Faculty of Law, Aligarh Muslim

University
2023

Taxation

(Project)

On

‘The Globalisation Debate: Impact & Resistance’

Submitted by: Submitted to:

Name- Shrishti Thenuan Prof. Zafar Ahmad Khan

Roll No. 19BALLB013

Enrolment No. GK1816

IX Sem Section A
 Contents

1. Introduction
2. The concept of globalisation
3. Causes of globalisation
4. Political consequences
5. Economic consequences
6. Cultural consequences
7. India and globalisation
8. Resistance to globalisation
9. Conclusion & References
Introduction

In this Project, we look at globalisation, something that has been referred to in many chapters
of this book and textbooks of many other subjects. We will begin by analysing the concept of
globalisation and then examine its causes. We then discuss at length the political, economic
and cultural consequences of globalisation. Our interest is also in studying the impact of
globalisation on India as well as how India is affecting globalisation. We will finally draw
attention to resistance to globalisation and how social movements in India also form part of
this resistance.

Globalisation has helped nations integrate their economy with the rest of the world, and it has
reduced barriers to trade and increased economic activity manifold. It has also led to cultural,
social and technological exchanges that have helped governments tackle internal and external
challenges with greater efficiency.
The Concept

Globalisation as a 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. The 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 avoid drawing general conclusions about the impact of globalisation
without paying sufficient attention to specific contexts.1

1. Anand Kumar, Pradeep Kumar Jena, ‘Gandhian Way in the Era of Globalisation’ 78 (Winshield
Press, 2nd Edn. 2019)
Causes of Globalisation

What accounts for globalisation? If globalisation is about the flows of ideas, capital,
commodities, and people, it 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. However, those who argue that there is something distinct
about contemporary globalisation point out that it is the scale and speed of these flows
that account for the uniqueness of globalisation in the contemporary era. Globalisation
has a strong historical basis, and it is important to view contemporary flows against
this backdrop.

While globalisation is not caused by any single factor, technology remains a critical
element. There is no doubt that the invention of the telegraph, the telephone, and the
microchip in more recent times has revolutionised communication between different
parts of the world. When printing initially came into being it laid the basis for the
creation of nationalism. So also today we should expect that technology will affect the
way we think of our personal but also our collective lives.

The ability of ideas, capital, commodities and people to move more easily from one
part of the world to another has been made possible largely by technological
advances. The pace of these flows may vary. For instance, the movement of capital
and commodities will most likely be quicker and wider than the movement of peoples
across different parts of the world.

Globalisation, however, does not emerge merely because of the availability of

improved communications. What is important is for people in different parts of the
world to recognise these interconnections with the rest of the world. Currently, we are
aware of the fact that events taking place in one part of the world could have an
impact on another part of the world. The Bird flu or tsunami is not confined to any
particular nation. It does not respect national boundaries. Similarly, when major
economic events take place, their impact is felt outside their immediate local, national
or regional environment at the global level.
 Political Consequences

One of the debates that has been generated as a consequence of contemporary

processes of globalisation relates to its ongoing political impact. How does
globalisation affect traditional conceptions of state sovereignty? There are at least
three aspects that we need to consider when answering this question.

At the most simple level, globalisation results in an 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.
However, it withdraws from many of its earlier welfare functions directed at
economic and social well-being. In place of the welfare state, 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 continues to be the unchallenged basis of political community. The old
jealousies and rivalries between countries have not ceased to matter in world politics.
The state continues to discharge its essential functions (law and order , national
security) and consciously withdraws from certain domains from which it wishes to.
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.2

2. Justin Healey, ‘The Globalization Debate’ 154 (Spinney Press, Australia, 3rd Edn. 2004)
Economic Consequences

While everything may not be known about the economic facets of globalisation, this
particular dimension shapes a large part of the content and direction of contemporary
debates surrounding globalisation.

