Chapter 9 Globalisation

This final chapter examines the phenomenon of **globalisation**, a concept frequently referenced across various academic disciplines. It begins by defining globalisation and exploring its underlying causes. The chapter then delves into the political, economic, and cultural consequences of globalisation, including its impact on India and how India, in turn, influences global trends. Finally, it discusses resistance movements against globalisation, particularly focusing on social movements in India that are part of this resistance.

The Concept Of Globalisation

The concept of globalisation can be illustrated through various examples of how interconnectedness impacts individuals and societies globally:

• Janardhan working at a call center, adopting a different identity and accent to communicate with clients overseas, signifies the **globalization of services** and the integration of economies across vast distances. His work routine and holidays being dictated by the time zones and calendars of his foreign clients highlight this interconnectedness.
• Ramdhari purchasing a bicycle manufactured in China and marketed in India, or his daughter receiving a Barbie doll manufactured in the US and sold in India, exemplifies the **movement of commodities** across international borders, a key aspect of economic globalisation.
• Sarika's opportunity for an independent career, previously uncommon for women in her family, reflects the influence of changing social values and new opportunities facilitated by globalisation, highlighting its impact on **cultural norms and individual choices**.

Globalisation is used in diverse contexts, not always positively. Other examples illustrate its potentially negative or complex aspects:

• Farmers committing suicide due to crop failure after buying expensive seeds from multinational companies (MNCs) points to the vulnerability of local economies to global market forces and MNC influence.
• An Indian company acquiring a European rival despite protests highlights the complex dynamics of global capital flows and corporate power.
• Concerns of local shopkeepers about losing livelihoods due to major international retail chains entering the market demonstrate the economic challenges posed by global competition to small businesses.
• Accusations of plagiarism in filmmaking across borders (e.g., Bollywood lifting from Hollywood) indicate the flow of ideas and cultural products, but also issues of intellectual property and originality.
• Threats from militant groups against adopting Western cultural practices show resistance to cultural globalisation and the potential for cultural clashes.

These examples underscore that globalisation is not universally positive and can have detrimental effects. It's a multifaceted phenomenon extending beyond purely economic issues and involves influence flowing in various directions, not just from wealthy to poorer nations.

Fundamentally, globalisation is about **flows** – of ideas, capital, commodities, and people – across borders. The defining characteristic is the resulting **'worldwide interconnectedness'** that is created and sustained by these continuous transnational flows. It is a multi-dimensional concept encompassing political, economic, and cultural aspects. Its impact is highly uneven, affecting different societies and parts of societies differently. General conclusions about globalisation's impact should be avoided without considering specific contexts.

This collage represents the diverse manifestations of globalisation across the globe, illustrating its political impacts (e.g., protests), economic reach (e.g., brands, trade), and cultural influences (e.g., fashion, symbols).

Causes Of Globalisation

Globalisation is not driven by a single cause, but by a combination of factors. While the movement of ideas, capital, commodities, and people has occurred throughout history, contemporary globalisation is distinguished by the **scale and speed** of these flows. This heightened intensity is a defining feature of the current era.

Technology is a critical element driving contemporary globalisation. Inventions like the telegraph, telephone, and microchip have revolutionized global communication, making the movement of information, capital, and ideas faster and easier than ever before. Just as printing technology facilitated the rise of nationalism, modern communication technologies are influencing how we perceive our personal and collective identities and interactions globally.

Technological advances have facilitated the increased flow of ideas, capital, commodities, and people across borders. However, the speed of these flows varies; capital and commodity movement is generally faster and wider than the movement of people, as restrictions on migration persist.

Beyond technology, globalisation is also driven by increasing awareness of global interconnectedness. People worldwide now recognize that events in one part of the world can have rapid and significant impacts elsewhere. Global issues like bird flu or tsunamis transcend national borders. Similarly, major economic events, regardless of their origin, can have immediate and widespread global effects.

This cartoon illustrates how digital technologies and networks enable the rapid global flow of information, capital, and services, underscoring technology's role as a primary driver of contemporary economic globalisation.

Political Consequences

One major debate surrounding globalisation concerns its political impact, particularly its effect on the traditional concept of state sovereignty. There are varying perspectives on this:

At one level, globalisation is seen as leading to an **erosion of state capacity** – the government's ability to perform its functions effectively. The traditional 'welfare state,' which provided extensive social and economic well-being programs, is often replaced by a more **minimalist state**. This minimalist state focuses primarily on core functions like maintaining law and order and ensuring citizen security, while withdrawing from many welfare responsibilities. In this model, the market becomes the main driver of economic and social priorities. The increased presence and influence of multinational companies (MNCs) can further limit governments' ability to make independent decisions.

