Chapter Notes

Introduction to Globalisation

Discussions about social change in the 21st century are incomplete without understanding globalisation. This term appears frequently in news, television, and daily conversations, affecting everything from the food we eat to the jobs we seek.

Sociology helps us understand the link between our personal lives and large-scale global changes. This is called the sociological imagination—connecting the 'micro' (individual experiences) with the 'macro' (global policies).

Globalisation is the growing interdependence between different people, regions, and countries as social and economic relationships stretch across the world. While economic forces are central, globalisation is also driven by massive advancements in information and communication technology, which have increased the speed and scope of human interaction.

The Uneven Impact of Globalisation

The effects of globalisation are far-reaching but not uniform. It impacts different sections of society in very different ways.

• Opportunities for some: For an urban, affluent consumer, it might mean more choices and better products.
• Loss of livelihood for others: For a farmer, it could mean a crisis due to competition from cheaper imports. For example, women silk spinners in Bihar lost their jobs when cheaper Chinese and Korean silk yarn entered the market. Similarly, large foreign fishing vessels have displaced local Indian fishers, affecting the entire local fishing economy.

Because of these varied impacts, there are sharply divided views on globalisation. Some see it as a path to a better world, while others argue that it benefits the privileged while worsening the condition of the poor and excluded.

Are Global Interconnections New to World and to India?

While the term 'globalisation' feels modern, the idea of global interconnections is not new. India, in particular, has a long history of interacting with the rest of the world.

The Early Years

For over two thousand years, India was connected to major civilisations like China, Persia, Egypt, and Rome through the famous Silk route. Throughout its history, India has seen traders, conquerors, and migrants arrive and settle.

India's cultural tradition has historically been open to outside influences, avoiding the isolationism described in the Sanskrit parable of the 'kupamanduka'—a well-frog that knows nothing of the world outside its well and is suspicious of everything.

Colonialism and the Global Connection

Modern capitalism, from its beginning, had a global dimension. Colonialism was a key part of this system, creating a global network for sourcing capital, raw materials, and markets. This era also saw massive movements of people:

• Europeans migrated and settled in the Americas and Australia.
• Indentured labourers from India were taken to work in Asia, Africa, and the Americas.
• Thousands of Africans were forcibly taken to distant lands through the slave trade.

Independent India and the World

After independence in 1947, India continued to have a global outlook, a legacy of its nationalist movement which expressed solidarity with liberation struggles worldwide. Migration for education and work, trade in goods and technology, and the presence of foreign firms were all part of India's development long before the current phase of globalisation.

Understanding Globalisation

The key question is whether today's globalisation is just more of the same, or if it represents a significant change. Modern globalisation is distinct due to major shifts in:

• The capitalist system of production
• Organisation of labour and capital
• Technological and communication innovations
• Cultural experiences and governance

These changes have transformed how we work and live, making modern globalisation more intense and complex than simple historical interconnections.

The Different Dimensions of Globalisation

To understand its complexity, we can look at the economic, political, and cultural dimensions of globalisation, though they are all deeply interconnected.

The Economic Dimension

In India, the economic aspect of globalisation is closely tied to the policy of liberalisation.

• The Economic Policy of Liberalisation Since 1991, the Indian state began to open up its economy to the world market. This policy, known as liberalisation, marked a shift from the previous government policy of protecting the Indian market from foreign competition. Liberalisation involved removing rules and regulations on trade and finance, a process also called economic reforms. The core belief was that greater integration with the global market would benefit the Indian economy. This process often involved taking loans from institutions like the International Monetary Fund (IMF), which came with conditions known as structural adjustments, typically requiring cuts in state spending on health, education, and social security. International bodies like the World Trade Organisation (WTO) also gained a greater say in India's economic policies.

• Transnational Corporations (TNCs) A major driver of economic globalisation is the role of Transnational Corporations (TNCs)—companies that produce goods or market services in more than one country. These range from small firms to global giants like Coca Cola, General Motors, and Mitsubishi. They operate with a focus on global markets and profits. Today, some Indian corporations are also becoming TNCs.

• The Electronic Economy The ability to move vast sums of "electronic money" across the globe in seconds is a defining feature of modern globalisation. Banks, corporations, and investors can shift funds instantly, which creates opportunities but also carries great risks, such as sudden stock market fluctuations due to the actions of foreign investors.

