Effect of Globalization on Indian Society | Indian Society for UPSC CSE PDF Download

Globalization: A World of Interconnected Economies and Societies

Globalization refers to the increasing interdependence and interconnectedness of economies and societies worldwide. It involves the integration of different nations to the extent that an event in one part of the world can impact people in other regions. This process is driven by international trade, investment, and facilitated by advancements in information technology.

In simpler terms, globalization is about how people, organizations, and governments from different countries interact and integrate with each other. It highlights the growing reliance of nations on one another for goods, services, and information.

Introduction

Globalisation is a process that has been happening for a very long time, but it was only called by this name in the second half of the 20th century.

History of Globalisation:

• India was connected to other great civilizations like China, Persia, Egypt, and Rome through the Silk Route, even two thousand years ago.
• People from different parts of the world came to India as traders, conquerors, and migrants throughout its history.
• In remote villages, people often remember their ancestors coming from different places and settling in their current homes.
• This process of exchange and connection has been ongoing for a very long time.

Globalisation in the 20th Century:

• In the second half of the 20th century, the term “Globalisation” was introduced to describe this process.
• Countries began adopting export-oriented development strategies and trade liberalization widely.
• National policies, policy-making techniques, and implementation strategies became globalised as a result of Globalisation.

Negative Aspects of Globalisation:

• Globalisation has also led to negative consequences such as climate change, global warming, and depletion of the ozone layer.

Various Aspects of Globalisation

1. Social and Cultural Aspects

Globalisation has brought people from different cultures closer together. It has made it easier for people to share and mix their cultures, traditions, and ways of life. However, this can sometimes lead to the loss of unique local cultures and traditions.

2. Technology and Communication

• Advances in technology and communication have played a big role in Globalisation.
• The Internet, smartphones, and other technologies have made it easier for people and businesses around the world to connect and share information quickly.

3. Corporate World

• Globalisation has changed how companies operate.
• Many companies now have a presence in multiple countries, taking advantage of different markets and resources.
• This has led to the rise of multinational corporations that play a big role in the global economy.

4. International Trade, Relations, and Economy

• Globalisation has increased international trade, making it easier for countries to buy and sell goods and services from each other. 
• It has also affected international relations, as countries become more interdependent on each other for resources and markets. 
• This interconnectedness can lead to both opportunities and challenges for countries around the world.

Driving Forces Behind Globalisation: Catalysts Shaping a Global VillageTechnology

• LPG Reforms The liberalisation, privatisation, and globalisation (LPG) reforms in India in 1991 have enhanced the country’s economic openness, leading to greater interaction with the global community. 
• Faster Transportation Advances in transportation, particularly the rapid growth of air travel, have made global travel easier and faster, facilitating the movement of people and goods across the world. 
• Rise of WTO and Multilateral Organisations The establishment of the World Trade Organization (WTO) in 1994 contributed to the reduction of tariffs and non-tariff barriers globally. It also promoted the increase of free trade agreements among various countries. Improved Mobility of Capital There has been a general reduction in capital barriers, allowing for easier capital flow between different economies. This has enhanced firms' access to financing and increased the interconnectedness of global financial markets. 
• Rise of Multinational Corporations (MNCs) MNCs operating in various geographies have facilitated the diffusion of best practices. They source resources globally and sell products in international markets, leading to greater local interactions. 

Conclusion These factors have significantly contributed to economic liberalisation and globalisation, helping the world evolve into a “global village.”

Factors Contributing to Globalization 

•  The transition from telephonic communication to cable and satellite digital communication has led to an increase in information flows. 
• Time-space compression refers to the phenomenon where people in distant locations feel closer together due to the ability to communicate instantaneously. 

Economic Factors

• The global economy has shifted to a post-industrial phase, making it increasingly "weightless." This means that products are more likely to be information-based or electronic, such as computer software, films, music, and information services, rather than tangible goods like food, clothing, or cars. 
• The electronic economy is a fundamental driver of globalization. It enables banks, corporations, fund managers, and individuals to transfer large sums of money across borders instantaneously with just a click of a mouse. 

Political Changes

• The collapse of Communism in the 1990s marked the end of the divided Cold War world. Former communist countries have since transitioned to democracies and integrated into the global economy. 
• The expansion of international and regional governance mechanisms, such as the United Nations and the European Union, has led to increased restrictions on nation-states by international directives and laws originating from these bodies.

Globalisation: Benefits Impacting India

• Boosts Long-Run Growth: Globalisation enhances the long-run average growth rate of a country's economy by improving the allocative efficiency of resources and increasing labor productivity.
• Attracts Foreign Capital and Technology: It encourages the entry of foreign capital and advanced technology, leading to better quality production.
• Restructures Production and Trade: Globalisation favours labour-intensive goods, techniques, and the expansion of trade in services.
• Enhances Financial Sectors: It improves the efficiency of banking, insurance, and financial sectors by opening these areas to foreign investment and expertise.
• Raises Standard of Living: Globalisation contributes to a better standard of living and increased purchasing power for consumers.
• Drives Price and Quality Improvements: Domestic industries in developing countries become more competitive, focusing on reducing prices and improving product quality to meet foreign competition.

