Globalisation
Concept of Globalisation
Globalisation fundamentally deals with flows:
Ideas
Capital
Commodities
People
Crucial element: Worldwide interconnectedness created and sustained by these flows.
Multi-dimensional concept:
Political
Economic
Cultural
Impact of globalisation is vastly uneven.
Causes of Globalisation
Scale and speed of flows differentiate contemporary globalisation from historical flows.
Technology is a critical element:
Telegraph
Telephone
Microchip
Recognition of interconnections is important.
Economic events have global impact.
Not a single cause.
Political Consequences
Erosion of state capacity:
Shift from welfare state to minimalist state.
Market becomes prime determinant of economic and social priorities.
Increased role of multinational companies (MNCs) reduces government decision-making
capacity.
State capacity not always reduced:
State primacy remains the basis of political community.
Essential functions (law and order, national security) continue.
State capacity may increase with enhanced technologies for information collection.
Economic Consequences
Economic globalisation involves:
International institutions (IMF, WTO)
Distribution of economic gains
Greater economic flows among countries:
Commodities
Capital
People
Ideas
Greater trade in commodities; reduced import restrictions.
Reduced restrictions on capital movement.
Increased flow of ideas (internet, computer services).
Uneven increase in movement of people; developed countries guard borders.
Same policies lead to different results in different contexts.
Concerns about social justice: State withdrawal benefits a small section, impoverishing
others.
Need for 'social safety nets'.
Economic globalisation can be described as re-colonisation.
Advocates argue for greater economic growth and well-being through de-regulation and free
trade.
Cultural Consequences
Affects what we eat, drink, wear, and think.
Fear of threat to cultures due to uniform culture or cultural homogenisation.
Imposition of Western culture (soft power of US hegemony).
'McDonaldisation' of the world.
Cultures are not static; they accept outside influences.
External influences can enlarge choices or modify culture without overwhelming tradition.
Cultural heterogenisation: Each culture becoming more different and distinctive.
Cultural exchange is rarely one way.
India and Globalisation
Historical flows of capital, commodities, ideas, and people.
Colonial period: India exported primary goods and raw materials, consumed finished goods.
Post-independence: Protectionism to promote domestic production.
1991: Economic reforms to de-regulate trade and foreign investment.
Ultimate test: Ensuring the benefits of growth are shared.
Resistance to Globalisation
Critics argue:
Global capitalism enriches the rich and impoverishes the poor.
Weakening of the state reduces protection for the poor.
Economic: Desire for self-reliance and protectionism.
Cultural: Harm to traditional culture and values.
Anti-globalisation movements participate in global networks.
Opposition to specific programmes of globalisation seen as imperialism.
Protests against unfair trading practices (e.g., WTO Ministerial Meeting in Seattle).
World Social Forum (WSF): Platform for activists opposed to neo-liberal globalisation.
India and Resistance to Globalisation
Resistance from different quarters:
Left-wing protests against economic liberalisation.
Trade unions and farmer groups protesting against multinationals.
Opposition to patenting of plants (e.g., Neem).
Objections to cultural influences (foreign TV channels, Valentine’s Day, westernisation of
dress).