GLOBALISATION AND SOCIAL CHANGE 

Globalisation

No discussion on social change in the 20th century can take place without referring to globalisation.

Globalisation is the inter-relationship and interlinking between the local and global (international) market.

Globalisation is a very broad term, not only economic aspect but it includes all aspects of the society, like political, economic, sociological and cultural.

Economics may be dealing more with the economic dimensions such as capital flows. Political science may focus on the changing role of governments. But the process of globalisation is so far-reaching that disciplines have to increasingly borrow from each other to understand both the causes and consequences of globalisation.

There has been a debate whether globalisation is good for us or not.

On one hand they feel it is necessary as we need to develop and increase GDP so we need science and technology and we have to be part of the global village. On the other hand some feel the gap between the rich and the poor are increasing.

Effects of Globalisation

The effect of globalisation is far reaching. It affects us all but affects us differently. Thus, while for some it may mean new opportunities, for others it is the loss of livelihood. For instance:

• Women silk spinners and twisters of Bihar lost their jobs once the Chinese and Korean silk yarn entered the market.
• Similar displacements have come with the entry of large fishing vessels into the Indian waters. These vessels take away the fish that used to be earlier collected by Indian fishing vessels. The livelihood of women fish sorters, dryers, vendors and net makers thereby get affected.
• In Gujarat, women gum collectors, who were picking from the ‘julifera’ (Baval trees), lost their employment due to the import of cheaper gum from Sudan.
• In almost all cities of India, the rag pickers lost some of their employment due to import of waste paper from developed countries. 
• Some believe that it is necessary to herald a better world. Others fear that the impact of globalisation on different sections of people is vastly different. They argue that, while many in the more privileged  section may benefit, the condition of a large section of the already excluded population worsens.

Are Global Interconnections New to World and to India

1. The Early Years

• India was not isolated from the world even two thousand years ago.
• The famous Silk route, which centuries ago connected India to the great civilisations, which existed in China, Persia, Egypt and Rome.
• Throughout India’s long past, people from different parts came here, sometimes as traders, sometimes as conquerors, sometimes as migrants in search of new lands and settled down here.

2. Colonialism and the Global Connection

• Modern capitalism had a global dimension from its very inception.
• Colonialism was part of the system that required new sources of capital, raw materials, energy, markets and a global network that sustained it. Often globalisation today identifies large-scale movement of people or migration as a defining feature.
• The greatest movement of people was the migration of European people who settled down in the Americas and Australia.
• Indentured labourers were taken away in ships from India to work in distant parts of Asia, Africa and Americas. And the slave trade that carted thousands of Africans away to distant shores.

3. Independent India and the World

• Commitment to liberation struggles throughout the world, solidarity with people from different parts of the world was very much part of this vision. Many Indians travelled overseas for education and work. Migration was an ongoing process.
• Export and import of raw material, goods and technology was very much part of development since independence. 

Understanding Globalisation

Globalisation refers to the growing interdependence between different peoples, regions and countries in the world as social and economic relationships come to stretch world-wide.

The Indian state decided to bring some changes in economic policy in 1991. These changes are termed as liberalisation policies.

1. The Economy

(i). The Economic Policy of Liberalisation

• The state after independence had put in place a large number of laws that ensured that the Indian market and Indian indigenous business were protected from competition from the wider world.
• Liberalisation of the economy meant the steady removal of the rules that regulated Indian trade and finance regulations. These measures are also described as economic reforms.
• Since 1991, the Indian economy has witnessed a series of reforms in all major sectors of the economy (agriculture, industry, trade, foreign investment and technology, public sector, financial institutions etc).
• The basic assumption was that greater integration into the global market would be beneficial to Indian economy.
• The process of liberalisation also involved the taking of loans from international institutions such as the International Monetary Fund (IMF). These loans are given on certain conditions. The government makes commitments to pursue certain kinds of economic measures that involve a policy of structural adjustments.
• These adjustments usually mean cuts in state expenditure on the social sector such as health, education and social security. 

(ii). The Transnational Corporations(TNCs)

• TNCs are companies that produce goods or market services in more than one country.
• Some of the biggest TNCs are companies known all around the world: Coca Cola, General Motors, Colgate-Palmolive, Kodak, Mitsubishi and many others.
• Some Indian corporations are also becoming transnational. 

(iii). The Electronic Economy

• Fund transactions take place electronically at the click of a button through computers.
• Shares are bought and sold within seconds.
• One major risk is sometimes foreign companies buy up stocks in bulk, make a profit and sell it back to stockholders. 
• Main reason for the “electronic economy” is revolution in technology.

(iv). The Knowledge Economy

• A knowledge economy is one in which much of the workforce is involved not in the physical production or distribution of material goods, but in their design, development, technology, marketing, sale and servicing.
• It can range from the neighbourhood catering service to large organisations involved in providing a host of services for both professional meets like conferences to family events like weddings.
• Many new occupations that was unheard of a few decades ago.
• Weightless economy is that system in which basis is information e.g., IT sector, internet, software.

