CONSUMERISM

MEANING OF CONSUMERISM
Consumerism refers to collective efforts of consumers and social organizations to protect the interest of consumers against malpractices adopted by business units. Consumerism is a movement for the protection of consumers against defective products, misleading advertisements, hoarding, adulteration etc. Consumerism is a legislative measure or a social movement to protect the rights of human as consumers.

HISTORY OF CONSUMERISM
Consumerism has become popular from the developed countries especially USA. It was for the 1st time in the world that the Consumer Bill of Rights was introduced in 1962 in USA by American president, J.F Kennedy. In 1986, Government of India enacted the Consumer Protection Act to safeguard the interest of consumers.

CONSUMER PROTECTION ACT,1986

The Consumer Protection Act came into force on 15th April, 1986. The Act is applicable on all kinds of goods and services which are the subject matter of consumer affairs. The Act is formed with the sole objective of protection of consumer against any kind of exploitation while consuming goods and services. The main objective of this act is to provide better protection of the interest of consumer and make provisions for establishment of consumer councils in each state.

CHARACTERISTICS OF CONSUMERISM
1. It is a social movement of consumers. 2. It provides balance between power and responsibility relationship. 3. It involves large number of organized consumer groups. 4. It aims to protect the rights of people as consumers in the society. 5. It acts as a check on all kinds of economic activities.

OBJECTIVES OF CONSUMERISM
To enforce the rights of people as consumers against exploitation like poor quality, over charging etc. To educate the consumers about their rights. To ensure fair trade practices in the society. To ensure the avoidance of unrestricted trade practices. To ensure co-operation between government and the producers.

CONSUMER RIGHTS
The consumer rights recognized in India are : 1. Right to information. 2. Right to choose. 3. Right to health and safety. 4. Right to be heard. 5. Right to seek redressal. 6. Right not to be exploited.

GROWTH OF CONSUMERISM IN INDIA

Consumerism is gaining momentum in India. Consumers have formed voluntary organizations, consumer clubs etc. Various legislations which directly or indirectly favor consumerism are : 1. Sales of Goods Act,1930 2. Agricultural Produce Act,1937 3. Prevention of Food Adulteration Act, 1954 4. Essential Commodities Act, 1955 5. Essential Services Maintenance Act, 1968

MEASURES TO PROMOTE CONSUMERISM

Spreading of awareness and consciousness among consumers. Use of mass-media like newspaper, television, radio etc. to create moral fear indulging in unfair trade practices. There are about 500 consumer organizations which spread and protect the consumers interest in the country. Setting up of consumer clubs in educational institutes.

CONTD.
A website www.core.Nic.In has been created for consumers help. Setting up of Consumer Online Research and Empowerment (CORE). Bureau of Indian Standards (BIS) issues certificates for those goods whose quality is properly assessed by it. Consumers week is celebrated every year throughout the country from 15th to 21st March. All over the world 15th March is celebrated as consumer rights day.

REASONS FOR FAILURE OF CONSUMERISM IN INDIA

1. Illiteracy 2. Poverty 3. Corruption 4. Political Interference 5. Non-Standardization of products 6. Black Marketing 7. Dependence on credit

CONSUMER PROTECTION COUNCILS

The Consumer Protection Act provides for a three level system for redreassal of consumer complaints : 1. The District Forum : Each District Forum will consist of : (a) A district judge nominated by state government. (b) A person of importance in the field of commerce. (c) A lady Social Worker

CONTD...
2. THE STATE COMMISSION : Each State Commission will consist of : (a) A judge of High Court appointed by the State Government. (b) Two other members popular for their knowledge and experience in the field of commerce, law, economics etc. of whom one shall be women.

CONTD
3. THE NATIONAL COMMISSION : It will consist of : (a) A person who has been judge of the Supreme Court appointed by the Central Government as its President. (b) Four other members from the field of economics, law , commerce where one of its member shall be a women.