Globalisation: Challenges

• Mixed Results of Globalisation 4.0: The latest phase of Globalisation, driven by technology and the movement of ideas, people, and goods, has both positive and negative outcomes. While countries are more connected, political crises and global conflicts have also increased. 
• Threat to Small Industries: Globalisation poses a significant threat to village and small-scale industries, which struggle to compete with well-organized multinational corporations (MNCs). 
• Impact on Agriculture: In developing and underdeveloped countries, Globalisation threatens agriculture. WTO trading provisions allow agricultural markets to be flooded with cheaper farm goods from developed countries, undermining local farmers. 
• Job Displacement: Although Globalisation promotes the idea that technological change and increased productivity will create more jobs and higher wages, in reality, some developing countries have experienced job losses due to technological changes, leading to decreased employment growth rates. 
• Redistribution of Economic Power: Globalisation leads to a redistribution of economic power, often resulting in domination by economically powerful nations over poorer nations. 
• Rise of Uncivil Society: Globalisation has facilitated the rise of transnational issues such as terrorism, human and drug trafficking, organized crime, piracy, and pandemic diseases like Covid-19, threatening state institutions and civil society. 
• Human Trafficking: One of the darkest aspects of Globalisation is human trafficking, where individuals, especially women and children, are treated as commodities and sold in the international marketplace. 

Cultural Dynamics: Navigating Between Homogenization and Glocalization

1. Homogenization: Some people believe that all cultures are becoming more similar and uniform.
2. Glocalization: Others argue that cultures are blending global elements with local traditions, creating something unique.

Ritzer's Concept of Globalization:

• Sociologist Ritzer introduced the term "Globalisation" to describe the push for organizations and nations to expand globally and impose their presence locally.

Glocalization Explained:

• Glocalization is about mixing global and local cultures.
• It's not entirely spontaneous and is influenced by the commercial interests of globalization.
• Foreign companies often use glocalization to adapt to local traditions and enhance their market appeal.

Examples of Glocalization in India:

• Foreign TV Channels: Channels like Star, MTV, Channel V, and Cartoon Network use Indian languages to cater to local audiences.
• McDonald's: Adapts its menu in India by offering vegetarian and chicken products, avoiding beef, and even going vegetarian during festivals like Navratri.
• Music: The rise of 'Bhangra pop,' 'Indi pop,' fusion music, and remixes reflects the blending of global and local musical influences.

Cultural Change and Globalization:

• Culture is not a fixed entity; it evolves with social changes.
• Globalization is likely to create new local traditions and even global ones.

Differentiating Between Global and Local Cultures:

• Global Culture: Includes elements like fast food, English language, and shared values like rationalization and human rights.
• Local Culture: Maintains unique aspects like regional cuisines, festivals, and languages.

Homogenization of Culture:

• Family Structure: Globalization has negatively impacted joint families, leading to an increase in nuclear families. This shift is evident in the rising number of old age homes.
• Food: The proliferation of food chains like McDonald's and KFC has resulted in the homogenization of food across the country. Traditional restaurants are being replaced by fast food joints, and dishes like fast food and Chinese cuisine are becoming more prevalent, replacing local staples.
• Borrowing and Financial Practices: The acceptance of borrowing money has increased, with loans becoming more common due to the growing accessibility of financial institutions.
• Cinema: Old cinema halls are being replaced by multiplex theatres, reflecting a shift in entertainment preferences.
• Language: The use of English has significantly increased in urban areas, leading to a homogenization of language across the country. Rural areas, however, have been less affected by this trend.
• Value System: There is an increasing homogeneity in global values such as rationalization, free market competition, commodification, and human rights, contributing to a shared global culture.

Glocalization of Culture:

• Food: While India has its unique cuisine, foreign cuisines have become more accessible and are often modified to suit Indian tastes, such as the Paneer Tikka Burger at McDonald's. This has led to a diverse range of food options and heterogenization.
• Language: The teaching of foreign languages like French, German, and Spanish alongside indigenous languages in schools exemplifies the hybridization of culture.
• Movies: The popularity of foreign films, including Hollywood, Chinese, French, and Korean movies, has increased among urban youth. The practice of dubbing these films in local languages further reflects the glocalization of culture.
• Festivals: The celebration of festivals like Valentine's Day and Friendship Day reflects changing cultural values. However, traditional festivals are still celebrated with equal enthusiasm.
• Marriage: There is a declining emphasis on marriage, with rising rates of divorce, live-in relationships, and single parenting. Marriage is increasingly viewed as a professional and contractual arrangement, although it remains an important institution.

Cultural Resilience in India:

• Indian society is divided into communities with significant cultural autonomy, allowing them to filter the effects of globalization through selective adaptation.
• Despite accommodating diverse religions, India's core values have remained unchanged, demonstrating cultural resilience.
• The country's ability to integrate divergent religions while maintaining its civilization is a testament to its cultural strength

Cultural Revival in the Globalized Era: Impact on Yoga, Ayurveda, Religion, and Handicrafts 

• Revival of Yoga: There’s been a resurgence of interest in Yoga both in India and globally. This is evident from the popularity of programs like the ‘Art of Living’ course by Ravi Shankar and the worldwide celebration of International Yoga Day. 
• Revival of Ayurveda: Ayurvedic medicine is experiencing a revival, with increasing recognition and demand both within India and internationally.
• Religious Revivalism: Amid growing uncertainties linked to globalization, there is a rise in religious revivalism. This is seen in the use of religion for political mobilization and voter attraction.
• Demand for Local Handicrafts: There is a growing global demand for local handicraft products such as Chikankari and Bandhani.
• Preservation of Local Diversity: With the increase in global tourism, local communities are making concerted efforts to preserve their diverse cultures and revive traditional practices.
• Cultural Intermixing: While Western culture is influencing Indian culture, it is not replacing it. Instead, there is a blending of both cultures, creating a unique cultural amalgamation. 

