Chapter Notes

The Concept of Globalisation

Globalisation is a multi-dimensional concept that deals fundamentally with flows between countries. These flows create and sustain a sense of 'worldwide interconnectedness', meaning that what happens in one part of the world can affect other parts.

The main types of flows are:

• Ideas: Moving from one part of the world to another.
• Capital: Money being invested in places other than its origin.
• Commodities: Goods being traded across borders.
• People: Moving to different parts of the world for better livelihoods.

1. Janardhan, who works in a call centre in India for US clients, represents the globalisation of services.
2. Ramdhari, who buys a Chinese-made cycle for his daughter, shows the global movement of commodities.
3. Sarika, a first-generation learner who gets a new job opportunity previously unavailable to women in her family, faces a conflict of values that is partly a result of globalisation bringing new ideas and opportunities.

Positive and Negative Consequences

Globalisation is not always positive and its impact can be very uneven. While it can create new opportunities, it can also have negative consequences.

• Some farmers have committed suicide after buying expensive seeds from a multinational company (MNC) that failed.
• Retail shopkeepers may fear losing their livelihoods to large international companies.
• It can lead to cultural debates, such as accusations of a Mumbai film producer lifting a story from Hollywood or threats against college girls who wear western clothes.

Causes of Globalisation

While the flow of ideas, capital, commodities, and people has occurred throughout human history, contemporary globalisation is unique because of the scale and speed of these flows.

Technology as a Critical Element

Technology is a critical factor that has enabled modern globalisation.

• Inventions like the telegraph, the telephone, and the microchip have revolutionised communication across the world.
• Just as the invention of printing helped create nationalism, modern technology affects how we think about our personal and collective lives.
• Technological advances have made it much easier and faster for ideas, capital, and commodities to move across the globe. The movement of people, however, has often been more restricted.

Global Awareness

Globalisation doesn't happen just because of technology. It also requires people around the world to recognise their interconnections. Today, we are aware that events in one part of the world can have a major impact elsewhere.

Political Consequences

Globalisation has a significant impact on the traditional idea of state sovereignty (a government's ability to control what happens inside its borders). This impact is complex and can be viewed in three ways.

1. Erosion of State Capacity: Globalisation can reduce a government's ability to do what it does. The old 'welfare state', which focused on economic and social well-being, is often replaced by a more minimalist state. This minimalist state focuses on core functions like law and order and security, while the market and MNCs gain more influence over economic and social priorities. This reduces the capacity of governments to take decisions on their own.

2. The State Remains Primary: At the same time, the state continues to be the most important basis of political community. States still perform their essential functions and old rivalries between countries have not disappeared. The state remains a powerful and important actor in world politics.

3. A Boost to State Capacity: In some ways, globalisation has made the state more powerful. New technologies give the state an enhanced ability to collect information about its citizens. With this information, the state is better able to rule, not less able.

Economic Consequences

Economic globalisation is often the most debated aspect of this phenomenon. It involves greater economic flows between countries, sometimes voluntarily and sometimes forced by powerful countries and international institutions like the IMF and the WTO.

Debates on Economic Globalisation

There is a sharp division of opinion on the effects of economic globalisation.

• Arguments Against:

  • Critics concerned with social justice worry that as the state withdraws from welfare functions (like health, education, and sanitation), it hurts the poor.
  • They argue that economic globalisation benefits only a small section of the population while making the economically weak poorer.
  • They call for institutional safeguards, or 'social safety nets', to protect the vulnerable. Some go further, calling for a halt to what they see as "forced economic globalisation," which they believe could lead to the economic ruin of weaker countries. Some even call it a recolonisation of the world.

• Arguments For:

  • Advocates argue that de-regulation and greater trade generate more economic growth and well-being for larger sections of the population.
  • They believe it allows each economy to do what it does best, which benefits the whole world.
  • Some argue that globalisation is inevitable and it is not wise to resist it.

Uneven Flows

While economic globalisation has increased the flow of commodities and capital, it has not led to the same increase in the movement of people. Developed countries often use strict visa policies to guard their borders and prevent citizens of other countries from taking jobs from their own citizens.

Cultural Consequences

Globalisation affects our daily lives—what we eat, drink, wear, and think. This has led to debates about its cultural impact.

Cultural Homogenisation

One major fear is that globalisation leads to cultural homogenisation, where a uniform culture emerges and threatens the diversity of cultures around the world.

• This is often seen not as the rise of a truly global culture, but as the imposition of Western culture on the rest of the world.
• The popularity of American products like burgers and blue jeans is seen as an example of the powerful influence of the American way of life.
• This process is sometimes called the 'McDonaldisation' of the world, where the culture of a dominant society leaves its imprint on a less powerful one, leading to the shrinking of the world's rich cultural heritage.

Cultural Heterogenisation

However, globalisation does not only lead to uniformity. It can also have the opposite effect.

• Cultural heterogenisation is the process where each culture becomes more different and distinctive as a result of global influences.
• Cultures are not static; they are always accepting outside influences. Sometimes these influences can enlarge our choices. For example, a burger does not replace a masala dosa; it is simply added as another food option.
• Sometimes, outside influences lead to new and unique combinations.

India and Globalisation

India has a long history of global flows of capital, commodities, ideas, and people.

• During the colonial period, India was an exporter of raw materials and a consumer of British finished goods.
• After independence, India adopted a policy of 'protectionism'. We decided to make things ourselves and limit imports so our own producers could develop. This led to some advances, but critical sectors like health, housing, and primary education were neglected, and economic growth was sluggish.
• In 1991, facing a financial crisis, India began a program of economic reforms. It started to de-regulate various sectors, including trade and foreign investment, to achieve higher rates of economic growth.

The true test of these reforms is not just achieving high growth rates, but ensuring that the benefits of growth are shared so that everyone is better off.

Resistance to Globalisation

Globalisation is a highly contentious subject and has faced strong criticism worldwide from different political perspectives.

• Critics from the Left argue that contemporary globalisation is a form of global capitalism that makes the rich richer and the poor poorer. They believe the weakening of the state reduces its ability to protect the interests of the poor.
• Critics from the Right worry about the political, economic, and cultural effects. They fear the weakening of the state, want a return to self-reliance and protectionism in some economic areas, and are concerned that traditional culture and values will be harmed.

It is important to note that many anti-globalisation movements use global networks to connect with like-minded people in other countries. They are often not against the idea of globalisation itself, but against a specific program of globalisation that they view as a new form of imperialism.

India and Resistance to Globalisation

In India, resistance to globalisation has come from various quarters.

• Left-wing protests have come from political parties and forums like the Indian Social Forum. Trade unions and farmer groups have organised protests against the entry of multinationals. There has also been opposition to American and European firms patenting plants like Neem.
• Resistance from the political right has focused on cultural issues. They have objected to influences like foreign TV channels, the celebration of Valentine's Day, and the "westernisation" of the dress of female students.