Globalization and Bureaucracy

Globalization, as the name suggests, is a global economic movement which involves all national and international economic players, including the all pervasive bureaucracy. It is a multi-role, multi-layered phenomenon in which everyone contributes his bit. The growing progress of science and faster means of communication have converted the world into a global village wherein people from all strata of society have converged to share the economic benefits which are a resultant of increase in production. States' national boundaries are shrinking and an inter-state commonwealth is emerging on the basis of a common cooperative endeavor. In every such growing economy, one feels the presence of an "invisible hand" ¹ of bureacracy.

The term globalization implies economic integration through cross country flow of information, ideas, technologies, goods and services. Its seminal features are:

(i)    Removal of trade barriers to facilitate free flow of goods all over world
(ii)    Generating environment which conduces to the free flow of capital among nation-states
(iii)    Facilitating the free flow of technology, and
(iv)    Providing opportunities for the free and unfettered movement of labor among various nations

To put it in a nutshell, globalization leads to economic growth and integration which can happen through trade in goods and services, movement of capital, and flow of finance through movement of people. But in reality globalization is a multi-layered phenomenon. Across borders, unity ushered under the impact of globalization has several dimensions - cultural,  social,  political and economic. That  is why  some  economists  termed  it  as  a  process  of creation of global economy, whereas others talked of political and social globalization, a globalization of ideas that led to technological changes.²

Broadly speaking it can be suggested that   "Though   the  world   globalization   (as   a   synonym   for privatization  and  liberalization)   is  more  often  used  in  its economic sense of removing trade barriers and state controls on   economic   activities   of   people,   it   implies   widely   the unification   of   peoples,   cultures,   nations   and   continents through interaction in various fields."³

The tempo and pace of globalization is so momentous that it has transformed world politics. States are no longer closed and compact political units that could control their economies independently. They are greatly influenced by international financial and trade institutions, and policies. Common global culture is a world wide phenomenon and under its influence, most urban centers of various nations have developed a close affinity with one another. "The  world is  becoming more  homogeneous. Differences between people are diminishing. Time and space seem to be collapsing. Our old ideas of geographical space and chronicle time are undermined by the speed of modern communication and media. There is emerging a global polity, with  transitional   social  and   political  movements  and  the beginning of a transfer of allegiance from the state to sub-state, transitional and international bodies. A cosmopolitan culture is developing."⁴

The proponents of globalization stress that as a result of the policies of globalization, developing nations would be able to improve their finances and march towards rapid economic growth. In India globalization has become synonymous with economic liberalization which was adopted when the Indian economy faced unprecedented crisis in July 1991 and tons of gold had to be mortgaged with England. The government, headed by Prime Minister P.V. Narasimha Rao, felt compelled to reverse the licence-permit raj resting on an economic policy of stringent controls and protectionism. Consequently, structural adjustments involving liberalization of trade and gradual opening up of the economy by means of a program of privatization were undertaken, resulting in the process of dismantling trade barriers in 1991. Since then every year, the government has reduced customs duties and also removed quantitative restrictions, in order to facilitate the free flow of goods, capital and technology.

Thus globalization becomes a motivating force for nations to develop at a faster rate. For a developing country like India it opened up access to new markets and new technology.

Consequences of Globalization : Opinion is divided on it. While some perceive it as an engine of economic development, social and cultural advancement and a way towards economic and social unification, others fear that it may lead to a more iniquitous distribution of income among developing nations and pave the way for economic domination by developed countries over under-developed and developing nations.

Referring to the advantages of globalization, it is said that "Globalization promotes specialization, the theory of comparative advantage and increased production and productivity. It also helps to remove world poverty through trade and the trickle down effect. It unifies different people by sharing prosperity as well as the common miseries thereby reducing the incidence of wars that are now capable to annihilating mankind due to advances made in weapons technology through atomic, chemical and biological sciences........... Globalization is also being pursued by many nations as it is considered to be in furtherance of democracy and freedom of the individual. It also enlarges the scope for countries to benefit from   different opportunities arising around the world.........   If there is war, poverty or unhappiness anywhere in the world, it is likely to become a threat to peace, prosperity and happiness elsewhere."⁵

Role of Bureaucracy : The civil services are the basic factor in administration through which the will of the state is expressed. They run the state administration and manage public affairs. They are the pillars of the state. They play a stellar role in meeting the objectives of globalization, as a result, having a great bearing on the economy of the state. They are required to manage globalization in such a manner that the negative impact of this system is minimized to a great extent.

