CLASS XII

LESSON 6
Globalisation

TOPICS TO BE COVERED:
Globalization: Meaning, Manifestations and Debates.
THE CONCEPT OF GLOBALISATION
Globalisation as a concept fundamentally deals with flows. These flows could be of various
kinds — ideas moving from one part of the world to another, capital shunted between two or
more places, commodities being traded across borders, and people moving in search of
better livelihoods to different parts of the world.
Q) What is worldwide interconnectedness? What are its components?
The crucial element is the ‘worldwide interconnectedness ‘that is created and sustained as a
consequence of these constant flows.
Globalisation is a multidimensional concept. It has political, economic and cultural
manifestations.
Globalisation need not always be positive; it can have negative consequences for the
people. Indeed, there are many who believe that globalisation has more negative
consequences than positive.
The impact of globalisation is vastly uneven — it affects some societies more than others and
some parts of some societies more than others.
CAUSES OF GLOBALISATION
If globalisation is about the flows of ideas, capital, commodities, and people, it is perhaps
logical to ask if there is anything novel about this phenomenon. There is something distinct
about contemporary globalisation point out that it is the scale and speed of these flows that
account for the uniqueness of globalisation in the contemporary era.
Q) How has technology contributed to globalisation?
1) Revolution in Communication Technique:
Globalisation is not caused by any single factor; technology remains a critical element. There
is no doubt that the invention of the telegraph, the telephone, and the microchip in more
recent times has revolutionised communication between different parts of the world. When
printing initially came into being it laid the basis for the creation of nationalism.
2) Flow of Capital and commodities:
The ability of ideas, capital, commodities and people to move more easily from one part of
the world to another has been made possible largely by technological advances. The pace of
these flows may vary. For instance, the movement of capital and commodities will most
likely be quicker and wider than the movement of peoples across different parts of the world.
3) Interconnections:
It is important is for people in different parts of the world to recognise these interconnections
with the rest of the world. Currently, we are aware of the fact that events taking place in one
part of the world could have an impact on another part of the world. The Covid 19, Bird flu
or tsunami is not confined to any particular nation.
It does not respect national boundaries. when major economic events take place, their impact
is felt outside their immediate local, national or regional environment at the global level.
Consequences /Results and Outcomes of Globalisation
1) POLITICAL CONSEQUENCES
One of the debates that has been generated as a consequence of contemporary processes of
globalisation relates to its ongoing political impact.
Q) How does globalisation affect traditional conceptions of state sovereignty?
Q) “Welfare State is getting replaced by market”’ Analyse the reasons of this change.
Q) Critically evaluate the impact of the changing role of the state in the developing
countries in the light of globalisation.
There are at least three aspects that we need to consider when answering this question.
At the simplest level, globalisation results in an erosion of state capacity, that is, the ability
of government to do what they do. All over the world, the old ‘welfare state’ is now giving
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.
However, it withdraws from many of its earlier welfare functions directed at economic
and social well-being. In place of the welfare state, it is the market that becomes the
prime determinant of economic and social priorities.
The entry and 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.
At the same time, globalisation does not always reduce state capacity.
The primacy of the state continues to be the unchallenged basis of political community.
The old jealousies and rivalries between countries have not ceased (end) to matter in world
politics.
The state continues to discharge its essential functions (law and order, national security) and
consciously withdraws from certain domains from which it wishes to. States continue to be
important.
Indeed, in some respect state capacity has received a boost as a consequence of
globalisation, with enhanced technologies available at the disposal of the state to collect
information about its citizens. With this information, the state is better able to rule, not less
able. Thus, states become more powerful than they were earlier as an outcome of the new
technology.
2) ECONOMIC CONSEQUENCES
While everything may not be known about the economic facets of globalisation, this
particular dimension shapes a large part of the content and direction of contemporary debates
surrounding globalisation.
The mention of economic globalisation draws our attention immediately to the role of
international institutions like the IMF and the WTO and the role they play in determining
economic policies across the world.
Globalisation must not be viewed in such narrow terms. Economic globalisation involves
many actors other than these international institutions. A much broader way of
understanding of economic globalisation requires us to look at the distribution of economic
gains, i.e. who gets the most from globalisation and who gets less, indeed who loses from it.
Economic globalisation usually involves greater economic flows among different countries of
the world. Globalisation has involved greater trade in commodities across the globe; the
restrictions imposed by different countries on allowing the imports of other countries have
been reduced.
Investors in the rich countries can invest their money in countries other than their own,
including developing countries, where they might get better returns.
Globalisation has also led to the flow of ideas across national boundaries. The spread of
internet and computer related services is an example of that.
But globalisation has not led to the same degree of increase in the movement of people
across the globe. 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.
Economic globalisation has created an intense division of opinion all over the world.
Those who are concerned about social justice are worried about the extent of state
withdrawal caused by processes of economic globalisation. They point out that it is likely to
benefit only a small section of the population while impoverishing those who were dependent
on the government for jobs and welfare (education, health, sanitation, etc.). They have
emphasised the need to ensure institutional safeguards or creating ‘social safety nets’ to
minimise the negative effects of globalisation on those who are economically weak.