MEANING OF GLOBALISATION
Globalisation is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Globalization describes the interplay across cultures of social forces such as religion, politics, and economics. Globalization can erode and universalize the characteristics of a local group. Advances in transportation and telecommunication infrastructure, including the rise of the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities

HISTORY OF GLOBALISATION
Globalization is not new. For thousands of years people have been trading goods and travelling across great distances. During the Middle Ages, merchants travelled along the Silk Road, which connected Europe and China. The modern age of globalization started with the Industrial Revolution at the end of the 18th century. New machines were able to produce cheaper goods. Trains and steam-powered boats transported products farther and faster.

CONTD..
Since 1980, globalization has been moving at a faster pace. Today it is easier for companies to work in other countries. The Internet gives them the chance of reaching more customers around the world. Tele-workers work for firms that may be far away. However , there is a growing debate over globalization. Governments are in favor of globalization because the economy can grow. Other people are not so sure that there are only advantages.

ADVANTAGES OF GLOBALISATION
Resources of different countries are used for producing goods and services they are able to do most efficiently. Consumers to get much wider variety of products to choose from. Consumers get the product they want at more competitive prices. Companies are able to procure input goods and services required at most competitive prices.

CONTD..
Companies get access to much wider markets. It promotes understanding and goodwill among different countries. Businesses and investors get much wider opportunities for investment. Adverse impact of fluctuations in agricultural productions in one area can be reduced by pooling of production of different areas.

DISADVANTAGES OF GLOBALISATION
Exploitation of Underdeveloped Countries Increase in Unemployment Widening of Rich-poor Gap Harmful Effects of Consumerism Adverse Effects on Social Security and Social Welfare Harmful Effects on Small Industries and Small Business

THREAT OR OPPORTUNITY
Globalization can be a force for good. It has the potential to generate wealth and improve living standards. But it isn't doing that well at the moment. The benefits from increased trade, investment, and technological innovation are not fairly distributed. The experience of the international trade union movement suggests that the reality for the majority of the world's population is that things are getting worse. Globalization as we know it is increasing the gap between rich and poor. This is because the policies that drive the globalization process are largely focused on the needs of business.

KEY PLAYERS IN GLOBALISATION

Multinational firms which carry out business across the national borders. The World Trade Organization (WTO) Through which International Trade Agreements are negotiated and enforced. The World Bank & International Monetary Fund (IMF) are means to assist government in achieving development aims through the provision of loans, technical assistance.

IMPACT OF GLOBALISATION
The impact of globalisation has been highly positive in almost all spheres of economic and social life and virtually no negative effect. India's economic growth has been high, exports have boomed, incidence of poverty has been reduced, employment has surged, begging by India for economic aid has stopped, long-term inflation rate has gone down, scarcity of goods have disappeared, the quality of products available have improved substantially and overall India has become progressively vibrant and internationally competitive.

CONTD..
Service sector is the lifeline for the social economic growth of a country. The real reason for the growth of the service sector is due to the increase in urbanization, privatization and more demand for intermediate and final consumer services. In advanced economies the growth in the primary and secondary sectors are directly dependent on the growth of services like banking, insurance, trade, commerce, entertainment, etc.

REASONS FOR GLOBALISATION

Firm operate internationally for a number of reasons: They may be seeking to secure better sources of raw materials & energy. They may want to obtain access to low cost factors of production such as labour. They may be attracted to certain countries because of subsidies those countries provide. They may be seeking new markets for their products. Domestic markets may no longer be able to absorb production at minimum efficient scale.

EFFECTS OF GLOBALISATION ON INDIAN SERVICE SECTOR

Indian service sector has witnessed a major boom and is one of the major contributors to both employment and national income in recent times. Trading, transportation and communication, financial, real estate and business services, community, social and personal services come within the gambit of the service industry Services account for more than 60 per cent of world GDP and trade in services has grown.

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