Chapter : 8

What Are Globalization ?

Concept Of Globalisation

  • Globalisation means the flows of ideas, capital, commodities and people across different parts of the world. It is a multidimensional concept. It has political, economic and cultural manifestations and these must be adequately distinguished.
  • As a concept, globalisation fundamentally deals with flows. These flows can be ideas moving from one part of the world to another, commodities being traded across borders and so on.
  • The crucial element is the worldwide inter connectedness which is created and sustained as a consequence of these constant flows.
  • Globalisation increases the volume of trade in goods and services, inflow the foreign capital, increases foreign direct investment, creates new jobs, strengthens domestic economies, improves productive efficiency and healthy competition. Globalisation need not always be positive. It can have negative consequences for the people as well.

Causes of Globalisation

  • Though globalisation is not caused by any single factor even than technology remains a crucial factor.
  • The ability of ideas, capital, commodities and people to move more easily from one part of the world to another has been made possible by technological advances.
  • Any event taking place in one part of the world could have an impact on another part of the world. Globalisation, however, does not emerge merely because of the availability of improved communications only but there are several other factors also which accelerated the process.

Consequences Of Globalisation

Political Consequences

  • Globalisation results in an erosion of state capacity and limits their functions.
  • All over the world, the old ‘welfare state’ is now giving way to a more minimalist state that performs certain core functions such as the maintenance of law and order and the security of its citizens. It is the market that becomes the prime determinant of economic and social priorities.
  • The entry and the increased role of multinational companies all over the world leads to a reduction in the capacity of governments to take decisions on their own.
  • At the same time, globalisation does not always reduce state capacity the primacy of the state in 2021–22 continues to be the unchallenged in the management of political community. The old jealousies and rivalries between countries have not ceased to matter in world politics.
  • States continue to be important. Indeed, in some respects state capacity has received a boost as a consequence of globalisation, with enhanced technologies available at the disposal of the state to collect information about its citizens. With this information, the state is better able to rule, not less able. Thus, states become more powerful than they were earlier as an outcome of the new technology.
  • Due to Globalisation a new type of global governance seems to emerge such as the UN to regulated the International Politics.

Economic Consequences

  • Economic facets of globalisation shape a large part of the content and direction of contemporary debates surrounding globalisation.
  • A much broader way of understanding of economic globalisation requires us to look at the distribution of  economic gains,i.e. who gets the most from globalisation and who gets less,indeed who loses from it.
  • Economic globalisation usually involves greater economic flows among different countries of the world. Some of this is voluntary and some forced by international institutions and powerful countries.
  • Globalisation has involved greater trade in commodities across the globe; the restrictions imposed by different countries on allowing the imports of other countries have been reduced.
  • Similarly, the restrictions on movement of capital across countries have also been reduced. In operational terms, it means that investors in the rich countries can invest their money in countries other than their own, including developing countries, where they might get better returns.
  • Globalisation has also led to the flow of ideas across national boundaries. The spread of internet and computer related services is an example of that.
  • But globalisation has not led to the same degree of increase in the movement of people across the globe. Developed countries have carefully guarded their borders with visa policies to ensure that citizens of other countries cannot take away the jobs of their own citizens.
  • Economic globalisation has created an intense division of opinion all over the world. Those who are concerned about social justice are worried about the extent of state withdrawal caused by processes of economic globalisation.
  • They have emphasised the need to ensure institutional safeguards or creating ‘social safety nets’ to minimise the negative effects of globalisation on those who are economically weak.
  • Some economists have described economic globalisation as recolonisation of the world.
  • Advocates of economic globalisation argue that it generates greater economic growth and wellbeing for larger sections of the population when there is de-regulation. Greater trade among countries allows each economy to do what it does best.
  • More moderate supporters of globalisation say that globalisation provides a challenge that can be responded to intelligently without accepting it uncritically.

Cultural Consequences

  • In our home, in what we eat, drink, wear and indeed in what we think. It shapes what we think are our preferences.
  • The cultural effect of globalisation leads to the fear that this process poses a threat to cultures in the world. It does so,because globalisation leads to the rise of a uniform culture or what is called cultural homogenisation.
  • The rise of a uniform culture is not the emergence of a global culture. What we have in the name at the same time, it would be a mistake to assume that cultural consequences of globalisation are only negative.
  • Cultures are not static things. All cultures accept outside influences all the time.
  • Some external influences are negative because they reduce our choices. But sometimes external influences simply enlarge our choices, and sometimes they modify our culture without overwhelming the traditional.
  • While cultural homogenisation is an aspect of globalisation, the same process also generates precisely the opposite effect.
  • It leads to each culture becoming more different and distinctive. This phenomenon is called cultural heterogenisation.

Liberalisation, Privatisation And Globalisation

21st Century Globalisation

In 1991, India embarked on a programme of economic reforms that has sought increasingly to de-regulate various sectors including trade and foreign investment. The acceptance of the LPG of India led to nation to the policy.

Resistance to Globalisation

  • Globalisation has invited strong criticism all over the globe. For some globalisation represents a particular phase of global capitalism that makes the rich richer and the poor poorer.
  • Culturally, they are worried that traditional culture will be harmed under western culture.
  • Due to Globalization the MNCs come to countries and the traditional small industries could not complete with them and got vanished thus resistance come from them against the process.
  • The World Social Forum (WSF) is a global platform bringing together human rights activists, environmentalists, labour, youth and women activists opposed to neo-liberal globalisation.

India and Resistance to Globalisation

  • Resistance to globalisation in India has come from different quarters i.e. left wing protests to economic liberalisation, trade unions of industrial workforce organised protest against multinationals, the patents, resistance from political right i.e. objecting to various cultural influences of foreign T .V. channels, celebration
    of Valentine's Day and Westernisation of dress of girl students in schools and colleges.
  • There have been left wing protests to economic liberalisation voiced through political parties as well as through some other forums.