Q) What is Social safety Net?
A) Social safety Net is an institutional safeguard to minimise the negative effects of
globalisation on those who are economically weak.
Some economists have described economic globalisation as recolonization of the world.
Advocates of economic globalisation argue that it generates greater economic growth and
well-being for larger sections of the population when there is de-regulation (the removal of
restrictions). Greater trade among countries allows each economy to do what it does best.
What, however, cannot be denied is the increased momentum towards inter - dependence and
integration between governments, businesses, and ordinary people in different parts of the
world as a result of globalisation.
3) CULTURAL CONSEQUENCES
The consequences of globalisation are not confined only to the sphere of politics and
economy. Globalisation affects us in our home, in what we eat, drink, wear and indeed in
what we think. The cultural effect of globalisation leads to the fear that this process poses a
threat to cultures in the world. It does so, because globalisation leads to the rise of a
uniform culture or what is called cultural homogenisation.
The rise of a uniform culture is not the emergence of a global culture. What we have in
the name of a global culture is the imposition of Western culture on the rest of the world.
We have already studied this phenomenon as the soft power of US hegemony in Chapter 3.
The popularity of a burger or blue jeans, some argue, has a lot to do with the powerful
influence of the American way of life.
Thus, the culture of the politically and economically dominant society leaves its imprint on a
less powerful society, and the world begins to look more like the dominant power wishes it to
be. Those who make this argument often draw attention to the ‘McDonaldisation’ of the
world, with cultures seeking to buy into the dominant American dream.
This is dangerous not only for the poor countries but for the whole of humanity, for it leads
to the shrinking of the rich cultural heritage of the entire globe. At the same time, it
would be a mistake to assume that cultural consequences of globalisation are only negative.
Cultures are not static things. All cultures accept outside influences all the time. Some
external influences are negative because they reduce our choices. But sometimes external
influences simply enlarge our choices, and sometimes they modify our culture without
overwhelming the traditional.
The burger is no substitute for a masala dosa and, therefore, does not pose any real
challenge. It is simply added on to our food choices. Blue jeans, on the other hand, can go
well with a homespun khadi kurta.
Globalisation leads to each culture becoming more different and distinctive. This
phenomenon is called cultural heterogenization. Cultural exchange is rarely one way.
Q) Do you agree with the argument that globalisation leads to cultural heterogeneity?
INDIA AND GLOBALISATION
We said earlier that globalisation has occurred in earlier periods in history in different parts
of the world. Flows pertaining to the movement of capital, commodities, ideas and people go
back several centuries in Indian history. 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, because of this experience with the
British, we decided to make things ourselves rather than relying on others. We also decided
not to allow others to export to us so that our own producers could learn to make things. 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 has sought increasingly
to de-regulate various sectors including trade and foreign investment.
INDIA AND RESISTANCE TO GLOBALISATION
What has been India’s experience in resisting globalisation?
Social movements play a role in helping people make sense of the world around them and
finding ways to deal with matters that trouble them. Resistance to globalisation in India has
come from different quarters.
1)There have been left wing protests to economic liberalisation voiced through political
parties as well as through forums like the Indian Social Forum.
2)Trade unions of industrial workforce as well as those representing farmer interests have
organised protests against the entry of multinationals.
3) The patenting of certain plants like Neem by American and European firms has also
generated considerable opposition.
4)Resistance to globalisation has also come from the political right. This has taken the
form of objecting particularly to various cultural influences — ranging from the availability
of foreign T.V. channels provided by cable networks, celebration of Valentine’s Day, and
westernisation of the dress tastes of girl students in schools and colleges.
RESISTANCE TO GLOBALISATION
We have already noted that globalisation is a very contentious subject and has invited
strong criticism all over the globe.
Critics of globalisation make a variety of arguments.
1)Those on the left argue that contemporary globalisation represents a particular phase of
global capitalism that makes the rich richer (and fewer) and the poor poorer.
2) Weakening of the state leads to a reduction in the capacity of the state to protect the
interest of its poor.
3) Critics of globalisation from the political right express anxiety over the political,
economic and cultural effects.
3a) In political terms, they also fear the weakening of the state.
3b) Economically, they want a return to self-reliance and protectionism, at least in certain
areas of the economy.
3c) Culturally, they are worried that traditional culture will be harmed, and people will lose
their age-old values and ways.
Conclusion
Many anti-globalisation movements are not opposed to the idea of globalisation per se as
much as they are opposed to a specific programme of globalisation, which they see as a
form of imperialism.
In 1999, at the World Trade Organisation (WTO) Ministerial Meeting there were
widespread protests at Seattle alleging unfair trading practices by the economically powerful
states. It was argued that the interests of the developing world were not given sufficient
importance in the evolving global economic system.
Q) What is World Social Forum (WSF)? What is its objective?
The World Social Forum (WSF) is a global platform, which brings together a wide
coalition composed of human rights activists, environmentalists, labour, youth and women.
Its objective is to oppose neo-liberal globalisation.
The first WSF meeting was organised in Porto Alegre, Brazil in 2001. The fourth WSF
meeting was held in Mumbai in 2004. The latest WSF meeting was held in Brazil in March
2018.