GLOBALIZATION: NATURE AND SCOPE
Project submitted to:
Dr. B.K.Mahakul
(Faculty of Political Science)
Project submitted by:
Name-Shatakshi Sinha
Semester V, Roll No. 148
Section B
HIDAYATULLAH NATIONAL LAW UNIVERSITY
RAIPUR, C.G.
1
INTRODUCTION
Globalisation is seen as a conscious and active process of expanding business and trade across
the borders of all the states. It stands for expanding cross-border facilities and economic
linkages. This is to be done with a view to secure an integration of economic interests and
activities of the people living in all parts of the world. The objective of making the world a truly
inter-related, inter-dependent, developed global village governs the on-going process of
globalisation. Globalisation is the concept of securing real social economic, political and
cultural transformation of the world into a real global community. It is considered to be the
essential means for securing sustainable development of all the people of the world. It has
necessitated a change in the role of state. Globalisation is seen as a conscious and active process
of expanding business and trade across the borders of all the states. It stands for expanding cross-
border facilities and economic linkages. This is to be done with a view to secure an integration of
economic interests and activities of the people living in all parts of the world. The objective of
making the world a truly inter-related, inter-dependent, developed global village governs the on-
going process of globalisation. Globalization is a part of the world change since the last decade
of the 20th’Century the world is passing a process of transformation. Since the collapse of the
Communist Regime the socio-economic life of many nations changed. Fifty years of tremendous
technological achievements and twenty years of expanding democracy enable the emergence of
the Globalization
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OVERVIEW OF LITERATURE
Holmes, G. (2002) Processes of Globalization and Outcomes". Economic Geography.78 (3): 361–
386. doi:10.2307/4140814
When persons face conditions of insecurity – as a result of war, terrorism, environmental
catastrophe, or insecurity in the workplace – they often turn inwards. During previous phases of
global insecurity we witnessed the rise of fascism. It grounds globalization in the everyday lives
of workers, their households, and their communities. It compares three towns, Orange in
Australia, Changwon in South Korea, and Ezakheni in South Africa, and shows how the global
restructuring of white goods corporations is creating a profound experience of insecurity within
workers, their families, and their communities. At times, workers do turn inward and become
fatalistic, even xenophobic. But there are also signs of hope. The book explores the possibilities
of re-empowering labor through engaging space and scale in new ways.
Davis Panna (2005). "'Globalizations: A Global Formation' Globalizations. 2 (2): 193–
209.doi:10.1080/14747730500202206
Globalization in all its contradictions and unevenness is still at a very formative stage. Too many
theories are either characterized by reductive appropriations of the phenomenon or by studied
vagueness. This article attempts to answer the question how can we set up a method for
understanding such a variable set of processes associated with globalization(s) while still
recognizing broad and changing dominant patterns of practice across world history. The article
begins with the apparently simple issue of defining globalization, suggesting that definitional
issues often hide a multitude of methodological questions. It then goes onto to develop a series of
propositions about the nature of globalization and how we might move from detailed empirical
studies of different social processes of extension across world space and time to an
understanding of the changing nature of the spatiality and temporality itself. This is linked to an
argument about the structures of power and subjection.
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OBJECTIVES OF THE TOPIC
To study about Globalization.
To understand the nature and scope of Globalization.
To study about the impact of Globalization.
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Research methodology
This research is descriptive and analytical in nature. The project has been made with the help of
secondary sources of data. Secondary as well as electronic sources of data have been used to a
large extent to make up this research methodology.
The secondary sources which have been used to give this project a firm structure are various
books, dictionaries, websites etc.
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HISTORICAL BACKGROUND OF GLOBALIZATION
The progress of industrial resolution is the 20th century was accompanied by a replacement of
the police state by a welfare state. The state came to be an active actor in the economic life of the
society. In the socialist states, state ownership of means of production and distribution became
the rule and state controlled command economies were operationalized and regarded as the best
means for rapid socio-economic development.
In many other countries, nationalization of key industries and enterprises was undertaken with a
view to provide goods and services to the people. State began performing several socioeconomic
functions. In India, the decision to adopt a mixed economic model was taken and ownership and
control over key industries was entrusted to the public sector.
Even insurance and banking were nationalized for securing a better mobilization of resources,
and consequently for rendering better services to the people. State regulation of economy and
industry was practised and the public sector was patronized by the state as the sector committed
to provide essential goods and services to the public. The state, acting in the name of checking
monopolies, undue concentration of wealth in some hands and economic inequalities, formulated
and enforced strict regulation and control systems.
However, the experience with the working of common economies and mixed economic model,
with a distinct leaning in favour of public sector was found to be inadequate slow and
unproductive of desired results. Around 1985, Indian economy began showing big strains. Indian
public sector now appeared to be a liability and foreign exchange reserves came to be in very bad
shape. Industrial growth became regressive and inflation was assuming alarming proportions.
