Warangal Urban: Renowned social scientist and retired professor of economics (UoH) Prof D Narsimha Reddy stressed on the need for people’s vigilance, activism, and protests to face the challenges of globalisation that has brought in growing inequalities.
Delivering the second memorial lecture of Prof C Sivaramakrishna Rao on ‘Globalization and Growing Inequalities: Challenge of Fair, Equitable and Sustainable Development’ organised by the Department of Economics, Kakatiya University, here on Monday, Reddy said growth achieved cannot be sustained if it is not just and equitable.
Stating that the third phase of globalisation initiated in 1980 gained momentum by 1990, Reddy said: “The third world countries were forced to open up their economies and invite foreign capital to construct basic industries, power sector and other key sectors. These LPG policies led to privatisation of strategic sectors such as chemical and communication industries. In the last two-and-half decades of LPG policies, the global flow of foreign capital to developing countries led to the growth of not only GDPs, but also inequalities,” he said.
“According to John Pickety’s estimation there is lot of inequalities in the distribution of national incomes. In the US economy, the share of top 10 per cent rich people in the GDP went up from 30 per cent to 60 during liberalisation. The wealth of three richest persons in the world accounts for 50 per cent of USA’s GDP. Number of billionaires in the world was 127 in 1987 and this rose to 1,400 in 2013 and 2,043 in 2016. In this way concentration of wealth took place in the era of globalisation with growing inequalities,” he said. Reddy said the experience of the Indian economy is similar as the number of billionaires is growing day by day with growth of GDP and inequalities.