Globalization is impacting the context of national policymaking. National policymaking is becoming International." Explain
Paper-1: Introduction, Public Policy | UPSC PYQ (2020)
Globalization marks a shift from the Westphalian concept of an Independent state to an Interdependent concept of a corporate state. According to Ali Farazmand, it is a value, process and phenomenon that has led to the internationalisation of administration.
Impact of Globalisation on National policymaking
Impact on discipline
Public Administration (PA) became a diverse discipline and less Anglo American
Comparative public administration gained dominance. Eg: Bolsa Familia in Brazil has influenced Janani Suraksha Yojana (Conditional cash transfer)
Contributions of developing countries were coupled with multidisciplinary perspectives (Minnow Brook conference - III).
Impact on the practice
Led to the rolling back of the state - Eg New economic policy in India- 1991.
Led to the democratisation of the state - RTI, Social audit and Citizen's charter
A shift from regulation to facilitation - Eg: MRTP act replaced by the Competition act
Impact on nature of the state
Centralized administration => Network governance model
Welfare state => Citizen-centric Entrepreneurial state (Osborne and Gaebler)
The concept of Good governance gained dominance (World bank reports)
Internationalisation of National policymaking
National policies can no longer be made in isolation. They need to consider the International ecology (Riggs) and be dynamically updated.
Economic perspective - Fed rates of interest have an indirect impact on Indian exports and FPIs that flood the Indian economy. RBI's monetary policy stance needs to account for global market dynamics
Atmanirbhar Bharat - India depends on China for 60-70% of its Active pharmaceutical ingredients (API). Hence there is a push to manufacture these locally
Supply Chain Resilience Initiative - The impending silicon chip crisis has highlighted the need to diversify sources of imports.
Climate Perspective - In COP 26, India agreed to become Carbon neutral by 2070. This was partly due to the international pressure based on commitments of the developed countries.
Governance Perspective - After India passed the RTI act, 41 other countries adopted the same.
As India strives to become a global leader, it needs to ensure that its policies result in modernisation and not westernisation. The international perspectives need to be adapted to the local needs to ensure the welfare of the Citizen