Globalisation in India: Socio-Economic Impact

Impact on Indian Economy

Pros:

• Economic Growth: There has been an increase in India’s GDP growth rate, reflecting improved economic performance.
• Market Expansion: Indian companies have access to international markets, and consumers benefit from a wider range of products.
• Increased Investments: Globalisation has attracted investments from developed countries to developing nations, aiding economic development.
• Cultural Interaction: Enhanced flow of information and cultural exchange between countries has helped in overcoming cultural barriers.
• Entrepreneurship: Liberalised economic policies have spurred the formation of new companies by Indian entrepreneurs across various sectors.
• Job Creation: Globalisation has led to the creation of numerous job opportunities in India.
• Infrastructure Development: There have been advancements in sectors like telecommunication, transportation, and insurance.
• Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII): These have increased, contributing to economic growth.
• Consumer Benefits: Consumers enjoy lower prices and a wider variety of goods.

Cons:

• Job and Social Insecurity: Globalisation has led to job insecurities, and the public sector, which provides job security, is under pressure.
• Neglect of Agriculture: The agricultural sector, crucial for the economy and employment, has been neglected post-reforms, affecting its contribution to the economy.
• Increase in Child Labour: The reduction of public sector roles has led to an increase in child labour as corporate entities focus on profit.
• Capital Intensive Technologies: The adoption of capital-intensive technologies has resulted in high unemployment rates, posing a significant challenge. 
• Loss of Government Control: Globalisation has led to a temporary resolution of foreign exchange issues for the Indian government but at the cost of local industry control and government oversight. 

Psychological Impact on Indian Society

• Stress and Insecurity: The intense competition brought about by globalisation has increased stress and insecurity among individuals.
• Spread of Fundamentalism: Globalisation has contributed to the emergence and spread of fundamentalist ideologies as a reaction to the perceived threats from global cultural influences.
• Self-Selected Culture: Individuals are forming groups with like-minded people who wish to preserve their identity and values, which they believe are threatened by global culture. These groups reject the individualistic and open values of global culture, seeking to establish a more homogeneous community.
• Spread of Emerging Adulthood: The transition to adult roles such as work, marriage, and parenthood is occurring later in life due to the need for extended preparation for jobs in a technologically advanced economy. This shift is more pronounced in urban areas of developing countries, whereas rural poor populations may not experience this phase as they enter adult roles at an earlier age.
• Identity Confusion: Individuals from non-western cultures may experience confusion regarding their identity in response to globalisation. While some adapt by developing hybrid or bicultural identities, others struggle to cope with the rapid changes and may feel lost in the evolving cultural landscape.

Impact on Agriculture

India signed the Uruguay Round Agreements on January 1, 1995, as a member of the World Trade Organisation (WTO), aiming to liberalize the agricultural sector and promote fair trade. The Agreement on Agriculture was the first multilateral effort to address unfair practices in agricultural trade and initiate reforms in the sector.

Positives of Globalisation on Agriculture:

• Increase National Income: Access to international markets for Indian agricultural goods has led to increased production and income for farmers. The introduction of new technology, seeds, and practices has further boosted agricultural output.
• New Water-Saving Practices: Globalisation has brought about innovative water-saving practices, such as drip irrigation, which have become popular in India.
• Shift to Cash Crops: Farmers have been encouraged to shift from traditional crops to export-oriented cash crops like cotton and tobacco, which, although requiring more inputs, can be more profitable.
• Increase in Exports: Higher prices in international markets have made Indian agricultural goods more competitive, leading to increased exports.
• Efficient Use of Agricultural Equipment: Appropriate use of agricultural machinery tailored to specific crops and regions has improved farm productivity and profitability.
• Research Collaboration: Globalisation has facilitated research collaborations with foreign countries and institutions, enhancing agricultural practices and technologies.
• Corporate and Contract Farming: The rise of corporate and contract farming has provided farmers with better opportunities and support.
• Proliferation of Food Processing Industries: The growth of food processing industries has benefited farmers by creating additional markets for their produce.

Negatives of Globalisation on Agriculture:

• Small Production Fields: With 60% of the Indian population dependent on agriculture, the pressure on land is increasing. Small landholdings lead to higher production costs and other challenges, negatively impacting Indian agriculture.
• Fluctuating Cash Crop Prices: The focus on cash crops can be risky for farmers due to price fluctuations, which can threaten food security.
• Shift from Agriculture to Industry: Globalisation has shifted focus from agriculture to industry, leading to industrial growth that displaces farmers and increases land pressure.
• Intellectual Property Rights: Strong intellectual property rights can disadvantage marginal farmers by allowing multinational companies to dominate the agriculture sector.
• WTO Pressure: The WTO has pressured India to reduce security nets for the agriculture sector, impacting farmers negatively.
• Input Cost Fluctuations: Global events, such as tensions in the Eurasian region, can affect input costs for agriculture, impacting profitability.
• Impact of Global Prices: Global market prices can influence local prices, as seen in industries like sugar, affecting farmers’ incomes.

