Our Revision Notes for GSEB Class 10 Social Science Notes Chapter 16 Economic Liberalization and Globalization summarises the key points of a chapter and useful resource to prepare effectively for the upcoming board exams.

Economic Liberalization and Globalization Class 10 GSEB Notes Social Science Chapter 16

Economic Liberalization and Globalization Class 10 GSEB Notes

→ The new industrial policy was introduced in 1991. According to it economic reforms were implemented, which are known as Liberalization, Privatization and Globalization.

1. Economic Liberalization

• Government gradually reduces the restrictions and controls imposed on private sector and encourages economic development. This is called economic liberalization.
• Compulsion to take government permission was eliminated.
• Railways, atomic energy and defence were opened for private sector.
• There was reservation for 18 industries.
• Provision to take government permission for setting up industries which do not cause pollution and are not hazardous for environment was cancelled.

Advantages of Liberalization:

• Private sector got an opportunity to make development.
• Global trade started getting an impetus.
• Reserve of foreign exchange increase.
• Infrastructural facilities increased due to liberalization.

Disadvantages of Liberalization:

• Monopoly could not be checked.
• Due to more focus on industrial sector, India remained backward in agricultural sector.
• Disparity of income increased.
• Due to increase in import and decrease in exports, foreign debt has increased.

Advantages of Privatization:

• Increase in production units of industrial sector.
• Production has been increased in capital intensive and consumable commodities due to privatization.
• Working capacity of public sector has improved due to privatization of public sector enterprise.

Disadvantages of Privatization:

• Economic power has centralized and as a result, monopoly increased.
• Cottage industries have not developed properly due to privatization.
• Problem of price rise increased.

2. Globalization
→ It is a process of connecting one country’s economy with the world economy.

Advantages:

• Foreign direct investment is encouraged.
• Goods produced in the developed countries can easily be obtained.
• Developing countries like India can withstand competition at international level.

Disadvantage:

• Solution to the problems of poverty and unemployment has not been achieved.
• Developing countries have not acquired proper benefits of increasing exports.
• Large scale industries have acquired more benefit.
• World Trade Organization (WTO) was established on 1st January, 1995 by the member nation of the United Nations. Its headquarter is located at Geneva in Switzerland.

Objectives:

• To remove obstacles influencing global trading.
• To remove protection policy given to industries of country for foreign trade.
• To co-ordinate with global trade policy and economic policy.
• To solve the trade related disputes arising in the world.

Functions:
→ WTO was established to set up a required structure for implementation of agreement related to multinational trade.

→ It plays an important role for debate and negotiations for multinational trade.

→ It encourages unbiased international trade.

→ Suggest improvements in trade policies of the member nations.

→ Sustainable development is the development which meets the needs of present generation without compromising with the ability of future generations to meet their own needs.

→ The renewable natural resources should be used in such a way that their quality is maintained. The non-renewable natural resources should be used judiciously.

→ Industrial location should be decided on the basis of lesser transportation cost.

→ Resources should be utilized in different ways.

→ Natural resources should not be wasted.

→ Use of non-conventional energy resources such as solar and wind energy should be adopted

→ Earth conference at Stockholm in Sweden took a number of steps to protect the environment.

→ Various steps are taken by India for the protection of the environment:

Information about pollution condition of different cities of nations is presented.

• Central and State pollution boards have been established to control pollution.
• 5th June has been declared as World Environment Day.
• In India the government passed the Air Pollution Control Act in 1981.
• International agreements have been signed for deteriorating level of ozone, disposal of nuclear waste and maintenance of bio-diversity. Thus, conservation of environment is our responsibility.

Economic Liberalization and Globalization Class 10 GSEB Notes Important Terms

• Liberalization: It is the gradual removal of restriction imposed on the private sector to encourage economic development.

• Privatization: It is the process in which ownership and management of industrial units, under state control is handed over or transferred to the private sector.

• Globalization: It is the process of connecting one country’s economy with the world economy.

• WTO: World Trade Organization. It works as a platform for debates and negotiation related to multinational trade.

• Sustainable development: It refers to the development that meets needs of the present generation without compromising ability of the future generation to meet their needs.