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BUSN 350 Business Ethics: Political Liberalization

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  • Course Code: BUSN 350
  • University: Centennial College
  • Country: Canada

Question:

As we enter into the discussion of ethics on a global scale, we examine the Four Drivers of Change in Chapter 3. They are Political Liberalization, Privatization, the Environment, and Technology. For each country, these forces will look very different. However, as the role of governments continue to evolve, worldwide, these four drivers are continually fomenting change.
 
As an example, even though the United States is often characterized as the World’s freest democracy. Yet, the actions of Edward Snowden show that there are government actions that still hold significant effect on peoples’ lives. Do not presume that any country is exempt from these forces.
 
 

Answer:

Introduction 

In global political arena, the four drivers of change namely, political liberalisation, privatisation, environment and technology are considered that affects significantly on the growth and development of a country. The country I belong to is India and she, subsequently, has faced issues related to the political liberalisation that are summarised in the respective abstract.

Political liberalisation: the aim of liberalisation of politics is loosening government control over matters such as laws, rules and regulations, enabling free trade and capital formation. “Less government, more governance” has been the customary theme of the present government of India which has accelerated entrepreneurship skills and growth in the youth and aspiring business leaders. Since 1991, liberalisation of economy in India has resulted in transforming industries and potential industries skilled and service-oriented by privatising them.

Due to the issues related to fixed exchange rate system, troubles related to balance of payment occurred, resulting in acute economic crisis throughout the country. Such situation paved way for liberalisation of economy in 1991, which reduced tariffs and duties, emancipated public monopoly, allowing foreign direct investment in primary, secondary and tertiary sectors of economy. (Arnold, 2015) The Bharatiya Janata Party initiated National Democratic Alliance which started privatising the malfunctioning government-owned enterprises such as VSNL and Maruti Suzuki. The Bharatiya Janata Party government led by Narendra Modi opened the insurance sector by granting 49% FDI, leading to increase in foreign investments and multinational companies (Siddiqui, 2015).

Conclusion

The discussion intends to deduce that privatisation has helped India by increasing her GDP by almost 7.3% from 1991 to 2019. Information technology has been implemented in agriculture due to liberalisation which has helped in agricultural growth. Industrial growth can be noticed with improvement in infrastructure with youth possessing refined skills and training. India is performing fairly with the wave of liberalisation speculating to meet the growing demands of the neo-liberalisation era.

 

Reference

Arnold, J. M., Javorcik, B., Lipscomb, M., & Mattoo, A. (2015). Services reform and manufacturing performance: Evidence from India. The Economic Journal, 126(590), 1-39.

Siddiqui, K. (2015). Agrarian crisis and transformation in India. Journal of Economics and Political Economy, 2(1), 3-22.

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