OVERVIEWIn this final chapter of the book welook at globalisation, somethingthat has been referred to in manychapters of this book and textbooksof many other subjects. We beginby analysing the concept ofglobalisation and then examine itscauses. We then discuss at lengththe political, economic and culturalconsequences of globalisation. Ourinterest is also in studying theimpact of globalisation on India aswell as how India is affectingglobalisation. We finally drawattention to resistance toglobalisation and how socialmovements in India also form partof this resistance.

Chapter 9

Globalisation

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THE CONCEPT OF

GLOBALISATION

Janardhan works in a call centre.He leaves late in the evening forwork, becomes John when heenters his office, acquires a newaccent and speaks a differentlanguage (than he does when he isat home) to communicate with hisclients who are living thousandsof miles away. He works all night,which is actually day time for hisoverseas customers. Janardhan isrendering a service to somebodywho in all probability he is neverlikely to meet physically. This is hisdaily routine. His holidays also donot correspond to the Indiancalendar but to those of his clientswho happen to be from the US.

Ramdhari has gone shoppingto buy a birthday gift for hisnine-year old daughter. He haspromised her a small cycle anddecides to search the market forsomething he finds affordable aswell as of reasonable quality. Hefinally does buy a cycle, whichis actually manufactured inChina but is being marketed inIndia. It meets his requirementsof quality as well as affordability,and Ramdhari decides to goahead with his purchase. Lastyear, Ramdhari on his daughter’sinsistence had bought her aBarbie doll, which was originallymanufactured in the US but wasbeing sold in India.

Sarika is a first generationlearner who has done remarkablywell throughout her school andcollege life by working very hard.

She now has an opportunity totake on a job and begin anindependent career, which thewomen of her family had neverdreamt of earlier. While some ofher relatives are opposed, shefinally decides to go aheadbecause of the new opportunitiesthat have been made available toher generation.

All three examples illustrate anaspect each of what we callglobalisation. In the first instanceJanardhan was participating in theglobalisation of services.Ramdhari’s birthday purchases tellus something about the movementof commodities from one part ofthe world to another. Sarika isfaced with a conflict of valuespartly originating from a newopportunity that earlier was notavailable to the women in herfamily but today is part of a realitythat has gained wideracceptability.

If we look for examples of theuse of the term ‘globalisation’ inreal life, we will realise that it isused in various contexts. Let uslook at some examples, differentfrom the ones that we have lookedabove:

Some farmers committedsuicide because their cropsfailed. They had bought veryexpensive seeds supplied by amultinational company(MNC).

An Indian company bought amajor rival company based inEurope, despite protests bysome of the current owners.

So many Nepaleseworkers come toIndia to work. Is thatglobalisation?

Go throughnewspapersfor a weekand collectclippings onanythingrelated toglobalisation.

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Many retail shopkeepers fearthat they would lose theirlivelihoods if some majorinternational companies openretail chains in the country.

A film producer in Mumbaiwas accused of lifting the storyof his film from another filmmade in Hollywood.

A militant group issued astatement threatening collegegirls who wear westernclothes.

These examples show us thatglobalisation need not always bepositive; it can have negativeconsequences for the people.Indeed, there are many whobelieve that globalisation hasmore negative consequences thanpositive. These examples alsoshow us that globalisation neednot be only about the economicissues, nor is the direction ofinfluence always from the rich tothe poor countries.

Since much of the usage tendsto be imprecise, it becomesimportant to clarify what we meanby globalisation. Globalisation asa concept fundamentally dealswith flows. These flows could be ofvarious kinds — ideas moving fromone part of the world to another,capital shunted between two ormore places, commodities beingtraded across borders, and peoplemoving in search of betterlivelihoods to different parts of theworld. The crucial element is the‘worldwide interconnectedness’that is created and sustained as aconsequence of these constantflows.

Much of the Chinesestuff that comes toIndia is smuggled.Does globalisationlead to smuggling?

This chapter hasa series of imagesabout polit ical,economic andcultural aspects ofglobalisation, takenfrom different partsof the world.

