Impact of Globalization on Odisha

~Written by, Dr. Manas Ranjan Debata

Global Integration or Globalization, as termed in today’s world has brought the world together in one place. If we look at the world fifty years back, the term “Globalization” was an alienated term to mention. The World Wide Web we use today is one of the major players in bringing the world together. In this journey, as the world shrinks and the cultures expand, we find a lot of banes as well as boons happening to the world around us.

 In this era of Evolution, the State of Odisha hasn’t stayed unnoticed.

This article shall explore the various aspects of its impact on the following sectors:

1. Agriculture
2. Industry
3. Handicraft
4. Economy
5. Culture
6. Ecology

1. IMPACT  ON AGRICULTURE

Agriculture is an integral part as we talk about the economy of Odisha.

BENEFITS IN THE AGRICULTURAL SECTOR:

• The influence of Multi-National Corporation in Odisha promoted a consumer culture.
• Improved quality of products due to global competition.
• Customer service & customer is the approach to production led to improved quality of products and services.
• People of developed countries obtained gainful employment opportunities.
• Green business with a commitment to possibility and sustainability creates Green Consumers.
• Green consumers prefer to purchase eco-friendly green products and avoid environmentally harmful consumption.
• The idea of a free market and democracy affect cultural identity and ensure the integration of the world economy.

DOWNSIDES:

• Due to the unavailability of proper rural infrastructure and commodities market, the agricultural produce is not even able to compete with the domestic market.
• The Co-operative Banks especially in rural areas failed to withstand to high competition from the national and global banks.
• There have been major changes in land ownership.
• Not less than 50% of tribal lands have been lost to non-tribal either through mortgage indebtedness or forcible possession.

Acts banning on transfer of land from tribal to non-tribal communities remain ineffective.

• The share of total employment working in cultivation declined from 45 to 30% and small landowners entered into casual wage labor.
• Cultural goods and service produced by rich and powerful countries have invaded all of the world’s market thus adversely affected cultural identity.

2. IMPACT  ON INDUSTRY

BENEFITS:

• The business environment and availability of natural resources attracted the entrepreneurs.
• It has attracted FDI Foreign Direct Investment flows in different sectors of the economy.
• Abundant natural resources and cheap labor have attracted the Global Players of POSCO & Vedanta & TATA to set up their ventures in the State.
• There has been a marked improvement in the business environment during the post-liberalization period.
• The Road, Rail & Air connectivity,
• Access to finance,
• Availability of skilled labor,
• Availability of raw materials,
• Local market in the State,
• Presence of buyers,
• Availability of industrial/ export processing zone and,
• The Port facilities remained as variables from time to time.

CHALLENGES :

• The market forces have compelled several small-scale industries & public sector undertakings out of race.
• The rural sector is not getting a proper price for their agricultural produce because of traditional farming.
• The economic backwardness at the geographical level & the gulf between the rich and the poor have led to the growth of radical left extremism in the State.
• Low-level educational attainment and the absence of technically qualified manpower, along with an enterprising entrepreneurial class led to low-level industrialization in the State.
• The two variables include access to land & consistency & transparency in business regulations turned worse.
• Deterioration of business environment in respect of these two variables with some major investments facing serious problems – POSCO in J.S.Pur and TATAs in Kalinganagar.
• Resistance in Kalinganagar, Niyamgiri & Jagatsinghpur has been observed as a result.                     

3. IMPACT ON HANDICRAFT INDUSTRY

BENEFITS:

• The handicraft sector being labor intensive can generate employment of a sizable proportion.
• Our State has the highest number of artisans who produce some of the world’s well-acclaimed handmade goods.

Handicraft exports contribute highly to the State economy with Germany, Australia, France, and Switzerland being the principal destination of Odisha crafts.

CHALLENGES FACED BY LOCAL ARTISANS:

• The Indian artisans despite having super skillful artisanship fail to compete in the global market because of the use of modern & advanced technology.
• The traditional source of marketing becomes non-existent.
• The artisans are incapable of dealing with modern marketing tactics and are heavily dependent on the middlemen.
• The artisans are compelled to shift to other professions even as daily laborers for their sustenance.
• The increased competition and globalization of the textile industry exert an adverse impact on the economy & living standards of the weaver community.
• It brought about deterioration in the quality of life mostly women in the weaver community.
• The competitive environment in the textile sector has adversely affected the operation & growth of the traditional and handloom industry in rural areas and made the weavers economically weak and bankrupt.    