However, it's also argued that globalisation does not always diminish state capacity. The state remains the fundamental basis of political community, and national rivalries persist. States continue to perform essential functions like national security and law enforcement. Furthermore, states may strategically choose to withdraw from certain sectors rather than being forced to. In some ways, globalisation can even **boost state capacity**, as new technologies (like those for information gathering) become available to governments, potentially making them more effective in ruling and controlling their populations.

This cartoon illustrates the argument that globalisation causes the state to shrink or lose capacity, being squeezed by pressures from below (potentially local demands or challenges) and from above (transnational forces, global markets, international institutions), depicting a diminished role for national governments.

Economic Consequences

The economic dimension is central to debates about globalisation. Economic globalisation is often associated with the influence of international financial institutions like the IMF and WTO, which shape economic policies globally. However, this is a narrow view; economic globalisation involves many other actors and has broader implications regarding the distribution of economic benefits and costs.

Economic globalisation involves increased **economic flows** between countries, driven by both voluntary choices and pressures from international institutions or powerful states. These flows include:

• Greater **trade in commodities**, with reduced restrictions on imports.
• Increased **movement of capital**, allowing investors to invest across borders, including in developing countries seeking higher returns.
• Flow of **ideas**, facilitated by technologies like the internet.

However, the **movement of people** across borders has not increased to the same extent, as developed countries often maintain restrictive visa policies to protect domestic jobs.

A critical point is that the same economic policies adopted under globalisation can lead to vastly different outcomes in different countries, depending on their specific contexts. Generalizations about the economic impact are therefore problematic.

Economic globalisation has led to significant division of opinion:

• **Critics (often from the Left):** Argue that it benefits a small elite while increasing poverty and inequality. They worry that state withdrawal weakens the safety net for the poor and those dependent on government welfare. They advocate for strong 'social safety nets' but often see them as insufficient, calling for a halt to forced economic globalisation, which some describe as a form of 're-colonisation'.
• **Advocates:** Contend that deregulation and increased trade boost economic growth and benefit larger segments of the population by allowing countries to specialize in what they do best. They often view economic globalisation as an inevitable historical process. Moderate supporters suggest adapting intelligently to its challenges rather than simply resisting it.

Regardless of the perspective, economic globalisation has undeniably increased **interdependence and integration** among governments, businesses, and individuals worldwide.

This cartoon represents the 'social safety net' meant to protect vulnerable people (small figures) from falling through the cracks of the economic system (implied by globalisation/market forces). The holes in the net suggest that the protections are inadequate, leading to many people falling into hardship despite the existence of such measures.

This cartoon uses the image of a powerful figure literally stomping on the globe while labeled "Invading new markets," suggesting that the expansion of businesses into new territories through globalisation is often aggressive, exploitative, and potentially harmful to local economies or environments, portraying it as a forceful takeover rather than benign economic activity.

Cultural Consequences

Globalisation's impact extends significantly to culture, influencing daily life, preferences, and values. A major concern is that globalisation leads to **cultural homogenization** – the rise of a uniform global culture. Critics argue that this isn't a true global culture but rather the imposition of **Western culture**, particularly American culture, on the rest of the world (linking to the concept of US soft power). The popularity of symbols like burgers and blue jeans is seen as evidence of the powerful influence of the American way of life. This is viewed as dangerous because the culture of dominant powers overshadows and potentially erodes the diverse cultural heritage of less powerful societies, leading to a shrinking of global cultural richness, sometimes referred to as 'McDonaldisation'.

However, it is an oversimplification to see cultural consequences as only negative. Cultures are dynamic and constantly interact with external influences. While some influences can be negative by limiting choices, others can enrich or modify cultures without overwhelming traditional practices. For example, a burger doesn't replace traditional food like masala dosa; it simply adds to dietary options. Blue jeans combined with a traditional kurta create a new, unique hybrid style, which can even be re-exported back to the culture of origin. This highlights that cultural exchange is often a two-way process.

Therefore, while cultural homogenization is one aspect, globalisation also fosters **cultural heterogenization** – making each culture potentially more distinct through unique fusions and adaptations of global influences. While power imbalances exist in cultural interactions, cultural exchange is rarely a simple one-way street.

This cartoon, showing people in a mix of traditional and Western clothing styles, illustrates the phenomenon of cultural fusion or hybridization brought about by globalisation, where external influences interact with local cultures to create new, distinct forms, reflecting both homogenization (adoption of global styles) and heterogenization (unique combinations).