Impact of Globalisation on the Informal Sector

• Globalisation has led to the casualization of labor, with formal firms shifting from formal wage workers to informal employment arrangements lacking minimum wages, job security, and benefits.
• There has been a shift in the labor force composition towards skilled labor, especially in the unorganized sector, resulting in faster productivity improvements in both organized and unorganized sectors.
• Globalisation tends to favor large companies that can easily move across borders, while disadvantaging labor, particularly lower-skilled workers who cannot migrate as easily.
• As more men enter the informal economy, women are often pushed to the lowest income levels within this sector.
• However, globalisation can also create new opportunities for those in the informal economy, such as new jobs for wage workers or new markets for the self-employed.

Impact of Globalisation on Family

• The joint family system, a hallmark of the Indian social structure, especially among tribes, is declining due to globalisation.
• Globalisation has led to migration and urbanization, making it challenging to maintain joint families because of rising living costs, contributing to the dominance of nuclear families.
• There are differing views on the strength of the family institution in the context of globalisation; some argue it is becoming stronger, while others believe it is weakening, with individualism on the rise.
• Traditional practices such as family involvement in finding marriage partners have diminished, and new occasions like Valentine’s Day and Mother’s Day have gained popularity.
• Family dining patterns have changed, with activities like watching television or using computers during meals becoming common.
• The proportion of dual-earning couples is increasing, significantly altering women’s traditional roles and affecting family dynamics, including children and elderly members at home.

Impact of Globalisation on Marriage

Pros:

• Globalisation has led to a rise in love marriages, with greater acceptance and appreciation from elders.
• Inter-caste and inter-religious marriages have become more prevalent.
• Parents are increasingly using the internet to find brides and grooms, often preferring NRIs for their westernized lifestyles and higher disposable incomes.

Cons:

• The significance of marriage is diminishing, with increases in divorce rates, live-in relationships, and single parenting.
• Marriage is shifting from a sacred bond to a more contractual arrangement.
• Practices like serial monogamy and live-in relationships are being viewed as contrary to Indian culture.
• Despite these changes, marriage as an institution has not declined.

Impact of Globalisation on Food and Festivals

• The introduction of fast-food chains like McDonald’s and KFC has led to a homogenization of food options across India, while also promoting heterogenization as old restaurants are replaced by these new entrants. Traditional food options are being replaced by fast food and Chinese cuisine. 
• Globalisation has also influenced the celebration of festivals, with new occasions like Valentine’s Day and Friendship Day becoming popular alongside traditional festivals, which are celebrated with equal enthusiasm.

 Globalisation and Education 

Globalisation and Education: Pros

• Cultural Immersion: Students in global education programs gain a deeper understanding and appreciation of different cultures, often along with advanced language skills.
• Core Values: Globalisation aims to enhance core values related to research and technological advancements in education.
• Global Perspectives: By experiencing different cultures, students broaden their global perspectives and become more aware of international issues such as politics, education, society, and economics.
• School Facilities: There is an increasing demand for quality school infrastructure that can prepare students for a globalized world.
• Higher Education Progress: India’s higher education system has improved in capacity and enrollment due to Globalisation, although it still needs to enhance global relevance and competitiveness.
• New Educational Tools: Globalisation promotes tools like E-learning, Flexible learning, Distance Education Programs, and Overseas training.
• Increased Literacy and Collaboration: Globalisation has positively impacted literacy rates and fostered collaborations between foreign and Indian universities.

Globalisation and Education: Cons

• Pressure to Create 'Winners': Globalisation exerts pressure on the education system to produce top performers who can compete in a tough environment.
• Internationally Acceptable Curriculum: There is a need for curricula that meet international standards.
• Students as Customers: In today’s context, students are viewed as customers and partners in the learning process.
• Rise of Commercial Institutions: Globalisation has led to the emergence of private institutions offering specialized education, with corporate universities, both foreign and Indian, encroaching on government institutions.
• Empowerment through Technology: The growth of technology has empowered women with better job opportunities, flexible working hours, and improved negotiation power both at home and in the workplace.
• Erosion of Traditional Values: Globalisation has the potential to erode traditional values and cultural ethos.
• Increased Educational Costs: Education has become more expensive and less accessible to poorer students due to elevated standards and costs set by educational agencies.

Globalisation and Caste System 

Globalisation has brought about changes in the caste system in India, both positive and negative.

Pros:

• The rigid caste system is gradually giving way to relaxed norms, such as inter-caste marriages, socializing, and mingling.
• Globalisation has expanded economic opportunities, education, and liberal thoughts, contributing to the weakening of the caste system.
• Industrialisation, boosted by Globalisation, has been breaking down the traditional division of labor.
• Increased professionalism and education have created employment opportunities, improving conditions for vulnerable castes.

Cons:

•  Despite changes, the caste system remains resilient and continues to be a significant feature of Indian society. 
•  Globalisation has pushed vulnerable castes towards the informal sector, where they are forced to take up menial jobs due to a lack of skills. 
•  The practice of untouchability, despite Globalisation, is still prevalent in India. 

