PSIR Optional Paper 2 by R.P.Singh

Model Answer

Question #1. The state in present times has become just a facilitator rather than serving people from cradle to grave. Do you agree? Provide arguments. Discuss the merits and demerits of the phenomena of globalization on a functional basis.

Hints:

The functions of the state have undergone a sea change due to the impact of globalization. The states are eager to increase their share in the world market by means of exports and imports. Multinational corporations are playing a vital role in the domestic economy of the states.

International agencies like the International Monetary Fund (IMF), the World Bank (IBRD) and the World Trade Organization (WTO) control and modify, to some extent, the fiscal policies of the states. Public sectors are being privatized. Private enterprise is preferred to the public sector. Foreign Direct Investments (FDI) is being encouraged.

The states are gradually withdrawing themselves from economic, social and welfare activities. Individual initiative is being emphasized at every level. Market economy has replaced the command economy. Imperative planning has been replaced by indicative planning. Moreover, neo liberals advocate for the promotion of a free economy for the best realization of human potential. The state exhorts the people to act on the principle that "self-help is the best help". In other words, the state's role is now confined to being a facilitator rather than serving people from cradle to grave.

Merits of Globalization

The era of globalization is opening many opportunities for millions of people around the world. Increased trade, new technologies, foreign investments, expanding media and Internet connections are fuelling economic growth and human advance. All these offer enormous potential to eradicate poverty in the twenty-first century.

As tariff and other barriers are being lowered, trade is expanding. Thus, globalization is turning the whole world into a common village. Hence, it has opened up new opportunities for developed as well as developing countries. Explaining point-wise, globalization may be justified on the following grounds.

(1) Globalization aims to achieve free trade between the economies.

(2) It allows no restriction in the form of licenses and controls in taking up any industrial activity.

(3) It allows multinationals to have free access to investment in enterprises to enable the natural flow of capital and technology.

(4) It allows no curb on imports and exports.

(5) It advocates that the customs and tariff should be based on a sound rationale to encourage free international trade.

(6) It advocates an enormous increase in direct investment.

(7) It advocates growth of organization and administrative structures to manage resources and risks across sovereign borders.

(8) It advocates gains in technology and their transfer from one economy to another.

(9) It advocates consumer gains, faster rate of growth, specialization, development of infrastructure, employment generation and above all availability of capital at competitive rates

Demerits

Globalization is more criticized in developing countries than developed ones. In a developing country like India, the 1990s has seen more retrenchment as firms downsize or merge to stand has rigors of competition. This is happening in an environment when Gross Domestic Product (GDP) growth is not generating jobs. Trade liberalization has resulted in increase in cheaper imports which hurt local manufactures. Further. Globalization has income levels with the rich getting richer and the poor becoming poorer. Sceptics doubt that the WTO may not give justice to the developing countries.Explaining point wise, globalization may be criticized follows:-

(1) International competition affects domestic industry and leads to unemployment.

(2) Exchange rate may become more volatile due to free flow of capital.

(3) National resources of the developing countries may be exhausted.

(4) Global happenings directly affect a country's economy on account of interdependence of economies.

(5) Globalization may adversely affect the social, political and cultural life of the people of the country.

(6) It affects the economic sovereignty of a nation.

(7) The developing states are compelled to be guided by international agencies, like the IMF, World Bank and the WTO .

(8) Globalization affects local security measures and leaves the individual to his lot.

(9) Under globalization, health and education become more expensive and they are available to the rich only.

Question #2. Discuss the role of media, Private sectors and think tanks in making Indian Foreign Policy with suitable examples?

Hints:

Normally foreign policy initiative is taken by the government, But occasionally in a democracy that India is, foreign policy initiative emerges from outside the formal apparatus of the government. Jawaharlal Nehru had once told the Constituent Assembly: "External Affairs will follow internal affairs."