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Globalisation is a multi-dimensional concept. It haspolitical, economic and culturalmanifestations, and these must beadequately distinguished. It iswrong to assume thatglobalisation has purely economicdimensions, just as it would alsobe mistaken to assume that it is apurely cultural phenomenon. Theimpact of globalisation is vastlyuneven — it affects some societiesmore than others and some partsof some societies more than others— and it is important to avoiddrawing general conclusionsabout the impact of globalisationwithout paying sufficient attentionto specific contexts.

CAUSES OF GLOBALISATION

What accounts for globalisation?If globalisation is about the flowsof ideas, capital, commodities, andpeople, it is perhaps logical to ask

if there is anything novelabout this phenomenon.Globalisation in terms ofthese four flows along hastaken place through muchof human history. However,those who argue that thereis something distinct aboutcontemporary globalisationpoint out that it is the scaleand speed of these flowsthat account for theuniqueness of globalisationin the contemporary era.Globalisation has a stronghistorical basis, and it isimportant to view contem-porary flows against thisbackdrop.

While globalisation is notcaused by any single factor,technology remains a criticalelement. There is no doubt thatthe invention of the telegraph,the telephone, and the microchipin more recent t imes hasrevolutionised communicationbetween actors in different partsof the world. When printinginitially came into being it laidthe basis for the creation ofnationalism. So also today weshould expect that technologywill affect the way we think ofour personal but also ourcollective lives.

The ability of ideas, capital,commodities and people to movemore easily from one part of theworld to another has been madepossible largely by technologicaladvances. The pace of these flowsmay vary. For instance, themovement of capital andcommodities will most likely bequicker and wider than themovement of peoples acrossdifferent parts of the world.

Globalisation, however, doesnot emerge merely because ofthe availability of improvedcommunications. What isimportant is for people indifferent parts of the world torecognise these interconnectionswith the rest of the world.Currently, we are aware of thefact that events taking place inone part of the world could havean impact on another part of theworld. The Bird flu or tsunamiis not confined to any particularnation. It does not respectnational boundaries. Similarly,

Isn’t globalisation anew name forimperialism? Why dowe need a newname?

Digital Economy

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when major economic eventstake place, their impact is feltoutside their immediate local,national or regional environmentat the global level.

POLITICAL CONSEQUENCES

One of the debates that has beengenerated as a consequence ofcontemporary processes ofglobalisation relates to its ongoingpolitical impact. How doesglobalisation affect traditionalconceptions of state sovereignty?There are at least three aspectsthat we need to consider whenanswering this question.

At the most simple level,globalisation results in an erosionof state capacity, that is, theability of government to do whatthey do. All over the world, the old‘welfare state’ is now giving wayto a more minimalist state thatperforms certain core functionssuch as the maintenance of lawand order and the security of itscitizens. However, it withdrawsfrom many of its earlier welfarefunctions directed at economicand social well-being. In place ofthe welfare state, it is the marketthat becomes the primedeterminant of economic andsocial priorities. The entry and theincreased role of multinationalcompanies all over the world leadsto a reduction in the capacity ofgovernments to take decisions ontheir own.

At the same time, globalisationdoes not always reduce statecapacity. The primacy of the state

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continues to be the unchallengedbasis of political community. Theold jealousies and rivalriesbetween countries have not ceasedto matter in world politics. Thestate continues to discharge itsessential functions (law and order,national security) and consciouslywithdraws from certain domainsfrom which it wishes to. Statescontinue to be important.

Indeed, in some respects statecapacity has received a boost as aconsequence of globalisation, withenhanced technologies availableat the disposal of the state tocollect information about itscitizens. With this information, thestate is better able to rule, not lessable. Thus, states become morepowerful than they were earlier asan outcome of the new technology.

ECONOMIC CONSEQUENCES

While everything may not beknown about the economic facetsof globalisation, this particulardimension shapes a large part ofthe content and direction ofcontemporary debates surroundingglobalisation.

A part of the problem has todo with defining economicglobalisation itself. The mention ofeconomic globalisation draws ourattention immediately to the roleof international institutions likethe IMF and the WTO and the rolethey play in determining economicpolicies across the world. Yet,globalisation must not be viewedin such narrow terms. Economicglobalisation involves many actorsother than these internationalinstitutions. A much broader wayof understanding of economicglobalisation requires us to look atthe distribution of economic gains,i.e. who gets the most fromglobalisation and who gets less,indeed who loses from it.

