GLOBALIZATION, LAW AND JUSTICE – MID SEM – MODULE 1

MEANING, SCOPE AND DIMENSIONS OF GLJ

Globalisation refers to the process of increased interconnectedness and interdependence among countries, societies,
and economies across the world. It encompasses various economic, social, cultural, technological, and political
dimensions. Here's a breakdown of its meaning, scope, and dimensions:

1. Meaning:
a. The economist Levitt coined the term ‘globalisation’ itself in 1983. It was used in literature in the mid-
1980s and gained strong momentum in the 1990s.
b. Globalization involves the integration of national economies into the international economy through
trade, investment, and capital flows.
c. It involves the exchange of goods, services, ideas, technologies, and cultures across borders, facilitated
by advances in transportation, communication, and information technologies.
d. Globalization also entails the spread of ideologies, values, and norms across different societies, leading
to increased cultural exchange and interconnectedness.
2. Scope:
a. Economic Globalization: This dimension involves the increasing interconnectedness of national
economies through trade liberalisation, foreign direct investment, and the global movement of capital,
labour, and technology. It also includes the emergence of global production networks and supply chains
b. Social Globalization: This dimension refers to the interconnectedness of societies and individuals
through migration, travel, communication technologies, and cultural exchange. It involves diffusing
ideas, lifestyles, values, and norms across different cultures.
c. Political Globalization: This dimension involves the growing influence of global institutions, such as the
United Nations, World Bank, International Monetary Fund, and multinational corporations, in shaping
global governance and decision-making processes. It also includes the rise of global governance
mechanisms to address transnational issues such as climate change, terrorism, and human rights.
d. Technological Globalization: This dimension refers to the rapid diffusion of technology and innovation
across the globe, leading to increased connectivity, productivity, and economic growth. It includes
advances in information and communication technologies, transportation, and logistics that facilitate
global trade and communication.
3. Dimensions:
a. Economic Dimension: Involves the integration of national economies through trade, investment, and
financial flows.
b. Cultural Dimension: Involves the exchange of ideas, values, languages, and cultural practices across
different societies.
c. Political Dimension: Involves the emergence of global governance mechanisms and the increasing
influence of international and multinational corporations in shaping global policies and decision-making
processes.
d. Technological Dimension: Involves the rapid diffusion of technology and innovation across borders,
leading to increased connectivity and productivity.

Globalisation has profound implications for economies, societies, and individuals worldwide, presenting opportunities
and challenges regarding economic growth, cultural diversity, social cohesion, and political stability.
BRETTON WOOD AGREEMENT

The Bretton Woods Agreement was established in July 1944 at the United Nations Monetary and Financial Conference
held in Bretton Woods, New Hampshire, USA.

Why and When Did It Happen?

• It happened in response to the economic challenges of the interwar period, notably the Great Depression and
the breakdown of the international monetary system characterised by competitive currency devaluations and
protectionist trade policies.
• The primary goals were to establish a new international monetary order to promote economic stability, facilitate
post-war reconstruction, and prevent future economic crises.

What Did it Lead to?

• Creation of the International Monetary Fund (IMF) – Aim: To oversee the international monetary system,
facilitate currency exchange stability, and provide financial assistance to countries facing balance of payments
problems.
• Creation of the International Bank for Reconstruction and Development (IBRD, later part of the World Bank
Group) – Aim: To provide loans and financial assistance for the reconstruction and development of war-torn
and developing countries.
• Establishment of a fixed exchange rate system, where currencies were pegged to the US dollar, which was in
turn pegged to gold at a fixed rate.

Role in the Globalization Process

• Provided a framework for international monetary cooperation and facilitated international trade and
investment expansion.
• Reduced exchange rate volatility, promoting confidence in the global monetary system.
• Established foundations for the post-war economic order, encouraging greater economic integration and
cooperation among nations.
• The IMF and World Bank became key players in promoting economic development and globalisation by
providing financial assistance, technical expertise, and policy advice to countries worldwide.

Overall, the Bretton Woods Agreement marked a significant global milestone by laying the groundwork for international
monetary stability, facilitating economic reconstruction and development, and promoting greater economic integration
and cooperation among nations.

