Globalisation

(d) Globalisation is a multi-dimensional phenomenon.

Explanation – Globalisation is a multi-dimensional phenomenon as it is not necessarily economic or political, rather it has various other forms that make it multidimensional, for example- culture. Globalisation is a concept fundamentally dealing with flows. These flows could be of various kinds- ideas flowing from one part of the world to another, capital transferred between two or more places or commodities transported from one place to another.

Globalisation does not have a beginning point. In fact, it's being said that globalisation has always existed in this world’s history in one form or the other. The only difference is that globalisation in contemporary times is much more intense in scale than what existed in the past.

Moreover, globalisation is not the same thing as westernisation. Globalisation refers to flows from one to another part of the world while westernisation is the adoption of western culture. Westernisation is a one-way flow i.e. from west to east and not a two-way flow while flows of globalisation don’t have a particular direction.

(a) Globalisation has been uneven in its impact on states and societies.

Explanation- Globalisation has been uneven in its impact on states and societies.

The flow of ideas, commodities and capital hasn’t been even all over the world. Globalisation definitely intermingles cultures and brings about cultural homogeneity but it also creates a completely distinct phenomenon called cultural heterogeneity making every culture more different.

The impact of globalisation has not only been in the political sphere but also in the economic and cultural sphere as well. Globalisation has impacted the flow of ideas, capital and commodity and has resulted in worldwide trade and commerce and cultural identification.

(a) Technology is an important cause of globalisation.

Explanation – Technology is an important cause of globalisation. Rising technology has knit the world closer. Distances have become shorter and travel and communication have become cheaper. Trade across the world can today be carried out on the click of a button. Transportation facilities have improved. Every person and institution are connected to one another through the internet. Every day a new technology comes up that makes these tasks even easier. Therefore, technology is an important cause of globalisation.

Globalisaion isn’t caused by a community. It is an affect t of the entire population of the world. Every person in his own small way contributes to globalisation. A person chatting with a foreign individual on facebook and exchanging their cultures contributes to globalisation as much as a multinational corporation.

Globalisation does not have a specific place of origin. Fundamentally, globalisation has existed in our world ever since history has been recorded. It has only increased in scale and intensity.

It's not economic interdependence alone that causes globalisation. Globalisation is a combined effect of the flow of capital, commodities and ideas.

(d) Globalisation is about worldwide interconnectedness.

Explanation- The essence of globalisation lies in worldwide interconnectedness. It's the most basic feature of globalisation. Every country in the world today is connected to another country in one way or the other. All the countries of the world are inter-dependent upon each other for various different things.

Globalisation isn’t just about movement of commodities but also capital and ideas.

Globalisation does involve a conflict of values as when ideas will flow they'll create some hustle bustle and there's got to be some conflict in understanding them. Globalisation is accused of cultural homogenisation as well as cultural heterogenisation.

Services are one of the most important parts of globalisation. Every economy of the world has a focus towards its services sector. Today, not only are goods traded across the world but services are also made available to every part of the country.

(c) Advocates of globalisation argue that it will result in cultural homogenisation.

Explanation – It is the critics of globalisation who say that globalistion will result in cultural homogenesis. They advocate the point that due to globalisation all cultures will mix in their values and ultimately form one homogenous culture. Cultures of the world will lose their unique identity and distinct values and traditions.

It is undoubted that globalisation will result in greater economic growth as the markets will grow in size. Today, the whole world is a big market for the countries to trade in.

Critics of globalisation say that globalisation will lead to global capitalisation where the rich become richer ( and fewer ) and poor become poorer. Globalisation to a certain extent also dilutes the role of the State keeping it only at the core levels. This is supposed to hurt the poor countries of the world badly.

Globalisation does result in homogenesis of culture but it also causes an exactly opposite effect of cultural heterogenesis. When cultures interact with each other, they don’t lose their essence and values, rather they develop into something better and more contemporary.

Worldwide interconnectedness refers to the phenomenon when every country in the world is in some way or the other connected to other countries in the world.

The components of worldwide interconnectedness are- ideas, capital and commodities. These components flow from one place to the other giving rise to worldwide interconnectedness. When people move from one place to the other in search of a better livelihood they contribute to worldwide interconnectedness. Trade between two countries, the spread of an ideology from one to different countries etc, all lead to worldwide interconnectedness. The essence of worldwide interconnectedness is created and sustained through these flows.

