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Understanding Globalization's Impact

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10 views8 pages

Understanding Globalization's Impact

Uploaded by

sawlai
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1

Introduction:
Globalization is a complex phenomenon that has had far-reaching effects. Not surprisingly,
therefore, the term “globalization” has acquired many emotive connotations and become a hotly
contested issue in current political discourse. At one extreme, globalization is seen as an
irresistible and benign force for delivering economic prosperity to people throughout the world.
At the other, it is blamed as a source of all contemporary ills.

Beginning:
Globalization is not a new phenomenon. It began in the late 15 th century with the rise of
capitalism and its overseas expansion. The conquest and exploitation of Asia, Africa and Latin
America and the white colony settlements in North Africa and Australia were all instance of
globalization.1

Definition:

Globalization can be defined as the integration of economic, cultural,


political, religious, and social systems reaching the whole world and
practically human beings.2Globalization is a new contemporary stage of
development of capitalism. The general characteristic of this process are the
liberation of the movements of goods, services, investment and finance
across national border, and the expansion of global information flows and the
acceleration of the speech of information exchanges. 3The emergence and
the continuing process of globalization have been caused by the multi-
dimensional factors. Mainly, the technological developments, ideological
factors, and economic factors.4 Globalization is anew, contemporary stage of
the development of capitalism all over the world. 5

Globalization is also defined by proponents in the following ways: 6

1. “The increasing integration of domestic economies with the world


economy is generally termed as globalization”. The concept
recognized that in the global economy, economic activity is not only
integrated, but it is international in scope and global in organization.
It is in this sense, globalization does mean, transnationalisation of

1
James David and John Desrochers CSC, eds., Dimension of globalization (Bangalore: Centre for Social Action,
1998), 10.
2
Shimreingam L. Shimray,Introducing Theological Ethics (Ukhrul: Phungyo Baptist Church, 2011), 152.
3
Narola Imchen, ed., Tribal Women and Globalization (Jorhat: ,Women Studies Center Eastern Theological
College 2008), 19.
4
Narola Imchen, ed., Tribal Women and Globalization,….. 2-3.
5
James David, and John Desrochers CSC, eds., Dimension of globalization,…. 13.
6
Samuel W. Meshact, ed., Mission with Marginalized (Tiruvalla: Christian SahityaSamithy, 2007), 178-179.
2

capital, internationalization of culture. Thus, globalization implies the


functional integration of internationally dispensed activities.
2. “Globalization involves the creation of a seamless, borderless, global
order with increasing denationalization of the nation-state and its
sovereignty, whilst steadily and critically altering the nature of the
state itself. It also involves the migration of the market and
economies through trade investment finance of new labour skills of
knowledge or technology and transnationalisation of production and
internationalization of consumer wants.”
3. Globalization represents the new emergent phase of capitalism which
refers to the geographic spread of economic activity across national
boundaries thereby absorbing all the countries of the world into one
economic unit. The emergent global capitalism or post-capitalism or
transnational capitalism is characterized by an increasing
concentration of capital. It is in this context, one has to situate
transnational corporations.
4. Globalization is a highly differentiated phenomenon that has
historically been linked to the concentration and centralization of
capital, wealth and power. The driving force has been the cooperation
and competition of the imperialist power.

The term Globalization is used to describe a set of economy, social,


technological, cultural and political changes which results in increasing
integration of and inter-dependence and interaction between individuals,
businesses and communities in different parts of the world. 7The trend also causes
political and cultural globalization.8

Process of Globalization:
Globalization in being accomplished in two ways, that is through the creation of seamless;
borderless global order with increasing de-nationalization of the nation-state and its sovereignty
whilst steadily and critically altering the nature of the state itself with aggressive interventionist
measures in favor of capital.9
Several important studies on globalization have shown that without sufficiently building up the
effective capacity of local industries and farms, the domestic economy cannot withstand the
competition of free imports of goods and services. This leads to the de-industrialization of
national economies.10

The Dynamic of Global Integration:


7
Cherian Thomas, ed., Should I Care?(Delhi: ISPCK, 2009), 19.
8
KuncheriaPathil, ed., Jeevadhara, Church of the poor (Malloossery: A journal For Socio-Religious Research,
2009), 263.

9
James David, and John Desrochers CSC, eds., Dimension of globalization,….. 10.
10
James David, and John Desrochers CSC, eds., Dimension of globalization,….. 11.
3

Globalization is one of the most powerful and persuasive images in today’s


world. The image of globalization as a promise or as a threat – is invoked
daily to justify actions and to rationalize policy. Globalization could mean
several things. Petrella captures the notion in seven concepts.

 Globalization of finances and capital ownership.