NEOLIBERALISM AND LIBERALISM

Liberalism is a political and economic philosophy emphasising individual freedom, free markets, limited government
intervention, and protecting civil liberties and property rights. In the economic context, liberal policies advocate for free
trade, deregulation, privatisation, and the promotion of competition. Socially, liberalism supports tolerance, pluralism,
and equal rights for all individuals regardless of race, gender, or social class. Liberalism emerged as a response to
authoritarianism and mercantilism, advocating for democratic governance, constitutionalism, and the rule of law. It has
significantly shaped modern democracies and market economies, promoting the idea that individual liberty and economic
prosperity are interconnected.

Origins of Liberalism -

• Liberalism emerged in the 17th and 18th centuries during the Age of Enlightenment in Europe.
• It responded to the authoritarianism of absolute monarchies, feudalism, and religious intolerance prevalent
during that time.
 • Influenced by thinkers such as John Locke, Adam Smith, and Montesquieu, liberalism sought to promote
individual freedoms, limit the power of governments, and advance rational thought.

Key Philosophical Foundations

• Individualism: Liberalism emphasises the inherent worth and autonomy of the individual. Individuals possess
natural rights, including life, liberty, and property, which the state must protect.
• Rule of Law: Liberalism advocates for a legal system based on impartial laws that apply equally to all citizens,
including those in government.
• Limited Government: Liberals argue for restricting governmental power to prevent tyranny and protect
individual freedoms. Governments should only intervene to safeguard rights and maintain order.
• Social Contract: Liberalism posits that legitimate political authority arises from a social contract between
individuals and the government. Citizens consent to be governed in exchange for protection of their rights.

Economic Influences

• Liberalism significantly impacted economic theory and practice. Adam Smith's seminal work "The Wealth of
Nations" (1776) laid the groundwork for classical liberalism by advocating for free markets, limited government
intervention, and the division of labour.
• Liberal economic policies, such as free trade, property rights protection, and minimal taxation, became
foundational principles of capitalist economies.

On the other hand, neoliberalism is a more recent variant of liberalism that emerged in the late 20th century.
Neoliberalism advocates for the importance of free markets and limited government intervention in the economy. It
emphasises deregulation, privatisation, fiscal austerity, and reducing barriers to trade and investment.

Neoliberal policies aim to maximise economic efficiency, promote competition, and stimulate economic growth by
reducing the state's role in financial affairs. However, critics argue that neoliberalism often leads to increased economic
inequality, social disparities, and the erosion of public services and welfare programs.

Despite criticisms, neoliberalism has significantly influenced global economic policies since the 1980s, mainly through
organisations like the International Monetary Fund (IMF) and the World Bank, which have promoted neoliberal reforms
in many countries worldwide.

WASHINGTON CONSENSUS

BACKGROUND –

• Everyone who has had to think about economic development, open economies and exchange rates, or the
economic policies advocated by the “Nineteenth Street twins”—the International Monetary Fund and World
Bank—is indebted to John Williamson.
• The Washington Consensus is a set of ten economic policy prescriptions constituting the "standard" reform
package promoted for crisis-wracked developing countries by Washington, D.C.-based institutions such as the
International Monetary Fund (IMF), World Bank and United States Department of the Treasury.

JOHN WILLIAMSON’S TEN POINTS INCLUDE –

1. fiscal discipline; 5. adoption of a single, 8. privatisation of state-

2. redirecting public competitive exchange owned enterprises;
expenditure; rate; 9. deregulation of market
3. tax reform; 6. trade liberalisation; entry and competition;
4. financial liberalisation; 7. elimination of barriers to and
foreign direct 10. secure property rights.
investment;
WASHINGTON CONSENSUS VERSION 1 –

• The initial version of the Washington Consensus was focused explicitly on Latin America, which was struggling
toward the end of the lost decade of its debt crisis.
• Purpose - Washington Consensus I was intended, inter alia, to suggest to Latin American policymakers that a
variety of market-friendly policies made sense, even though they were associated with the policies of the
governments of Margaret Thatcher and Ronald Reagan—governments whose basic positions were more
criticised than admired by many Latin American governments and many development economists during the
1980s.
• Stanley Fischer’s argument after hearing Washinton Consensus paper – “I agreed with everything written, but I
noted that the consensus was far wider than only Washington, though not universal. I noted also that Williamson
had omitted consideration of policies related to the environment and military spending.”
• Was the Washington Consensus a ‘consensus’? - If the Washington Consensus was indeed the consensus in
Washington, the World Development Report should have reflected that. In correspondence on the connection
between the Washington Consensus and the 1991 WDR – it did not mention it.

