Financial Management Essay Example | Topics and Well Written Essays - 1750 words - 1

Financial Management - Essay Example The purpose of this paper is to examine the impact of globalization on poverty in India. The paper is divided into two parts. The first part, which is assorted of backdrop, provides some theoretical insights into the rationale of economic reform. The second part examines the impact of the reforms in reducing poverty in India. Indeed, the issues of reduction of poverty and inequalities, economic, social and regional, had been the prime concern during the struggle for independence and were used to give effect for social mobilization as well. They also found a prominent place in the five-year plan documents of the country. Any regime, be it market mediate, or state o socially mediated has to be judged in terms of its impact on poverty and inequalities. Indeed, people are the means as well as the end of development. This paper explores that economic reforms that seek to usher in globalization are not directly addressed to poverty. The acknowledged logic of globalization as rationalized by IMF and World Bank is expressed in the two concepts, stabilization and structural adjustment. Related to that is a rule-based operation of free trade and â€Å"trade-related† services, globally promoted and administered by WTO through a series of multi-lateral agreements. Two IMF theoreticians have defined stabilization program as a package of policies designed to eliminate disequilibria between aggregate demand and supply in the economy, which typically manifests itself in balance of payment deficits and rising prices.