Globalisation and Women in India

Pros:

• Globalisation has promoted ideas and norms of equality for women, raising awareness and acting as a catalyst in their struggle for equitable rights and opportunities.
• Non-profit organisations from around the globe have come to India, providing women with essential skills like literacy and vocational training.
• It has increased the independence of women, especially in urban areas, leading to inter-caste marriages, single motherhood, and live-in relationships.
• Women in rural areas have been influenced by Globalisation through media and intervention programs, boosting their self-confidence and motivating them to fight for their rights.
• There has been a change in women’s attitudes, with greater acceptance of western clothes, increased dating in urban areas, and higher use of contraception in both rural and urban settings.
• Trade openness and new information and communication technologies have created more jobs and stronger market connections for many women, enhancing their economic opportunities.
• Greater access to information has enabled many to learn about different lifestyles and customs, potentially influencing their attitudes and behaviors.

Cons:

• Employment opportunities for women, while increasing, are often limited to low-paying jobs with minimal social security.
• Women in developing countries face a dual burden as their domestic responsibilities remain unchanged despite entering the workforce.
• The exploitation of women in the workplace has become a significant issue.
• Globalisation has occurred alongside the persistent patriarchal mindset in India, leading to problems such as the commodification of women, online harassment, and increased violence against women.
• As consumers, women are increasingly treated as commodities, while as producers, they face work exploitation and occupational hazards.
• There is a rise in issues like prostitution, abuse, and dowry-related suicides.
• Gender disparities in education restrict women’s access to new employment opportunities, with lower education levels hindering their ability to access international markets.
• Weaker property rights and limited access to productive inputs further constrain women’s capacity to benefit from trade openness.
• Gender norms related to mobility and women’s roles in the economy disproportionately affect their access to technology.

Globalisation and Youth 

• The present-day youth, with their materialistic ambitions and globally informed opinions, are gradually moving away from traditional Indian markets and austere ways.
• Youth are advocating for a more cosmopolitan society that is fully integrated into the global economy.
• Globalisation has underscored the importance of education, training, and skills for young people, providing them with a platform to succeed in the labor market.
• The enhanced skill set of the youth is attracting increased investment from around the world.
• Globalisation has facilitated a cross-fertilisation of ideas, cultural values, and aspirations, connecting youth not only to the global community but also fostering connections among themselves.
• With greater awareness, youth are becoming more vocal about their rights, prompting the government to encourage greater public participation in policymaking.

Cons:

• Traditional Indian dress is declining, particularly among urban youth, who are increasingly adopting western fashions.
• Younger generations are spending less time with their grandparents, leading to a loss of traditional wisdom passed down through generations.
• Sedentary lifestyles are becoming common among youth, contributing to various health disorders.
• Many young people, especially in developing countries, are being marginalised from the global economy and are unable to access the opportunities presented by Globalisation due to factors like inadequate education, limited skills, and poverty.
• Access to basic information and communication, as well as goods and services made available through Globalisation, is also a barrier for many.

Globalisation Process: Ethical Challenges 

• Rising Inequality: Advanced capitalist countries reap the benefits of industrialization, while other countries bear the negative consequences or externalities of industrial activities.
• Human Rights Issues: Poor working conditions and low wages in industries hinder workers from accessing basic human rights.
• Other Issues: Globalisation has led to the dissolution of families and communities, the rise of nuclear families, and the increasing isolation of elderly parents. Additionally, the privatization associated with Globalisation has resulted in higher costs for healthcare, education, and other social services.

Way Forward

•  Design a blueprint that prioritises sustainability and inclusiveness while capitalising on new opportunities. 
•  Advance both universal and targeted strategies to improve outcomes for all, ensuring vulnerable populations are not left behind. 
•  Build resilient local and regional systems with the right mix of education, employment, and infrastructure to create and sustain jobs locally. 

Globalisation: Political Changes

• Political development accompanying globalisation includes the growth of international and regional mechanisms for political collaboration.
• Examples like the European Union (EU), Association of Southeast Asian Nations (ASEAN), South Asian Regional Conference (SARC), and South Asian Federation of Trade Association (SAFTA) highlight the increased role of regional associations.
• There has been a rise in International Governmental Organisations (IGOs) and International Non-Governmental Organisations (INGOs).
• The concept of good governance has been strengthened due to globalisation, leading to a policy change towards a rights-based approach to governance.
• Globalisation impacts various foundations of democracy, including freedom of expression, civil community, citizenship rights, and freedom of the press.

Globalisation: Culture of Consumption

Culture of consumption, including art, food, fashion, music, and tourism, plays a crucial role in globalisation and the growth of cities.

• In India, there has been a significant increase in shopping malls, multiplexes, amusement parks, and water parks, reflecting this culture of consumption.
• Advertisements and media promote the idea that spending is important, shifting away from the virtue of being cautious with money.
• Success in international beauty pageants has spurred growth in the fashion, cosmetics, and health industries, with young girls aspiring to be like famous personalities.
• Reality shows like Kaun Banega Crorepati (KBC) have popularized the notion of sudden wealth.

