GLOBALIZATION

The concept of Globalization

Globalization has led to a system where a person sitting in India can provide services to people anywhere around the world, he can buy and sell goods from and to other countries. Globalization has led to transmission of values as well. The term ‘globalization’ is used in various contexts. Let us look at some examples: 

(i). Some farmers committed suicide because their crops failed. They had bought very expensive seeds supplied by a multinational company (MNC). 

(ii). An Indian company bought a major rival company based in Europe, despite protests by some of the current owners.

(iii). Many retail shopkeepers fear that they would lose their livelihoods if some major international companies open retail chains in the country.

(iv). A militant group issued a statement threatening college girls who wear western clothes.

There are many who believe that globalization has more negative consequences than positive. Globalization as a concept fundamentally deals with flows. These flows could be of various kinds

(a) Ideas moving from one part of the world to another

(b). Capital shunted between two or more places

(c). Commodities being traded across borders

(d). People migrating for better livelihoods to different parts of the world.

The crucial element is the ‘worldwide interconnectedness’ that is created and sustained as a consequence of these constant flows. Globalization is a multidimensional concept and it has political, economic and cultural manifestations. Globalization impacts societies and groups within these societies differently, so the impact of globalization can be understood with respect to specific contexts.

Causes of Globalization

Globalization has a strong historical basis, but the scale and speed account for the uniqueness of globalization in the contemporary era.

The ability of ideas, capital, commodities and people to move more easily from one part of the world to another has been made possible largely by technological advances.

People in different parts of the world recognize the interconnections with the rest of the world. For example: The Bird flu or tsunami is not confined to any particular nation and many such events do not respect national boundaries.

Political Consequences

Globalization results in an erosion of state capacity, that is, the ability of government to do what they do.

(i). The old ‘welfare state’ is now giving way to a more minimalist state that performs certain core functions such as the maintenance of law and order and the security of its citizens.

(ii)The increased role of multinational companies all over the world leads to a reduction in the capacity of governments to take decisions on their own.

At the same time, globalization does not always reduce state capacity. The primacy of the state is the unchallenged basis of the political community. The state continues to discharge its essential functions (law and order , national security) and consciously withdraws from domains from which it wishes to.

In some respects state capacity has received a boost as a consequence of globalization. With enhanced technologies, the state can collect information about its citizens more efficiently and hence is better able to rule.

Economic Consequences

A way of understanding of economic globalization requires us to look at the distribution of economic gains. Economic globalization usually involves greater economic flows of capital, commodities, people and ideas, among different countries of the world. The restrictions imposed by different countries on allowing the imports of other countries have been reduced. Similarly, the restrictions on movement of capital across countries have also been reduced which means that investors in the rich countries can invest in developing countries also, where they might get better returns. Globalization has also led to the flow of ideas across national boundaries. The spread of internet and computer related services is an example of that. But globalization has not led to the same degree of increase in the movement of people across the globe. Developed countries have carefully guarded their borders with visa policies to protect the jobs of their own citizens. Globalization has led to similar economic policies in different parts of the world, but this has generated vastly different outcomes in different parts of the world. 

Arguments against the globalization are :  People are worried about state withdrawal caused by economic globalization as it can impoverish those who were dependent on the government for jobs and welfare (education, health, sanitation, etc.). They argue to ensure institutional safeguards or creating ‘social safety nets’ for the economically weak people. Some economists have described economic globalization as recolonization of the world.

Arguments in support of Globalization are: De-regulation generates greater economic growth and well-being for larger sections of the population. Greater trade among countries allows each economy to do what it does best. Economic globalization is inevitable. There is increased inter - dependence and integration between governments, businesses, and ordinary people in different parts of the world.

Cultural Consequences

Globalization affects us in our home, in what we eat, drink, wear and in what we think. The cultural effect of globalization leads to the fear that this process poses a threat to cultures in the world as globalization leads to the rise of a uniform culture which is called cultural homogenization.

Negative effects : This uniform culture is not global culture but it is the imposition of Western culture on the rest of the world. The culture of the politically and economically dominant society leaves its imprint on a less powerful society. For example : popularity of blue jeans, burger often called McDonaldization’ of the world. This is dangerous for the whole of humanity, for it leads to the shrinking of the rich cultural heritage of the entire globe.

Positive Effects : Sometimes external influences enlarge our choices, and sometimes they modify our culture without overwhelming the traditional. For example: burger is no substitute for a masala dosa and it is simply added on to our food choices. Outcome of outside influence can be a new combination that is unique. For example: a khadi kurta worn over jeans. It leads to each culture becoming more different and distinctive and this phenomenon is called cultural heterogenization.

India and Globalization

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 and we put the import barriers so that our own producers could learn to make things. Due to this some advances were made in certain arenas. But this ‘protectionism’ generated problems such as critical sectors (health, housing and primary education) did not receive enough attention and India had a fairly sluggish rate of economic growth. In 1991, responding to a financial crisis, India embarked on a programme of economic reforms that has sought increasingly to de-regulate various sectors. 

Resistance to Globalization

Some arguments are: Contemporary globalization represents a phase of global capitalism that makes the rich richer and the poor poorer. Weakening of the state leads to a reduction in the capacity of the state to protect the interest of its poor. There needs to be self-reliance at least in certain areas of the economy. Traditional culture is harmed and people will lose their age-old values and ways.

Many anti-globalization movements are not opposed to the idea of globalization per se as much as they are opposed to a specific programme of globalization, which they see as a form of imperialism.

India and Resistance to Globalization

Resistance from political Left : Trade unions of industrial workforce as well as those representing farmer interests have organized protests against the entry of multinationals. The patenting of certain plants like Neem by American and European firms has also generated considerable opposition.

Resistance from political Right: Availability of foreign T.V. channels provided by cable networks. Celebration of western festivals such as Valentine’s Day. Westernization of the dress tastes of girl students in schools and colleges. 

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