Chapter 6 Globalisation And Social Change

6.1 Are Global Interconnections New To World And To India

Globalisation is a dominant theme in 21st-century social change. However, it raises the question of whether global interconnections are entirely new phenomena or a continuation of historical trends.

Historical Global Connections

India has a long history of interaction with the rest of the world, predating the modern period. Centuries ago, trade routes like the famous Silk Route connected India to civilizations in China, Persia, Egypt, and Rome. Throughout history, people from various parts of the world arrived in India as traders, conquerors, or migrants and settled down. Even today, some rural communities retain oral histories of their ancestors migrating from elsewhere.

Interactions were not limited to the movement of people and goods; they also involved the exchange of knowledge and ideas. Historical examples demonstrate this: Panini, the celebrated Sanskrit grammarian, was of Afghan origin. A 7th-century Chinese scholar learned Sanskrit in Java before traveling to India. The influence of these interactions is evident in the vocabulary of languages across Asia. Ancient Indian texts even contain a parable about a 'well-frog' ('kupamanduka') that lives in isolation and is suspicious of the outside world, serving as a warning against isolationism (Box 6.1 quotes Amartya Sen), suggesting a historical awareness of the importance of external engagement.

Thus, global interactions and a global outlook are not inventions of the modern period; they have been part of world history and India's history for centuries.

Colonialism and Global Connection

As discussed in Chapter 1, modern capitalism had a global dimension from its inception. Colonialism was an integral part of this system, providing capital, raw materials, energy, and markets for European capitalist growth and maintaining a global network of exploitation. While current globalisation often highlights large-scale migration, historical periods, such as European settlement in the Americas and Australia, the forced migration of indentured laborers from India to other colonies, and the transatlantic slave trade, also involved massive population movements.

Independent India and the World

Independent India maintained a global perspective inherited from the nationalist movement, which advocated solidarity with liberation struggles worldwide. Indians continued to travel abroad for education and work, and trade in goods, raw materials, and technology remained ongoing. Foreign firms also operated in India. Therefore, to understand contemporary globalisation, it's necessary to determine if the current phase represents a fundamentally different kind of change compared to past global connections.

6.2 Understanding Globalisation

While India has a history of global links, contemporary **globalisation** is characterized by significant changes in the capitalist system, communication, labor organization, technology, and cultural experiences, distinguishing it from earlier periods of global interaction. It involves the intensified speed and scope of connections worldwide, profoundly transforming work and life.

Sociology uses the sociological imagination to understand the connections between the individual and broader society, and specifically, between the local and the global. Globalisation affects individuals in remote villages, impacts employment chances for different social classes, influences the ability of corporations to become transnational, alters local markets due to the entry of global retailers, drives urban development through phenomena like shopping malls, and changes leisure activities.

Policy changes related to globalisation have tangible effects on daily life. The removal of import restrictions means local shops now stock products from around the world, changing consumption patterns. Macro-level policies lead to a proliferation of television channels, making media a highly visible manifestation of globalisation.

Globalisation affects everyone, but the impact is uneven. While some benefit from new opportunities, others, particularly those already marginalized, may face job losses and worsened conditions (e.g., displacement of silk spinners due to cheaper imports, or loss of livelihood for traditional fishers and vendors due to large fishing vessels). The impact varies significantly across different sections of society.

Views on globalisation are sharply divided. Some see it as essential for a better world, while others fear it exacerbates inequalities, primarily benefiting privileged groups while harming the already excluded. Another perspective suggests that globalisation is not a truly new phenomenon but a continuation of long-standing global interconnections. The following sections explore the distinctive features of contemporary globalisation.

Defining Globalisation

Globalisation refers to the increasing interdependence among people, regions, and countries worldwide, as social and economic relationships extend across the globe. While economic forces are central, globalisation is driven significantly by advancements in information and communication technologies (ICT), which have dramatically increased the speed and reach of interactions. It also has a distinct political context.

Understanding globalisation requires examining its various dimensions, which are closely interconnected:

• Economic Dimensions
• Political Dimensions
• Cultural Dimensions

The Economic

The economic dimension of globalisation is often linked to liberalisation policies, although the terms are not synonymous. Liberalisation refers to specific policy changes adopted by a country to open its economy to global markets.

The Economic Policy Of Liberalisation

In India, liberalisation involves policy decisions since 1991 to reduce state control and integrate the Indian economy with the world market. This was a departure from the earlier policy aimed at protecting the domestic market and industries from international competition, based on the understanding that a former colony would be at a disadvantage in a free market. Liberalisation means systematically removing regulations on trade and finance, often referred to as economic reforms.

