Concept of Globalisation

Globalisation means the flows of ideas, capital, commodities and people across different parts of the world. It is
amultidimensional concept. It has political, economic and cultural manifestations and these must be adequately
distinguished.
Globalisation need not always be positive. It can have negative consequences for the people.
As a concept, globalisation fundamentally deals with flows. These flows can be ideas moving from one part of
the world to another, commodities being traded across borders and so on.
The crucial element is the worldwide inter connectedness which is created and sustained as a consequence of
these constant flows.

Causes of Globalisation

One important aspect of globalisation is that even though it is not caused by any single factor, technology
remains a critical element.
The ability of ideas, capital, commodities and people to move more casily from one part of the world to another
has been made possible by technological advances.
Interconnections is also an important aspect of globalisation. Any event taking place in one part of the world
could have an impact on another part of the world.

Consequences of Globalisation
Political Consequences

Globalisation results in an erosion of state capacity i.e. by reducing the ability of government to do what they
want to do.
It gives 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.
In place of the state the market becomes the prime determinant of economic and social priorities.
Globalisation does not always reduce state capacity. The primacy of the state continues to be unchallenged
basis of political community.
State capacity has received boost as a consequence of globalisation, with enhanced technologies available at the
disnosal of the state to collect information about its citizens.

Economic Consequences

In order to understand economic consequenc es of globalisation it is important to know that in economic

globalisation involves many actors other than IME, WTO.
It involves greater cconomic flows among different countries of the world. Some of this is voluntary and some
forced by international institutions and powerful countries.
Globalisation has involved greater trade in commodities across the globe as it has reduced the imposing of
restrictions on the imports of one country on another.
Economic globalisation has created an intense division of opinion all over the world.
According to some, economic globalisation is likely to benefit only a small section of the population.
On the other hand advocates of economic globlisation argue that it generates greater economic growth and well
being for larger sections of the population.
Cultural Consequences
 The consequences of globalisation can also be seen on our culture too and thus it is not confirmed only to the
sphere of politics and economy.
The process cultural globalisation poses a threat because it leads to the rise of a uniform culture or what is
called cultural homogenisation.
Cultural globalisation has both positive as well as negative effect on the world.
While cultural homogenisation is an aspect of globalisation, the same process also generates precisely the
opposite effect.

India and Globalisation

Flows pertaining to the movement of capital, commodities, ideas and people go back several centuries in Indian
History.
During the British rule, India became an exporter of primary goods and raw materials and a consumer
(importer) of finished goods.
After independence, India decided to be a self-suficient country rather than being dependent on others.
In 1991, India embarked on a programme of economic reforms that has sought increasingly to de-regulate
various sectors including trade and foreign investment.
Resistance to Globalisation

Globlalisation has invited strong criticism allover the globe. For some globalisation represents a particular
phase of global capitalism that makes the rich richer and the poor poorer.
Culturally, they are worried that traditional culture will be harmed and people will lose their age-old values and
ways.
It is important to note here that anti-globalisation movements too participate in global networks, allying with
those who feel like them in other countries.
The World Social Forum (WSF) is a global platform bringing together human rights activists,
environmentalists, labour, youth and women activists opposed to neo-liberal globalistion.
India and Resistance to Globalisation

Resistance to globalisation in India has come from different quarters.

There have been left wing protests to cconomic liberalisation voiced through political parties as well as through
some forums.
Resistance to globalisation has also come form the political right. This has taken the forum of objecting
particularly to various cultural influences.

FACTS THAT MATTER

I. Globalisation is the integration of economy of a country in the process of free flow of trade and capital. It may also
include 'Brain drain' across borders.

2. Globalisation increases the volume of trade in goods and services, inflows private foreign capital, increases foreign
direct investment, creates new jobs, strengthens domestic economies, improves productive e fficiency and healthy
competition.

3. Globalisation may have negative impacts also as it failed to generate sufficient employment, modern methods of
cultivation are not acquainted to less educated persons, it creates income inequality and exploits natural resources and
labour force.
4. The globalisation is the result of historical factors, technological innovations, liberalisation of foreign trade and
investment policies, and opening of multinational companies.

5. Globalisation consequences may be political, cconomical and cultural, politically stunts' capacity has received a
boost with enhanced technologies to collect information about its citizens.

6. Economic flows in various forums, like commodity, capital, people and ideas prompts rich countries to invest their
money in countries other than their own. It also draws attention towards the role of JMF and WTO in determining
economic policies across the world.

7. Cultural globalisation emerges and enlarges our choices and modify our culture without overwhelming the
traditional norms i.e. burger can not be a substitute for masala dosa. Hence, it broadens our cultural outlook and
promotes cultural homogenisation.

8. Globalisation has been criticised on political, economic and cultural grounds i.e. politically it weakens the state by
reducing its sovereignty. Economically it has made the rich richer and the poor poorer creating disparities. Culturally
there has been harmed traditions and lost age old values and ways. The World Social Forum (WSF) has also opposed
neo-liberal globalisation.

9. In India, Globalisation has led to setting up of foreign companies as India realised the need for relating the Indian
cconomy with the world by responding to 1991 financial crisis.

10. Globalisation process includes the thrust to liberalisation or privatisation. Liberalisation proclaims freedom of
trade and investment, controls allocation of resources in domestic economy, rapid technological progress whereas
privatisation allows private sector and other foreign companies to produce goods and services.

I1. Resistance to globalisation in India has come from different quarters i.e. left wing protests to economic
liberalisation, trade unions of industrial workforce organised protest against multinationals, the patents, resistance
from political right i.c. objecting to various cultural influences of foreign T.V. channels, celebration of Valentine's
Day and Westernisation of dress of girls students in schools and colleges.

9. Environmental movements are the movements of groups which are environmentally conscious to challenge
environnmental degradation at national or international level aiming at raising new ideas and long term vision i.e. in
Mexico, Chille, Brazil, Malaysia, Indonesia, India faced enormous pressure.

10. Environmental movements are categorised as forest movements, movements against mining and mineral industry
for creating Water Pollution and Anti Dam Movement.

I|. Resources Geopolitics' is all about who gets what, when, where and how. The practices of neocolonialism
spread on a large scale and throughout a cold war, industrialised countries adopted methods to ensure a steady flow of
resources by deployment of military forces near exploitation sites and sea-lanes of communications, the stock pilling
of strategic resources and efforts to prop up friendly governments.

12. The global economy relied on oil asa portable and essential fuel. The history of petroleum is the history of war
and struggle. Water is another important resource relevant to global politics. Regional variations and increasing
scaring of freshwater may also lead to conflicts in the world to play politics.