Impact of Liberalisation, Privatisation, and Globalisation on Social Life

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24. Impact of Liberalisation, Privatisation, and Globalisation on Social Life

Liberalisation, Privatisation, and Globalisation (LPG) policies, introduced in India in 1991 amid an economic crisis, marked a shift from a socialist, closed economy to a market-driven one. Liberalisation eased government controls on trade and industry, privatisation transferred public enterprises to private hands, and globalisation integrated India into the world economy via FDI, technology transfers, and cultural exchanges. As of 2025, these reforms have profoundly reshaped social life, influencing family structures, education, health, inequality, culture, and community dynamics. While LPG spurred economic growth (GDP from $270 billion in 1991 to over $3.5 trillion), it has dual impacts: positive enhancements in opportunities and lifestyles, alongside negative exacerbations of disparities and cultural erosion. From a Master of Social Work (MSW) viewpoint, understanding these effects is crucial for addressing vulnerabilities, advocating social justice, and designing interventions for marginalized groups affected by rapid changes.

Economically, LPG has expanded the middle class to 300-400 million, boosting consumption and urban lifestyles. Liberalisation reduced import tariffs, making global goods accessible, improving quality of life through affordable technology and healthcare. Privatisation in sectors like telecom (e.g., Reliance Jio) democratized communication, connecting rural areas and enabling e-learning during pandemics. Globalisation attracted FDI ($80 billion in 2024), creating jobs in IT and services, empowering women through employment (female labor force participation rose to 37%). Socially, this fostered upward mobility; urban families enjoy better housing and education, with nuclear setups replacing joint families for privacy and career focus. MSW benefits from this through corporate social responsibility (CSR) funds, supporting community programs in education and health.

Culturally, globalisation has hybridized Indian society, blending traditions with Western influences. Media and internet exposure promote individualism, evident in rising love marriages (30% urban) and delayed parenthood, challenging patriarchal norms. Positive effects include cultural exchange; Bollywood's global reach and fusion arts enrich identities, while access to international education (e.g., online courses) enhances skills and tolerance. Liberalisation diversified food and fashion, promoting cosmopolitanism in cities like Mumbai. However, this erodes traditional values; rural youth migrate, weakening community ties and leading to elder isolation—over 20 million seniors live alone. MSW interventions focus on counseling for cultural conflicts and senior care networks.

Education and health have transformed positively under LPG. Privatisation expanded private schools and universities, improving quality and access; enrollment rates hit 95% by 2025, with global curricula fostering innovation. Globalisation brought foreign collaborations, like IIT partnerships, enhancing research and employability. Health-wise, privatisation in pharmaceuticals reduced costs via generics, while globalisation introduced advanced treatments, increasing life expectancy to 71 years. Social life benefits from empowered youth, with digital health apps improving rural access. Yet, disparities persist; private education favors the affluent, widening gaps—rural dropout rates remain 15%. MSW addresses this through advocacy for inclusive policies and scholarships.

Inequality is a major negative impact, with LPG exacerbating divides. While growth lifted 200 million from poverty, the Gini coefficient rose to 0.35, with top 1% holding 40% wealth. Privatisation led to job losses in public sectors (e.g., banking layoffs), increasing unemployment to 7% in informal economies. Globalisation displaced farmers via cheap imports, fueling suicides (10,000 annually) and migration stresses. Socially, this breeds resentment, urban slums, and crime; caste inequalities intersect, with Dalits facing exclusion despite reservations. Gender gaps widen, as women in gig economies face exploitation. MSW counters through anti-poverty programs and skill training.

Urbanisation, driven by LPG, has altered social fabrics. Cities grew to 35% population, promoting diversity but causing overcrowding and pollution, affecting mental health—depression rates up 20%. Family structures shifted to nuclear, reducing support systems but enhancing women's autonomy. Globalisation's consumerism fosters materialism, eroding communal values, while social media amplifies isolation despite connectivity. Positive: Vibrant urban cultures and NGO networks aid social causes.

Environmental and ethical impacts are concerning. Globalisation intensified resource exploitation, leading to climate vulnerabilities for the poor. Privatisation in mining displaced tribals, sparking conflicts. Socially, this undermines sustainability, with MSW focusing on eco-justice advocacy.

In 2025, LPG's legacy is mixed: economic vibrancy versus social fractures. Reforms reduced crony capitalism but increased inequality. Future policies must balance growth with equity, as per SDGs. MSW plays a pivotal role in mitigating harms through community empowerment and policy critique, ensuring LPG benefits all strata.