Overview Chapter 7

In this final chapter of the book we

Globalisation
look at globalisation, something
that has been referred to in
many chapters of this book and
textbooks of many other subjects.
We begin by analysing the concept
of globalisation and then examine
its causes. We then discuss at
length the political, economic
and cultural consequences of
globalisation. Our interest is also in
studying the impact of globalisation
on India as well as how India is
affecting globalisation. We finally
draw attention to resistance to
globalisation and how social
movements in India also form part
of this resistance.

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 100 Contemporary World Politics

The Concept of college life by working very hard.

She now has an opportunity
Globalisation to take on a job and begin an
independent career, which the
Janardhan works in a call centre.
women of her family had never
He leaves late in the evening for
dreamt of earlier. While some
work, becomes John when he
of her relatives are opposed,
enters his office, acquires a new
she finally decides to go ahead
accent and speaks a different
because of the new opportunities
language (than he does when he is
that have been made available to
at home) to communicate with his
her generation.
clients who are living thousands
of miles away. He works all night, All three examples illustrate
So many Nepalese
workers come to which is actually day time for his an aspect each of what we call
India to work. Is that overseas customers. Janardhan is globalisation. In the first instance
globalisation? rendering a service to somebody Janardhan was participating
who in all probability he is never in the globalisation of services.
likely to meet physically. This is Ramdhari’s birthday purchases
his daily routine. His holidays tell us something about the
also do not correspond to the movement of commodities from
Indian calendar but to those of one part of the world to another.
his clients who happen to be from Sarika is faced with a conflict of
the US. values partly originating from
a new opportunity that earlier
Ramdhari has gone shopping was not available to the women
to buy a birthday gift for his in her family but today is part of
nine-year old daughter. He has a reality that has gained wider
promised her a small cycle and acceptability.
decides to search the market for
something he finds affordable as If we look for examples of the
well as of reasonable quality. He use of the term ‘globalisation’ in
finally does buy a cycle, which is real life, we will realise that it is
actually manufactured in China used in various contexts. Let us
but is being marketed in India. look at some examples, different
It meets his requirements of from the ones that we have looked
quality as well as affordability, above:
and Ramdhari decides to go Some far mers committed
ahead with his purchase. Last suicide because their crops
Go through year, Ramdhari on his daughter’s failed. They had bought very
newspapers insistence had bought her a expensive seeds supplied
for a week Barbie doll, which was originally by a multinational company
and collect manufactured in the US but was (MNC).
clippings being sold in India.
on anything An Indian company bought
related to Sarika is a first generation a major rival company based
globalisation. learner who has done remarkably in Europe, despite protests by
well throughout her school and some of the current owners.

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 Globalisation 101

Many retail shopkeepers fear

This chapter has
that they would lose their a series of images
livelihoods if some major about political,
international companies open economic and
retail chains in the country. cultural aspects of
globalisation, taken
A film producer in Mumbai
from different parts
was accused of lifting the of the world.
story of his film from another
film made in Hollywood.
A militant group issued a
statement threatening college
girls who wear western
clothes.
These examples show us that
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. These examples also
show us that globalisation need
not be only about the economic
issues, nor is the direction of
influence always from the rich to
the poor countries.
Since much of the usage
tends to be imprecise, it becomes
important to clarify what we mean
by 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. The crucial element is the
Much of the Chinese
‘worldwide interconnectedness’ stuff that comes to
that is created and sustained as India is smuggled.
a consequence of these constant Does globalisation
flows. lead to smuggling?

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 102 Contemporary World Politics

Globalisation is a multi- While globalisation is not

dimensional concept. It has caused by any single factor,
political, economic and cultural technology remains a critical
manifestations, and these must element. There is no doubt that
be adequately distinguished. It is the invention of the telegraph,
wrong to assume that globalisation the telephone, and the microchip
has purely economic dimensions, in more recent times has
Isn’t globalisation just as it would also be mistaken
a new name for
revolutionised communication
to assume that it is a purely between different parts of the
imperialism? Why
cultural phenomenon. The impact
do we need a new world. When printing initially
name? of globalisation is vastly uneven —
came into being it laid the basis
it affects some societies more than
for the creation of nationalism.
others and some parts of some
So also today we should expect
societies more than others — and
that technology will affect the
it is important to avoid drawing
way we think of our personal but
general conclusions about the
impact of globalisation without also our collective lives.
paying sufficient attention to The ability of ideas, capital,
specific contexts. commodities and people to move
more easily from one part of the

