Chapter: 7

Globalisation

 The Concept Of Globalisation

 Globalisation need not always be positive; it can have negative
consequences for the people. Indeed, there are many who believe
that globalization has more negative consequences than positive.
Globalisation need not be only about the economic issues, nor is
the direction of influence always from the rich to the poor
countries.
 Since much of the usage tends to be imprecise, it becomes
important to clarify what we mean by globalisation.
 Globalization as concept fundamentally deals with flows. These
flows could be of various kinds- ideas moving from one part of the
world to another, capital shunted between two or more places,
commodities being traded across borders, and people moving in
search of better livelihoods to different parts of the world.
 The crucial element is the ‘worldwide interconnectedness’ that is
created and sustained as a consequence of these constant flows.
 Globalisation is a multi- dimensional concept. It has political,
economic and cultural manifestations, and these must be
adequately distinguished.
 It is wrong to assume that globalisation has purely economic
dimensions, just as it would also be mistaken to assume that it is a
purely cultural phenomenon. This impact of globalisation is vastly
uneven- it affects some societies more than others and some
parts of some societies more than others – and it is important to
void drawing general conclusions about the impact of globalistion
without paying sufficient attention to specific contexts.
 Causes Of Globalisation
 If globalisation is about the flows of ideas, capital, commodities,
and people, if is perhaps logical to ask if there is anything novel
about this phenomenon.
 Globalisation in terms of these four flows has taken place through
much of human history.
 Globalisation has a strong historical basis, and it is important to
view contemporary flows against this backdrop.
 Globalisation, however, does not emerge merely because of the
availability of improved communications.
 Political Consequences
 At the most simple level, globalisation results in n erosion of state
capacity, that is, the ability of government to do what they do.
 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.
 At the same time, globalisation does not always reduce state
capacity. The primacy of the state continues to be the unchallenged
basis of political community.
 Economic Consequences
 The economic facets of globalisation, this particular dimension
shapes a large part of content and direction of contemporary
debates surrounding globalization.
 The mention of economic globalisation draws our attention
immediately to the role of international institutions like the IMF
and the WTO and the role they play in determining economic
policies across the world.
 Economic globalisation usually involves greater economic flows
among different 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.
 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.
 While globalisation has led to similar economic policies adopted
by governments in different parts of the world, this has generated
vastly different outcomes in different parts of the world. It is again
crucial to pay attention to specific context rather than make
simple generalisations in this connection.
 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.
 Advocates of economic globalisation argue that it generates
greater economic growth and well- being for larger sections of the
population when there is de- regulation. Greater trade among
countries allows each economy to do what it does best.
 Cultural Consequences
 The consequences of globalisation are not confined only to the
sphere of politics and economy. Globalisation affects us in our home,
in what we eat, drink, wear and indeed in what we think.
 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.
 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.
  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.

 India And Globalisation

During the colonial period, as a consequence of Britain’s imperial
ambitions, India became an exporter of primary goods and raw
materials and a consumer of finished goods.
After independence, because of this experience with the British,
we decided to make things ourselves rather than relying on
others.
While it may be too early to say how good this has been in India,
the ultimate test is not high growth rates as making sure that the
benefits of growth are shared so that everyone is better off.

 Resistance To Globalisation
 We have already noted that globalisation is a very contentious
subject and has invited strong criticism all over the globe. Critics
of globalisation make a variety of arguments.
 Those on the left argue that contemporary globalisation
represents a particular phase of global capitalism that makes the
rich richer (and fewer) and the poor poorer.
 It is important to note here that anti- globalisation movements
too participate in global networks, allying with those who feel like
them in other countries.
 In 1999, at the world trade organisation (WTO) ministerial
meetings there were widespread protests at Seattle alleging
unfair trading practices by the economically powerful states.
  It was argued that the interests of the developing world were not
given sufficient importance in the evolving global economic
system.
 The World Social Forum (WSF) is another global platform, which
brings together a wide coalition composed of human rights
activities, environmentalists, labour, youth and women activists
opposed to neo- liberal globalisation.

 India And Resistance To Globalisation

 Social movements play a role in helping people make sense of the
world around them and finding ways to deal with matters that
trouble them.
 Resistance to globalisation in India has come from different
quarters. There have been left wing protests to economic
liberalization voiced through political parties as well as through
forums like the Indian Social Forum.
 Resistance to globalisation has also come from the political rights.
This has taken the form of objecting particularly to various
cultural influences- ranging from the availability of foreign T.V.
channels provided by cable networks, celebration of Valentine’s
Day, and westernisation of the dress tastes of girl students in
schools and colleges.