A part of the problem has to do with defining economic globalisation itself. 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. Yet, globalisation must not be
viewed in such narrow terms. Economic globalisation involves many actors other than
these international institutions. 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.

What is often called 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. As we saw in the examples at the
beginning of this chapter, this flow or exchange can take various forms: commodities,
capital, people and ideas. 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 point out that it is
likely to benefit only a small section of the population while impoverishing those who
were dependent on the government for jobs and welfare (education, health, sanitation,
etc.). 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.3 Many movements all over the world feel that safety nets are
insufficient or unworkable. They have called for a halt to forced economic
globalisation, for its results would lead to economic ruin for the weaker countries,
especially for the poor within these countries. Some economists have described
economic globalisation as recolonisation of the world.

3. Supra note 1
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. 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. The popularity of a burger or blue jeans, some argue, has a lot to do
with the powerful influence of the American way of life. Thus, the culture of the
politically and economically dominant society leaves its imprint on a less powerful
society, and the world begins to look mor e like the dominant power wishes it to be.
Those who make this argument often draw attention to the ‘McDonaldisation’ of the
world, with cultures seeking to buy into the dominant American dream. This is
dangerous not only for the poor countries but for the whole of humanity, for it leads to
the shrinking of the rich cultural heritage of the entire globe.

At the same time, it would be a mistake to assume that cultural consequences of

globalisation ar e only negative. Cultures are not static things. All cultures accept
outside influences all the time. Some external influences ar e negative because they
reduce our choices. But sometimes external influences simply enlarge our choices,
and sometimes they modify our culture without overwhelming the traditional. The
burger is no substitute for a masala dosa and, therefore, does not pose any real
challenge. It is simply added on to our food choices. Blue jeans, on the other hand,
can go well with a homespun khadi kurta.
India and Globalisation

We said earlier that globalisation has occurred in earlier periods in history in different
parts of the world. Flows pertaining to the movement of capital, commodities, ideas
and people go back several centuries in Indian history.

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. We also decided not to allow
others to export to us so that our own producers could learn to make things. This
‘protectionism’ generated its own problems. While some advances were made in
certain arenas, critical sectors such as health, housing and primary education did not
receive the attention they deserved. India had a fairly sluggish rate of economic
growth.

In 1991, responding to a financial crisis and to the desire for higher rates of economic
growth, India embarked on a programme of economic reforms that has sought
increasingly to de-regulate various sectors including trade and foreign investment.
While it may be too early to say how good this has been for 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 Globalization

What has been India’s experience in resisting 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 liberalisation
voiced through political parties as well as through forums like the Indian Social
Forum. Trade unions of industrial workforce as well as those representing farmer
interests have organised protests against the entry of multinationals. The patenting of
certain plants like Neem by American and European firms has also generated
considerable opposition.

Resistance to globalisation has also come from the political right. 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.4

4. Joseph Zajda, Suzanne Majhanovich, ‘Globalisation, 32 Cultural Identity and Nation-Building’

(Springer Netherlands 5th Edn. 2021)
 Conclusion

The wide-ranging effects of globalization are complex and politically charged. As

with major technological advances, globalization benefits society as a whole, while
harming certain groups. Understanding the relative costs and benefits can pave the
way for alleviating problems while sustaining the wider payoffs.

Globalisation enables the coming together of individuals, corporations and resources

from different countries. The unique characteristics of globalisation have allowed
people with diverse backgrounds to interact freely. It is the vehicle that has helped
global trade scale new heights in the last few decades.
 Bibliography

1. Anand Kumar, Pradeep Kumar Jena, ‘Gandhian Way in the Era of Globalisation’ 78 (Winshield
Press, 2nd Edn. 2019)

2. Joseph Zajda, Suzanne Majhanovich, ‘Globalisation, 32 Cultural Identity and Nation-Building’

(Springer Netherlands 5th Edn. 2021)

3. Justin Healey, ‘The Globalization Debate’ 154 (Spinney Press, Australia, 3rd Edn. 2004)