Sunday, 23 March 2014

LIBERALISATION, PRIVATISATION AND GLOBALISATION

 LIBERALISATION, PRIVATISATION AND GLOBALISATION 
@ Economic Crisis :-
      These are refers as those situation in which suddenly lose of financial assests which creates macro-economic imbalance in late 1980s , these happen because of fiscal imbalance, fiscal deficit etc which results high burrowing of money by government Cause high rate inflation which are solved by economic reforms only
# Why  economic reform introduced :-
- High inflation about 16.8%
- More fiscal deficit
- More Bank withdrawn by indian government from world bank
- High Rate debenture payed by indian government about 30,000 crore per year as interest
@ Economic reforms :-
   it Is type of structural adjustments which include long term , multi-dimensional package of various policies and programme for futher economic development
# Objective :-
* reduce fescal Deficit
* Reduced area of public sector
* Encourage foreign trade
* Liberalise foreign trade
@ Liberalisation :-
 These literally means remiving all government unneccesssary controls and restriction which imposed by the goverment , these may be permits, licences, duties and etc
# Objective :-
- Raise Competiveness
- Raise Foreign investment
- Reduce Debt
# Form for liberalisation measures :-
* Industrial Sector reforms :-
       Where new government Industrial policy are introduced are
=> Except 6 industries all industrial licence are abolished , six remaining are those which mainly deals with liquor, explosives, defence and drug related
=> Indian government reduced number of reserve for public sector
=> New policy introduced many of Small scale industries to exceed 1 crore limit
* Financial Sector reform :-
          These these financial sector mainly introduced Stock exchange, foreign exchange trade , banking and non banking financial institute
* Foreign Exchange Reforms :-
      in these value of rupee is devalued again , which results inflow of foreign trage due to less prices and cheaper product to foreign market
* Trade Reform :-
  In these protectionist policy marked by which marked quantitative restriction done in high tariff on import and export duties which main aimed behind is
- Abolisation of import licensing system
- Removal of Quantitative restriction on imports
- Reduce tariff rates
@ Privatisation :-
   it is defined as the transfer of a function, activity or organisation from the public to private sector
# objective :-
 * Improve government financial condition by raising funds, and raising internal resources by increasing capital market
* By increase effecienty of enterprise and requiring enterprises to meet performance activity
@ Globalisation :-
it refer to growing economic independence among countries in the world with regard to technology, capital, information etc
# Prameter for globalisation :-
* Reduction of trade barrier
* Free flow of capital
* Free movement of labour
* Free Flow of technology
# Pros of Globalisation :-
- flexible production
- Raise fOreign Trade
- Rise In Employement
- Reduce Poverty
- More product improvement
 @ Outsourcing :-
   It Mean Obtaining Good and services by contract from an outside source, These are very inportant for making more profit for developing countries, which provide ready supply of skelled person . ther are some companies are HCL, BPO, Wipro etc
@ Organisation For facilitating Globalisation :- 
1. International  Monetary Fund :-
              these IMF Established by some objective are :-
                    - For Promoting Monetary Cooperation
                   - Promoting Exchange
                    - Establish Multilateral Trade
                    - Create employement
                    - Expand Capital Investment
2. The World Bank :-
          These Are Bank formned to get some objective are :-
                   - Prmote Social development
                   -  Promote Reforms
                  - Investment in Educational amd Basic health programme
                   - Giving Encourage to private sector
3. World Trade Organisation :-
                  These Are Based On General Agreement On Tariff and Trade (GATT) to Getting objective For free trade In order to help In growth and development of member in the countries, there are some feature of these are :-
 -  impoleting multilateral trade agreement
- Giving full Fledged  International organisation to its own right
# Objectives :-
      * Raised Standard of living
     *  Devbelopment of  Integrated , vaible trading system
  *  reduce tariff and non- tariff barrier
*  Ensure linkage among trade poliocies
@ Achievement of introducing liberlisation, privatisation and Globalisation with economic Reform are :-
-  India GDP rise at about 1.3% to 8%
- It Help in getting More Froeign Exchange Reserve
- It Help help to control inflation
@ Challenges strike Liberalisation, Privatisation and Globalisation in which economic Reform fails are
* Agricultural realted Crisis
*  protecting Environment condition or to get them in stable condition
* Protecting Environment for further Rising Problem
* In Tax revenue Rate Falls
*  Qualitative Infrastructure not so much developed

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