.
Impact of Current Leadership's Policies
- Withdrawal from Key Agreements: Current leadership has taken the U.S. out of major international agreements, destabilizing the institutional framework of global cooperation.
- Protectionism: His policies promote restricting cross-border flows of goods, capital, and people, threatening globalized economic growth.
India's Role and BRICS
- Leadership Opportunity: India can lead efforts to preserve globalization's benefits through BRICS, an economic bloc comprising Brazil, Russia, India, China, and South Africa.
- Mobilizing Economies: India should galvanize BRICS to mobilize large economies toward sustaining globalized growth.
Globalization's Impact on Developing Nations
- Globalization has facilitated economic growth, poverty reduction, and improved living standards in developing countries, including India.
- Income Equality: While within-country income inequality is rising, the income gap between rich and poor nations is narrowing.
- India's Growth (2003-2014): Significant growth in real wages, reduced poverty, better infrastructure, and expanded telecom networks.
- Challenges: Demonetization, divisive politics, and inadequate economic reforms have hindered growth.
Proposals for Salvaging Globalization
- International Collaboration: India should collaborate with the EU, Japan, Canada, ASEAN, Australia, OPEC, and the African Union to create an alternative to the WTO.
- BRICS Initiatives:
- Launch of a BRICS Reinsurance arm and BRICS Clear.
- Development of a stablecoin benchmarked against the IMF's Special Drawing Rights (SDR).
Domestic Reforms Needed for Credibility
- End Sectarian Politics: Promote social cohesion and unity.
- Agricultural Reforms: Separate producer and consumer subsidies, provide income support to farmers, and reform procurement practices.
- Encouraging Innovation: Levy an R&D cess, provide tax breaks for in-house IP development, and reduce import duties while protecting against unfair competition.