In addition, media, social activists and movements and non-governmental organisations also contribute to the formulation of foreign policy. They help in regulating India's behaviour towards the outside world. India has also fairly developed expert groups which may be, for the sake of convenience, described as the Think Tank. These groups study various foreign policy issues and convey their well-considered views to the government.

• The pressure groups are normally weak in influencing foreign policy in contrast to the domestic policy issues. Yet these groups sometimes do play a role in influencing foreign policy. There are various interest groups, some visible, while others work clandestinely. There are several societies working for friendship between India and one country or the other. One such society in the past was the Indo-Soviet Friendship Society. These friendship societies have their contacts in the Ministry of External Affairs, as well as in the Parliament. These pressure groups work systematically to influence foreign policy-making for or against a country. For example, India delayed establishing diplomatic relations with Israel from 1948 to 1992 due to the activities of certain interest groups.
• Media involves various instrumentalities. First, there is the print media like newspapers, magazines etc. Second, there is the electronic media like Radio and Television. Third, the Internet is emerging as an important segment of media in influencing foreign policy. The media plays a role in highlighting the issues that need attention of policy-makers. They also carry the policy decisions of policymakers to the people with their own commentary. Newspaper editorials and the articles published in the newspapers do have influence in the policy-making process. But it is also true that in general the media has limited influence as it has limited access to the information to develop an alternate viewpoint on a policy issue. Thus it prefers to follow the lead given by the policy-makers-at the most by reacting to it either in support or oppose it
• Indian society is highly fragmented. Each social group, on the basis of its narrow group interest, tries to influence foreign policy. Muslims in India constitute a sizable segment -around 12. Percent-of the society. Their activities within the country and in relation to Islamic countries do influence the foreign policy. Taking note of this fact, the Indian foreign policy-makers until 1992 maintained diplomatic relations with Israel at consular level. Indian Muslims tend to be seen as speaking for the Muslim world, particularly in favour of Pakistan. When the US attacked Afghanistan many Indian Muslim groups called for the boycott of popular US products like Coke.
• The government is restrained from acting against perceived interests of Muslim community world over. These may not involve any concrete gains or losses in real terms but mostly only in terms of perceptions. This is clearly indicated by a statement issued by a Muslim institution called Raza Academy, in Mumbai in May 2003. Brajesh Mishra in Washington, DC during his visit made a statement that India, US and Israel should jointly fight terrorism. But the Academy immediately reacted stating that to "tackle the threat of terrorism India cannot risk taking the help of terrorist themselves."
• While certain communities or social groups might constrain Indian foreign policy, others may help to expand the Indian influence in other countries. Such social movements create awareness on the part of the government on the need to pursue certain foreign policy issues. India has given to the world at large, particularly East and SouthEast Asia, Buddhism as their religion. Buddhist organisations in India advocate improved cultural and social ties with the countries, which are predominantly Buddhist. The Indian government wants to encourage Buddhist tourist routes. These organisations in India and abroad look to one another to maintain goodwill and understanding which helps to some extent government's policy making.
• In the last fifty-six years after independence, numerous Non-Government Organisations have come up within the country. These NGOs have a bearing to some extent on the foreign policy development process in the country. These NGOs, while acting as pressure groups in domestic policy, try to link up with similar NGOs abroad and also with foreign funding agencies and influence the funding or the government policy towards a policy. Best example is Medha Patkar's Narmada Bachao Andolan. This group even approached the World Bank against funding the Narmada Sarovar Project.
• Most of these NGOs deal with issues, which affect ordinary people in the country like health, education, population, human rights particularly rights of women and several others. There are not many NGOs, which exclusively focus on foreign policy issues. There are numerous friendship associations connecting the two countries and their people. Some of these are Pakistan-India Forum for Peace and Friendship, which strive to bring about improvement in relations between the two countries. There is also an Indo-Arab society as there is the Indo-Israeli Society. There are many of these societies like the Indo-Japanese Society etc.