Chapter-7 Globalisation - Notes
Introduction
● Globalisation as a concept deals with 4 flows :- People, Ideas, Commodities
and Capital.
● Globalisation is ‘worldwide interconnectedness’ and this is possible only if
there is a constant flow of these 4 things.
● Globalisation is a multidimensional concept. It has political, economic and
cultural manifestations.
Causes of Globalisation
● The major difference between the Traditional and contemporary
globalisation is the scale and speed of the flow of ideas, people,
commodities and capital.
● Technology is an important factor for globalisation.
● To increase the speed of globalisation we need technological advancements.
Such as the invention of the internet, smartphones, Bullet trains, Aeroplanes,
etc. basically the advancement of means of communication and
transportation.
Political Consequences
● Globalisation results in an erosion of state authority.
● In place of state the market becomes the prime determinant of economic and
social priorities.
● The entry and increased role of MNCs (Multinational corporations) leads to
reduction in the capacity of governments to take decisions on their own.
● But at the same time, globalisation does not always reduce state capacity. As
the state continues to perform essential functions such as to maintain law
and order and national security. Therefore the state continues to be
important.
● In some cases globalisation leads to an increment in the state's capacity, with
enhanced technologies available the state collects information about its
citizens. With this information it is easy for the state to rule in a better way.
Thus states become more powerful than earlier.
Economic Consequences
● More power to the international institutions like IMF (International
Monetary Fund) and the WTO (World Trade Organisation) in determining
economic policies.
● Economic consequences of globalisation mainly we study about the
distribution of economic gains, that is who gets the most from globalisation
and who gets less.
● The restrictions imposed by different countries on allowing the imports of
other countries have been reduced.
● Removal of restrictions on the movement of capital across the countries.
● Investors in rich countries can invest their money in other countries, where
they might get better returns.
● But Globalisation has not led to the same degree of increase in the
movement of people across the globe. As 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.
● The same set of policies do not lead to the same results everywhere. For
example in a country where there are more poor people we can not expect
more development by using the capitalist model. There must be public
welfare schemes for such people therefore it depends on the circumstances
and context of a country.
● It leads to intense division of opinion all over the world. Some want a state
controlled economy for social justice while others want open economic
policies with no or minimal state intervention.
Critics of Economic Globalisation
● This leads to the development of the rich only and widens the gap between
rich and poor. Therefore there is a need to ensure institutional safeguards or
creating ‘social safety nets’ to minimise the negative effects of globalisation
on those who are economically weak.
● Forced economic globalisation leads to economic ruin for the weaker
countries, especially for the poor within these countries.
● Some economists have described economic globalisation as re-colonisation
of the world.
Advocates of economic globalisation
● It leads to greater economic growth and well-being for larger sections of the
population.
● Greater trade among countries would benefit the whole world as it results in
the availability of the best things in every part of the world.
Cultural Consequences
● It affects what we eat, drink, wear and what we think. It shapes our
preferences.
● It poses a threat to cultures in the world.
● It leads to the rise of a uniform culture ‘cultural homogenisation.
● Imposition of western culture on the rest of the world. Blue jeans, burger etc.
● It provides us more options thus enlarges our choices.
● It leads to new clothing combinations such as khadi kurta worn over jeans.
India and Globalisation
● During the colonial period India became an exporter of primary goods and
raw materials and a consumer of finished goods.
● After Independence we decided to make things ourselves rather than relying
on others to protect indigenous industries.
● Due to this protectionism, critical sectors such as health, housing and
primary education did not receive proper attention. Resulted in slow
economic growth.
● In 1991, New economic policies were introduced (LPG-Liberalisation,
Privatisation and Globalisation).
Resistance To Globalisation
● The left wing argues that contemporary globalisation represents a particular
phase of global capitalism that makes the rich richer and the poor poorer.
● The right wing argues about the political, economic and cultural
consequences of globalisation. In political terms they also fear the
weakening of the state. Economically, they want a return to self-reliance and
protectionism. Culturally, they are worried that traditional culture will be
harmed and people will lose their age-old values and ways.
● Anti-globalisation movements too participate in global networks, they are
opposing a specific programme of globalisation, which they see as a form of
imperialism.
● In 1999, at the WTO ministerial meeting there were widespread protests in
Seattle, USA, alleging unfair trading practices by the economically powerful
states. Ignoring developing countries' interests.
● The WSF (World Social Forum) brings together human right activists,
environmentalists, labour, youth and women activists against the neo-liberal
globalisation.
● The 1st WSF meeting was organised in Porto Alegre, Brazil in 2001.
● The 4th WSF meeting was organised in Mumbai in 2004.
● The 7th WSF meeting was organised in Nairobi, Kenya in January 2007.
● The latest WSF meetings were held in Nepal in 2024, and in Brazil in 2025.
India and Resistance to Globalisation
● Left wing protests to economic liberalisation are 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 Americans and European firms
has also generated considerable opposition.
● Objecting various cultural influences like celebration of Valentine’s day, and
westernisation of the dress tastes of girl students in college and schools.
This is The End…………….. 😔