Sunday, February 20, 2022

How globalised should one get?

Carnegie Europe in a latest report by Suyash Rai and Anirudh Barman have brought out a comprehensive overview of India's engagement with globalization in trade, climate negotiations, data sovereignty, global finance and digital taxation. 

Titled India:Testing Out New Policies on Globalization", it concludes that India's engagement with the global order has changed since 2010 - towards a more inward looking strategy. 


What should a country's strategy be with respect to global economic engagement? Should it be based purely on national interest or working towards a larger "global good"? How much must one liberalise and when? How should we decide on the pace of liberalisation? How do we account for the winners and losers of globalization? Should internal regulatory reform in sectors be driven by an outward looking reform oriented policy or an inward looking policy? Should domestic reform be driven by external pressures? How important are national champions in a country's growth trajectory? Should they grow in a protected environment or facing the globalized world? How does one set the agenda in global rule making? Will being inward looking disengage a country from crafting the rules? Is there a balance that can be brought between becoming globally competitive and liberalisation? 

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