India And Globalisation

Globalisation, in terms of the flow of capital, commodities, ideas, and people, is not new to India. Historically, India has been connected through trade and cultural exchanges for centuries. During the British colonial period, India's economy was integrated into the British imperial system, serving as a supplier of raw materials and a market for finished goods.

After gaining independence, influenced by the colonial experience, India adopted a policy of self-reliance and protectionism. The aim was to build domestic industrial capacity and reduce reliance on imports. While this approach led to some advancements, it also created problems, including a relatively slow pace of economic growth and insufficient attention to critical sectors like health, housing, and primary education.

In 1991, facing a financial crisis and seeking higher economic growth rates, India initiated a program of **economic reforms**. These reforms aimed to increasingly deregulate various sectors, including trade and foreign investment, opening up the Indian economy to greater global integration. While assessing the full impact of these reforms is ongoing, the crucial measure of success is not merely high growth rates but ensuring that the benefits of growth are widely shared among the population.

Information about the call center experience ("Gosh, an Indian again!"):

This anecdote provides an insider's perspective on working in a call center in India, illustrating the direct experience of economic globalisation (globalization of services). It highlights both the positive aspects (insight into other cultures, opportunities) and the negative aspects (stress from dealing with abusive callers, encountering resentment from people in developed countries who feel their jobs have been lost to outsourcing). The comment "Oh gosh, an Indian again!" reflects the perception in some parts of the developed world that economic globalisation, particularly in the service sector, leads to job displacement and resentment towards workers in countries like India.

Resistance To Globalisation

Globalisation is a highly contested issue and has sparked significant criticism and resistance worldwide from various perspectives.

Arguments against globalisation include:

• **From the Left:** Contemporary globalisation is seen as a phase of global capitalism that exacerbates inequality, making the rich richer and the poor poorer. They argue that the weakening of the state reduces its ability to protect vulnerable populations and provide welfare.
• **From the Right:** Concerns exist about the political, economic, and cultural impacts. Politically, they also fear the state's weakening. Economically, they advocate for a return to protectionism and self-reliance in key areas. Culturally, they worry about the erosion of traditional values and practices due to foreign influences.

Significantly, many **anti-globalisation movements** are not against the idea of global interconnectedness itself but oppose the specific, often neo-liberal, form of globalisation they see as a new kind of imperialism driven by powerful economic interests. These movements often form **global networks**, collaborating with like-minded groups in other countries.

Major instances of anti-globalisation resistance include:

• **Seattle Protests (1999 WTO Ministerial Meeting):** Widespread protests against unfair trading practices favoring developed nations and concerns that the interests of the developing world were being neglected in the global economic system.
• **World Social Forum (WSF):** A global platform bringing together activists from various backgrounds (human rights, environmental, labor, youth, women) united in their opposition to neo-liberal globalisation. The first WSF was held in Brazil (2001), and it has convened in various locations globally, including Mumbai (2004).

This cartoon depicts a protest against globalisation, featuring signs with anti-globalization slogans, visually representing the widespread opposition and social movements challenging the impacts and practices associated with globalisation.

This cartoon portrays "Neo-Liberal Globalisation" as a powerful wave ridden by a figure representing capitalist interests, while protesters are shown being overwhelmed below, suggesting that the dominant form of globalisation is driven by specific economic ideologies and faces significant, yet struggling, resistance from various groups concerned about its effects.

India And Resistance To Globalisation

India has also witnessed significant resistance to globalisation, stemming from various segments of society and political spectrums. Social movements play a crucial role in interpreting the changes brought by globalisation and organizing responses.

Resistance in India has come from:

• **The Left:** Political parties and forums like the Indian Social Forum have voiced protests against economic liberalization policies associated with globalisation, arguing they harm the poor and benefit elites.
• **Trade Unions and Farmer Organizations:** These groups have organized protests against the entry and operations of multinational corporations (MNCs), fearing job losses for industrial workers and negative impacts on local farmers, for instance, regarding expensive seeds from MNCs. Opposition also arose over issues like the patenting of traditional knowledge (e.g., Neem) by foreign firms.
• **The Political Right:** Resistance from the right has often focused on opposing the cultural influences perceived as Westernization brought by globalisation. This includes objections to foreign TV channels, the celebration of Valentine's Day, and the adoption of Western clothing styles, particularly by young women.

These diverse forms of resistance reflect the complex and multifaceted impact of globalisation on India's economy, society, and culture, sparking debates and social movements across the country.