Globalisation
POLITICAL CONSEQUENCES-
1. 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.
2. 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.
3. 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.
ECONOMIC CONSEQUENCES-
1. Narrow understanding- 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.
2. Broader Understanding- 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.
3. Whereas the flow of goods and services has been pretty much same
for most countries, 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.
4. Same policies different results- 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.
5. 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.
6. Opponents 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.
Cultural Consequences-
Homogeneity- 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.
heterogeneity - . 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.