SOCIO-CULTURAL PROCESS OF CHANGE. — sociology STD 12 Arts — Question
Gujarat BoardEnglish MediumSTD 12 ArtssociologySOCIO-CULTURAL PROCESS OF CHANGE.5 Marks
Question
State the disadvantages of liberalization.
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Answer
Liberalization has also done some damage to the economy and the people.
The disadvantages of liberalization are as follows:
Unemployment has risen as privatization and liberalization have reduced employment opportunities.
The availability of modern technology at affordable prices has reduced employment opportunities in the public and private sectors and increased unemployment.
The rate of growth of production in agriculture has declined.
Increased use of chemical fertilizers has reduced soil fertility.
Multinational companies try to control Indian agricultural resources through patents of multinational companies.
B. T. Seeds, chemical fertilizers and pesticides have reduced soil fertility and increased pollution.
Due to globalization, small and medium enterprises cannot compete with foreign companies.
As a result, production, employment, exports, etc. have declined.
Adopting a policy of globalization has forced India to abide by the terms of the WTO.
India drastically reduced import duties and made import regulations more liberal.
As a result, imports grew exponentially while the growth rate of exports remained very low.
India’s trade deficit is widening as laws relating to child labor, environment, etc., hinder Indian exporters.
If India’s imports of agricultural, industrial or service sector goods or machinery increase, economic growth will accelerate but most of the offerings in India are for Splendor, luxury and Pleasure items.
Multinational companies buy land in India cheaply, pay low wages to workers, produce on a large scale, increase their trade and send profits home.
Thus, the outflow of income occurs.
Due to the economic reform policy, the government has reduced various types of direct and indirect taxes.
The result is a decline in government revenue.
The Reserve Bank of India (RBI) has slashed interest rates on savings and fixed term deposits by 3 to 4 per cent in line with banking sector reforms.
The interest rate on savings in the co-operative sector has also come down.
As a result, those with fixed interest income, the middle class and the pension-based class have suffered huge economic losses.
Developing countries are creating pollution in the name of liberalization, creating industries in third world countries and creating environmental imbalances.
Liberalization has left everything on the market. The result has been an increase in inequality and inflation.
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