What is often called economicglobalisation usually involvesgreater economic flows amongdifferent countries of the world.Some of this is voluntary andsome forced by internationalinstitutions and powerfulcountries. As we saw in theexamples at the beginning of thischapter, this flow or exchange cantake various forms: commodities,capital, people and ideas.Globalisation has involved greatertrade in commodities across theglobe; the restrictions imposed by

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different countries on allowing theimports of other countries havebeen reduced. Similarly, therestrictions on movement ofcapital across countries have alsobeen reduced. In operationalterms, it means that investors inthe rich countries can invest theirmoney in countries other thantheir own, including developingcountries, where they might getbetter returns. Globalisation hasalso led to the flow of ideas acrossnational boundaries. The spread ofinternet and computer relatedservices is an example of that. Butglobalisation has not led to thesame degree of increase in themovement of people across theglobe. Developed countries havecarefully guarded their borderswith visa policies to ensure thatcitizens of other countries cannottake away the jobs of their owncitizens.

In thinking about theconsequences of globalisation, itis necessary to keep in mind thatthe same set of policies do not leadto the same results everywhere.While globalisation has led tosimilar economic policies adoptedby governments in different partsof the world, this has generatedvastly dif ferent outcomes indifferent parts of the world. It isagain crucial to pay attention tospecific context rather than makesimple generalisations in thisconnection.

Economic globalisation hascreated an intense division ofopinion all over the world. Thosewho are concerned about social

When we talk about‘safety net’ it meansthat we expect somepeople to fall downbecause ofglobalisation. Isn’tthat right?

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justice are worried about theextent of state withdrawal causedby processes of economicglobalisation. They point out thatit is likely to benefit only a smallsection of the population whileimpoverishing those who weredependent on the government forjobs and welfare (education,health, sanitation, etc.). They haveemphasised the need to ensureinstitutional safeguards orcreating ‘social safety nets’ tominimise the negative effects ofglobalisation on those who areeconomically weak. Manymovements all over the world feelthat safety nets are insufficient orunworkable. They have called fora halt to forced economicglobalisation, for its results wouldlead to economic ruin for theweaker countries, especially forthe poor within these countries.Some economists have describedeconomic globalisation as re-colonisation of the world.

Advocates of economicglobalisation argue that itgenerates greater economicgrowth and well-being for largersections of the population whenthere is de-regulation. Greatertrade among countries allows eacheconomy to do what it does best.This would benefit the wholeworld. They also argue thateconomic globalisation is inevitableand it is not wise to resist themarch of history. More moderatesupporters of globalisation say thatglobalisation provides a challengethat can be responded tointelligently without accepting ituncritically. What, however, cannot

be denied is the increasedmomentum towards inter -dependence and integrationbetween governments, businesses,and ordinary people in differentparts of the world as a result ofglobalisation.

CULTURAL CONSEQUENCES

The consequences of globalisationare not confined only to the sphereof politics and economy.Globalisation affects us in ourhome, in what we eat, drink, wearand indeed in what we think. Itshapes what we think are ourpreferences. The cultural effect ofglobalisation leads to the fear thatthis process poses a threat tocultures in the world. It does so,because globalisation leads to therise of a uniform culture or whatis called cultural homogenisation.The rise of a uniform culture isnot the emergence of a globalculture. What we have in the name

Make a list ofproducts ofmultinationalcompanies(MNCs) thatare used byyou or yourfamily.

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of a global culture is theimposition of Western culture onthe rest of the world. We havealready studied this phenomenonas the soft power of US hegemonyin Chapter 3. The popularity of aburger or blue jeans, some argue,has a lot to do with the powerfulinfluence of the American way oflife. Thus, the culture of thepolitically and economicallydominant society leaves itsimprint on a less powerful society,and the world begins to look morelike the dominant power wishesit to be. Those who make thisargument often draw attention tothe ‘McDonaldisation’ of theworld, with cultures seeking tobuy into the dominant Americandream. This is dangerous not onlyfor the poor countries but for thewhole of humanity, for it leads tothe shrinking of the rich culturalheritage of the entire globe.

