The Hindu : Globalisation 'benefits' the rich

Online edition of India's National Newspaper
Sunday, Mar 14, 2004

Tamil Nadu

Tamil Nadu

Globalisation 'benefits' the rich

By Our Special Correspondent

CHENNAI, MARCH 13. There is need for a utilitarian model with the Gandhian equity paradigm of helping the least advantaged sections, said Prof. Armin Rosencranz, Stanford University, United States, yesterday.

Delivering the S. Govind Swaminadhan memorial lecture on `Equity and social justice in the era of globalisation' under the auspices of the Citizen Consumer and Civic Action Group (CAG), he said here globalisation was based on the belief that an export-led growth and open market would lead to economic development and the per capita income would rise. But the question was whether the benefits of globalisation trickled down to the lowest level. He referred to several instances of how in an era of globalisation the commercial operations of multinationals affected the local people.

In a free market, which responded only to profit and not to the people, it was a foregone conclusion that the rich would be benefited. Millions of people would be displaced and their culture destroyed.

Even in the U.S. and in Mexico, small farmers were affected and this was true in Asia and Africa also. Prof. Rosencranz pointed out that in the past there used to be 300 varieties of rice, which were suited to a particular configuration. But now there was an amalgamation because of which there were only three varieties. There were enormous disparities, which were widening, within countries and between the North and the South.

The Tamil Nadu Governor, P.S. Ramamohan Rao, who presided, said it was a case of the South against the North for several years. The eternally-faced conundrum was how the conflicting rights, requirements and interests could be balanced.

Sriram Panchu, advisor, CAG, said it was due to Govind Swaminadhan and other trustees that the CAG got off to a flying start. N.L. Rajah, trustee, welcomed the gathering and introduced Prof. Rosencranz.

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