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Showing posts with label Trade War. Show all posts
Showing posts with label Trade War. Show all posts

Dictatorship Negatively Affects Harmony

Dictatorship Negatively Affects Harmony
By Dr. Lalit Kumar Setia |  @drlalitsetia  |  drlalitsetia@gmail.com
The countries are not self-sufficient to meet the requirement of their citizens. The Governments decide to import and export various types of goods and services and the decisions are also taken to impose the duties and taxes over imported goods and services by each country. The imposition of duties and taxes depends upon the harmonious relationship among the countries. More the harmonious relationships, lesser the duties and taxes, easier the way of importing and exporting goods and services by the businessmen. In July 2019, the United States imposed 25% tariffs on imports from China and similarly, China imposed extra tariffs on imports from United States. Due to lack of harmony between these two countries, the growth rates of both the countries reduced by nearly 0.5 percentage points. During last three years, from 2017 to 2020; the business confidence and equity prices of the stocks / shares have also been dampened. 
Due to trade war between these two countries, the harmonious relationships among the other countries have also been affected and in result, the global growth have also been affected badly.
Intention behind Free Trade Agreements (FTAs):
The ‘Free Trade’ agreements to ensure smooth import and export among a few countries, are generally imposed to promote the trade. Due to Free Trade Agreements (FTAs), the taxes and duties imposed on exporters and importers are relaxed so that the trade among the nations can easily be promoted. The entrepreneurs, industrialists, farmers, professionals are offered a lot of benefits because their role in economic development of the nation cannot be ignored. The rich countries led by prime ministers and presidents with foresightedness, offer subsidies to farmers, incentives to entrepreneurs, economic benefits to industrialists, and special appointments to experts on administrative posts. The so-called Free Trade Agreements most of the times become the tools of richer nations to enforce conditions in their interests including patent laws, foreign investment related provisions etc. Due to such provisions, the poor and underdeveloped nations become the victim of less economic progress instead of Free Trade Agreements.
Dictatorship of Rulers Negatively Affects Harmony:
In December 2018, the President of United States expressed his views to have total separation from Mexico by sealing the U.S.-Mexico border. It is worth to mention here that the Canada, Mexico and the United States have NAFTA agreement to have free trade among the economies. Such decisions or expression of views increase the un-certainty among the traders, for example, after such expression of separating Mexico, the car manufacturers of United States started to plan shifting of their factories from the Mexico. The autocratic decision of a single ruler can negatively affect the harmonious relationships among the traders, professionals, and people of different nations being affected with the decision. The countries with lack of capital and economic resources suffer more due to such autocratic decisions showing dictatorship.
The countries against the United States and other rich countries cannot easily borrow money from International Monetary Fund (IMF). The autocratic decisions of rulers led to rise in economic inequalities followed by increasing crime, terrorism, and naxalism.
Governance is affected badly from the decision taken in Autocratic Leadership Styles:
Each country is ruled with its political system and the government is formed to ensure governance by keeping democracy alive. However, there are greater chances of taking strict/hard decisions in dictatorship without disclosing the need of such decisions. It is well known that dictatorship is a form of government in which one person with a few people in his group, uses his powers to rule the public. Indirectly, the dictators resort to force or fraud to gain political power using intimidation and terror. The autocratic decisions taken in self-interest by the rulers of developed nations, no doubt increase the economic growth of their nations but negatively affects the prosperity of whole world. The overall economic growth of poor countries benefit the poor people, bring fiscal discipline for safeguard of economies, and establish good relationships. 
In India, the All India National Congress  (INC) has become weak due to escape of majority of the opposition leaders to the ruling party i.e. Bhartiya Janta Party (BJP). This makes the ruling party enough strong to take strong autocratic decisions without facing any resentment of leaders. 
Misusing powers for own benefit:
Mostly, the elected presidents and prime ministers use their powers and capture the entire system by suppressing the opposition. In Germany during 1933 to 1945; Adolf Hitler, an Austrian-born politician ruled with dictatorship. In 1922, Joseph Stalin led the Soviet Union after being appointed as general secretary of the central committee. During 1922 to 1943, In Italy, Benito Amilcare Andrea Mussolini as leader of the National Fascist Party ruled the country as Prime Minister. Thereafter, Mao Zedong, governed republic of China using dictatorship in 1949 and Pol Pot, captured Phnom Penh and became leader of Cambodia in 1975.
The dictator Saddam Hussein ruled as President of Iraq in 1979 and in 1994, Kim Jong-il became the supreme leader of Republic of Korea (i.e. North Korea). And now-a-days, whole world is witness to the dictatorship of Kim Jong-un (son of Kim Jong-il), the supreme leader of the Democratic People's Republic of Korea. The Kim reportedly removed the senior officials, inherited from his father’s regime. It is under dictatorship of Kim Jong-un that North Korea has continuously testing its weapons. The North Korea is telling through media reports that the regime of expanding nuclear capabilities will be continued and there is potential to have war with the United States. Such happenings are a major threat to harmony and peace in entire world.
Threats from Autocratic Decisions of Dictators:
The dictatorship style of Pervez Musharraf as the tenth President of Pakistan from 2001 to 2008 made the country face war from India.
At present, the 34th Prime Minister of Cambodia i.e. Hun Sen is also a leader using dictatorship and he has served for more than 25 years which made him the longest serving head of government of Cambodia. 
In next decade, it is expected that there will be greater use of technology in war among the countries. Recently, in December 2017, the United States’ administration stated that the North Korea has been found as a source of powerful computer virus WannaCry, affected approximately 230,000 computers worldwide.
The Pakistan, China, United States, Cambodia after having influence of dictatorship, there is potential of India being affected from dictatorship. The vote banks in favour of dictators sometimes raised as a trouble. The dictators become popular when they take fast decisions to sort out problems. They equip themselves with a team of experts and try to misuse public resources very intelligently.
Conclusion:
The powers in the hands of a team sometimes proved negative because power made the persons blind, behave aggressively and take decisions leading to dictatorship. However, the faster and harder decisions may also have proved beneficial in long run but the immediate affects reduce the harmonious relationships. The Free Trade Agreements with more provisions in interest of rich countries, provides unfair wages to the poor labour of affected underdeveloped countries. The unions and associations are framed to raise the voice of affected poor people and the level of harmonious relationships between employees and employers, citizens and government reduced significantly. Due to Free Trade Agreements, the rich countries become successful in selling their capital-intensive products with charging high prices and at the same time, they procure the labour-intensive products of poor countries at low prices; and such transactions led to more ‘Current Account Deficit’ for the poor countries. The rulers of rich countries always took such decisions to ensure maximum benefit to their citizens and the approach led to reduce the peaceful environment among the traders of the economies.
In other words, the dictatorship is harmful for the harmonious relations and the rulers should ensure the interest of weaker countries by offering products at cheaper prices as per the economic status of the citizens.
(The views expressed in article are belonged to Author and not written to harm the feeling of others.)

*Copyright © 2017 Dr. Lalit Kumar. 

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