At the same time, it would bea mistake to assume that culturalconsequences of globalisation areonly negative. Cultures are notstatic things. All cultures acceptoutside influences all the time.Some external influences arenegative because they reduce ourchoices. But sometimes externalinfluences simply enlarge ourchoices, and sometimes theymodify our culture withoutoverwhelming the traditional. Theburger is no substitute for amasala dosa and, therefore, doesnot pose any real challenge. It issimply added on to our foodchoices. Blue jeans, on the otherhand, can go well with ahomespun khadi kurta. Here the

Why are we scaredof Western culture?Are we not confidentof our own culture?

Make a list of allthe known‘dialects’ ofyour language.Consult peopleof yourgrandparents’generationabout this. Howmany peoplespeak thosedialects today?

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outcome of outside influence is anew combination that is unique —a khadi kurta worn over jeans.Interestingly, this clothingcombination has been exportedback to the country that gave usblue jeans so that it is possible tosee young Americans wearing akurta and jeans!

While cultural homogenisationis an aspect of globalisation, thesame process also generatesprecisely the opposite effect. Itleads to each culture becomingmore different and distinctive. Thisphenomenon is called culturalheterogenisation. This is not todeny that there remain differencesin power when cultures interactbut instead more fundamentally tosuggest that cultural exchange israrely one way.

INDIA AND GLOBALISATION

We said earlier that globalisationhas occurred in earlier periods inhistory in different parts of theworld. Flows pertaining to themovement of capital, commodities,ideas and people go back severalcenturies in Indian history.

During the colonial period, asa consequence of Britain’simperial ambitions, India becamean exporter of primary goods andraw materials and a consumer offinished goods. After independence,because of this experience withthe British, we decided to makethings ourselves rather thanrelying on others. We also decidednot to allow others to export to usso that our own producers couldlearn to make things. This‘protectionism’ generated its ownproblems. While some advanceswere made in certain arenas,critical sectors such as health,housing and primary educationdid not receive the attention theydeserved. India had a fairlysluggish rate of economic growth.

In 1991, responding to afinancial crisis and to the desirefor higher rates of economicgrowth, India embarked on aprogramme of economic reformsthat has sought increasingly tode-regulate various sectors includingtrade and foreign investment.While it may be too early to sayhow good this has been for India,the ultimate test is not high growthrates as making sure that thebenefits of growth are shared sothat everyone is better off.

An insider’s view of a call centre job

Working in a call centre, in fact, can be enlightening in itsown way. As you handle calls from Americans, you get aninsight into the true American culture. An average Americancomes out as more lively and honest than we imagine…

However, not all calls and conversations are pleasant. Youcan also receive irate and abusive callers. Sometimes thehatred that they exhibit in their tone on knowing that theircall has been routed to India is very stressful. Americans tendto perceive every Indian as one who has denied them theirrightful job...

One can receive a call, beginning on the lines of “I spoketo a South African a few minutes ago and now I’m speakingto an Indian!” or “Oh gosh, an Indian again! Connect me toan American please...”. It’s difficult to find the right responsein situations of this kind.

Source: Report by Ranjeetha Urs in The Hindu, 10 January 2005.

‘Gosh, an Indian again!’

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RESISTANCE TOGLOBALISATION

We have already noted thatglobalisation is a very contentioussubject and has invited strongcriticism all over the globe. Criticsof globalisation make a variety ofarguments. Those on the left arguethat contemporary globalisationrepresents a particular phase ofglobal capitalism that makes therich richer (and fewer) and the poorpoorer. Weakening of the stateleads to a reduction in the capacityof the state to protect the interestof its poor. Critics of globalisationfrom the political right expressanxiety over the political, economicand cultural effects. In politicalterms, they also fear the weakeningof the state. Economically, theywant a return to self-reliance andprotectionism, at least in certainareas of the economy. Culturally,they are worried that traditionalculture will be harmed and peoplewill lose their age-old values andways.

