Globalisation | PSIR Optional for UPSC (Notes) PDF Download

What is globalization?

• Globalization refers to the increasing integration and interdependence of social, political, and economic activities across national borders. This phenomenon causes events in one part of the world to impact other regions, such as civil wars in African countries leading to refugee crises in European nations.
• The process of globalization is accelerated by advancements in communication and transportation technology, which facilitate faster and more efficient global interactions. As a result, there is a growing collective awareness of a shared 'social sphere' that connects people around the world.
• Globalization also affects the manufacturing of products, as they are often designed in one country, produced in another, assembled in a different region, and sold worldwide. This interconnectedness of production and distribution helps to illustrate the far-reaching effects of globalization.

Arguments in support of globalization

1. Increased economic interdependence: The global economy is more interconnected than ever before, with states having less control over their own economies. Multinational corporations, domestic consumers, foreign direct investment, and foreign institutional investment all play significant roles in the economy and are not entirely under the control of individual states.
2. Advancements in communication technology: The Information and Communication Technology (ICT) revolution has made it easier for information to be shared across the globe. Events happening in one part of the world can be instantly known and reacted to in another.
3. Emergence of a global culture: A global culture, largely influenced by the West, is becoming more prominent. Cities worldwide share many common features such as theaters, shopping malls, clubs, casinos, and water parks.
4. Reduced barriers of time and space: Geographical distance no longer hinders communication, travel, or business as it once did, leading to a 'compression' of time and space.
5. Rise of global polity: People from around the world are coming together to address various issues, leading to the formation of transnational social movements, pressure groups, and non-governmental organizations.
6. Global nature of modern problems: Many of the challenges faced today, such as climate change, ozone depletion, and pollution, are global in scope and cannot be effectively addressed by individual states alone.

Globalization and Sovereignty

• Every day, $5.1 trillion flows across the world's foreign exchange market.
• Governments, even the strongest ones, cannot resist speculation against their currencies and the credibility of their economic policies.
• In 1992, the British government was forced to devalue the pound and abandon its economic strategy due to sustained attacks from currency speculators.
• Transnational corporations account for 40% of world output, 80% of world trade, and a similar portion of international investments.
• These corporations control the distribution of resources and have significant influence on the global economy.
• The 1997 Asian financial crisis demonstrated how the volatility of foreign investment could affect domestic economies.

How Sovereignty is not compromised

• The role of the state is increasing rather than decreasing in the face of globalization.
• States must engage in multilateral collaboration and cooperation to achieve domestic goals in a global environment.
• State autonomy may be compromised in the pursuit of effective governance, but this does not necessarily erode sovereignty.
• States now assert sovereignty as a bargaining tool in the context of transnational rulemaking, rather than as a claim to supreme power.
• Sovereignty is shared and divided among public power agencies at various levels, from local to global.

Arguments against globalization

• Critics argue that globalization is just a recent phase of capitalism and perpetuates the exploitation of weaker states.
• Globalization has been uneven in its effects, leading to increased global inequality since liberalization.
• Some see globalization as cultural imperialism, with the propagation of Western views and values leading to the loss of indigenous cultures.
• The scientific revolution has driven globalization but primarily benefits developed countries, allowing for more efficient exploitation of resources in the Global South.
• Not all global forces are positive; the anarchy of the World Wide Web has led to issues such as drug cartels, terrorism, and censorship.
• The increasing influence of multinational corporations and NGOs in global affairs has led to confusion regarding accountability.
• The promotion of globalization as the "end of ideology" ignores the potential for clashes between Western and Asian values on issues such as human rights, gender, and secularism.

Why globalization has issues/disadvantages?

1. Economic and military inequalities: Globalization can lead to significant disparities in the economic and military capacities of different countries, with wealthier and more powerful nations often benefiting more than poorer and less powerful ones.
2. Lack of global constitution or law: The absence of a universally recognized and enforced global legal framework can lead to exploitation and power imbalances between countries.
3. Technocratic nature: Technologically advanced countries can reap the benefits of globalization more effectively than less advanced nations, further widening the gap between the rich and the poor.
4. Multiple dimensions: Globalization occurs across various spheres, such as economics (e.g., multinational corporations, global trade), military (e.g., arms trade, terrorism), legal (e.g., international law), ecological (e.g., climate change), cultural (e.g., global media, popular culture), and social (e.g., migration, NGOs).
5. Driving forces: Factors propelling globalization include technological advancements (e.g., ICT, transportation), economic systems (e.g., capitalism's search for global markets), and political influences (e.g., powerful governments supporting globalization).
6. Three waves of globalization: 
   • 1450-1850: This period was shaped by European exploration and conquest of new territories.
   • 1850-1945: This era saw the expansion and entrenchment of European empires across the globe.
   • 1960 onwards: This phase, marked by rapid technological advancements, has led to the creation of a more interconnected global society, where geographical distances are less relevant than ever before.

