HAS THE CONCEPT OF SOCIALISM BECAME IRRELEVANT IN THE ERA OF LIBERALIZATION? (100-150 WORDS )
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HAS THE CONCEPT OF SOCIALISM BECAME IRRELEVANT IN THE ERA OF LIBERALIZATION ? (100-150 WORDS )
Socialism in the most general sense refers to some work, meet, process etc done collectively by a group of people wherein everyone benefits either physically or mentally. Socialism always focuses on group and collectivity rather than individuality and self. Socialism is also known as Communalism as everything is performed as/by a community/state rather than individually/privately.
Liberalisation in the most general sense refers to freedom from various barriers in/of/to/for some work, process, borders, etc. Liberalisation focuses on removal of barriers and liberation of self, work, political borders, etc.
Has Liberalisation ended socialism?
The answer to this question in my view is, yes, liberalisation has put an end to traditional socialism by :
- Removal of trade barriers and political boundaries.
- Increased Exposure
- Multinational Co-operations
All the above mentioned factors are essential for development of economies of a nation and development and welfare of its citizens which is the main aim of socialism. Thus liberalisation in a unique sense, is socialism but without political and economical barriers.
Acc.to my point of view.. So, yes the concept of socialism became irrelevant in the era of liberalisation because the origin of financial crisis can be traced from the inefficient management of Indian economy in 1980's the revenue were very low the govt. had to overshoot it's revenue to meet problems like unemployment, poverty,population explosion. The government was not able to generate sufficiently from internal sources such as taxation. The income from public sector undertaking was also not very high.
So, as we all know that if we wanna grasp something, firstly we have to expand ourself. That's what dr. Manmohan singh ji had done at that time.The new economic policy introduced that is LPG (liberalisation, privatisation, globalisation) before liberalisation there is no trading between countries but after that our economic condition grows up.
Socialism is an ideology that support public ownership of property and natural resources. But in the era of liberalisation and globalisation the concept of socialism become irrelevant because as the word denote Liberal means free.
2)freedom in activities
3)freedom in fixing price of goods and services
4)simplification of export and import policy nd reduction in tax rates.
As in case of globalisation, the most important thing is adaptation of new technologies.
Socialism: It is a socio-economic and political idea that emphasis on fact that all persons are to be equally treated by dividing wealth and property equally and reduce the gap between the have and have nots.
Liberalization: It is the concept of withdrawing the restriction imposed by government in economic activities.
Idea of liberalization privatization and globalization(LPG) granted,
- Business enterprisers complete freedom in their activities.
- Enhanced India to be competent in global space.
- New economic reforms were formed in terms of taxation.
- De-licensing and diluted import and export policy.
All these lead to the economic development of the country, but;
- Large scale enterprises were benefitted, no upliftment in small scale businessman and workers.
- It led to accumulation of wealth on smaller section thereby increasing gap between rich and poor.
- Although the overall GDP for nation was increased per capita income had no equality making socialism irrelevant.
For a country like India socialism and liberalisation are both needed for a balanced growth thus India follows mixed economy.
*Socialism* - means the factor of production are controlled by the central government where government will provide subsidies and policies for the development of small and cottage industries and provide them employment and also it protects people from international competition.
*Liberalisation* - refers to the economy where the factors of production under the control of private organisations and companies where the compete with international companies and are no restrictions of government within it it provides for the development of nation and also increases economic growth.
but the main disadvantage of liberalisation policy is that it increases economic gap between poor and rich thus for a country like India, socialism and liberalisation should go hand in hand and there should be powers with government to interfere when there is requirement by using modified price mechanism as for the development of society as well as economy.
Thus the concept of socialism is not irrelevant in the era of liberalisation.
*"we are a mixed economy we will remain a mixed economy the public and private sector will play the important roles the private sector in our country has very ample scope and I am confident that India's entrepreneur or have the capacity and the will to rise to the occasion."* said by Mr Manmohan Singh.