But real change in the World Political order had come with change in character of the democratic structure on America adopted in 1776 with declaration of Independence. New republic was born by voting powers confined to economically established males. In 1963 the American Supreme Court expanded voting power to all Americans regardless of their gender, skin colour, or economic power to shift the character of legislation in America as poor had sent their representatives to the highest legislative and decisive forum. The popular interest took central place in legislations for the first time in 1976 resulting in scaling down profit margins of corporate giants.
Their economic experts, most working as teachers of economy in various universities realized impossibility of return to old voting order or ensure the profit margins in the new political priorities, recommended the new concept of the global economics to facilitate escape of the business giants to a land where cheaper services were easily and abundantly available to retain their profit levels. It gave birth to the World Trade Organization.
The World War had brought to end to empires and eschew violent means to settle differences. Together with the terrible War that had imposed desire for peace and introduced popular regimes in most parts of the world, the verdict of the American Supreme Court changed the nature of trade to an extent by giving birth to the WTO to endure no nation prohibited the trade with higher rate of import taxations.
After centuries, the wealthy had sawn many nations around the world to move out with their production mechanisms but without their employees. In reality the new found concern for poor, an objective of eradication of their poverty, was pretext for their moving out in search of cheap labour and low cost services. Their search for destination was limited to Asian nation that did not have democratic regime. They were fleeing America after the Supreme Court verdict that changed the nature of democratic structure in America. They could not prefer land with many yawning mouths of elected representatives with power to change legislation in order to get their demanded share in resources of arrived business giants. Africa was ruled out due to lack of trained work forces. The Middle East nation was not preferable destination for setting up their venture due to growth of terrorism.
The successor to Mao in the communist regime Deng declared in America that China would open its closed economy for private sector and provide protection of the regime for exploitation of cheap labour service with other cheaper facilities for setting up industrial ventures. The fleeing American giants could not have asked for or hoped of getting more in any non democratic regime. Here was the communist country with tightly woven political regime with the open economic structure inviting for exploitation of its citizens for cheaper labour with assured protection to exploiters and steady and unchanging tax structure. The rigid political authority minimized the need of bribes demands like they would have had to encounter in liberal and strong democratic country. India also opened her economic doors in 1991 but American giants were rushing to China since 1980. Giants from other lands also including India followed the Americans and shifted their products production to China. The global economy winds wafted through India as the Narsimha Rao regime was forced to open her economic structure for participation by the private sector.
In 1950 the Prime Minister Jawaharlal Nehru had adopted a strange amalgam as the economic growth model to close the avenues for both capitalism and communism. He did not abolish the existing private sector units but debarred their expansion without the permission from the government. He retained the authority for expansion and new development processes in the government hands through public sector. Men trained in government administration needs could not manage the commercial ventures. The crash was inbuilt in the model introduced and slowed down the economic growth but introduced corruption in expanded form. His daughter Indira Gandhi further swung the economy to maintain her political stability. She could not swing back the economic model as the rapid growth demanded in her second session though she did not introduce more restrictions. Her son Rajiv Gandhi did not understand the economic laws and allowed the middle class to freely waste precious foreign exchange on imports of goods of their comforts.
The foreign exchange reserves inherited by Narsimha Rao government in June 1991 were not adequate to meet bills for two weeks necessary imports to keep wheels of industrial sector running. India was at crossroad of being declared as bankrupt as it was not in position to clear off the international debt installments due in two weeks. It provided the opportunity to Breton Wood’s twins for arms twisting the Rao regime and open doors of her economy to participation by the private sector. He opened only two sectors, the communication and media, both dependent on government or using its spectrum facilities. The benefits accruing from a small limited gesture were phenomenal. Perhaps the Prime Minister Rao hoped to have international giants coming to India with their capital the machinery. But his hopes did not materialize.
The wafting winds of the global economy did not make material change in the Indian economy but it did initiate the rapid social transition. More children began attending schools with their poor parents adopting small family norms. Today India has literacy rate near 80 percent. The proportion of population below poverty lines reduced to be less than 20 per cent. The strategy adopted to fight the corona virus pandemic has caused major economic problems but they are merely a passing phase as Indians are out of their traditional dogmatic thinking that their life circle is predetermined. They know their efforts can change. They need not depend on the divine law to be better living.
INDIA IN THE CHANGED WORLD ORDER
Vijay Sanghvi - 2020-11-19 04:44
The American President Woodrow Wilson proposed at the 1921 World Peace Conference in Paris for the world comity to work for Peace, Promotion of free trade and Popular regimes as the new world objectives. However, no empire in Europe responded to his idea but the great World War leveled them up to end their control over their old settlements in Asia and Africa to give birth to 139 new nations in six years as they struggled for survival.