What do you understand by ‘fairer rules’? How far it is beneficial for all. State some important points.

Globalisation is the reality of the 21st century. Globalisation is the interconnection between counties through the expansion of foreign trade and foreign investment.


It has created many positive impacts in the economy. It has resulted in the production of more standardised products, generation of more employment opportunities, improved the choice of buyers, created additional investment and has contributed to technology transfer. But it has adversely affected the lives of small traders by closing down the local companies. It has also contributed to wide-spread unemployment, uncertainty in jobs and has created huge disparity in income distribution. Such a situation demands for a fair globalisation and enacting fairer rules.


Globalisation can be fair only when its benefits are being distributed to every section of the society. Some of the guidelines that can be followed for the implementation of fairer rules are:


• Government can implement policies to ensure that the interest of both the richer sections and the poorer sections of the society are safeguarded. Government can implement rules for fairer distribution of income. Richer sections can be taxed more and the income can be re-distributed.


• Government must ensure that the interest of workers in both organised and unorganised sectors are protected. Strict labour laws must be enforced to reduce the uncertainty in jobs while being employed in MNCs.


• Government must make sure that the small, local produces are not eliminated from the market because of the excessive competition. They must be protected from the excessive imports of foreign goods and services. Thus the government can ensure the protection of such industries from unfair foreign competition till they are strong enough to face the market.


• WTO is the major international organisation that is supervising and regulating the functioning of the economy in the globalised world. But WTO is being dominated and controlled by the developed countries. The government can integrate with other developing countries facing the same problem and raise their issues to WTO thus ending their domination.


• Developing countries can negotiate with WTO for fairer rules regarding the import and export of agricultural commodities. Developed countires have retained and maintained their trade barriers and are providing subsidies to agricultural producers. On the other hand, developing countries are being forced to liberalise their markets. Government can thus negotiate with WTO for equal and fair rules.


Only with a fair globalisation, we can ensure that the benefits of globalisation is being enjoyed by every sections of the society. This will led to the creation of a more sustainable economy in the future.


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