Contemporary World Politics Chapter 9 Globalisation

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Its components are known as flows which are given below :

(i) flows of ideas moving from one part of the world to another.

(ii) flow of capital shunted between two or more places.

(iii) flow of commodities being traded across borders.

(iv) flow of people moving in search of better livelihoods to different parts of the world. Worldwide interconnectedness is created and sustained as a consequence of these constant flows.

(ii) The ability of ideas, capital, commodities and people to move more easily from one part of the world to another has been made possible largely by technological advances.

(ii) The economic globalisation leads to flows or exchange of commodities, capital, people and ideas across national boundaries.

(iii) It has increased trade in commodities across the globe because restrictions imposed by diffirent countries on allowing the imports of other countries have been reduced.

(iv) Investors can invest their money in countries other than their own, particularly in developing countries, where they might get better returns.

As a result of liberalisation and globalisation, India has de-regulated various sectors including trade and foreign investment. However, it is yet too early to evaluate the effects of economic globalisation on India because its effects will be judged by the test that the benefits of growth are shared so that everyone is better off.

The cultures are not static things. All cultures accept outside influence all the time. For example, the burger is no substitute for masala dosa and therefore it does not pose any real challenge. It has simply been added to our food choices. While cultural homogenisation is an aspect of globalisation, the same process also generates precisely the opposite effect.

Those on left argues that globalisation represents a particular phase of global capitalism that makes the rich richer and the poor poorer. In 1999, at the World Trade Organisation Ministerial Meeting at Seattle, India and other countries protested against unfair trading practices by the economically powerful states. Resistance to globalisation in India has come from different quarters

(ii) Greater trade among countries allows each economy to do what it does best.This would benefit the whole world.

(ii)They argue that economic globalisation is inevitable and it is not wise to resist the march of history.

(iv) It has increased momemtum towards interdependence and integration between governments, businesses, and ordinary people in different parts of the world as a result of globalisation.

(ii) International Monetary Fund. World Bank and World Trade Organisation.

Globalisation is a multi-dimensional concept. It has political, economic and cultural manifestations. Politically it results in an erosion of state capacity because in place of the welfare state, it is the market that determines the economic and social priorities. Economically globalisation has resulted in four kinds of flows i.e., of ideas, commodities, capital and people. Culturally too, globalisation leads to cultural homogenisation or heterogenisation.

The political consequences are:

(i) At the simple level, globalisation results in the erosion of state capacity i.e.. the ability of the government to do what they do. All over the world, the old' welfare state' is now giving way to minimalist state that performs certain core functions such as the maintenance of law and order and security of its citizens. In place of welfare state, it is the market that becomes the prime determinant of economic and social priorities.

(ii) Secondly it may be stated that globalisation does not always reduce state capacity. The primacy of the state continues to be the unchallenged basis of political community. The old jealousies and rivalries between countries have not ceased to matter in world politics.The state continues to discharge its essential function and conciously withdraws from certain domain which it wishes to.

(iii) Thirdly in some areas the state capacity has received a boost with enhanced technologies available at the disposal of the state. It can now collect different type of the information about its citizens and can rule in a better way. As a result of technology, the states have become more powerful than they were earlier.

(ii) The restrictions on the movement of capital across countries have also been reduced. Thus, investors in rich counties can invest their money in other countries particularly developing countries, where they get better retuns.

(iii) Globalisation has led to spread of ideas such as internet and computer related services.

(iv) Globalisation has led to increase in the movement of people. For example, about 300.000 Indians are working in Silicon Valley in USA.

Criticism against globalisation are'


(i)Those on the left argue that contemporary globalisation represents a particular phase of global capitalism that makes rich richer and the poor poorer.

(ii)Weakening of the state leads to a reduction in the capacity of the state to protect the interest of its poor.

(iii) It is against self-reliance and protectionism as globalisation will harm traditional cultures. People will lose their age-old values and ways.

(iv) Some critics think that globalisation is another form of imperialism. In 1999 at WTO Ministerial Meeting there were protests at Seattle alleging unfair trade practices by the economically powerful states.

(ii)Trade Unions of industrial workforce as well as those representing farmer interests have organised protests against the entry of multi-nationals.

(iii)The patenting of certain plants like Neem by American and European firms has also generated considerable opposition.

(iv)Resistance to globalisation has also come from the political right.This has the taken the form of Objecting  to various cultural influences – ranging from the availability of foreign TV channels provided by cable networks, celebration of Valentine’s Day and Westernisation of the dress tastes of girl students in schools and colleges.

Two benefits:
(i)Globalization has led to the flow of ideas across national boundaries.
(ii) It has increased the momentum towards inter-dependence and integration between government, business and ordinary people in different parts of the world.

Steps taken by the Indian government to check the Environmental Degradation:

(i) National Auto-fuel policy:Indian National Auto Fuel Policy mandates cleaner fuels for vehicles.

(ii) Energy Conservation Act:The Energy Conservation Act passed in 2001, outlines initiatives to improve energy efficiency. The Electricity Act of 2003 encourages the use of renewable energy.

(iii) National Mission on Biodiesel:The Indian Government is also keen to launch a National Mission on Biodisesel, using about 11 million hectares of land to produce Biodiesel, and India has one of the largest renewable energy programmes in the world.

OR

Cultural effects of globalisation can be positive as well as negative:

(i) External influences simply enlarge our choices and sometimes they modify our culture without overwhelming the traditional. For example, the burger is no substitute for a masala dosa and, therefore, does not pose any real challenge.In the same way blue jeans can go well with a homespun Khadi Kurta.

(ii) Globalisation broadened our cultural outlook and generates cultural homogenisation, making cultures more different and distinctive.