These reforms involved integrating into the global market, often tied to loans from international institutions like the IMF, which impose conditions requiring structural adjustments (e.g., cuts in state spending on social sectors like health, education, and social security) and giving increased influence to international bodies like the WTO on trade policies.

The Transnational Corporations

Transnational Corporations (TNCs), also known as Multinational Corporations (MNCs), are key economic drivers of globalisation. These companies operate (produce goods or market services) in multiple countries. They range from small firms with limited international presence to massive global entities like Coca-Cola, General Motors, etc., with operations spanning the world. TNCs are oriented towards global markets and profits, even if they originate from a specific country. Some Indian corporations are also becoming transnational, with uncertain implications for the Indian population as a whole.

The Electronic Economy

The 'electronic economy' is a fundamental aspect of economic globalisation, enabled by advancements in communication technology. Banks, corporations, and investors can move funds internationally almost instantaneously using electronic systems. This ability to move 'electronic money' rapidly carries significant risks, particularly for developing economies, as seen in the impact of foreign investors quickly buying and selling stocks, affecting stock market stability. This phenomenon is entirely dependent on the ongoing communication revolution.

The Weightless Economy Or Knowledge Economy

Contemporary global economy is increasingly based on information and knowledge, moving away from solely agricultural or industrial production. The 'weightless economy' refers to products based on information, such as software, media, entertainment, and internet services. A 'knowledge economy' describes an economy where a large portion of the workforce is involved in the design, development, technology, marketing, sales, and servicing of goods, rather than just physical production. This includes a wide range of services, from small local businesses to large international operations, creating new occupations previously non-existent, like event managers.

Globalisation Of Finance

The information technology revolution has specifically led to the globalisation of finance. Globally integrated financial markets conduct massive transactions worth billions of dollars electronically and instantaneously. This allows for 24-hour trading across major financial centers like New York, Tokyo, and London. Mumbai in India is a key national financial hub integrated into this global network.

Global Communications

Revolutionary advancements in information and communication technologies (ICT) and global telecommunications infrastructure are a primary driver of the intensity and speed of contemporary globalisation. Technologies like fiber optics, satellites, mobile networks, and the internet have dramatically increased the speed and scope of interaction worldwide.

Widespread access to communication tools (landlines, mobiles, fax, digital/cable TV, email, internet) facilitates the 'compression of time and space'. Individuals geographically distant can communicate and exchange information instantaneously. This has given rise to the concept of a 'network and media society'. The Indian government's 'Digital India' initiative aims to enhance digital connectivity and integrate various exchanges through digitisation, working towards a 'digitally empowered society' and a 'knowledge economy'.

While access to these technologies is expanding rapidly, particularly mobile phone usage in urban areas, a 'digital divide' persists in India, with rural areas often lagging due to infrastructure limitations, literacy issues, and erratic power supply. Despite this, PCOs (Public Call Offices) historically played a significant role in providing access in remote areas, demonstrating the strong socio-cultural need for communication, particularly for maintaining family ties, which also drives the rapid adoption of mobile phones (Box 6.3).

Globalisation And Labour

Globalisation And A New International Division Of Labour

Globalisation has facilitated a new international division of labor. Routine manufacturing and production are increasingly concentrated in cities in developing countries. This is linked to concepts like outsourcing (contracting work to external firms) and **contract farming** (covered in Chapters 5 and 4 respectively). The example of Nike (Box 6.4) illustrates how production facilities are moved to countries where labor costs are cheapest, making the workforce in these locations vulnerable as production can relocate again.

This trend shifts from a model of mass production at central locations ('Fordism') to a system of flexible production dispersed across different locations globally ('post-Fordism'). This flexibility in labor location often benefits corporations by allowing them to seek lower production costs.

Box 6.4 on General Motors illustrates the dispersed nature of production in the global economy. A car marketed as 'American' has components and labor sourced from numerous countries (South Korea, Japan, Germany, Taiwan, Singapore, UK, Barbados/Ireland), with only a fraction of the final showroom price going to the country where it is primarily marketed, highlighting the intricate global supply chains and international division of labor involved in manufacturing complex products.

Globalisation And Employment

Globalisation's impact on employment is uneven. While it has opened new career opportunities for some, especially urban, educated youth in sectors like IT, BPO, and retail, broader employment trends are concerning (Box 6.5). An ILO report highlighted a growing 'employment gap' in Asia, where job creation hasn't kept pace with economic growth.

Globalisation And Political Changes

Globalisation has been significantly influenced by political changes, particularly the collapse of the socialist bloc. This event contributed to the widespread adoption of neo-liberal economic measures, characterized by a belief in free markets, reduced state regulation, and cuts in state subsidies.

The liberalisation policies implemented in India reflect this political vision, assuming that market forces are inherently efficient and fair. While this is the dominant political framework accompanying current globalisation, alternative visions, such as 'inclusive globalisation' aiming to benefit all sections of society, also exist.

