IMPERIALISM WHERE WE ARE

BY DR.LALITHA GOVINDAN
JOINT DIRECTOR (PLANNING AND
DEVELOPMENT-RETD.),DIRECTORATE OF
COLLEGIATE EDUCATION,CHENNAI-6
 Countries are divided into developed and
developing .The aim of the developed countries is
to maintain and developing countries to attain
development .Globalisation refers to liberalisation ,
privatisation and globalisation. Globalisation means
that the global economy has become a small
‘village’ .World economy comes under ‘one roof ’
i.e. ‘market economy’ .Each for all and all for each
and there is only one race i.e. human race .All
countries are not endowed with all resources.
Physiocrats call it as ‘niggardliness’ of nature.
 Economic development means a perceptible rise in
the national income of the country . National
income of the country is the total income of the
country produced during a given period of time
and expressed in terms of money.
 Primary sector , secondary sector and tertiary
sector contribute towards the national income of
the country . Countries follow market mechanism
which is the characteristic feature of capitalism .
Market mechanism refers to the operation of the
twin forces called demand and supply.
 These forces will determine price of goods in the
market and price is the God or goddess worshipped
by the producers . It is the guiding star of the
economy .
 In 1776 , classical economists opined that an
invisible hand will guide the economy and free
trade was the order of the day . Demand and supply
forces cannot be predicted .It depends on mainly
price and other factors like income , tastes ,
fashions, population, technology , inventions,
discoveries ,dynamic forces etc.
 Natural factors like sunshine , rain , monsoon,
climate , pollution etc. will play a major role in
determining the market forces . In 1929 , global
economy experienced what is known as great
depression .The most effective weapon ,
‘monetary policy’ had failed to cure the disease
called depression.
 John Maynard Keynes introduced ‘ Fiscal Policy’
in his magnum opus book ‘A general theory of
employment , interest and money ’and it means
taxation ,spending and borrowing. Taxes can not
be levied and borrowing is impossible.
 Government should spend on infrastructure
facilities or public welfare programmes like
providing education and health facilities ,
irrigation facilities etc . Government is always
welfare motivated. But private individual is profit
motivated . He recommended for government
investment and thus depression was cured by
generating more employment and income . This is
the history of the past .
 Market economy will lead to capitalism and
capitalism will lead to imperialism. Imperialism
will lead to depression .
 To prevent this , countries will keep a vigilant eye
with the judicious application of monetary and
fiscal policies either to maintain or to attain
economic development .
 Karl Marx’s classless society should be created
by sharing the resources among the countries of
the world . Global economy should aim at
reducing the gap between the rich and the poor.
Hope , it is not an utopia.