4. IMPACT OF GLOBALIZATION ON THE ECONOMY OF ODISHA

ADVANTAGES:

1. Investment Of Capital

• Sick industries become workable
• Increase in production
• The market gets many new & qualitative products

2. Advancement Of Technical Know How

• New know-how to enter a country
• The techniques improve the existing system of a country.
• It makes the country self-sufficient in the economic field.

3. Employment Opportunities

• Multinational Companies open factories for their production.
• Local people get employment opportunities.
• It helps in eradicating unemployment.

4. Good Governance

• Usher in holistic values for the people;
• Liberal democracy
• Gender Equality
• Market economy
• Environmental sustainability
• Progressive Governance
• Modern   global capitalism     with    liberal democracy represents socio-economic Evolution
• Social values such as Human Rights are shared as a set of universal issue.
• It addresses issues like;
• Proliferation of Arms
• Upgradation of ecological balance
• Internationalization terrorism

DISADVANTAGES:

1. Brain Drain

• A man trained in technical know-how may be taken from one country to another paying an attractive salary.
• This hampers the progress of the parent country.

2. Economic Dependence

• Bringing loans from the IMF or World Bank, a country has to abide by the terms & conditions of the Financial Organizations.
• This brings Economic bondage to a country.

3. Capitalist Attitude Of The Developed

• Global financial crisis The developed countries regulate the market of developing countries.
• Exercising authority by the developed countries over the developing countries.
• It is detrimental to the sovereignty of the developing country.

4. Exploitation Of Local Labourers

• The developed countries invest capital in developing countries.
• Exploitation of laborers, workers, and consumers.

5. Intervention In the Social Sector

• Developing countries fail to make independent decisions in the economic as well as social sectors.
• Important aspects like education & health are regulated by those financial organizations of the world which creates a bad precedent.

5. IMPACT ON CULTURE

ADVANTAGES:

• There is an exchange of culture, language, and artifacts in the global corridor.
• There is cultural exchange, cultural diffusion, and cultural assimilation.

DISADVANTAGES:

• For the establishment of development projects, the tribal people are forcibly displaced from their land, thus losing their culture and livelihood.
• The effect of modernization has diminished their culture and life as a whole. The culture of one country is assimilated with the culture of another country.
• The culture of that country loses its identity.
• This brings cultural disharmony.

THE PESA ACT:

• The PESA Act (Panchayat Extension to Scheduled Areas) hails the tribal culture land rights and their participation in the local governance. Despite such provisions, tribal culture and livelihood are not protected.

OBJECTIVES:

• To facilitate participatory democracy in tribal areas by empowering Gram Sabha to manage & control its own resources.

DISTRICTS:

• Fully covered-7 (Mayurbhanj, Sundergarh, Koraput, Malkangiri, Rayagada, Nawarangpur & Kandhamal)
• Partially covered-7, Block-122 & GP-2099

RECOMMENDATIONS/ SUGGESTIONS

• In the name of development, their society & culture shall not be disintegrated.
• The government should take steps to preserve the valuable ingredients of the engendered tribal culture and tradition with all distinctiveness & purity.
• Steps to be taken to retain their rich and varied heritage of colorful, dance & music equal rights in their social & religious ceremonies, expertise in arts & crafts beautiful wall paintings, and floral design, and to preserve the value of their culture.
• Since Land, Water, and forest are indispensable for the tribal to support the existence of life on earth, balanced utilization of these vital resources will help them to lead a healthy & harmonious life.

6. IMPACT   ON ECOLOGY

THE DEGRADATION:

• Due to rapid industrialization climatic change has become the most dangerous threat to the planet and has a cataclysmic effect.
• Depletion of 25% more natural resources than the planet can sustain.
• Global warming drastically affects agriculture.
• Production of rice, wheat, maize & soya will decrease significantly.

CONCLUSION:

• Since sustainability has become a veritable need and Mother Earth is on the brink & of disaster, the following steps need to be taken;
• Green ideas, technologies, energy, and business will help develop & stabilize our universe.
• Intensive afforestation is the need of the hour.
• Preservation of forest & upgradation of ecological balance.
• Reducing the use of fossil fuels and promoting non-conventional energy.
• Devising good water management policy.
• To promote innovative urban planning policies.
• To reduce mass rearing of cattle for human consumption.
• Implementing a plastic ban stringently.