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HAS THE CONCEPT OF SOCIALISM BECAME IRRELEVANT IN THE ERA OF LIBERALIZATION? (Click For Model Answer by Jithin Sir)  


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HAS THE CONCEPT OF SOCIALISM BECAME IRRELEVANT IN THE ERA OF LIBERALIZATION?

                                                            OR

HAS THE ROLE OF STATE DECLINED IN THE ERA OF LIBERALIZATION?

 

When India entered the era of liberalization in 1991, there was a general feeling among scholars as well as people that the role of state will play a major role but certain phenomena were  observed in the era of liberalization too . 

UNEVEN  DEVELOPMENT:- It has been observed that investment was  taking place in the areas where there was availability of raw materials and where  the law & order situation was good. 

There was emergence of two types of corridors in country as per area of investment 

BLUE CORRIDOR:- which denotes those areas  where investment was taking place

  • RED CORRIDOR:- denotes the conflicted areas where investment was negligible, as a result of this , there was uneven development in red corridor areas due  to lack of investment .  (Naxal areas ) 

Blue corridor was more developed than the red corridor because of huge  investment . So, here lies the role of the state to undertake development of those areas that were not benefited due to the liberalization process.

            ISSUE OF WELFARISM is  still relevant as it was in the pre liberalization era, The problems like poverty, hunger, unemployment, illiteracy, environmental issues still persist in society.

 The various programmes has initiated  by state in this regard :-

  • Sarva shiksha abhiyan
  • National rural health mission
  • Mahatma Gandhi national rural employment guarantee scheme
  • Pulse polio programme
  • Skill development programme

NOTE : The state can adopt a ppp model to include the private sector in welfare activities , the companies act provides for corporate social responsibility.

          PROTECTION OF INTEREST OF THE WORKERS AND CONSUMERS is still the responsibility of state as the private sector is basically a profit making agency.

So we can conclude Liberalization can definitely benefit the nation's growth with huge investment but the role of state or govt cannot be underestimated at any stage. State is the vital aspect that bridges the gap between poor and rich  , blue corridor and red corridor & have and have-not in the society . Private companies involved in investment are profit oriented whereas the responsibility of State or Govt is social welfare .