(v). Globalisation of Finance

• Mainly due to the information technology revolution, there has been a globalisation of finance.
• Globally integrated financial markets undertake billions of dollars worth transactions within seconds in the electronic circuits. There is 24-hour trading in capital and security markets.
• Cities such as New York, Tokyo and London are the key centres for financial trading.
• Within India, Mumbai is known as the financial capital of the country.

2. Global Communication

• Many revolutions have taken place because of advances and improvement in technology and communication.
• Some homes and many offices have multiple links to the outside world such as telephones, cell phones, fax machines, digital and cable television, electronic mail and internet.
• Two individuals located in different parts of the world-in Bangalore and New York - not only can talk but also send documents and images to one another with the help of satellite technology. 

3. Globalisation and Labour

• A new international division of labour has emerged in which more and more routine manufacturing production and employment is spread over different countries all over the world. Wherever good infrastructure, cheap labour, resources, MNC's come up. Hence frequent shifting of location occurs. Eg: Nike company shied from japan to South Korea during 1970s as production cost increased.
• This entire process makes the labour population very vulnerable and insecure. This flexibility of labour often works in the favour of producers.

4. Globalisation and Employment

• Before globalisation (1990's) the employment scenario was different.
• Many jobs are now available after graduation (call centres, BPO's). Globalisation and the IT revolution has opened up many new career opportunities. But broader trends of employment are disappointing.

5. Globalisation and Political Changes

• Major political change, namely, the collapse of the erstwhile socialist world that hastened globalisation. A specific economic and political approach to the economic policies that underpin globalisation. These changes are often termed as neo-liberal economic measures.
• Another significant political development which is accompanying globalisation is the growth of international and regional mechanisms for political collaboration. Like EU, ASEAN,SARC,SAFTA etc.
• The other political dimension has been the rise of International Governmental Organisations. (IGOs) and International Non-Governmental Organisations (INGOs). Like Green Peace, Red Cross, Amnesty International. 

6. Globalisation and Culture

The ages India has had an open approach to cultural influences and have been enriched because of this. The last decade has seen major cultural changes leading to fears that our local cultures would be overtaken.

The 19th century reformers and early nationalists also debated on culture and tradition. 

(i). Homogenisation Vs Glocalisation of Culture

• A central contention is that all cultures will become similar, that is homogeneous. Others argue that there is an increasing tendency towards glocalisation of culture. Glocalisation refers to the mixing of the global with the local.
• It is a strategy often adopted by foreign firms while dealing with local traditions in order to enhance their marketability.
• - In India, we find that all the foreign television channels like Star, MTV, Channel V and Cartoon Network use Indian languages.
• - Even McDonald sells only vegetarian and chicken products in India and not its beef products, which are popular abroad. McDonald’s goes vegetarian during the Navratri festival.
• - In the field of music, one can see the growth of popularity of ‘Bhangra pop’, ‘Indi pop’, fusion music and even remixes.
• Culture cannot be seen as an unchanging fixed entity that can either collapse or remain the same when faced with social change.

(ii). Gender and Culture

• Fixed traditional ideas of cultural identity defend undemocratic and discriminating practices against women in the name of cultural identity. These could range from a defence of sati to defence of women’s exclusion from education and participation in public matters.
• Fortunately for us in India we have been able to retain and develop a democratic tradition and culture that allows us to define culture in a more inclusive and democratic fashion. 

(iii). Culture of Communication

• Often when we speak of culture we refer to dresses, music, dances, food. However, culture as we know refers to a whole way of life. They are two types of consumption: the culture of consumption and corporate culture.
• Cultural Consumption: The process of globalisation especially in shaping the growth of cities. Till the 1970s the manufacturing industries used to play a major role in the growth of cities. Presently, cultural consumption (of art, food, fashion, music, tourism) shapes to a large extent the growth of cities. Most significantly advertisements and the media in general promote a culture where spending is important.
• Corporate Culture: Corporate culture is a branch of management theory that seeks to increase productivity and competitiveness through the creation of a unique organisational culture involving all members of a firm. A dynamic corporate culture - involving company events, rituals and traditions is thought to enhance employee loyalty and promote group solidarity. It also refers to the way of doing things, of promotion and packaging products.

Threat to Indigenous Arts

• It is important to remember that modern development even prior to the stage of globalisation did make inroads into traditional cultural forms and occupations based on them.
• Some years back, there were reports of large number of suicides by the traditional weavers in Sircilla village of Karimnagar district and in Dubakka village in Medak district, both in Andhra Pradesh. These weavers with no means to invest in technology were unable to adapt to the changing consumer tastes and competition from power looms.
• Similarly, various forms of traditional knowledge systems especially in the fields of medicine and agriculture have been preserved and passed on from one generation to the other.
• Recent attempts by some multinational companies to patent the use of Tulsi, Haldi (turmeric), Rudraksha and Basmati rice has highlighted the need for protecting the base of its indigenous knowledge systems.  

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