Globalization’s Challenges for South Asia The Case of Sri.pdfVIP

Global Awareness Society International 21st Annual Conference - New York City, May 2012 Globalization’s Challenges for South Asia: The Case of Sri Lanka Shreekant G. Joag St. John’s University, New York 631-801-2211, drjoag@ ABSTRACT South Asian countries are unique due to their shared history and distinct geographies. And both have played important roles in shaping their cultures and economies. After gaining their independence from the British Empire during the early 20 th Century many of these countries struggled, under various forms of governments, to pursue the objectives of self-sufficiency using various forms of tariff and trade barriers to protect their domestic markets from foreign competition. However, finally convinced of the inefficacy of such policies, by the end of the 20th century, they opened their markets for free trade and joined the global economy. This paper presents the case of Sri Lanka—a relatively small island country located South East of India in the Indian Ocean. With all characteristics typical of the subcontinent, Sri Lanka is a microcosm of south Asia and is an ideal country to examine the effects of globalization on South Asian countries and their challenges to survive and prosper in the new world. INTRODUCTION During the last two decades of the 20 th Century, the world economies opened themselves to free trade at an accelerated pace; and as a result, economic globalization became a reality (Kahler 2004). The complete freedom of movement for the factors of production—goods, services, capital, and labor—across national borders under globalization through elimination of various trade and investment barriers, and the resultant global interdependence, homogenization of needs and resources, and universalization of business strategies brought about a complete transformation of the marketplace. In a sense, these changes leveled the playing field and affected ev