Causes of Globalisation
world to another has been made
possible largely by technological
What accounts for globalisation? advances. The pace of these
If globalisation is about the flows flows may vary. For instance,
of ideas, capital, commodities, and the movement of capital and
people, it is perhaps logical to ask commodities will most likely
if there is anything novel be quicker and wider than the
about this phenomenon. movement of peoples across
Globalisation in terms of different parts of the world.
these four flows has taken
Globalisation, however, does
place through much of
not emerge merely because
human history. However,
of the availability of improved
those who argue that there
communications. What is
is something distinct about
contemporary globalisation important is for people in different
point out that it is the parts of the world to recognise
© Ares, Cagle Cartoons Inc.

scale and speed of these these interconnections with the

flows that account for the rest of the world. Currently, we
uniqueness of globalisation are aware of the fact that events
in the contemporary era. taking place in one part of the
Globalisation has a strong world could have an impact on
historical basis, and it is another part of the world. The
important to view contem- Bird flu or tsunami is not confined
porary flows against this to any particular nation. It does
Digital Economy backdrop. not respect national boundaries.

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 Globalisation 103

Similarly, when major economic

events take place, their impact is
felt outside their immediate local,
national or regional environment
at the global level.

Political Consequences
One of the debates that has been
generated as a consequence
of contemporary processes of
globalisation relates to its ongoing
political impact. How does
globalisation affect traditional
conceptions of state sovereignty?
There are at least three aspects
that we need to consider when
answering this question.
At the most simple 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

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 104 Contemporary World Politics

continues to be the unchallenged Economic Consequences

basis of political community.
The old jealousies and rivalries While everything may not be
between countries have not ceased known about the economic
to matter in world politics. The facets of globalisation, this
state continues to discharge its particular dimension shapes
essential functions (law and order, a large part of the content and
national security) and consciously direction of contemporary debates
withdraws from certain domains surrounding globalisation.
from which it wishes to. States
A part of the problem has
continue to be important.
to do with defining economic
Indeed, in some respects state globalisation itself. The mention of
capacity has received a boost as a economic globalisation draws our
consequence of globalisation, with attention immediately to the role
enhanced technologies available of international institutions like
at the disposal of the state to the IMF and the WTO and the role
collect information about its they play in determining economic
citizens. With this information, policies across the world. Yet,
the state is better able to rule, globalisation must not be viewed
not less able. Thus, states become in such narrow terms. Economic
more powerful than they were globalisation involves many actors
earlier as an outcome of the new other than these international
technology. 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.
What is often called economic
globalisation usually involves
© Milt Priggee, Cagle Cartoons Inc.

greater economic flows among

different countries of the world.
Some of this is voluntary and
some forced by international
institutions and powerful
countries. As we saw in the
examples at the beginning of this
chapter, this flow or exchange can
take various forms: commodities,
capital, people and ideas.
Globalisation has involved greater
trade in commodities across the
globe; the restrictions imposed by

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 Globalisation 105

different countries on allowing

the imports of other countries
have been reduced. Similarly,
the restrictions on movement
of capital across countries have
also been reduced. In operational
terms, it means that 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.
In thinking about the
consequences of globalisation, it
is necessary to keep in mind that
the same set of policies do not lead
to the same results everywhere.
While globalisation has led to
similar economic policies adopted
by governments in different parts
of the world, this has generated
vastly dif ferent outcomes in
different parts of the world. It is
again crucial to pay attention to
specific context rather than make
simple generalisations in this When we talk about
connection. ‘safety net’ it means
that we expect
Economic globalisation has
some people to fall
created an intense division of down because of
opinion all over the world. Those globalisation. Isn’t
who are concerned about social that right?

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 106 Contemporary World Politics

justice are worried about the What, however, cannot be denied

extent of state withdrawal is the increased momentum
caused by processes of economic towards inter-dependence and
globalisation. They point out that integration between governments,
it is likely to benefit only a small businesses, and ordinary people
section of the population while in different parts of the world as
impoverishing those who were a result of globalisation.
dependent on the government
for jobs and welfare (education,
health, sanitation, etc.). They Cultural Consequences
have emphasised the need to
The consequences of globalisation
ensure institutional safeguards
are not confined only to the
or creating ‘social safety nets’
sphere of politics and economy.
to minimise the negative effects
Globalisation affects us in our
of globalisation on those who
home, in what we eat, drink, wear
are economically weak. Many
and indeed in what we think. It
movements all over the world feel
shapes what we think are our
that safety nets are insufficient
Make a list of preferences. The cultural effect
or unworkable. They have called
products of of globalisation leads to the fear
for a halt to forced economic
multinational that this process poses a threat to
globalisation, for its results would
companies cultures in the world. It does so,
lead to economic ruin for the
(MNCs) that because globalisation leads to the
weaker countries, especially for
are used by rise of a uniform culture or what
the poor within these countries.
you or your is called cultural homogenisation.
Some economists have described
family. The rise of a uniform culture is
economic globalisation as re-
not the emergence of a global
colonisation of the world.
culture. What we have in the
Advocates of economic
globalisation argue that it
generates gr eater economic
growth and well-being for larger
sections of the population when
there is de-regulation. Greater
trade among countries allows
each economy to do what it does
© Andy Singer, Cagle Cartoons Inc.