WASHINGTON CONSENSUS VERSION 2 –

• Pedro-Pablo Kuczynski and John Williamson expanded the agenda four-fold –

o New Agenda I: Crisis Proofing – This part of the agenda includes running a countercyclical fiscal policy,
allowing the exchange rate to adjust somewhat in response to capital flows while using capital controls
to prevent excessive appreciation resulting from potentially large inflows, preventing dollarisation,
maintaining a monetary policy close to inflation targeting; strengthening the banking system; and
increasing domestic saving.
o New Agenda II: Completing First-Generation Reforms – These reforms are presented as enabling faster
growth. Here, Williamson starts with the need to make the labour market more flexible—an issue he
has seen early on as a significant omission from Washington Consensus I.
o New Agenda III: Second-Generation Reforms – Role of government in creating a better market and
industrial policy.
o New Agenda IV: Income Distribution and the Social Sector – This agenda includes material wealth. On
income distribution, the goal is to suggest policies to reduce income inequality without affecting
growth.

CRITICISM OF WASHINGTON CONSENSUS –

• Birdsall and Fukuyama (2011) ask what the impact of the Great Recession will be on modern approaches to
development.
• They start by noting that the crisis has not led to a rejection of capitalism, though in their view, it has reduced
the appeal of the American brand of capitalism.
• They suggest that countries will no longer be subject to the “foreign finance fetish,” the view that developing
countries could benefit substantially from more significant capital inflows.
• They foresee a more significant role for the state and increasing government efficiency.
• In addition, they believe we are moving to a more multipolar world, with the replacement of the G-7 by the G-
20 in the international system as the visible symbol of this change.
STATE, SOVEREIGNTY AND GLOBALIZATION

State According to Legal Philosophers -

• Defined political entity with a territory, population, government, and international relations capacity.
• Conceptualized by theorists like Hobbes, Locke, and Rousseau.
• Acts as a sovereign authority within its borders, maintaining order and representing citizens internationally.

Importance of Sovereignty to a State

• Grants supreme authority and power over domestic and international affairs.
• Includes internal sovereignty (control within borders) and external sovereignty (independence in relations).
• Enables law-making, regulation enforcement, taxation, and territorial defence, ensuring statehood and
legitimacy.

Effects of Globalization on State Sovereignty

• Economic Globalization: Free flow of capital, goods, and services challenges state regulatory authority,
empowering multinational corporations.
• Technological Advancements: Communication and transportation technologies weaken border control,
information regulation, and state surveillance.
• Rise of Supranational Organizations: Entities like the EU and UN limit state autonomy by imposing regulations
and norms, requiring cooperation beyond borders.

Examples

• European Union: Member states pool sovereignty in certain areas, such as trade and immigration, to achieve
common goals.
• Transnational Corporations: Multinational companies operate across borders, influencing national policies and
challenging state regulations.

HUMAN RIGHTS AND GLJ

Meaning of Human Rights:

• UN Charter: The United Nations Charter, established in 1945, recognises the inherent dignity and equal rights
of all human beings without distinction of race, sex, language, or religion. It reaffirms faith in fundamental
human rights and dignity and the worth of the human person.
• Universal Declaration of Human Rights (UDHR): Adopted by the UN General Assembly in 1948, the UDHR
outlines a comprehensive set of fundamental human rights, including civil, political, economic, social, and
cultural rights, to which all individuals are entitled regardless of nationality, ethnicity, or religion.

Role of Human Rights Agreements in Globalization

• These agreements establish universal norms and standards for protecting human rights, serving as a foundation
for global cooperation and advocacy.
• They promote the integration of human rights considerations into international law, policies, and practices,
fostering accountability and responsibility among states and non-state actors.
• Human rights agreements contribute to developing a more just and equitable global order, emphasising the
importance of respect for human dignity, equality, and non-discrimination in all aspects of society.