Different perspectives on globalization

• Realist Perspective on Globalization: Realists believe that globalization has not changed the fundamental aspect of world politics, which are the territorial nation-states. They argue that despite the increasing interconnectedness of economies and societies, states still struggle for political power, hard power remains relevant, and balance of power still exists. In essence, realists maintain that while globalization has transformed economic and social aspects of life, state politics remain unchanged.
• Liberal Perspective on Globalization: Liberals view globalization as the 'end of history' and the pinnacle of human development. They argue that states are no longer the sole decision-makers, as international organizations, civil society, and non-governmental organizations have risen in prominence. According to liberals, states have evolved from isolated units to complex interdependent networks, facilitated by the information and communication technology revolution.
• Marxist Perspective on Globalization: Marxist theorists argue that globalization is a facade for the latest stage of international capitalism. They maintain that there has been no qualitative shift in world politics, and that the bourgeoisie in capitalist countries control the process of globalization, leading to the development of underdevelopment in peripheral and semi-peripheral countries.
• Constructivist Perspective on Globalization: Constructivists argue that 'globalization is what states make of it', rejecting the notion of globalization as an uncontrollable external force. They believe that states can shape the process of globalization in a variety of ways, depending on their goals and intentions.
• Globalization vs. Internationalization: Globalization refers to the evolution of a global society, where national territorial boundaries become irrelevant, and state power is shared with other actors like multinational corporations and non-governmental organizations. Internationalization, on the other hand, refers to the growing interdependence among states while maintaining their territorial boundaries. State power remains the key factor in international political institutions, such as the United Nations and the World Trade Organization.
• Globalization vs. Regionalization: While globalization is a worldwide phenomenon, regionalization is more localized, focusing on the interactions between states in close geographical proximity. Regionalization is an older process, driven by easier trade and communication among nearby states and often shared historical ties. Examples of regionalization include the evolution of the European Union and the Association of Southeast Asian Nations (ASEAN).

Globalization and Global Politics: Understanding the Implications and Responses

• Double Democratic Deficit: The double democratic deficit refers to the compromised decision-making process in democratic governments due to their interactions with international actors for effective governance. This results in a loss of self-governance at the domestic level, while also highlighting the global inequalities and weak democratic credentials of global institutions. This creates a deficit in democracy at both domestic and global levels.
• Implications on Sovereignty, State Autonomy, and Territoriality: Globalization has significant implications on the three key aspects of the Westphalian world order: sovereignty, state autonomy, and territoriality. These principles, established in the Treaty of Westphalia in 1648, continue to govern international politics but are witnessing transformations under the forces of globalization.
• Post-Westphalian Order: The post-Westphalian order is characterized by transformations in the principles of territoriality, state sovereignty, and state autonomy:
  • Territoriality: While borders remain relevant, they are becoming less important in some parts of the world, such as the European Union.
  • State Sovereignty: The concept of state sovereignty has broadened, and states can no longer ignore external factors such as international agreements and transnational organizations.
  • State Autonomy: The ability of states to govern their citizens has been compromised, with limited control over aspects such as employment by multinational corporations, export-dependent businesses, and the largely unregulated World Wide Web.
• Responses from Developing and Developed Countries
  • Developing Countries: Countries like China have benefited significantly from globalization and are strongly opposing protectionist measures from the United States. They are also showing willingness to lead the global order. India, on the other hand, has had a mixed response to globalization, with initiatives like Make in India and Atmanirbhar Bharat promoting self-reliance while also engaging in international trade negotiations such as the WTO and RCEP.
  • Developed Countries: The developed world has experienced job losses and reduced growth rates due to globalization, leading to a trend of deglobalization. Examples of this trend include the "America First" policy and Brexit, where developed countries are seeking to protect their domestic industries and markets from the negative effects of globalization.

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