Globalisation is the process of international integration arising from the interchange of world views, products, ideas and other aspects of life. The vital element of globalisation is ‘worldwide interconnectedness’ that is created and sustained as a consequence of these constant flows. Globalisation is a multi-dimensional concept. It has political, economic and cultural manifestations and these must be adequately distinguished. The impact of globalisation is vastly uneven- it affects some societies more than others and some parts of some societies more than others and it is important to avoid drawing general conclusions about the impact of globalisation without paying sufficient attention to specific contexts.
Causes of Globalisation
- There are many causes of it but technology affects it more than anything else. Invention of printing, integrated chip(IC), telephone, internet has revolutionized communication between people in different parts of the world.
- Due to faster communication and transportation, ideas, commodities, capital move more easily to any part of the globe than ever. As people got the technology of better communication and transportation they recognise these mediums to connect rest of the world.
- The Ebola virus is not confined to only African continent but it affects other nations too.
- It has mainly 3 types of consequences:-
- Political : Globalisation results in discomfort in functionality and working of government. The increased role of MNC all over the world leads to reduction in the capacity of govt. to take decisions on their own. But at the same time globalisation does not always reduce state capacity. The importance of state continues to be unchallenged basis of political community. Indeed in some manner state capacity has recieved a boost as a consequence of globalisation. Due to advancement in technology available in state, it can collect information about its citizens. With this information, the state is better governed. State becomes powerful than earlier due to emergence of new technology.
- Economic : The economic globalisation involves greater economic flows or exchange of commodities among different countries of the world. The mention of economic globalisation draws our attention to the role of international institutions like IMF and WTO in determining economic policies across world. The restrictions imposed by different countries on capital across countries and allowing imports of other countries have been reduced. Capital across countries means that investors in prosperous countries can invest in other countries including developing countries where they might get good returns. There is less movement of people across the globe because developed countries have carefully guarded their borders with visa policies to ensure that citizens of other countries cannot take away the jobs of their own citizens.
- Cultural : It refers to impact of globalisation in what we eat, wear, drink, watch and think. The cultural effect of globalisation poses a threat to different cultures in the world other than western culture. There is a cultural homegenisation which means rise of uniform culture, as we notice the popularity of American things like McDonald’s, Pizza, KFC, GOOGLE, blue jeans and hollywood movies has spreaded across the globe. This is dangerous not only for the poor countries but for the whole of humanity because it leads to the shrinkage or extinction of the rich cultural heritage of the entire globe. But cultural consequences of globalisation is not always negative as sometimes external culture influences simply enlarge our choices and sometimes they modify our culture without overwhelming the tradition. The Maggi is no substitute for noodles, therefore, does not pose any real challenge. Globalisation leads to each culture becoming more distinctive and different. This phenomenon is called Cultural Hetergenisation. Those who are concerned about social justice are worried about the extent of state withdrawal caused by process of economic globalisation. They point out that it is likely to benefit only a small section of population while impovershing those who were dependent on govt. for jobs and welfare. They have emphasised the need to ensure institutional safeguards to minimise the negative effects of globalisation on those who are economically weak. Many movements all over the world feel that safety nets are insufficient or unworkable. They have called for a stopping to forced economic globalisation, for its results would lead to economic ruin for the weaker countries, especially for the poor within these countries. Some economists have described economic globalisation as re-colonisation of the world. Advocates of economic globalisation argue that it generates greater economic growth and well-being for larger sections of population when there is de-regulation. Greater trade among countries allows each economy to do what it does best. This would benefit the whole world. They also argue that economic globalisation is inevitable.
India and Globalisation
From the colonial period, India became an exporter of primary goods and raw materials and a consumer of finished goods. After independence, because of the experience with British, we decided to make things ourselves rather than depending on others. We also decided not to allow others to export to us so that our own producers could learn to make things. This step generated its own problem. India had a fairly sluggish rate of economic growth (due to ignoring other sectors such as health, housing, etc.). In 1991, responding to a financial crisis and to the desire for higher rates of economic growth, India began programme of economic reforms that opened doors for trade and FDI.
India and Resistance to Globalisation
Resistance to globalisation in India has come from political parties as well as through forums like the Indian Social Forum. Trade Unions of industrial workforce as well as those representing farmers interests have organised protests against the entry of multinationals. The patenting of certain plants like Neem by American and European firms has also generated considerable opposition.