Around this time the world was heading for several big changes. The socialist economies, in
particular, the Soviet economy and political system, was collapsing. Even Perestroika and
Glasnost could not save the USSR. It collapsed as a state. The weaknesses of the socialist
economic model became fully clear. All the socialist countries of Europe began witnessing a
process of overthrow of socialist systems. Liberalisation of politics and economy came to be
recognized as the necessity of the day. All countries of the world began realizing the merits of
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the market economy, free trade, privatisation, liberalisation, deli censing and deregulation of
trade, industry and business.
In July 1991 the Government of India decided to go in for liberalisation of economy. A new
economic policy was formulated and implemented with an emphasis new upon economic
reforms. These were governed by the principles of liberalisation, privatisation, market economy,
free trade, deregulation and de-licensing.
These reforms paved the way for initiating the process of liberalisation and globalisation of
Indian economy. It began developing as an outwardly opening economy, with the aim of linking,
integrating and unifying domestic economy with world economy. Similar changes were adopted
by other states.
“Globalisation is both an active process of corporate expansion across borders and a structure of
cross border facilities and economic linkages that has been steadily growing and changing.” —
Edward S.Herman
“Globalisation is the process whereby social relations acquire relatively distance-less and
borderless qualities.” —Baylis and Smith
The aim of globalisation is to secure socio- economic integration and development of all the
people of the world through a free flow of goods, services, information, knowledge and people
across all boundaries.
Globalisation is seen as a conscious and active process of expanding business and trade across
the borders of all the states. It stands for expanding cross-border facilities and economic
linkages. This is to be done with a view to secure an integration of economic interests and
activities of the people living in all parts of the world. The objective of making the world a truly
inter-related, inter-dependent, developed global village governs the on-going process of
globalisation.
7
Globalisation is the concept of securing real social economic, political and cultural
transformation of the world into a real global community. It is considered to be the essential
means for securing sustainable development of all the people of the world.
“Globalisation represents the desire to move from national to a global sphere of economic and
political activity”. It seeks to transform the existing international economic system into a unified
system of global economics. In the existing system, national economies are the major players. In
the new system, the globalized economic and political activity will ensure sustainable
development for the whole world.
Globalization is a part of the world change since the last decade of the 20th’Century the world is
passing a process of transformation. Since the collapse of the Communist Regime the socio-
economic life of many nations changed. Fifty years of tremendous technological achievements
and twenty years of expanding democracy enable the emergence of the Globalization.
Difference between Globalisation and Internationalism:
Till very recently, we have been frequently using the term internationalism to refer to the process
of increasing connections and relations among nations. It denotes the concept of increasing social
economic, cultural and political cooperation among nations.
Now instead of advocating internationalism, we have started advocating globalisation which
refers to a broader and integrated process of transformation of the world into a global village
characterised by free world trade, freedom of access to world markets and increased social,
economic, and cultural linkages and relations among the people of the world.
Whereas internationalism stands for increasing scope and intensity of cooperation among
nations, globalisation refers to a free and integrated world system. Globalisation is neither a
purely economic process nor is related to communications only. It is a broad process of
increasing socio-economic-industrial-trade-cultural relations among the people living in all parts
of the globe.
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Nature and Scope of Globalisation:
Globalization is among the noteworthy phenomena of the 20th Century’s last quarter. As such, it
has a significant impact on both developed and Less Developed Countries (LDCs) economies. It
came out and expanded due to the technological advancement, and the major advancement of the
communication and transportation industries. These innovative measures enable the reallocation
of manufacturing facilities to new countries and the transfer of industries from the traditional
industrial nations to countries with low labour costs.
The Globalization, known also as the second industrial revolution, has a double effect on the
industrial and non-industrial nations. At the short run it yields affluence and prosperity for most
people in developed countries, but at the same time it causes the disappearance of many jobs in
the manufacturing industries. At the long run, however, the Globalization forces the introduction
of some social-economic reforms that affects and forces to reconstruct the retirement and welfare
systems of many countries.
Salient Features of Globalisation:
1. Liberalisation:
It stands for the freedom of the entrepreneurs to establish any industry or trade or business
venture, within their own countries or abroad.
2. Free trade:
It stands for free flow of trade relations among all the nations. Each state grants MFN (most
favored nation) status to other states and keeps its business and trade away from excessive and
hard regulatory and protective regimes.
3. Globalisation of Economic Activity:
Economic activities are be governed both by the domestic market and also the world market. It
stands for the process of integrating the domestic economy with world economies.
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4. Liberalisation of Import-Export System:
It stands for liberating the import- export activity and securing a free flow of goods and services
across borders.
5. Privatisation:
Keeping the state away from ownership of means of production and distribution and letting the
free flow of industrial, trade and economic activity across borders.