best. This would benefit the

whole world. They also argue
that economic globalisation is
inevitable and it is not wise
to resist the march of history.
More moderate supporters of
globalisation say that globalisation
provides a challenge that can
be responded to intelligently
without accepting it uncritically. Invading new markets

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 Globalisation 107

name of a global culture is the

imposition of Western culture
on the rest of the world. This
phenomenon is known as the
soft power of US hegemony. 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, Why are we scared
the culture of the politically of Western culture?
and economically dominant Are we not confident
society leaves its imprint on a of our own culture?
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 Make a list of
choices. But sometimes external all the known
influences simply enlarge our ‘dialects’ of
choices, and sometimes they your language.
modify our culture without Consult
overwhelming the traditional. people of your
The burger is no substitute for grandparents’
a masala dosa and, therefore, generation
does not pose any real challenge. about this. How
It is simply added on to our many people
food choices. Blue jeans, on the speak those
other hand, can go well with a dialects today?
homespun khadi kurta. Here

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 108 Contemporary World Politics

the outcome of outside influence India and Globalisation

is a new combination that is
unique — a khadi kurta worn over We said earlier that globalisation
jeans. Interestingly, this clothing has occurred in earlier periods in
combination has been exported history in different parts of the
back to the country that gave us world. Flows pertaining to the
blue jeans so that it is possible movement of capital, commodities,
to see young Americans wearing ideas and people go back several
a kurta and jeans! centuries in Indian history.

While cultural homogenisation During the colonial period,

is an aspect of globalisation, the as a consequence of Britain’s
same process also generates imperial ambitions, India
precisely the opposite effect. It became an exporter of primary
leads to each culture becoming goods and raw materials and a
more different and distinctive. This consumer of finished goods. After
phenomenon is called cultural independence, because of this
heterogenisation. This is not to experience with the British, we
deny that there remain differences decided to make things ourselves
in power when cultures interact rather than relying on others.
but instead more fundamentally We also decided not to allow
to suggest that cultural exchange others to export to us so that our
is rarely one way. own producers could learn to
make things. This ‘protectionism’
generated its own problems.
‘Gosh, an Indian again!’ While some advances were made
in certain arenas, critical sectors
such as health, housing and
An insider’s view of a call centre job primary education did not receive
the attention they deserved.
Working in a call centre, in fact, can be enlightening in its
India had a fairly sluggish rate of
own way. As you handle calls from Americans, you get an
insight into the true American culture. An average American economic growth.
comes out as more lively and honest than we imagine… In 1991, responding to a
financial crisis and to the desire
However, not all calls and conversations are pleasant. You
can also receive irate and abusive callers. Sometimes the for higher rates of economic
hatred that they exhibit in their tone on knowing that their growth, India embarked on a
call has been routed to India is very stressful. Americans tend programme of economic reforms
to perceive every Indian as one who has denied them their that has sought increasingly to
rightful job... de-regulate various sectors including
trade and foreign investment.
One can receive a call, beginning on the lines of “I spoke to
a South African a few minutes ago and now I’m speaking
While it may be too early to say
to an Indian!” or “Oh gosh, an Indian again! Connect me to how good this has been for India,
an American please...”. It’s difficult to find the right response the ultimate test is not high
in situations of this kind. growth rates as making sure that
the benefits of growth are shared
Source: Report by Ranjeetha Urs in The Hindu, 10 January 2005.
so that everyone is better off.

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 Globalisation 109

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. Those on the left argue
that contemporary globalisation It is true sometimes
represents a particular phase of I like the new songs.
global capitalism that makes the Didn’t we all like to
dance a bit? Does
rich richer (and fewer) and the
it really matter if
poor poorer. Weakening of the it is influenced by
state leads to a reduction in the western music?
capacity of the state to protect
the interest of its poor. Critics of
globalisation from the political
right express anxiety over the
political, economic and cultural
effects. In political terms, they
also fear the weakening of the
state. Economically, they want
a return to self-reliance and
protectionism, at least in certain
areas of the economy. Culturally,
they are worried that traditional
culture will be harmed and people
will lose their age-old values and
ways.
It is important to note here that
anti-globalisation movements too
participate in global networks,
allying with those who feel like
them in other countries. 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

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 110 Contemporary World Politics

The activity enables students to understand how

globalisation has penetrated our lives and the
impact the all-inclusive nature of globalisation has
on an individual, a community and a nation as a
whole.