Under the impact of liberalization, privatization and globalization, the hold of the governments on economies is slackening. The influence of international bodies, multinational corporations and external agencies is on the ascendance. The developing countries invite and accept foreign funds to develop their infrastructure and thereby the control of local resources is taken over by multinational corporate houses that acquire uncontrolled access to local economic resources. The ill-effects of globalization on economic systems and on domestic policies are evident. The policies of LPG curtail the state's welfare activities by reducing expenditure in populist spheres. This leads to inequality and. the poor and needy become more destitute. Existing life styles, values and systems of local people are transformed. Hence the administration is required to be more cautious and vigilant. The civil services guide the political executive, helping them in policy making by keeping in view the national interest and the welfare of the people. Such policies are framed as may lead to self- sufficiency, efficiency, and equitable use of natural resources.

Growth of Market Economy : Globalization and liberalization encourage market economy, which though efficient, is capital-intensive and not effective in promoting social goals. It is welfare neutral and leads to unequal distribution. It is neither conducive to the welfare of common man nor serves the cause of the poor and the destitute. The activities of multinationals jeopardize the interests of the common man as their policies are always market-centric and profit-oriented. In the name of efficiency and productivity, they overlook the interests of the common man. What is needed to uplift the poor masses is people-centric development, which will provide an opportunity to the common people to control the resources of the society and enable them to use them for the common welfare. Therefore, the civil services, in order to decentralize power and responsibility, should encourage local institutions and delegate to them sufficient financial and administrative authority to solve the local problems.

It has been rightly said, "To resist the onslaught of multinationals the challenge before civil servants is, therefore, how to localize globally and globalize locally. They have to initiate decentralization, people's empowerment through devolution of powers and encourage local self governing institutions to administer and meet collective or social needs while encouraging markets to meet the individual needs."⁶

Referring to the role of the state in the context of India's new economic policy, it is observed. "The rolling back of the state on the economic issues necessitates a redefining of its new role and re-examination of its structures and processes. It may no longer remain to be the owner of strategic industries, but it is still a regulator, a pro-consumer regulator that oversees and prevents abuses of market and provides the legal, physical and human infrastructure. It has to concentrate in development economics that would benefit primarily the poor and the disadvantagious."⁷

LPG i.e., Liberalization, Privatization and Globalization, sometimes lead to cut throat competition which causes corruption, diminishes quantity of production and influences the quality of life. To ensure consumer satisfaction, one should draw upon the quality in production and promote fair trade practices. In off-market dealings there is need to have fair and rational rules and efficient and effective governance. But good governance, essential for economic progress, peace and sustainable development, depends on services and talents of an efficient, dedicated and committed civil service. Good governance empowers and encourages people to take increasingly greater control of their lives through their participation, in a manner that does not impinge upon the accepted rights of others.

The civil servants are expected to lead and have the responsibility to hold the scales even and do what is good for the common man. The civil servants are required to gear up the administration and create stability by keeping themselves politically neutral and dedicated to the cause of the people. They can display greater skill to serve the society and make the people more conscious of their rights. Therefore, to be successful in a globalised system of economics, civil servants have to strike a fine balance between participation and accountability ; competition and conflict ; user and citizens ; public interests and market interests and old and new . Laws have to be enforced impartially and the weaker sections are to be protected by them as the operations of the Corporates may not take care of them. The civil servants must promote efficiency not only in public services but also within government. In developing countries, governments are the main promoters of public welfare, and civil servants should work hard to achieve their stipulated targets.

In a globalised economy, local entrepreneurs can ill afford to compete with giant foreign corporations, and this conduces to monopolistic exploitation of the locals. The profits are drained out and domestic industry and national interests suffer. For example with the coming of Pepsi and Coke, the domestic soft  drink industry completely disintegrated. Here the civil services can enforce the rules strictly and disallow the multinationals to take over domestic enterprises.

Although the developing countries have registered some progress yet as compared to the developed countries like the U.S.A., the U.K., France, and Germany, their lot is still unsatisfactory and needs corrective therapy and treatment. The ill-effects of globalization have further led to the worsening of their plight. To remedy this situation, the bureaucratic structure has to be revamped. The civil services should work hard to create an environment in which rights of the citizens are protected, law and order is maintained, stability is provided and efficient financial and administrative infrastructures are put in place to tone up welfare services to the people. The civil services should protect the people against the market forces and onslaught of multinationals. The people should be encouraged to manage their affairs through various forms of organizations like N.G.O.s, cooperatives, self-help groups and institutions working for the welfare of people. Participatory measures should be taken as an end as they help the people to enjoy their freedom. The civil services should assist the people to withstand the onslaughts of globalization.

In Retrospect : The march of globalization is unstoppable. It is no longer an option; it is a fact. It is spreading its tentacles every where and the developed nations use it as a means to control world economy. Some dub it as yet another form of economic colonialism. Under these circumstances the civil services should strive to save the country from the thralldom of imperialistic and monopolistic globalization. By protecting them from the dangers of globalization they should act as protective shields. In the words of D. C. Pande and P. S. Bisht, the state "must promote" ethics in politics and allow only those honest individuals into politics who firmly believe that they are there simply because of political need for economic development and certainly not because of any political desire of their own."⁸



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