Corporate culture focuses on enhancing productivity and competitiveness by fostering a unique organizational culture involving all members of a firm.

• A dynamic corporate culture, characterized by company events, rituals, and traditions, is believed to enhance employee loyalty and promote group solidarity.
• Corporate culture also encompasses methods of promotion and product packaging.
• The rise of multinational companies and the IT revolution have created a class of upwardly mobile professionals in Indian metropolitan cities, working in sectors such as software, finance, and media.
• These professionals, with high-stress jobs and substantial salaries, constitute the primary clientele of the booming consumer industry.

Impact of Globalisation on Labor

Globalisation is viewed as a double-edged sword, offering immense potential for business development while intensifying competition in global and local markets, thereby creating a new “Global Economic Map.”

• It is considered a significant driver of economic growth through international trade in goods and services, as well as capital flows via foreign direct investments (FDIs) and portfolio investments.
• However, there are concerns that globalisation negatively impacts labor interests. In a competitive global environment, transnational corporations focus on maximizing economic returns by squeezing every resource, benefiting capital owners but disadvantaging laborers.
• Despite the existence of apex bodies like the International Labour Organization (ILO) and the World Trade Organization (WTO), issues such as the non-recognition of trade unions, wage disparity, and violations of health and safety norms persist globally.
• Advocates for human rights and labor movements argue that labor conditions are deteriorating due to firms' adjustments to competitive pressures in the global economy.
• The most vulnerable groups include temporary or contract laborers and workers with low or no skills.

Impact of Globalization on Labour in India 

After 1991, the Government of India (GoI) revised its industrial policy to embrace Liberalization, Privatization, and Globalization (LPG). This shift aimed to open the economy to global competition and initiate significant industrial changes. 

Globalization has had both positive and negative effects on labor in India, manifesting in various ways: 

• Economic Growth: The reforms boosted India’s GDP growth rate from around 2-3% to nearly 7-8%. This led to the creation of a robust private sector and employment opportunities for millions. 
• Job Quality: Despite the increase in jobs, a substantial number of these positions remain informal or have been lost over time. 
• Foreign Competition: The opening up of markets and reduction of tariffs facilitated the influx of foreign goods, which adversely affected employment opportunities for Indian laborers. 
• Women’s Employment: Globalization has opened avenues for women to participate in the workforce. Countries embracing liberal economic policies have seen a significant increase in female labor force participation. However, many women are employed in the informal sector, which is characterized by poor labor conditions. Industries where women are predominantly engaged are often labor-intensive, service-oriented, and low-paid. 
• Employment Shifts: In some sectors, liberalization has led to job losses without the creation of new employment opportunities. 
• Subcontracting and Job Insecurity: Large corporate entities, such as Transnational Corporations (TNCs) and Multinational Corporations (MNCs), have developed a subcontracting vendor system. This practice contributes to job insecurity for laborers and deteriorates labor welfare, as there is often no oversight regarding their conditions. 

Balancing Act: The Environmental Impacts of Globalization

The proponents of globalization have often overlooked the social, biological, and physical limitations of the system they have created. Critics argue that global free trade promotes conditions that are likely to undermine its own sustainability, particularly concerning the diminishing supplies of affordable energy.

The environmental impacts of globalization are extensive and include:

• Reduced Genetic Diversity: Loss of agricultural biodiversity, including crop varieties and livestock breeds.
• Loss of Wild Species: Decline in native wildlife populations.
• Spread of Exotic Species: Introduction and proliferation of non-native species.
• Pollution: Contamination of air, water, and soil.
• Accelerated Climatic Change: Contribution to global climate change.
• Resource Exhaustion: Depletion of natural resources.
• Social and Spiritual Disruption: Disruption of social and cultural structures.

Ways in Which Globalisation Affects Environment

• Increased Consumption: Globalization has led to a surge in product consumption, which disrupts ecological cycles. Higher consumption drives up production, putting additional stress on the environment.
• Transportation of Raw Materials and Food: The global transport of raw materials and food has escalated pollution levels, including noise pollution and landscape intrusion.
• Ozone Layer Depletion and Greenhouse Effect: Globalization contributes to the depletion of the ozone layer and exacerbates the greenhouse effect.
• Industrial Waste: Industrial waste generated from production is often dumped in oceans, harming underwater organisms and introducing harmful chemicals into marine environments. Oil spills from tankers further threaten marine ecosystems.
• Soil Contamination: Globalization and industrialization have led to the disposal of various chemicals into the soil, damaging plants by interfering with their genetic makeup and putting pressure on land resources.
• Ecosystem Vulnerability: Globalization increases the vulnerability of ecosystems and societies, particularly the least resilient ecosystems.

Ways in Which Environment Affects Globalisation

• Natural Resource Scarcity or Abundance: The availability or scarcity of natural resources drives globalization by creating supply and demand forces in global markets.
• Environmental Amelioration Costs: The need for environmental improvement can divert resources from development goals and impose costs on the economy.
• Triggering Alternative Technological Paths: Environmental stress can prompt the emergence of alternative technologies, such as dematerialization and alternative energy sources, which may not have developed otherwise.
• Influence of Environmental Standards: Environmental standards shape trade and investment patterns both nationally and internationally.

