Notes On

Concept of Globalisation
Globalisation refers to the flow of ideas, moving from one part of the world to another, capital
shunted (moved) between two or more places commodities being traded across borders and
people moving in search of livelihoods to different parts of the world.
• It leads to worldwide interconnectedness that is created and sustained as an outcome of
these constant flows.
• It is multi-dimensional in nature which consists of political, economic and cultural
manifestations.
Causes of Globalisation
Invention of printing, microchips, telephone and internet has revolutionised communication
between different parts of the world.
Globalisation is not caused by any single factor, technology remains an indispensable element.
It is the most prominent cause of globalisation.
Manifestations of Globalisation
Globalisation consists of political, economic and cultural manifestations that are discussed
below
Political Consequences
• Globalisation results in decline of state capacity as the ability of the government to
perform tasks gets reduced.
• The old welfare state is now giving way to the political philosophy of minimum
interference in which state performs certain core functions such as maintenance of law and
order and the security of its citizens.
• Market becomes a prime determinant to settle down social and economic priorities in
place of welfare.
• 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.
Economic Consequences
• Globalisation involves greater economic flows among various countries of the world.
• It has enhanced trade in commodities among different countries of the world.
• Economic globalisation draws our attention to the role of international institutions like
IMF and WTO in determining economic policies across the world.
• Greater economic flows among different countries of the world are usually promoted
through economic globalisation.
The restrictions on the imports and movements of capital have also been reduced which
facilitates free flow of trade. It means that investors in the rich countries can invest their
money in countries other than their own including developing countries
Cultural Consequences
(i) Cultural Homogenisation- It is an important aspect of cultural globalisation. It refers to
the rise of uniform culture or different cultural practices into one common culture. Although,
rise of a uniform culture is not the emergence of a global culture that means imposition of
Western culture on the rest of the world.
(ii) Cultural Heterogenisation- Cultural homogenisation is an aspect of Globalisation which
also generates an opposite effect. The process leads to each culture becoming more different
and distinctive in nature. This phenomenon is defined as cultural heterogenisation.
Debates on Globalisation:
Economic and Political
Economic Aspects
• Economic globalisation has led to different opinions across the world. Advocates of
social justice are concerned about the state withdrawal from certain aspects which only
benefits a small section of the population.
• Many movements felt that institutional safeguards or social safety nets are insufficient
all over the world.
They although held that forced economic globalization should be discontinued as it will
ruin the weaker countries economically.
• The advocates in favour of economic globalisation that it generates greater economic growth
and well-being for larger sections of the population when there is de-regulation.
• Moderate supporters of globalisation held that globalisation provides a challenge which must
be handled consciously without accepting it uncritically
Political Aspects
• Some scholars believed that globalisation is now a forceful process that is unlikely to be
rcvcrscd. Developing countries and their ability to influence prevailing world trends is rather
limited in approach.
• The challenge for these countries and regions is therefore to find their own responses to the
overall trends of globalisation.
• Some scholars held that government in developing countries need to establish rules that
include openness, transparency and credibility in government action as well as absence of
bureaucratic interference, discretionary regulations and con-uption.
• Introduction of these mechanisms will help in efficient functioning of market forces. This
would also reduce the perception of risk and thereby help to attract investments.
India and Globalisation

• Globalisation has occurred in different parts of the world at different times in history. Flows
of wealth, commodities, ideas and people can be traced back several countries in Indian
history.
• This protectionism generated its own problems. While some advances were made in certain
arenas, critical sectors such as health, housing and primary education did not receive the
attention they deserved. India had a fairly sluggish rate of economic growth
• Globalisation has affected India economically, socially and culturally. India removed
restrictions on imports Of goods after adopting New Economic Policy in 1991; which also
boosted the investors to invest in India.
• Foreign Direct Investment has increased the production of goods and services and it has also
enhanced foreign exchange reserves.
• The European and USA culture spreaded in India after adoption of globalisation which bring
about changes in food habits and dressing style.
• Families are converting from joint to nuclear. Information technology and space
technology have been enhanced after globalisation.
• India have been also participating in trade and commerce with other nations. India
plays a leadership role at many other places.
• However, in India resistance to globalisation has come from various quarters like
Trade Unions of industrial work force and through social movements.
• While it is too early to assess how beneficial this has been for India, the final test is
ensuring that the advantages of progress are shared so that everyone benefits.
Resistance to Globalisation
• Critics of globalisation make a variety of arguments. Those on the left argue that
contemporary globalisation represents a particular phase of global capitalism that makes the
rich and the poor poorer.
• Politically, critics of globalisation also fear the weakening of the state.
• They want a return to self-reliance and protectionism at least in sure regions of the
financial system.
• Movements (Anti globalisation) too participate in global network, allying with those
who feel like them in other countries.
• At the WTO ministerial meeting there were widespread protests at Seattle alleging
unfair trading practices by the economically powerful states. It was argued, the interests of the
developing world were not given sufficient importance in the evolving global economic
system.
• WSF is a global platform bringing together human rights activists, environmentalists,
labour youth and women activists opposed to neo-liberal globalisation.
India and Resistance to Globalisation

• Resistance to globalisation in Indian has come from different quarters.
• Political parties as well as Indian social forums, have expressed objection to economic
liberalisation.
• Resistance to globalisation also come from the political rights taking the shape of
objecting specifically to various cultural impacts ranging from the availability of foreign T.V
channels offer by cable, birthday celebration of Valentine's Day and westernisation of the get
dressed.

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Concept of Globalisation

India and Globalisation

India and Resistance to Globalisation

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