Model Answer

Introduction

Globalization refers to the growing interdependence and integration of economies, societies, and cultures worldwide, driven by cross-border trade and technological exchange. In this context, the relationship between globalization and new technology, particularly in resource-scarce nations like India, is multifaceted.

Positive Aspects

Access to Scarce Resources

Globalization enables easier access to essential resources through technological advancements. For example, lithium, crucial for electronic devices, is extracted from specific regions and distributed globally. India, a major consumer of electronics, benefits from this supply chain (Source: International Energy Agency).

Overcoming Resource Limitations

Technological transfers from developed countries to developing nations allow resource-scarce countries like India to adopt advanced solutions. Technologies developed for water-scarce regions in West Asia can be shared with India to address its own water challenges (Source: World Bank).

Enhanced Resource Efficiency

Globalization promotes specialization and efficient resource use. New technologies, such as renewable energy, reduce dependence on non-renewable resources like fossil fuels, helping to alleviate resource scarcity (Source: Renewable Energy Journal).

Consumer Empowerment

The competitive markets fostered by globalization lead to improved quality and lower costs of goods and services. The widespread use of the internet has transformed India into one of the largest online markets, enhancing consumer access (Source: Internet World Stats).

Negative Aspects

Resource Curse

Globalization can exploit resource-rich developing nations, leading to cycles of poverty while benefiting wealthier countries. For instance, resource-rich African nations often supply raw materials to the West, while impoverished regions in India provide resources for industrial growth (Source: Journal of Economic Perspectives).

Widening Inequality

The benefits of globalization often favor the wealthy, exacerbating inequality. According to Oxfam, the rich disproportionately benefit from technology, while the poor struggle to access its advantages, potentially leading to social conflict (Source: Oxfam International).

Environmental Degradation

Increased demand for resources can result in depletion and environmental challenges. Climate change reports highlight how competition for dwindling resources escalates tensions between nations (Source: Intergovernmental Panel on Climate Change).

Conclusion

The interplay between globalization and new technology is critical for addressing resource scarcity in India. To navigate this landscape effectively, India must embrace technological advancements while implementing policies that mitigate negative impacts and maximize benefits. This approach will help India avoid the pitfalls of techno-colonialism and tackle its socio-economic challenges.

Model Answer

Introduction

Cryptocurrency is a virtual currency secured by cryptography, operating on blockchain technology and free from central authority control. It serves as a medium of exchange, with ownership records stored in a computerized database. This emerging technology is revolutionizing monetary transactions globally.

Impact on Global Society

1. Greater Integration: Cryptocurrencies facilitate global transactions, bypassing traditional currency divisions and promoting international trade.
2. New Asset Class: They have emerged as an alternative investment, akin to gold, but their volatile nature can lead to significant financial gains or losses.
3. Cost-Effective Transactions: Cryptocurrency transactions can be cheaper and safer, as they are less susceptible to fraud and replication.
4. Empowerment in Crisis: For instance, during the Ukraine crisis, cryptocurrencies enabled swift donations, showcasing their utility in urgent situations.
5. Reduced Government Control: Cryptocurrencies challenge the sovereign power of issuing currency, potentially undermining economic policies and the relationship between citizens and governments.
6. Criminal Activities: The anonymity of cryptocurrencies can facilitate illegal activities, including funding for terrorism and money laundering.
7. Rising Inequality: Access to cryptocurrencies is often limited to the affluent, exacerbating social inequalities and leaving digitally illiterate populations behind.

Effect on Indian Society

In India, cryptocurrency is still in its early stages, with significant uncertainty regarding its future. The government has proposed a Cryptocurrency Bill to regulate private cryptocurrencies and introduce a sovereign digital currency.

1. Emergence of a Crypto Community: A new community of amateur investors and professionals has developed, leading to the establishment of multiple crypto exchanges.
2. Youth Investment Trends: Many young Indians are drawn to cryptocurrencies for their potential high returns, often overlooking associated risks.
3. Cost Savings in Remittances: As the largest recipient of remittances, India can benefit from reduced conversion and processing fees through cryptocurrencies.
4. Cybersecurity Risks: India has faced ransomware attacks, such as the Wannacry incident, where ransoms were demanded in cryptocurrencies, highlighting vulnerabilities to cyber scams.
5. Digital Divide: The digital divide remains a significant issue, as those without access to technology are excluded from participating in the cryptocurrency market.

Conclusion

Cryptocurrency, like any technology, has both positive and negative implications. To harness its potential while mitigating risks, a robust regulatory framework is essential. Stakeholders who adapt quickly will play a crucial role in shaping the future of this digital landscape.