STEPS
 Students are to list the names of products — food
products, white goods, and luxuries, they are familiar
with.
 Students are to write down their favourite TV
programmes.
 The teacher is to collect the list and consolidate.
 Divide the classroom (into convenient groups) and
assign each group a number of items (depends on
how exhaustive the list is) and TV programmes.
 Let students find out who are the manufacturers of
the products they use everyday and the makers/
sponsors of their favourite TV programmes.
 The teacher is to (by involving students) classify
the names of manufacturers and makers/sponsors
collected by students into three categories: exclusive
foreign companies; exclusive Indian companies;
and companies working in collaboration.
Ideas for the Teacher
 The teacher is to debrief the students focussing on:
How globalisation has been impacting our lives.
 Drawing the attention of the students to different faces of
globalisation. As we use more foreign goods, our own small-
scale industries have been losing their customers and are closing
down.
 The activity could be concluded by introducing students to
the ongoing debates about the impact of globalisation on the
developing and developed countries.

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 Globalisation 111

pr otests at Seattle alleging around them and finding ways

unfair trading practices by the to deal with matters that trouble
economically powerful states. It them. Resistance to globalisation
was argued that the interests of in India has come from different
the developing world were not quarters. There have been left wing
given sufficient importance in the protests to economic liberalisation
evolving global economic system. voiced through political parties
as well as through forums like
The World Social Forum (WSF) the Indian Social Forum. Trade
is another global platform, which unions of industrial workforce
brings together a wide coalition as well as those representing
composed of human rights farmer interests have organised
activists, environmentalists, protests against the entry of
l a b o u r, y o u t h a n d w o m e n multinationals. The patenting
activists opposed to neo-liberal of certain plants like Neem by
globalisation. The first WSF American and European firms
meeting was organised in Porto has also generated considerable
Alegre, Brazil in 2001. The fourth opposition.
WSF meeting was held in Mumbai Resistance to globalisation
in 2004. The latest WSF meeting has also come from the political
was held in Brazil in March 2018. right. This has taken the form
of objecting particularly to
various cultural influences —
India and Resistance to ranging from the availability
Globalisation o f f o r e i g n T. V. c h a n n e l s
provided by cable networks,
What has been India’s experience celebration of Valentine’s Day,
in resisting globalisation? Social and westernisation of the dress
movements play a role in helping tastes of girl students in schools
Exercises
people make sense of the world and colleges.

1. Which of the statements are TRUE about globalisation?

a. Globalisation is purely an economic phenomenon.
b. Globalisation began in 1991.
c. Globalisation is the same thing as westernisation.
d. Globalisation is a multi-dimensional phenomenon.
2. Which of the statements are TRUE about the impact of globalisation?
a. Globalisation has been uneven in its impact on states and
societies.
b. Globalisation has had a uniform impact on all states and
societies.

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 112 Contemporary World Politics

c. The impact of globalisation has been confined to the political

sphere.
d. Globalisation inevitably results in cultural homogeneity.
3. Which of the statements are TRUE about the causes of globalisation?
a. Technology is an important cause of globalisation.
b. Globalisation is caused by a particular community of people.
c. Globalisation originated in the US.
d. Economic interdependence alone causes globalisation.
4. Which of the statements are TRUE about globalisation?
a. Globalisation is only about movement of commodities
Exercises

b. Globalisation does not involve a conflict of values.

c. Services are an insignificant part of globalisation.
d. Globalisation is about worldwide interconnectedness.
5. Which of the statements are FALSE about globalisation?
a. Advocates of globalisation argue that it will result in greater
economic growth.
b. Critics of globalisation argue that it will result in greater economic
disparity.
c. Advocates of globalisation argue that it will result in cultural
homogenisation.
d. Critics of globalisation argue that it will result in cultural
homogenisation.
6. What is worldwide interconnectedness? What are its components?
7. How has technology contributed to globalisation?
8. Critically evaluate the impact of the changing role of the state in
the developing countries in the light of globalisation.
9. What are the economic implications of globalisation? How has
globalisation impacted on India with regard to this particular
dimension?
10. Do you agree with the argument that globalisation leads to cultural
heterogeneity?
11. How has globalisation impacted on India and how is India in turn
impacting on globalisation?

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