Challenges In Globalization

Issues & Challenges in Globalization
The reforms were introduced in June 1991 in the wake of a balance of payments crisis, which was certainly severe. It was not a prolonged crisis; on the contrary, it erupted suddenly at the end of a period of healthy growth in the 1980s, when the Indian economy grew at an annual average rate of about 5.5 per cent. Although modest by recent international standards, this was much better than India’s previous experience of 3-3.5 per cent growth. By the beginning of the 1980s, it began to be recognized that the central planning approach of inward oriented industrialization, that was reinforced by a complex system of economic controls and heavy dependence on the public sector could not deliver rapid growth in

Internationally, banks follow the Basel norms for capital adequacy. Banks were required to adopt these norms for maintaining capital in a phased manner in order to avoid any disruption. However, as a result of past bad lending, a few banks found it difficult to maintain adequate capital. The Government had contributed Rs.4, 000 crores to the paid-up capital of banks between 1985-86 and 1992-93. Subsequently, over the period 1992-93 to 2002-03, the Government contributed over Rs.22, 000 crores towards recapitalization of nationalized banks. In view of the limited resources and the many competing demands on the fish, it became increasingly difficult for the Government to contribute any substantial amount required by nationalized banks for augmenting their capital

Any development route which bypasses the rural people of India is unlikely to be sustainable. Salvation of the developing economy as vast and diverse as India’s lies only in the transformation and revitalization of its rural economy, which require people’s empowerment and participation. One’s sense of idealism is in direct proportion to one’s distance from the real scenario. In comparison to the step- motherly treatment of the past, cooperatives should be considered an important plank of development. The cooperatives have inherent advantages in tackling the problems of poverty alleviation, food the higher authorities of the banking should help the lower authorities in the way of mother institutions. They should provide authority, leadership, guidance, supervision and control. There should be mutual support, help, accountability and responsibility in the system so that there should be a good and effective relationship between there tiers. The deposit mobilization profit and reserves should be commonly shared. In fact the self reliance is the main theme of progress of cooperatives deposit mobilization. The mobilization of small savings from large number of peoples as possible is the desired strategy for deposit mobilization which