While delivering a Keynote Speech on Globalisation and International Capital Flows at National Conference on Globalisation-Decadal Indian Experience in Kannur, Prof. Aman Agarwal, Director, IIF Business School and Associate Editor, Finance India said Globalization has altered the economic frameworks of both developed and developing nations in ways that are difficult to comprehend. There is a persistent rise in the dispersion of current account balances of the world as a whole, wherein the sum of surpluses match the sum of deficits has grown substantially since the World War II says Prof. Agarwal.

According to him, the emergence of unregulated global markets appears to have moved towards a more stable and growth oriented economic globe. Last three decades have been a witness to Globalisation, Liberalization and economic crisis’s in both developed as well as developing countries.

The question of whether globalization should be allowed to proceed is vital and primarily rests on the judgment as to whether the society is ready for greater economic freedom, volatile competition and reduced controls feels Prof. Agarwal. According to him, the thought to let some economies prosper while others sink in the hands of globalization would be wrong. Looking at long-term growth trends, one can certainly see the benefits to all reaping in. Most economists would agree that vigorous economic competition, opening up of society, capital and labour movements over the years has produced a significant rise in the quality of life for vast majority of population in mixed market-oriented economic system, including the downtrodden says Prof. Agarwal. The highly competitive free market paradigm, however, is viewed by many at the other end of the philosophical spectrum. This is nothing else but a simple tradeoff from a longer-term perspective in any meaningful sense. During the past century, economic growth has created resources far in excess of those required to maintain subsistence asserts Prof. Agarwal.

Speaking on globalization and international capital flows, Prof. Agarwal said it is highly relevant for any economy to bring in fiscal discipline, restructuring of public expenditure priorities, tax reforms (widening of tax base and reduction), liberalization of interest rates, managed exchange rates, trade liberalization, policy to enhance FDI / FII investments, motivating privatization, setting forth the regulation and secured citizen’s life.