The chapter Introduces students to the political, economic and cultural consequences of globalisation. It analyses what role it plays in boosting the overall growth of the states in global politics. We also highlight India's contribution at the global stage.
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What is Globalisation?
Globalisation is the interaction and integration of people, businesses, and governments all over the world.
It is a type of capitalist expansion in which local and national economies are integrated into a global, unregulated market economy.
Advances in transportation and communication technology have aided globalisation. International trade, ideas, and culture are all growing as a result of increased global interactions.
Globalisation is primarily a business-to-business interaction and integration process with social and cultural implications.
Globalisation's history is also littered with conflicts and diplomacy.
Globalisation does not have to be beneficial to people; it can have negative consequences.
Flows are at the heart of globalisation as a concept.
Ideas moving from one part of the world to another could be one of these flows. The capital was transferred between two or more locations.
Commodities are traded across borders, and people are migrating to different parts of the world in search of better opportunities.
As a result of these continuous flows, the concept of "global interconnectedness" is created and maintained.
What are the causes of globalisation?
In terms of these four flows, globalisation has occurred for much of human history. Globalisation has a long history, and it's important to consider current flows in the context of that history.
Technology remains a critical component of globalisation, which is not caused by a single factor.
In more recent times, the invention of the telegraph, the telephone, and the microchip has revolutionised communication between actors in different parts of the world. The invention of printing paved the way for the rise of nationalism.
Technological advancements have made it possible for ideas, capital, commodities, and people to move more easily from one part of the world to another.
The speed at which these flows occur may vary. For example, the movement of capital and commodities will almost certainly be faster and wider than the movement of people between countries.
Globalisation does not occur solely as a result of improved communications.
The bird flu or tsunami is not limited to a single country. It is unconcerned about national boundaries. Similarly, when major economic events occur, their effects are felt on a global scale outside of their immediate local, national, or regional environment.
Political Consequences
How does globalisation affect traditional conceptions of state sovereignty?
Globalisation reduces state capacity, or the government's ability to carry out its functions.
The old "welfare state" is giving way around the world to a more minimalist state that performs core functions like maintaining law and order and ensuring the safety of its citizens.
It abandons many of its previous welfare functions aimed at promoting economic and social well-being. The market, rather than the welfare state, becomes the primary determinant of economic and social priorities.
The entry and the increased role of multinational corporations around the world have reduced governments' ability to make independent decisions.
State capacity is not always reduced as a result of globalisation.
The state's primacy continues to be the unquestioned foundation of the political community. The state continues to carry out its core functions (law and order, national security) while consciously withdrawing from areas where it no longer wishes to be involved. States will continue to play an important role.
Economic Consequences
The term "economic globalisation" immediately brings to mind the role of international institutions such as the IMF and the World Trade Organisation in determining global economic policies.
Other than these international institutions, many other actors are involved in economic globalisation. Economic globalisation necessitates an examination of the distribution of economic gains, i.e., who benefits the most from it and who suffers the most losses.
Economic globalisation typically entails increased economic flows between countries around the world.
Globalisation has resulted in increased commodity trade across the globe, as well as a reduction in the restrictions imposed by different countries on allowing the import of goods from other countries.
The restrictions on capital movement between countries have also been eased. It means that investors in developed countries can put their money in countries other than their own, such as developing countries, where they may earn a higher return.
Developed countries have carefully guarded their borders with visa policies to ensure that foreign citizens cannot take their citizens' jobs.
Globalisation has resulted in a wide range of outcomes in various parts of the world. Economic globalisation has sparked fierce disagreements around the world. Those concerned about social justice are concerned about the extent to which economic globalisation processes have resulted in state withdrawal.
It will most likely benefit a small portion of the population while impoverishing those who rely on the government for jobs and welfare (education, health, sanitation, etc.).
To ensure institutional safeguards or to create "social safety nets" to mitigate the negative effects of globalisation on the poor.
Many movements around the world believe that safety nets are inadequate or ineffective. They have called for an end to forced economic globalisation, claiming that its consequences would be disastrous for the poorer countries, particularly the poor within these countries.
Some economists have referred to economic globalisation as the world's re-colonisation. De-regulation, according to proponents of economic globalisation, leads to greater economic growth and well-being for a larger portion of the population.
Greater international trade allows each economy to focus on what it does best. This would be beneficial to the entire world.
More moderate proponents of globalisation argue that it poses a challenge that can be addressed intelligently without blindly accepting it.
Globalisation has increased the momentum toward interdependence and integration among governments, businesses, and ordinary people in different parts of the world, which cannot be denied.
Cultural Consequences
Globalisation's consequences are not limited to the realms of politics and economics.
Globalisation has an impact on our daily lives, including what we eat, drink, wear, and think. It shapes our perceptions of our preferences. Globalisation's cultural impact has led to concerns that the process poses a threat to world cultures.
As a result of globalisation, a uniform culture, also known as cultural homogenisation, emerges. The emergence of a global culture is not the same as the rise of a uniform culture.
Some argue that the popularity of a burger or a pair of blue jeans is due to the powerful influence of the American way of life.
As a result, the culture of the politically and economically dominant society imprints itself on a weaker society, and the world begins to resemble the dominant power.
Those who make this argument frequently refer to the world's 'McDonaldisation,' with cultures attempting to buy into the dominant American dream.
This is dangerous not only for poor countries but for humanity as a whole because it causes the world's rich cultural heritage to dwindle.
Cultures do not exist in a vacuum. Every culture accepts outside influences on a regular basis. External influences can be negative because they limit our options, but they can also be positive because they broaden our options and modify our culture without overpowering the traditional.
The burger isn't a replacement for a masala dosa and thus doesn't present a real challenge. It's simply an addition to our menu options. Blue jeans, on the other hand, can be worn with a khadi kurta made at home.
Although cultural homogenisation is a result of globalisation, the same process has the exact opposite effect. As a result, each culture becomes more distinct and distinct. Cultural heterogeneity is the term for this phenomenon.
India And Globalisation
During the colonial period, as a consequence of Britain’s imperial ambitions, India became an exporter of primary goods and raw materials and a consumer of finished goods.
After independence, India decided to make things on its own rather than relying on others. Other people were also banned from exporting to the Indian trend.
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. In 1991, responding to a financial crisis and to the desire for higher rates of economic growth, India embarked on a programme of economic reforms that have sought increasingly to de-regulate various sectors including trade and foreign investment.
Resistance To Globalisation
Globalisation is a divisive issue that has sparked widespread criticism all over the world. Critics of globalisation make a variety of claims.
Those on the left argue that contemporary globalisation is a subset of global capitalism that enriches the wealthy (while decreasing their number) while impoverishing the poor.
The capacity of the state to protect the interests of its poor deteriorates as the state weakens.
Critics of globalisation on the political right are concerned about the political, economic, and cultural consequences.
In political terms, the deterioration of the state is cause for concern. In terms of economics, they desire a return to self-sufficiency and protectionism, at least in some areas.
They are concerned that traditional culture will be harmed, and that people will abandon traditional values and ways of life.
It's worth noting that anti-globalization movements join global networks as well, forming alliances with people in other countries who share their viewpoints. Many anti-globalisation movements oppose a specific globalisation programme, which they see as a form of imperialism, rather than the concept of globalisation itself.
A large number of people attended the World Trade Organisation (WTO) Ministerial Meeting in 1999.
