Globalization is a process by which regional economies become a part of a global market place. The roots of globalization lie in the medieval periods of silk trade. The invention of steam engines in 1770s, evolution of diesel engines in the 1800s and the invention of radios and air travel in the 1900s exalted the pace of globalization. In the latter half of the 20th century, with the genesis of world trade organization, free-trade embodied the principles of globalization and since has become its synonym. Although free has proved exorbitantly helpful to industrialized economies, it has manifested harsh and detrimental effects on many developed and developing economies. For economies that are not mechanized and competitive, globalization is a vice.
Firstly, globalization denigrates the prospects of industrialization in developing economies. Nepal is a conspicuous tribute to this situation. Nepal is surrounded by two giant countries, namely India and China. Both India and China subsidize industries and mechanized farming which out compete Nepalese industrial and agricultural productions by significant margins. Therefore, Nepal cannot balance its imports with imports. This has led Nepal’s trade deficit run amok which currently stands at more than 250 billion rupees annually. But, more alarmingly, cheaper imports easily run home grown products to ground with their overwhelmingly cheaper prices. This has led to closure and emigration of huge industries.
Secondly, poor nations like Nepal also have to cope with fleeing of copious number of manpower. The average annual per- ca-pita income of Nepal is about 600 dollars. With the relentless pace of inflation, this amount is not sufficient for families to make their ends meet. Lack of major industries has compounded this problem by creating a severe shortage of jobs which has led to millions of Nepalese leaving their country for gulf nations for menial jobs and petty salaries. On the other hand, presence of few high skill and well-paying jobs had also led to the brain drain of thousands of educational elite which is more panicking. This has left many parts rural parts of Nepal bereft of young, effervescent muscles and acute brains that are necessary for development.
Thirdly, globalization has also robbed Nepal of its cultural and natural wealth that Nepalese prize the most. The increasing penetration of television and radios has introduced a wave of cultural change that is rowing Nepal away from its original roots towards Indian and Western ends. The most vivid change can be seen in the language of Nepalese people and advertisements that increasingly incorporate English words and Indian expressions and metaphors. The culture of Nepal shares close amicability with its flora and fauna, which are also being placed on the open end of muzzle due to rising demands from neighboring countries. Yarsagumba, innards of tigers, ivories and rhino horns are highly priced and demanded by traditional Chinese medicines. This has led to a scandalising rate of poaching which has left the populations of these rare species teetering at the brink of extinction. The voracious demand of Nepalese hardwood in India, China and overseas has also led to rampant deforestation and smuggling of wood that costs Nepal billions of rupees in unaccounted revenues and resources annually.
The bourgeois faction of the Nepalese population admires globalization for introducing quality international products and international trends in Nepal. But in the larger picture of Nepal, this has only brought about financial, cultural and political havoc. It is often ridiculed that the main export of Nepal are Nepalese and that the politicians of Nepal are elected by the leaders of EU. Globalization has contributed significantly to the creation of this ludicrous face of Nepal. Not only has globalization nipped the national industries in their budding stages, but also drained the human and natural resources that are critical to breaking free off the vicious cycle of poverty.
Globalization has coerced Nepal into becoming a member of a clique that is headed by nations with industrial and technical might. Because of this, Nepal has suffocated to a global trend of free, biased trade. But, on the brighter side, it has also provided Nepal access to infinite opportunities to train its citizens and expand its markets to far away shores. It is irrefutable that the effects of globalization so far have been detrimental for Nepal. But it cannot be denied that with a good national and international trade policy in place, Nepal can make much out of the phenomenon of globalization.