Another key political development linked to globalisation is the rise of international and regional political collaborations, exemplified by organizations like the European Union (EU), ASEAN, and SAARC, indicating increased regional cooperation.

The influence of International Governmental Organisations (IGOs) like the World Trade Organization (WTO) has grown. IGOs are established by governments to regulate or oversee transnational activities, and the WTO plays a significant role in setting rules for global trade.

Alongside IGOs, **International Non-Governmental Organisations (INGOs)** have also gained prominence. Unlike IGOs, INGOs are independent of governments and address international issues (e.g., Greenpeace, Red Cross, Amnesty International, Doctors Without Borders). Both IGOs and INGOs represent different forms of global governance and activism that are part of the political landscape of globalisation.

Globalisation And Culture

Globalisation significantly impacts culture, raising debates about whether it leads to cultural homogenization or promotes the mixing of global and local elements. While India has a history of absorbing diverse cultural influences, the scale and intensity of current cultural change due to globalisation are unprecedented.

Homogenisation Versus Glocalisation Of Culture

One perspective argues that globalisation leads to cultural homogenisation, making cultures worldwide increasingly similar. The counter-argument highlights the process of glocalisation, where global products or practices are modified to suit local contexts and traditions. Glocalisation is often a deliberate strategy by foreign firms to enhance marketability by adapting to local culture (e.g., foreign TV channels using local languages, McDonald's offering vegetarian options in India and adapting menu during festivals). The rise of fusion music forms like 'Bhangra pop' and 'Indi pop' can also be seen as examples of glocalisation.

India's cultural tradition has historically been open to external influences. Debates about cultural change and tradition are not new, as seen in the 19th-century reform movements. Culture is dynamic and adapts. It is likely that globalisation will lead to the creation of new cultural forms, both locally and globally, rather than simple cultural collapse or static preservation.

Gender And Culture

The concept of cultural identity is sometimes misused to defend discriminatory practices against women (e.g., justifying sati, denying education or public participation). Globalisation can be invoked as a threat by those seeking to maintain unjust traditional practices. However, India's democratic tradition provides a framework for defining culture in a more inclusive and equitable manner, challenging such discriminatory uses of cultural identity.

Culture Of Consumption

Globalisation is closely linked to the rise of a distinct culture of consumption. While consumption has always existed, its role in shaping urban growth has become increasingly significant. Unlike the past, where manufacturing industries were primary drivers of city development, contemporary urban growth is heavily influenced by **cultural consumption** related to art, food, fashion, music, and tourism. This is evident in the proliferation of shopping malls, multiplex cinemas, amusement parks, and themed leisure facilities in Indian cities.

Advertisements and media actively promote a culture where spending is emphasized, and traditional virtues of financial prudence may be devalued. Shopping itself is encouraged as a leisure activity. The media's portrayal of aspirational lifestyles (e.g., fashion pageants, game shows like 'Kaun Banega Crorepati') also fuels this consumer culture.

Corporate Culture

Corporate culture, originating from management theory, refers to efforts to create a unique organizational environment and shared values within a company to enhance productivity and competitiveness. It includes company events, rituals, and traditions aimed at fostering employee loyalty and solidarity. Corporate culture also encompasses how businesses operate, promote themselves, and package their products.

The growth of MNCs and opportunities in the IT sector have created a new class of upwardly mobile professionals in metropolitan India. These individuals, working in fields like software, banking, and media, often have demanding schedules, high salaries, and constitute the primary clientele for the expanding consumer industry, reflecting the interplay between economic change, new social classes, and consumption patterns.

Threat To Many Indigenous Craft And Literary Traditions And Knowledge Systems

Globalisation poses a significant threat to many indigenous craft, literary traditions, and traditional knowledge systems. While modern development processes even before globalisation impacted these areas, the current scale and intensity of change are much greater.

Examples include the decline of traditional theater groups linked to textile mills in Mumbai after mill closures, and the suicides of traditional weavers in Andhra Pradesh unable to compete with power looms and adapt to changing consumer tastes. Traditional knowledge systems in medicine and agriculture are also vulnerable; attempts by MNCs to patent traditional remedies (like Tulsi, Haldi) and crops (like Basmati rice) highlight the need to protect these indigenous knowledge bases.

The impact of globalisation on traditional entertainers, like the dombari community who rely on acrobatics, is also severe, as modern media and entertainment forms displace traditional performances, leading to loss of livelihood and cultural practices (Box 6.6).

Globalisation's effects on various aspects of society, including industry and agriculture (linking back to Chapters 4 and 5), are vast and complex, requiring a nuanced understanding using sociological imagination.