Technology is one of the major factors responsible for the rise of globalisation. As the technology advances, new, better and more efficient ways of globalisation can be put to use.

• The transformation from telegraph to e-mails and cellular phones has resulted in making the world one single unit.

• For globalisation to happen, the availability of quick and efficient means is not the only requirement. The people should also know how to use them to their benefit. This information about anything and everything is provided to us by the internet. Every information is available about everything occurring daily all over the world on the internet. Moreover, the internet provides a huge platform for economic activities as well. Many of the economic transactions today happen online. The internet also provides platforms for exchange of ideas, ideologies and cultures.

• A new technology comes up every other day facilitating various aspects of globalisation. Today, there are better techniques to increase production, communicate with traders, transport commodities and establish a better worldwide market.

• Advancement in space technology has also enabled us to launch several communication satellites through which programs of various nations can be telecasted among each other leading to flow of ideas and hence, globalisation.

There are views both for and against the impact of globalisation on the role of the state.

• Critics are of the opinion that globalisation weakens the state. It results in an erosion of the state capacity i.e. the ability of the government to do what it does. The former welfare state is being turned into a more minimalist state that performs certain core functions like ensuring law and order and security of its citizens. The state withdraws from its many welfare functions in the social and economic field. In such case, the market becomes the prime decision maker of social and economic priorities. The rapid emergence of MNCs worldwide also loosens power from the hands of the state.

• Advocates of globalisation stand for the fact that globalisation does not dilute the power of the state, rather it strengthens it. Enhanced technology enables the state to gather more information about its citizens and rule better. Thus, globalisation does not reduce the role of the state, rather makes it more efficient.

Economy is one of the most important parts of globalisation. The flow of capital, commodities and structures the basis of economic globalisation. It involves huge economic flows from one part of the world to another. Some of these are voluntary while some are forced upon by global organisations like WTO (World Trade Organisation) and IMF (International Monetary Fund). Some of the implications of globalisation are-

• The world has become one big market. Countries can freely trade with each other. There are very few restrictions on trade between countries which makes the business smooth and convenient. Money can be invested by developed countries in developing countries and thus help their economy mutually.

• Some individuals are concerned about the decreasing role of state and its dilution of power with an increase in the inflow of various multinational corporations in their country. They take the stand that it is likely to benefit only a small portion of the population and neglect the people dependent upon the state for basic services like health, education, sanitation etc.

• There has been a call for ‘social safety nets’ for protection of the weaker sections of the society who are not benefitted by this economic globalisation. The critics fear that forced economic globalisation will result in the impoverishment of the weak. They also refer to it as ‘recolonisation of the world’.

• However, advocates of globalisation propagate the thought that globalisation will result in greater economic growth and will benefit the majority population of the world when the economy is deregulated.

• Globalisation has also led to the interconnectedness of government businesses and ordinary people all over the world.

It is true that globalisation leads to cultural heterogeneity. Globalisation does give rise to a uniform global culture i.e. cultural homogeneity, but it also causes an exactly opposite effect called cultural heterogeneity.

Cultures are not static. They're dynamic. Cultures are always in the process of development and at every point in time, they are undergoing some gradual transformation. There can always occur changes in a culture without changing its basic essence. Such changes caused by external influences only increases our choices. They don’t restrict us. They give individuality to our culture. Therefore, it would be correct to say that globalisation leads to cultural heterogeneity.

India hasn’t been oblivious to globalisation. It adopted a globalised form of economy i.e an open economy in 1991. Various effects of globalisation upon India are-

• Due to the availability of more job opportunities offered by multinational corporations more employment is generated.

• There has been a flow of foreign capital and exchange of goods and services worldwide.

• There has been a significant increase in Foreign Direct Investment. More and more foreign firms are attracted to invest in India.

• Many Indian firms and industries have become multinational themselves and play an important role in the development and expansion of the Indian economy.

India, in turn, has a massive young demographic that provides eligible, qualified and able workforce in different sectors of the economy. India has also provided foreign firms opportunities to invest in India. India opened its economy in 1991 to every other country in the world and abolished the licensing system(only exempting few industries). It made its economy smooth and open to external trade and also reduced restrictions on the import of foreign goods. The private sector was allowed to expand in the country. To sum it up, India adopting an open economy was a major contribution and impact upon globalisation. .