Effects on HR –

Positive Effects:
 1. Increased Awareness: Globalization facilitates the dissemination of information about human rights violations,
leading to greater awareness and advocacy. For example, social media platforms have played a crucial role in
raising awareness about issues such as police brutality and racial injustice, as seen in movements like
#BlackLivesMatter and #MeToo.
2. Cross-Border Collaboration: Globalization enables collaboration among governments, international
organisations, and civil society to address transnational human rights issues. One example is the global campaign
against human trafficking, where countries collaborate to combat the illegal trade in persons and support victims
of trafficking through initiatives like the Blue Heart Campaign by the United Nations Office on Drugs and Crime.
3. Economic Development: Globalization has contributed to economic growth and poverty reduction in many parts
of the world, enhancing socio-economic rights such as education and health. For instance, initiatives like the
United Nations Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs) aim to
eradicate poverty, improve healthcare, and promote education globally, leading to tangible improvements in
human rights.

Negative Effects:

1. Economic Inequality: Globalization has exacerbated economic inequality within and among countries, leading
to disparities in access to resources and opportunities. For example, in developing countries like Bangladesh,
workers in the garment industry often face exploitative working conditions and low wages despite contributing
to the global supply chain of major clothing brands.
2. Exploitation of Labor: Transnational corporations frequently exploit cheap labour in developing countries,
violating workers' rights and labour standards. The Rana Plaza factory collapse in Bangladesh in 2013, which
killed over 1,100 garment workers, highlighted the dangerous working conditions and lack of labour rights
protections faced by many workers in the globalised supply chain.
3. Cultural Homogenization: Globalization can lead to cultural diversity and indigenous rights erosion. For
example, the spread of Western cultural values and consumerism through global media and entertainment
industries can undermine traditional cultural practices and identities, threatening the rights of indigenous
peoples to maintain their cultural heritage and way of life.

In conclusion, while globalisation has the potential to advance human rights through increased awareness, collaboration,
and economic development, it also poses challenges such as economic inequality, labour exploitation, and cultural
homogenisation, highlighting the need for concerted efforts to ensure that globalisation respects and upholds human
rights principles for all individuals worldwide.

SOCIAL DEVELOPMENT, EQUITY AND GLJ

CAN SOCIAL GROWTH AND GLOBALISATION CO-EXIST?

• Before the 1980s, economic and political development students spent much time worrying about the
fundamental trade-off between growth and equity: governments could deliver one or the other, but asking for
both was too much.
• Throughout the 1980s and 1990s, however, this view—the conventional wisdom of previous decades—began
to be challenged.
• Rather than treating the growth/equity trade-off as an inescapable feature of capitalist development, the
literature now emphasises the absence of such a trade-off. One only had to look at Sweden, where growth and
equity were fused in near-perfect harmony, to see nothing was necessary or inevitable about it.

Does expanding markets from the domestic to the international sphere promote long-run economic prosperity?

• The standard answer is that it does: international trade, though not the only source of economic growth, is
undoubtedly important. As global trade increases, its independent contribution to long-run prosperity is likely
to rise as well—independent, that is, in the sense of being exogenous to other (purely domestic) sources of
prosperity.
 • As markets expand—first domestically and then, with globalisation, internationally—so, too, do the competitive
pressures bearing down on individual producers. Faced with this pressure, firms innovate and, through that
innovation, increase their overall productivity. Either that or they get driven out.
• This second logic thus differs markedly from the static arguments of Ricardo or Heckscher and Ohlin as explained
above. It also subsumes a couple of other arguments sometimes advanced for—or against—globalisation. In the
simplest version of the competition story, trade fuels innovation by spreading fear.

How does it impact equity?