It is crucial to recognize that globalization not only impacts the environment but is also influenced by it. Environmental resources fuel economic globalization, while social and policy responses to global environmental challenges shape the context in which globalization occurs.

Impact of Globalization on Tribal Communities 

• Globalization has had a profound impact on tribal communities in India, which make up about 8.6% of the country's population, according to the 2011 census. While globalization is often associated with progress and development, for many tribal people, it has brought challenges such as rising prices, job insecurity, and inadequate healthcare. 
• One of the major issues is land alienation. Land is crucial for tribal livelihoods, and globalization has led to the displacement of many tribal communities from their ancestral lands. This trend is driven by various development projects, including major irrigation schemes, where tribal populations are often the most affected. Since independence, over 16 million people have been displaced due to such projects, with a significant proportion being from tribal backgrounds. 
• Additionally, the displacement of tribal communities continues to be a pressing issue. The construction of infrastructure projects, such as dams and roads, often leads to the forced relocation of tribal families, disrupting their traditional way of life and cultural practices. 
• Globalization has also led to the degradation of social and economic infrastructure in tribal areas. Many regions lack the necessary resources and infrastructure to participate in mainstream development, leading to the emergence of sub-national movements in places like Jharkhand, Uttarakhand, and Bodoland. These movements are often a response to the inadequate attention given to the needs and rights of tribal communities in the face of rapid globalization. 
• Furthermore, the promise of improved living standards for poor indigenous tribal people has often resulted in the opposite. Market forces, in the name of development, have prioritized profit over the well-being of tribal communities, leading to a loss of livelihood and security. This has forced many young tribal women to migrate to urban centers in search of work, where they face poor living conditions, low wages, and exploitation by unscrupulous agents. 
• The integration of tribal communities into mainstream society, while sometimes necessary, has also come at a cost. Many tribal groups are losing their unique cultural identities and traditional practices as they are assimilated into the broader population. This cultural erosion is coupled with the threat to their natural habitats, further jeopardizing their way of life.

In summary, while globalization has the potential to bring about positive changes, it has also posed significant challenges to tribal communities in India. The issues of land alienation, displacement, inadequate infrastructure, and cultural erosion highlight the need for a more inclusive and equitable approach to development that respects and preserves the rights and livelihoods of tribal people. 

Globalisation 4.0: Embracing the Technological Frontier

Globalisation 4.0 represents the most recent phase of global integration, characterized by the integration of cutting-edge technologies such as artificial intelligence (AI), big data analytics, and machine learning, all propelled by the rapid advancement of information technology. These innovations are shrinking distances, opening borders and minds, and bringing people closer together across the globe.

The development of advanced technologies such as AI, big data, nanotechnology, the Internet of Things (IoT), 3D printing, and autonomous vehicles holds the potential to significantly enhance global productivity.

Earlier Waves of Globalisation

Globalisation 1.0

• Refers to the rapid expansion of world trade, primarily during the nineteenth century.
• Driven by innovations in transport and communications, including railways, steamships, and the electric telegraph.
• The reduction in global transport costs allowed for the separation of production and consumption across international borders.
• This made previously exotic products like tea, sugar, and cotton readily available and affordable in markets like the UK for the first time.

Globalisation 2.0

• Emerged after the Second World War, known as Globalisation 2.0.
• Driven by increased international cooperation, the post-war period witnessed reduced protectionism and a rapid expansion of world trade, particularly in western economies.

Globalisation 3.0

• The third wave of Globalisation is believed to have commenced around 1990. 
• Further advancements in technology, especially the proliferation of the internet, facilitated the dispersion of various production stages across the globe. 
• This led to the emergence of modern supply chains, enabling firms to reduce production and service delivery costs by relocating operations to cheaper regions, a practice known as offshoring. 

Globalisation 4.0: Challenges

• Globalisation 4.0, much like its predecessors, could yield mixed outcomes, encompassing economic growth and poverty alleviation on one hand and political crises and heightened income inequality on the other. 
• For millennials, the economic prospects are uncertain, with concerns about lacking the necessary skills for future employment opportunities. 
• Without intentional preparation for Globalisation 4.0, there is a risk of worsening these issues. 
• The previous wave of Globalisation in the 1990s lifted certain countries out of poverty. 
• However, income inequality has been rising in those countries and in major economies like the United States. 
• Countries with low-cost labour are anticipating the benefits of the upcoming wave of Globalisation, but there is a risk of establishing a foundation that perpetuates inequality for generations. 
• Globalisation 4.0 may exacerbate income inequality even while generating more overall wealth. 

Globalisation: Way Forward

• Innovate Educational Institutions and Close the Skills Gap: By 2022, it is estimated that at least 54% of employees worldwide will need re-skilling and up-skilling. There is a need not only to support individuals in acquiring the necessary training for jobs in the next five years but also to equip young students with the skills required for future jobs in the next 20 years.
• Focus on Vulnerable Populations: The negative effects of Globalisation will disproportionately impact certain populations. Both global and local institutions must advance universal and targeted strategies to improve outcomes for everyone, especially those most affected.
• Combat Climate Change: Climate change will have a disproportionate impact on vulnerable regions and populations. The challenges of Globalisation 4.0 will be exacerbated if resources that could strengthen local economies and education are diverted to mitigate the costs of climate change.
• Build a Movement for Equity: Advancing the aforementioned priorities and creating greater equity will require a more coordinated global movement than currently exists. Many businesses, NGOs, advocacy groups, academics, and individuals now have unprecedented global reach and influence to promote equitable outcomes.
• Invest in Strengthening Local and Regional Economies: Proactive efforts are needed to build resilient local and regional systems that can participate in the next wave of Globalisation. This includes ensuring regions have the right mix of education, employment, and infrastructure to create and sustain jobs locally.