6. Increased Collaborations:
Encouraging the process of collaborations among the entrepreneurs with a view to secure rapid
modernisation, development and technological advancement.
7. Economic Reforms:
Encouraging fiscal and financial reforms with a view to give strength to free world trade, free
enterprise, and market forces.
Globalisation accepts and advocates the value of free world trade, freedom of access to world
markets and a free flow of investments across borders. It stands for integration and
democratization of the world’s culture, economy and infrastructure through global investments.
IMPACT OF GLOBALIZATION
A Global Reallocation of Industries
During the past twenty years more and more manufacturing industries moved from thetraditional
industrial nations to countries that have inexpensive labor force, mostly to China, South-East
Asia and Latin America. This move is significant in the labor-oriented industries like textiles and
apparels, light metal and basic engineering etc. Even more advanced industries, like automobiles
and aircraft companies tend to outsource great portions of their operations to subcontractors in
LDCs. One of the major results of this tendency is the vanishing of good professional jobs in the
industrial nations and the growth of unemployment. In the LDCs, however, the industrial
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reallocation increase the demand for trained workers and contributes to the nation’s economic
growth.
The final effect of the Globalization in this respect is that it enables the LDCs to increase
dramatically their share in the global production of manufactured goods. T. Friedman (2005), a
prominent writer for the New York Times, addresses this issue and especially the impact of the
globalization on US relationships with China and India.
A Massive Expansion of World Trade
Due to the “industrial reallocation”, the new division of labor, and the move of productionand
manufacturing facilities eastward, more commodities, materials, goods and products are traded in
the global market. Better communication and more advanced transportation facilities shortening
delivery time and enable more countries to participate in world trade. The former national
autocratic perception is loosing its ground and more and more countries increase their
involvement and dependence on the global market. One can easily see how similar goods or
products are available in different countries and the world is moving toward being a one-village
community. All these developments cause a fast growth of international trade.
A Significant Moves of Capital from one country to another
The expansion of global activities and the growing influence of
transnational operations were followed by a significant increase of capital
moves. These financial operations include direct and indirect investments
in LDCs, operations in the capital and stock exchange markets in the
developed countries and the creation of huge amounts of free capital
moving from one country to pursuing better revenue.
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CRITICAL ANALYSIS
In the era of globalisation, the functions of the State began undergoing a change. With the
increasing disinvestment of public sector, privatisation was encouraged. Public sector was made
to compete with the private sector, and as a whole open competition, free trade, market economy
and globalisation were practiced. The role of state began emerging as that of a facilitator and
coordinator, in place of an owner and controller. In fact, the process of globalisation involves a
change in the role of the state. However, this does not in any way mean re-adoption of Laisses
faire or reversion to the principle of police state.
Under Globalisation, the state continues to be a welfare state. However, its economic
activity is getting confined to two main types of activities:
(i) The activities which are essentially needed for the operation of economy. It acts as a
facilitator and coordinator and refrains from acting as an owner and regulator. It acts
to ensure a smooth and orderly functioning of the market. It tries to secure stability in
the market through macro-economic policies.
(ii) (ii) Activities aimed at providing social services such as education, health, social
security etc., to the people.
Globalisation has necessitated a change in the role of state. The state continues to be a welfare
state performing all the protection functions as well as several social functions. It continues to act
as a facilitator and coordinator of economy. It however, does not mean a reversion back to the
police state. State continues to act as a welfare state, a natural and necessary institution
performing protection and social welfare functions with some role in protecting and improving
economic life of the people.
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CONCLUSION
Globalisation is seen as a conscious and active process of expanding business and trade across
the borders of all the states. It stands for expanding cross-border facilities and economic
linkages. This is to be done with a view to secure an integration of economic interests and
activities of the people living in all parts of the world. The objective of making the world a truly
inter-related, inter-dependent, developed global village governs the on-going process of
globalisation. Globalisation is the concept of securing real social economic, political and
cultural transformation of the world into a real global community. It is considered to be the
essential means for securing sustainable development of all the people of the world. It has
necessitated a change in the role of state. The state continues to be a welfare state performing all
the protection functions as well as several social functions. It continues to act as a facilitator and
coordinator of economy. It however, does not mean a reversion back to the police state. State
continues to act as a welfare state, a natural and necessary institution performing protection and
social welfare functions with some role in protecting and improving economic life of the people.
To find the right balance between benefits and costs associated with globalization, citizens of all
nations need to understand how globalization works and the policy choices facing them and
their societies.
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BIBLIOGRAPHY
Holmes, G. (2002). "Processes of Globalization and Outcomes”
Davis Panna (2005). "'Globalizations: A Global Formation'"
Jordan (2012). "'Aspects of Globalization and the States.'’
Robert, Takis. (2001). "Globalization, the reformist Left and the Anti-Globalization
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Hans (2000). Globality versus Democracy: The Changing Nature of International Relations
in the Era of Globalization.
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