1. Economic Inequality:
a. Globalization can exacerbate economic inequality by concentrating wealth and resources in the hands
of a few while marginalising others.
b. Example: The global financial crisis 2008 disproportionately affected low-income households, leading
to increased unemployment, foreclosure rates, and widening income gaps, particularly in countries
with weaker social safety nets.
2. Labor Market Disparities:
a. Globalization often leads to outsourcing jobs to countries with lower labour costs, resulting in job losses
and wage stagnation in high-income countries.
b. Example: The decline of manufacturing industries in Western countries due to outsourcing to countries
like China and India has led to unemployment and underemployment among blue-collar workers,
contributing to income inequality.
3. Access to Education and Healthcare:
a. Globalization can widen disparities in access to education and healthcare, particularly in developing
countries with limited resources.
b. Example: In many low-income countries, globalisation has led to the privatisation of education and
healthcare services, making them inaccessible to marginalised populations who cannot afford the cost
of privatised services, exacerbating inequalities in access to essential services.
4. Resource Distribution:
a. Globalization can lead to the exploitation of natural resources in developing countries by multinational
corporations, often at the expense of local communities and indigenous peoples.
b. Example: The extraction of oil, minerals, and other resources in regions like the Amazon rainforest has
led to environmental degradation, displacement of indigenous populations, and loss of traditional
livelihoods, widening the gap between the rich and the poor.
5. Digital Divide:
a. Globalization has resulted in a digital divide between those with access to technology and information
and those without, exacerbating inequalities in education, employment, and access to opportunities.
b. Example: In many developing countries, disparities in access to the internet and digital technologies
hinder economic development and social mobility, perpetuating inequities between urban and rural
areas and marginalized communities.

MARRAKESH AGREEMENT ON EQUALITY –

The preamble of the Marrakesh Agreement emphasises raising living standards, ensuring full employment, and
promoting economic growth through trade and cooperation. It highlights the importance of expanding production and
trade in goods and services while optimising the use of the world's resources in line with the objective of sustainable
development. Additionally, it recognises the need to protect and preserve the environment while enhancing the means
for doing so in a manner consistent with the varying needs and concerns of countries at different levels of economic
development.

About equality, the preamble suggests a commitment to fostering inclusive and equitable economic development
through trade. By emphasising the objectives of raising living standards, ensuring full employment, and promoting
sustainable growth, the preamble implies a desire to distribute trade benefits more evenly among all members, including
developing and least developed countries. non-discrimination in international trade relations by ensuring that the
benefits of trade and economic cooperation are shared equitably among all members, regardless of their level of
development.

GLJ AND SOCIAL JUSTICE

Globalization significantly impacts social justice by influencing the distribution of resources, opportunities, and power
within societies.

1. Economic Inequality:
a. Globalization can exacerbate economic disparities within and among countries, affecting access to
education, healthcare, and employment opportunities.
b. Example: In many developing countries, economic globalization has led to the concentration of wealth
among a small elite while leaving large segments of the population in poverty. For instance, in India,
rapid economic growth fueled by globalization has widened the gap between the rich and the poor,
leading to increased income inequality.
2. Labor Rights and Working Conditions:
a. Globalization often leads to the outsourcing of jobs to countries with lower labor costs, resulting in
exploitation of workers and poor working conditions.
b. Example: In the garment industry, workers in countries like Bangladesh and Cambodia often face unsafe
working conditions, long hours, and low wages due to pressure from global retailers to cut costs and
maximize profits.
3. Cultural Homogenization:
a. Globalization can lead to the dominance of Western cultural values and consumerism, undermining
local cultures and identities.
b. Example: The spread of Western media and entertainment through globalisation can marginalize
indigenous cultures and languages, contributing to cultural homogenisation. For instance, the
popularity of Western fast food chains in countries like Japan and China has led to the decline of
traditional dietary practices and local cuisines.
4. Access to Information and Technology:
a. Globalization has the potential to bridge information gaps and empower marginalized communities
through access to technology and digital platforms.
b. Example: Mobile phones and the internet have provided new opportunities for education,
communication, and activism in remote and underserved areas. For example, in sub-Saharan Africa,
mobile banking services have enabled access to financial services for people in rural areas who were
previously excluded from the formal banking system.
5. Social Movements and Advocacy:
a. Globalization has facilitated the emergence of transnational social movements and advocacy networks
that advocate for social justice issues on a global scale.
b. Example: The #MeToo movement, which originated in the United States, has sparked a global
conversation about sexual harassment and gender-based violence, leading to increased awareness and
calls for change in countries around the world.