Deglobalization

Deglobalization refers to the process of reducing interdependence and integration among nations worldwide. It is characterized by a decline in economic trade and investment between countries, protectionist measures, and unilateral withdrawals from international organizations and agreements. This decline signifies that economies are becoming less integrated with the global economy.

Factors Responsible for Deglobalization

• Tariff Wars: The imposition of tariffs and trade barriers is a significant aspect of deglobalization policies.
• Right-Wing Ideology: The rise of right-wing political ideologies advocating for nationalism and protectionism contributes to deglobalization.
• Disease Outbreaks and Pandemics: The outbreak and spread of diseases, such as COVID-19, have accelerated deglobalization by prompting countries to prioritize domestic health and safety.
• Subprime Crisis of 2008: The financial crisis of 2008 highlighted the vulnerabilities of global interdependence, leading to a retreat from globalization.
• Stricter IPR Regime and Sanitary Measures: The implementation of stricter intellectual property rights and sanitary and phytosanitary measures has restricted trade and investment.
• Emergence of Emerging Market Economies: The rise of emerging market economies has shifted the focus of global trade and investment, contributing to deglobalization.
• Inward-Looking Mentality:. shift towards inward-looking policies and attitudes fosters deglobalization by prioritizing domestic over international interests.
• Political Rivalry: Geopolitical tensions and rivalries, such as those between Russia and the USA, and the USA and Iran, contribute to deglobalization.
• Brexit: The United Kingdom's exit from the European Union is a notable example of deglobalization, with significant economic costs estimated for both sides.

Trade: Global trade is declining due to weak demand and the erection of import barriers by many nations. Trade, measured as a share of global gross domestic product (GDP), increased from 30 percent in 1973 to a peak of 60 percent in 2008. However, it faltered during the financial crisis and has since decreased to 55 percent.

Migration: Net migration from poor to rich countries decreased between 2011 and 2015, despite a surge of refugees into Europe. This decline in migration is another aspect of deglobalization.

Refugee Crisis: Climate-induced and political factors, such as the Rohingya crisis, contribute to the refugee crisis, impacting global migration patterns.

Capital Flow: The flow of capital, primarily bank loans, is retreating faster than other aspects of globalization. Capital flows, which peaked at 16 percent of GDP in 2007, have decreased to just under 2 percent of GDP. This decline is attributed to the financial crisis and subsequent regulatory changes.

Impact on Advanced Economies (AEs)

• Labour Market Loss: Advanced Economies are facing challenges due to the decline of relatively low-skilled sectors, such as textiles, and the supporting economies that developed around these sectors. The reabsorption of displaced labour has been slow and incomplete, resulting in a 5% drop in the share of wages to GDP from 2000 to 2017.
• Technology: Advanced Economies have relied on technological change for per capita income growth. However, there has been a deceleration in technological change over the past decade, partly due to low investment in innovation and diminishing returns from the internet and computer revolution.
• Consumer Credit: To sustain consumer spending, Advanced Economies turned to consumer credit in the early 2000s. This reliance on consumer credit contributed to the Great Financial Crisis of 2008.

Impact on Emerging Markets (EMs)

• Trade: The increase in tariff barriers by Advanced Economies has led to a decline in exports from Emerging Markets, particularly affecting their job-intensive manufacturing sectors.
• Migration: Advanced Economies have been attractive destinations for high-skilled labour from Emerging Markets. However, increased protective measures by Advanced Economies regarding the free movement of high-skilled labour are threatening the productive growth and job opportunities in Emerging Markets.

Impact on India

• Social Impact: Deglobalization is likely to lead to a decrease in living standards in India due to its adverse effects on exports and economic growth. This, in turn, will impact the welfare of the poor and vulnerable sections of society, affecting their standard of living.
• Political Impact: The political landscape in India may be affected by deglobalization, leading to instability in the political framework. Rising prices and the cost of living could trigger civil unrest and uprisings.
• Impact on Technology: Deglobalization tendencies may hinder technological advancement globally, particularly in developing countries like India. The restricted flow of knowledge and technology to developing countries will limit progress in science and technology.
• Impact on Women Employment: Efforts towards women empowerment may be adversely affected as deglobalization reduces opportunities for women across the globe. The lack of cooperation among nations will limit prospects for women in various fields.

Way Forward

• Promotion of new forms of international and regional integration that allow for the flourishing of multiple dimensions of life while preserving essential aspects.
• Fostering a culture of tolerance and understanding that encourages positive dialogue and collaboration among nations.
•  Enhancing cooperation to make the world economy more predictable, mitigate vulnerabilities, and strengthen the free trade system. 
•  Focusing on the creation of organizations and coalitions, such as the International Solar Alliance and the Coalition for Disaster Resilient Infrastructure, that contribute to global sustainable development while promoting coordination among nations.