It is important to note herethat anti-globalisation movementstoo participate in global networks,allying with those who feel likethem in other countries. Manyanti-globalisation movements arenot opposed to the idea ofglobalisation per se as much asthey are opposed to a specificprogramme of globalisation,which they see as a form ofimperialism.

In 1999, at the World TradeOrganisation (WTO) MinisterialMeeting there were widespread

It is true sometimesI like the new songs.Didn’t we all like todance a bit? Does itreally matter if it isinfluenced bywestern music?

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The activity enables students to understand howglobalisation has penetrated our lives and theimpact the all-inclusive nature of globalisation hason an individual, a community and a nation as awhole.

STEPSStudents are to list the names of products — foodproducts, white goods, and luxuries, they arefamiliar with.Students are to write down their favourite TVprogrammes.The teacher is to collect the list and consolidate.

Divide the classroom (into convenient groups) andassign each group a number of items (dependson how exhaustive the list is) and TV programmes.

Let students find out who are the manufacturers ofthe products they use everyday and the makers/sponsors of their favourite TV programmes.

The teacher is to (by involving students) classify thenames of manufacturers and makers/sponsorscollected by students into three categories:exclusive foreign companies; exclusive Indiancompanies; and companies working incollaboration.

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 ofglobalisation. As we use more foreign goods, our own small-scaleindustries have been losing their customers and are closing down.

The activity could be concluded by introducing students to theongoing debates about the impact of globalisation on thedeveloping and developed countries.

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protests at Seattle alleging unfairtrading practices by theeconomically powerful states. Itwas argued that the interests ofthe developing world were notgiven sufficient importance in theevolving global economic system.

The World Social Forum (WSF)is another global platform, whichbrings together a wide coalitioncomposed of human rightsactivists, environmentalists,labour, youth and women activistsopposed to neo-liberal globalisation.The first WSF meeting wasorganised in Porto Alegre, Brazilin 2001. The fourth WSF meetingwas held in Mumbai in 2004. Theseventh WSF meeting was held inNairobi, Kenya in January 2007.

INDIA AND RESISTANCE TOGLOBALISATION

What has been India’s experiencein resisting globalisation? Socialmovements play a role in helpingpeople make sense of the world

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 andsocieties.

b. Globalisation has had a uniform impact on all states andsocieties.

around them and finding ways todeal with matters that troublethem. Resistance to globalisationin India has come from differentquarters. There have been leftwing protests to economicliberalisation voiced throughpolitical parties as well as throughforums like the Indian SocialForum. Trade unions of industrialworkforce as well as thoserepresenting farmer interests haveorganised protests against theentry of multinationals. Thepatenting of certain plants likeNeem by American and Europeanfirms has also generatedconsiderable opposition.

Resistance to globalisation hasalso come from the political right.This has taken the form ofobjecting particularly to variouscultural influences — ranging fromthe availability of foreign T.V.channels provided by cablenetworks, celebration of Valentine’sDay, and westernisation of thedress tastes of girl students inschools and colleges.

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

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 commoditiesb. 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 greatereconomic growth.

b. Critics of globalisation argue that it will result in greatereconomic disparity.

c. Advocates of globalisation argue that it will result in culturalhomogenisation.

d. Critics of globalisation argue that it will result in culturalhomogenisation.

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 inthe developing countries in the light of globalisation.

9. What are the economic implications of globalisation? How hasglobalisation impacted on India with regard to this particulardimension?

10. Do you agree with the argument that globalisation leads to culturalheterogeneity?

11. How has globalisation impacted on India and how is India in turnimpacting on globalisation?

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Chapter 9

Globalisation

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That is exciting! What if wedid this not just to SouthAsia but to the map of thewhole world?Credit: Himal Southasian, The Southasia Trust, Nepal

Cartographers follow a conventionthat puts North on the top and theSouth at the bottom. This symbolicrepresentation of the ‘upside-downmap’ of South Asia invites us tochange our mental maps of theregion. It changes neither the presentday boundaries nor the locations ofplaces and peoples within South Asiabut provides new meanings to both.What strikes you about South Asiawhen you look at this map? Does thismap say something about thesignificance of the Indian Ocean tothe South Asia region?