Concept of Globalisation
- Globalisation means the flows of ideas, capital, commodities and people across different parts of the world. It is a multidimensional 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 easily from one part of the world to another has been made possible by technological advances.
- Interconnections are 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 dismissal of the state to collect information about its citizens.
- Economic Consequences
- In order to understand economic consequences of globalisation it is important to know that in economic globalisation involves many actors other than IMF, WTO.
- It involves greater economic 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 globalisation 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 homogenization.
- Cultural globalisation has both positive as well as negative effect on the world.
- While cultural homogenization 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-sufficient 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
- Globalisation has invited strong criticism all over 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, labor, youth and women activists opposed to neo-liberal globalisation.
India and Resistance to Globalisation
- Resistance to globalisation in India has come from different quarters.
- There have been left wing protests to economic liberalization voiced through political parties as well as through some forums.
- Resistance to globalisation has also come from the political right. This has taken the forum of objecting particularly to various cultural influences.
WORDS THAT MATTER
- Globalisation: It signifies integration of an economy with the economies of other countries under the process of free flow of trade and capital.
- World Social Forum: A global platform to bring together a wide coalition of human rights activists, environmentalists and women activists.
- Privatisation: It allows private sector companies to produce goods and services in a country.
- Liberalisation: It signifies relaxation of government rules and regulations relating to activities in sendee and industrial sector.
- Cultural hetrogenisation: It signifies cultural differences and distinctive nature of cultures to be generated by globalisation.
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