 Globalization of markets and strategies in particular competition.
 Globalization of technology and linked R&D and knowledge.
 Globalization of modes of life and consumption patterns:
globalization culture.
 Globalization of regulatory capabilities and governance.
 Globalization as the political unification of the world.
 Globalization of perception and consciousness. 11

There is reason to believe that as global financial markets expand they


become increasingly unstable. At some point, the instability is great enough
to halt the forces of economic integration and perhaps to reverse them.
Globalization is a self limiting process. The process that we call globalization
is really a complex set of changes.12

The Impact of Globalization:

Globalization is transforming the world for both good and ill, although it is
neither new nor inevitable. Globalization is largely innocent of the crimes for
which it is usually charged. It has the potential dramatically to reduce global
poverty and undermine repressive regimes.13Globalization is one of the most
powerful movements which have penetrated the whole sphere of human life
and activities. It has increasingly transcends all barriers of national borders
and territorial boundaries. While its origin and process is perhaps economic
its impact has affect the entire dimension of human society, whether social,
political, cultural, human rights, ecological and so on. 14

Globalization expands the opportunities for unprecedented human advance


for some but shrinks those opportunities for others and erodes human
security. It is integrating economy, culture and governance but fragmenting
societies. Driven by commercial market forces, globalization in this era seeks
to promote economic efficiency, generate growth and yield profits. But it
11
M.C. Behera, ed., Globalization and Development Dilemma (New Delhi: Mittal Publication, 2004), 34-35.
12
M.C. Behera, ed., Globalization and Development Dilemma,…. 35.
13
Adrian Watkins and Leslie Nathaniel, eds., Gospel and Globalization (Delhi: ISPCK, 2006), 37.
14
NarolaImchen, ed., Tribal Women and Globalization (Jorhat: Women Studies Center Eastern Theological
College, 2008), 54.
4

misses out on the goal of equity, poverty eradication and enhances human
security.15

Impacts of Globalization on Agriculture: The Globalization has affected


the poor and illiterate people of the world particularly the rural people and
small farmers having small land holdings. Moreover many of them have no
access to information and other facilities that can help to enhance their
participation in economic development, improve their productivity, income
and living condition. The irony of the situation is that many of the small
farmers engaged in agricultural are undernourished. They are producers but
not the consumers of food because of poverty. 16

Small farms holdings are one of the barriers to modernization and


automation of agriculture farms. There is an enormous fluctuation in the
prices of agricultural commodities. The prices of onion or tomato may be Rs.
2/- when the farmers sell it but may increase ten times up to Rs.20/- when
sold in the retail market at a different time and such price hikes not only
affect the farmers but severely affect the pocket of common man and polity
of the nation.17

The globalization has also offered immense opportunities for Indian farmers
to export their agriculture products in world markets, concentrate on herbs
and agriculture commodities that are in great demand in world markets. 18

Effects of Globalization:

Globalization has various aspects which affect the world in several different
ways such as:

1. Industrial (alias transnationalization)- Emergence of worldwide


production markets and broader access to a range of foreign products
for consumers and companies.
2. Financial- Emergence of worldwide financial markets and better access
to external financing for corporate, national and subnational borrowers.
3. Economic- Realization of a global common market, based on the
freedom of exchanges of goods and capital.

15
M.C. Behera, ed., Globalization and Development Dilemma,….33.
16
A.C. Mittal, Globalization and Sustainable Development (Delhi: Vista International Publishing House, 2008),
19.
17
A.C. Mittal, Globalization and Sustainable Development,….. 23.
18
A.C. Mittal, Globalization and Sustainable Development,….. 24.
5

4. Political- Political globalization is the creation of a world government


which regulates the relationships among nations and guarantees the
rights arising from social and economic globalization.
5. Cultural- Growth of cross-cultural contacts, advent of new categories of
consciousness and identities such asGlobalism - which embodies cultural
diffusion, the desire to consume and enjoy foreign products and ideas, adopt new
technology and practices, and participate in a "world culture"; loss of languages (and
corresponding loss of ideas), also see Transformation of culture.
6. Ecological- the advent of global environmental challenges that cannot be solved without
international cooperation, such as climate change, cross-boundary water and air pollution,
over-fishing of the ocean, and the spread of invasive species. Many factories are built in
developing countries where they can pollute freely.19

Positive effects of Globalization:

 Increase Competition: As the domestic companies have to fight out


foreign competition, they are compelled to raise their standards and
customer satisfaction levels in order to survive in the market. Besides,
when a global brand enters a new country, it comes in riding on some
goodwill, which it has to live up to. This creates competition in the
market and a ‘survival of the fittest’ situation.
 Investment and Capital Flows: A lot of companies have directly
invested in India, Indian companies which have been performing well,
both in India and off the shores, will attract a lot of foreign investment,
and thus pushes up the reverse of foreign exchange available in India.
 Foreign Trade: WTO and other world organization have been
establishing with a view to control and regulate the trade activities of
the countries.
 Spread of Technical Know-How: Due to improved political ties, there is a flow of
information both ways. And this point - the spread of know-how, can also be expanded to
include economic and political knowledge, which too has spread far and wide.
 Spread of Culture:The world that we live in today is a result of several cultures
coming together. People of one culture, if receptive, tend to see the flaws in their culture
and pick up the culture which is more correct or in tune with the times. Societies have
become larger as they have welcomed people of other civilizations and backgrounds and
created a whole new culture of their own.