• The Weightless or Knowledge Economy The global economy is no longer based primarily on agriculture or industry. We now have a weightless economy, where products are based on information (like computer software and media). This is also a knowledge economy, where the workforce is involved in design, development, marketing, and servicing rather than physical production. This has created new occupations like event managers.

• Globalisation of Finance For the first time, finance itself has become globalised, thanks to the IT revolution. Financial markets in cities like New York, Tokyo, and London are now globally integrated, allowing for 24-hour trading of capital worth billions of dollars.

Global Communications

Revolutionary advances in telecommunications—telephones, mobile phones, fax, internet, and satellite television—have led to a 'compression' of time and space. People on opposite sides of the world can communicate and share information instantly.

However, access to this technology is not equal, leading to a digital divide. In India, cyber connectivity has been largely an urban phenomenon. Rural areas often lack the necessary infrastructure, like reliable power and telephone connections. The Government of India's 'Digital India' program aims to bridge this gap.

Globalisation and Labour

• Globalisation and a New International Division of Labour A new system has emerged where manufacturing and production are increasingly located in developing countries where labour is cheaper. This is known as the new international division of labour. Companies can move their production centres from one country to another in search of lower costs, making labour very vulnerable and insecure. This system is a shift from Fordism (mass production in a single, centralized location) to post-Fordism (flexible production in dispersed locations).

• Globalisation and Employment The impact on jobs is mixed. For urban, middle-class youth, the IT revolution and globalisation have created new career opportunities in call centers, Business Process Outsourcing (BPO) companies, and the service sector. However, broader employment trends are often disappointing. An ILO report from 2005 noted that in Asia, job creation had failed to keep pace with strong economic growth, leading to a growing 'employment gap'.

Globalisation and Political Changes

The collapse of the socialist world was a major political change that accelerated the current form of globalisation, which is underpinned by neo-liberal economic policies. These policies favour free markets and are critical of state regulation and subsidies.

Other key political developments include:

• Growth of Regional Associations: International and regional bodies for political collaboration, like the European Union (EU), ASEAN, and SAARC, have grown in importance.
• Rise of IGOs and INGOs:
  • International Governmental Organisations (IGOs) are established by governments to regulate transnational activities. The WTO is a prime example, setting rules for global trade.
  • International Non-Governmental Organisations (INGOs) are independent of governments and address international issues. Well-known INGOs include Greenpeace, The Red Cross, and Amnesty International.

Globalisation and Culture

Globalisation has led to major cultural changes, sparking debates about its impact on local cultures.

• Homogenisation Versus Glocalisation of Culture One major debate is whether globalisation leads to homogenisation—the idea that all cultures will become similar. An alternative view points to glocalisation, which refers to the mixing of the global with the local. Glocalisation is often a strategy used by foreign firms to make their products more marketable locally.

• Foreign TV channels like MTV and Cartoon Network broadcast in Indian languages.

• McDonald's in India sells vegetarian and chicken products instead of beef and even offers a special vegetarian menu during the Navaratri festival.

• In music, we see the rise of fusion genres like 'Bhangra pop' and 'Indi pop'.

• Gender and Culture Sometimes, the idea of protecting a "traditional" culture is used to defend undemocratic and discriminatory practices against women. Globalisation can be used as an excuse or bogeyman to resist positive social change. India’s democratic traditions, however, allow for culture to be defined in a more inclusive and democratic way.

• Culture of Consumption Globalisation has promoted a culture of consumption. The growth of cities is now heavily shaped by cultural consumption (of art, food, fashion, music, tourism) rather than just manufacturing. This is visible in the rise of shopping malls, multiplexes, and amusement parks. Advertising and media encourage a culture where spending is valued and shopping is a popular pastime.

• Corporate Culture Corporate culture refers to a management approach that aims to increase productivity by creating a unique organisational culture with company events and rituals to enhance employee loyalty. It has also created a new class of high-earning, upwardly mobile professionals in India's metropolitan cities who work in fields like software, finance, and media.

• Threat to Indigenous Craft, Traditions, and Knowledge Systems Globalisation poses a significant threat to many indigenous crafts, traditions, and knowledge systems.

  • Traditional weavers have faced immense competition from power looms and cheaper imports, leading to loss of livelihood.
  • Traditional entertainers, like the dombari community of acrobats, find it hard to compete with television and circus shows.
  • There is a threat to traditional knowledge systems, especially in medicine and agriculture. Recent attempts by multinational companies to patent the use of traditional items like Tulsi, Haldi (turmeric), and Basmati rice highlight the need to protect this indigenous knowledge.