The Market as a Social Institution

The Market as a Social Institution


In your opinion will the long term benefits of liberalisation exceed its costs? Give reasons for your answer.


Yes, escalation of its costs has become all apparent and manifested in events of suicides by peasants, unemployed workforce, all time rise in the graph of crimes eccentric type and strong-hold of MNCs in almost all business activities in India. Following reasons can be given for their dreadful tremulations and clamours in Indian society :

(i) Subsidies and support prices have been withdrawn from agriculture and farmers have been directly exposed to competition from farmers in other countries because as per the norms of liberalisation, import of agricultural products is allowed.

Earlier to liberalization, Indian agriculture was protected from the world market by support prices and subsidies. Support prices help to ensure a minimum income for farmers because at these prices, the government pays to buy / procure agricultural produce. Subsidies are concessional prices charged for agricultural inputs like fertilisers, diesel oil from peasants and that part of price is borne with the government. Now both of these have been withdrawn. Hence, farmers are the sufferers.

(ii) Foreign goods and brands have entered in Indian market because of liberalised Exim Policy. These are much cheaper than the products manufactured in India. In these circumstances, it has became difficult for manufacturers (companies) to stand in the market. This would gradually pull down the shutters of Indian entrepreneurs and corporate bodies.

(iii) Privatisation has led to loss of employment to a greater extent. Employment in unorganised sector is increasing but the security of jobs, better salary and permanent jobs cannot be expected in this unorganised sector. Problems like exploitation, uncongenial working hours and conditions are raising their heads which is evident from a number of case filed in law courts, strikes and unrest among employees reported by media since last two decades on day-to-day basis.

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