19
[Link] of globalization/html, 9:00pm, 06/09/2011.
6

 Spread of Culture: One of the most powerful positive effects of globalization on women
and men both is the spread of education. Today, you can move in the search of the best
educational facilities in the world, without any hindrance. A person living in US can even
go to another continent for a new experience and some courses which one may not find in
the home country.
 Legal and Ethical Effects: Due to globalization, there is also an understanding between
the security agencies and the police of two or more different countries who will come
together to curb global terrorism. Hence, it is now possible to catch the perpetrators of
crime irrespective of which country they choose to hide in. This is undoubtedly one of the
greatest positive effects of globalization on society.
 Organization for Environmental and Social Concerns: In cognizance of the damage that
has been caused to our world over the years, the individual nations have decided to come
together to find a way to save our world from ourselves. Organizations monitoring
climate change as well as those which look at the welfare of our animals and marine life,
are undoubtedly one of the positive effects of globalization on the environment.20

Negative effects of Globalization:

 Developed nations have outsourced manufacturing and white collar jobs. That means less
jobs for their people. This has happened because manufacturing work is outsourced to
developing nations like China where the cost of manufacturing goods and wages are
lower. Programmers, editors, scientists and accountants have lost their jobs due to
outsourcing to cheaper locations like India.
 Globalization has led to exploitation of labor. Prisoners and child workers are used to
work in inhumane conditions. Safety standards are ignored to produce cheap goods.
 Job insecurity. Earlier people had stable, permanent jobs. Now people live in constant
dread of losing their jobs to competition. Increased job competition has led to reduction
in wages and consequently lower standards of living.
 Terrorists have access to sophisticated weapons enhancing their ability to inflict damage.
Terrorists use the Internet for communicating among themselves.
 Companies have set up industries causing pollution in countries with poor regulation of
pollution.
 Fast food chains like McDonalds and KFC are spreading in the developing world. People
are consuming more junk food from these joints which has an adverse impact on their
health.
 The benefits of globalization are not universal. The rich are getting richer and the poor
are becoming poorer.
 Bad aspects of foreign cultures are affecting the local cultures through TV and the
Internet.
 Enemy nations can spread propaganda through the Internet.

20
[Link] 10:00pm, (09/09/2011).
7

 Deadly diseases like HIV/AIDS are being spread by travelers to the remotest corners of
the globe.
 Local industries are being taken over by foreign multinationals.
 The increase in prices has reduced the government’s ability to sustain social welfare
schemes in developed countries.
 There is increase in human trafficking.
 Multinational Companies and corporations which were previously restricted to
commercial activities are increasingly influencing political decisions. 21

Conclusion:

Over the years, globalization has speeded up the rate of development in


almost every sphere of human civilization. It has led to the enhancement of
quality in terms of communication and information systems, transportation,
and economic systems through improved technologies. Its aim of bringing
the economies of the world under one umbrella has resulted in favourable as
well as unfavourable consequences. Therefore, it is urgent need of the hour
for human societies to ameliorate the modern infrastructure and
technological development into our cultural system and not the other way
round so that we will not be taken away by the waves of globalization and its
effects.

Bibliography:

Behera, M.C. ed. Globalization and Development [Link] Delhi: Mittal


Publication, 2004.

David, James. John Desrochers CSC. eds. Dimension of Globalization.


Bangalore: St Paul Press Training School, 1998.

Imchen, Narola. ed. Tribal women and [Link]: Women Studies


Center Eastern Theological College, 2008.

Meshact, Samuel W. ed. Mission With [Link]: Christian


SahityaSamithy, 2007.

Mittal, A.C. Globalization and Sustainable [Link]: Vista


International Publishing House, 2008.

Shimray, Shimreingam L. Introducing Theological Ethics. Ukhrul: Phungyo


Baptist Church, 2011.

Thomas, Cherian. ed. Should I Care?.Delhi: ISPCK, 2009.

21
[Link] 10:30pm, (09/09/2011).
8

Watkins, Adrian. Leslie Nathaniel. eds. Gospel and Globalization. Delhi:


ISPCK,2006.

Webliography:

[Link] of globalization/html, 9:00pm, 06/09/2011.

[Link] 10:00pm, (09/09/2011).

[Link] 10:30pm,(09/09/2011).

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