Is Globalization related with poverty in India? Discuss with suitable examples.

Globalization made the world closer and created lot of opportunities for many people. With the intervention of World Trade Center, many countries allowed free flow of capital, goods, human resources and technology. This caused the establishment of new industries and contributed to closure of some traditional industries. many countries started transferring the basic amenities projects to private sector. This has changed the state from being welfare-focused to market friendly government.

Though globalization created many opportunities, only skilled or wealthy people reaped the benefits. This increased the inequality between the rich and poor. This has made urban poor lives much harder, and caused the creation of slums. On top of that, unhealthy process of urbanization is causing the deficiencies in the basic services such as housing, water supply, sanitation. This eventually made the poor, worst victims.

The trend of setting up industries in villages is increasing rapidly because of liberalization, availability of land at cheaper rates and the availability of unorganized labour. this resulted in “degenerated peripheralization”, where the poor migrants are having a very poor quality of life because of pollutant industries. Despite the rapid industrialization in India, with the heavy competition from the cheaper imported goods, lot of traditional industries suffered badly, especially agricultural sector. Though rural poverty is being addressed in the national policies and world summits, urban poverty is being neglected.

World has learned the experience of Latin American countries, which underwent globalization in 1980 due to external compulsions, urban poverty increased rapidly in several of these countries. Problems such as epidemics, unhygienic living conditions, group violence increased. Higher relative poverty was reported due to the increase in the rich poor gap. India took steps towards balanced regional development by observing the reports of unhealthy process of urbanization.

Globalization contributed to decrease in the poverty by trickle down effect on the one hand and increased the income inequality between the rich and the poor on the other hand.

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