INTERNATIONAL RELATIONS NOTES

B.A,LL.B 5 YEAR

- R. P THAMPY

ARAVIND.S

Globalisation and the New World Order

‘Order’ indicates a condition in which everything is in its correct place. It also refers to
respect for and enforcement of rules. Day-to-day activities would be normal and peaceful if
order exists. In the world affairs, order brings a certain method in the way one country
conducts its affairs with other states. The method can be noticed in the form of a set of rules
and principles, which are commonly accepted and respected by governments. These rules and
principles include equality of all countries, that one country should not interfere in the
internal affairs of another state, that force should not be used or even threatened in the
bilateral relations, that prisoners of wars and refugees should be treated humanely, etc. For
assisting countries to make and implement these rules, they often establish common
institutions like the United Nations. They are meant to assist in sorting out differences and
problems between countries through dialogue and diplomacy.

The phrase ‘world order’ may sound strange in the light of opposite realities. Though the
states are supposedly equal in a formal sense, there are gross inequalities among them.
And some of these inequalities have been recognised in the form of veto power conferred
on five permanent members in the UN Security Council. Countries often compete for
resources and influence, they suspect each other’s intentions and ambitions, and they
quarrel about borders, trade and several other issues. In fact, right now a dozen wars are
going on in counties of Asia, Africa and Europe causing death to millions and destruction
of valuable property.

Moreover, problems arise not just between states but also within those states. Many states are
fighting civil wars. Civil war is a prolonged situation of brutal war between state military and
certain groups of people wanting to remove a government from seat of power or form their
own separate state. Sri Lanka is a good example of countries fighting a civil war. Linked to
this aspect is the spread of terrorism, which causes fear among common people through
indiscriminate violence and inhumane killings. Besides, additional commercial and social
pressure groups have emerged to make heavy demands on state policies. Multinational
Corporations (MNCs) in America and Europe have become powerful enough to dictate the
economic policies of many poor states, whereas the influence of non-governmental
organisations (NGOs) on official policies is growing very fast.

Exchange of diplomats, rules regarding wars, postal communication, air and sea traffic,
treatment of foreigners, exchange of currencies are part of international order. These and
other aspects of international affairs are regulated through customs and traditions, and also by
rules laid down in various international agreements and treaties. It is also common that states
having differences seek the help of another country or an international agency for reaching a
compromise. The talks currently in progress between India and Pakistan mirror these features
of the existing world order. That a world war has not taken place after 1945 speaks about the
positive side of the world order.

Multi-ethnic states with differences in size and capabilities have traditionally constituted
the bulk of world order. The few powerful countries have played significant role in shaping
the world order by setting certain rules and principles to guide relations among countries.
Peace and development have become the most important goals of the world order for the
past century. But these goals have been ill served by the Cold War and the emergence of
the bipolar world for nearly half a century during 1945 – 1990. During this period, however,
the European Union and the Nonaligned Movement gained some influence and tried to
make the world multipolar. The end of the Cold War and the emergence of the United
States as the most powerful country made the world unipolar. This shift in the world order
has only added problems especially in the context of political instability in different parts of
the world.

Let us recognise that world order cannot be idealistic ignoring the realities completely.
Political and other conditions continuously influence the nature of the world order at any
time. The world order in turn evolves gradually in response to these developments by
making necessary adjustments. The order does not completely break up to give place to a
new order; it only makes changes as per the actual trends in the world. These changes
may be good or bad, minor or major. In other words, major developments like the end of
the Cold War necessitate change in the existing order, not change of the existing order.

GLOBALISATION

No doubt, the twenty first century world is in the thick of globalisation which is chiefly
economic in focus, although there are striking cultural and political dimensions also. The end
of the Cold War and near universal adoption of privatisation and economic liberalisation as
the only route to growth and development served as the right setting for significant changes
in the conduct of economic or business transactions during the 1990s. There were other
developments, which contributed to the deepening of globalisation. Advances in information
and communication technology that are associated with use of computer and internet have
heralded the “electronic age”. Along with the existing financial institutions of the world like
the International Monetary Fund and the World Bank whose power and reach now have
become global, an equally powerful new organization dedicated to promotion of free trade
has come into being. It is the World Trade Organisation. The whole world has become a
single market allowing foreign investments and free flow of goods across national
boundaries. In the new climate, multinational corporations have gained global respect and
access.
Globalisation is a process of integrating the world into one market to enable easy movement
of capital, goods, information and even workers across borders with no barriers. Private firms
can invest and disinvest at will, locate production centres at a profit yielding or cost reducing
anywhere in the world, hire employees of foreign origin on cheaper rates, assign work to far
away people with the desired skills and experience, and flood markets in the developing
countries with consumer and other goods for sale at rates competitive to local products, and
safely take back profits. All this is happening with the help of technology access to which is
not yet universal or equal. The globalisation process as manifested in the activities of
multinational corporations, media giants and non-governmental organisations has
considerably undermined the sovereign prerogatives of the state structures in the Third
World. Territorial borders identified with nation states have become less effective to check ill
effects of globalisation.

The bulk of the world community – the developing countries - has become part of
globalisation with great hope. Let us look at India’s experience. With strengths like well-
developed and highly competitive computer software industry, the availability of technical
and skilled work force and its potential as a very large middle class market, India has hopes
to benefit in the era of globalisation. Since 1991, India changed the orientation of its
economic policy by injecting pronounced features of privatization, liberalisation of rules for
foreign investment, and disinvestment of public sector companies. Customers are flooded
with an amazing choice of goods in the market – from motor cars to food products. India’s
exports have gone up especially in service sector, investments have come into the country,
and our foreign exchange reserves are extremely comfortable. Overall, India during
globalisation has emerged as one of the fastest growing economies in the world.

Though India is open to beneficial aspects of globalisation, it is concerned over the adverse
effects. American companies, currency, TV channels and weapons have taken over the world.
Many local companies are being shut down causing unemployment to millions even in the
advanced countries. Withdrawal of Governmental support through subsidies in fertilizers,
electricity and other essential needs has added to the misery of rural and farming sections.
The income gaps between the rich and the poor both among and within countries have
sharply widened. Nearly one half of the world population (concentrated mostly in sub-
Saharan Africa and south Asia) are in terrible poverty. While official aid from the rich donor
countries has not grown, the debt burden of the developing countries has increased to
worrying levels. The economic globalisation, which has swept the world like a hurricane, has
only induced income inequalities between peoples and countries.
On the other hand, the assets of top 3 billionaires in the world are said to be greater than the
combined national wealth of all the least developed countries put together. Goods of the least
developed countries are denied preferential access to markets in the advanced countries.
Moreover, our life styles are undergoing significant shift embracing meaningless
consumerism. Thanks to globalisation, nations live with the fear about the spread of the
diseases like AIDS. The initiatives taken so far to address the above problems have proved
insufficient. There is need to provide human face to make globalisation just and even-handed
in its effects. Otherwise the credibility of contemporary world order may come under
question.