Total liberalization is the only way for economic development
Total liberalization is the only way for economic development in India
Total liberalization is often referred to as the ‘total trade liberalization’ which means after deductions profits by allowing an upsurge in voluntary trading.
For:
- Trade liberalization will assist in aligning the wage rates between countries and will also help in reducing discrimination of wages in the country
- The resources are available in copiousness and trade leads to a intensification in return to capital and waning wages which has been proved in the developed countries and hence we should give it a try in the developing countries as well
- Trade helps in reduction on poverty as it gives new opportunities even to the unskilled labour
Against:
- Trade liberalization will increase wages especially of small scale industries as exports involve a lot of cost and in turn would be expensive for the small scale industries and hence will imbalance the economic development in India
- There has always disparity seen between trade and wages, which cannot be changed and ignored as well
- Most of the labour is betrothed in the agricultural sector and hence lack the skills to be hired in organised industry sectors where they can be offered better pay
- It increases wages inequality as skilled labour will be paid more whereas a person doing the same work but is unskilled will be paid less.
Conclusion:
- Liberalization would be beneficial but certain necessary changes should be made and then implemented as it would help in eradicating the wage inequality
Discussion
- RE: Total liberalization is the only way for economic development -Rishika Jalan (04/23/14)
- Total liberalization also known as trade liberalization is the removal of reduction of barriers on the free exchange of good across countries. This involves the removal of both tariff and non-tariff obstacles and gives way to free international trade. Whether total liberalization is the only way for economic development or not is a much debatable topic. Some who are against this claim that it can cost a much higher value to jobs and lives as cheaper products from outside flood the domestic market, threatening the lives of domestic businessmen. Moreover these products are often not even checked properly for quality and safety which is done in the domestic markets. While on the other hand, some believe that trade or total liberalization lowers the consumer costs by offering a lot of variety. It increases efficiency and also helps in fostering economic growth and development by eradicating poverty and offering a wide number of unskilled jobs to the poor.
- RE: Total liberalization is the only way for economic development -Rajani Sharma (01/18/14)
- For
• Total liberalization will be a great opportunity for developing countries to boost their economic growth rate.
• Trade liberalization will help the poor by increasing the real income. Thus it will help in eradicating poverty.
• Liberalization in trade will help in amplifying and facilitating trade between countries. This will also reduce the discrimination of wages in the country.
• In total liberalization the resources will be available in abundance.
• Trade liberalization will also have positive impact on employment and wages.
Against
• Total liberalization will negatively affect the domestic industries due to the severe external competition.
• Trade liberalization may lead to loss of government revenue which could disproportionately affect the poor.
• Total liberalization will improve imports more than exports leading to trade deficits and consequently contribute to low economic growth in future. Thus will create imbalance in the economic development.
