Globalization is where an economy of scale is created through the interaction and integration among people, companies, and governments worldwide.
It is a complex and multifaceted phenomenon, which is considered by some as a form of capitalist expansion which entails the integration of local and national economies into a global, unregulated market economy.
Liberalization is the process where a state lifts restrictions on some private individual activities. It is a situation in which government regulations and restrictions are relaxed to make room for economic expansion.
They are both economic terms whose differentiation will be highlighted in this article.
The differences between the globalization and liberalization are highlighted in the table below:
Differences between Globalization and Liberalization
|Globalization is closely related to the scale of economic activities across nations||Liberalization is mainly concentrated on economic activities as a result of modernization and development|
|In a globalized setup, localities develop direct economic and cultural relationships to the global system through information technologies, bypassing and subverting traditional power hierarchies like national governments and markets.||Liberalization also often involves reductions in taxes, social security, and unemployment benefits.|
|The most archaic form of globalization can be traced back to the days of the Indus Valley Civilization where relations between different nations were shaped by the geographical spread of ideas and social norms at local and regional levels.||Although early forms of liberalization were practised by merchant states of the 15ht century, such as Venice, liberalizations in its modern form can be traced after World War 2. In India, the process of liberalization was initiated through the economic reforms of 1991 by Prime Minister P. V. Narasimha Rao and his then-Finance Minister Dr. Manmohan Singh|
Both Globalization and Liberalization are important terms in the Economics (Indian Economy) segment of the Prelims and Mains stage of the IAS Exam.
Candidates can find free Indian Economy study material to aid them in their exam preparation:
- Indian Economy Notes for UPSC Exam
- Economy this week
- Syllabus and Strategy for UPSC Economics
- Difference Between Macroeconomics and Microeconomics
- Difference Between Communism, Capitalism and Socialism
Difference Between Globalization and Liberalization – Download PDF Here
Candidates can find the general pattern of the UPSC Exams by visiting the UPSC Syllabus page. For more articles and exam-related preparation materials, refer to the links given in the table below:
|NCERT Books||UPSC Exam Pattern||Current Affairs Quiz|
|Insight Current Affairs PDF||World Current Affairs||UPSC Syllabus in Hindi PDF|
|Green Revolution in India||Pradhan Mantri Matritva Vandana Yojana||Project Tiger|