(iii) The culture of a developed society leaves its imprint on a less powerful society and the world begins to look more like a dominant power wishes it to be.

(iv) 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.

Political Consequences:

 (i) Globalisation results in an erosion of state capacity.

 (ii) The old ‘welfare state’ is now giving way to a more minimalist state.

 (iii) In place of the Welfare state, it is the market that becomes the prime determinant of economic and social priorities.

 (iv) The entry and the increased role of MNC all over the world leads to a reduction in the capacity of governments to take decisions on their own.

The benefits:
(i) Indeed, state capacity has received a boost as a consequence of globalisation, with enhanced technologies available at the disposal of the state to collect information about the citizens. With this information, the state is better able to rule, not less able.

 (ii) Economic globalisation generates greater 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 best.

 (iii) Sometimes external influences simply enlarge our choices, and sometimes they modify our culture without overwhelming the traditional. The burger is no substitute for a masala dosa and, therefore, does not pose any real challenge. It is simply added on to our food choices.

Consequences of Globalisation:

 (i) 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 as well as security of its citizens. It withdraws from many of its earlier welfare functions directed at economic and social being.

 (ii) The entry and the increased role of multinational companies all over the world has led to a reduction in the capacity of government to take decision on their own.

 (iii) Globalisation has involved greater trade in commodities across the globe; the restrictions imposed by different countries on allowing the imports of other countries have been reduced.

 (iv) Cultural effect of globalisation leads to the rise of a uniform culture i.e. homogenization, imposition of western culture on the rest of the world. 

The consequences are:

 (i) Globalisation simply enlarges our choices and sometimes they modify our culture without         overwhelming the traditional.

 (ii) It leads to each culture becoming more different and distinctive.

Globalisation is a multi-dimensional concept. Globalisation as a concept fundamentally deals with flows.

The causes of Globalisation are:

(i) Technology

(ii) Communication

(iii) Economic events

Globalisation is a multi- dimensional concept. Globalisation as a concept fundamentally deals with flows.

Cultural consequences:

(i) External influences simply enlarge our choices and sometimes they modify our culture without overwhelming the traditional. For example, the burger is no substitute for masala dosa and, therefore, does not pose any real challenge. In the same way blue jeans can go well with a homespun Khadi Kurta.

(ii) Globalisation broadened our cultural outlook and generates cultural homogenisation, making cultures more different and distinctive.

(iii) The culture of a developed society leaves its imprint on a less powerful society and the world begins to look more like a dominant power wishes it to be.

The reasons:
(i) Globalisation results in erosion of state capacity.
(ii) It withdraws from many of its welfare functions directed at economic and social well-being.

(i) They want to have self-reliant economy.

(ii) Protectionism in certain areas of the economy.

The impacts of globalisation on India:

(i) India has opened up its markets, from being a protective economy, it has now opened upto foreign investment.

(ii) This has led to cultural homegesition, making culture more different and distinctive.

(iii) This has led to deregulation of many commodities like oil.

India's impact to globalisation:

(i) India and other developing countries e.g. BRICS have put forward a collective voice in international forums like WTO.

(ii) India is one of the fastest growing economy along with China and therefore, an attractive market for investment also.
(iii) With its large English-speaking population, there has been a lot of outsourcing to India in form of call centres.

Or

There was a difference in approach to environment between the countries of the North and the South.

(i)The countries of the North want to discuss the environmental issue as it stands now and want everyone to be equally responsible for ecological conservation. The developing countries of the South feel that much of the ecological degradation of the world is the product of industrial development undertaken by the developed world.

(ii)The special needs of the developing countries must be taken into account in the development, application and interpretation of rules of international Environment Law. This argument was accepted in the Rio declaration of 1992 and is called the principle of ‘Common but differentiated responsibilities’.

(iii)China, India and other developing countries were exempted from the requirements of the Kyoto Protocol. This is an international agreement setting targets for industrialized countries to cut the green house gas emissions. The protocol was agreed to in 1997 in Kyoto in Japan, based on principals set out in UNFCC.

(i) Coexistence of several powers in the international system.

(ii) Collective Security and a collective response.

 Some farmers committed suicide because their crops failed. They had bought very expensive seeds supplied by a multinational company (MNC).

Negative consequences of globalization on India:-

(i) Expensive seeds purchased from MNCs compelled farmers committing suicides due to crop failure.
(ii) Slowly and gradually MNCs started buying Indian companies, resulted in instability in market.
(iii)While some advances were made in certain arenas, critical sectors such as health, housing and primary education did not receive the attention they deserved.
(iv)India had a fairly sluggish rate of economic growth. In 1991, responding to a
financial crisis and to the desire for higher rates of economic growth which yet to be achieved.
(v) De-regulated various sectors including trade and foreign investment. or any other relevant consequences.

 Negative Consequences of Globalisation
(i) Leads to loss for the farmers if the expensive seeds from MNC’s fail their crops. 
(ii) Fear of loss of livelihood for the small retailers.  
(iii) Tough competition for Indian MNC’s from foreign MNC’s
(iv) Fear of erosion of Indian Culture by foreign influence.

 Earth Summit was a conference on environment and development held in Rio de Janeiro (Brazil) in June 1992.
 Benefits of Earth Summit :-

(i) This Summit produced conventions dealing with climate change, biodiversity and forestry.
(ii) It recommended a list of development practices called Agenda 21. (iii) Under this list there was consensus on combining economic growth with ecological responsibility, known as sustainable development.

i) Essential functions of the state :- a) Law and order

b) National security

ii) a) With the help of enhanced technologies state can collect information about its citizens.

b) With this information, the state is better able to rule.

c) Thus, the states become more powerful than they were earlier.

iii) Flow of capital from rich countries enables the developing countries to invest in most wanted fields to make their country self-dependent.