Recently, U.S. President Donald Trump imposed new tariffs, including a steep 104% duty on Chinese imports

Evolution of Globalisation

• Definition: Globalisation, in simple terms, means the process of becoming global — the integration of the world’s economies, societies, and cultures.
• Views of scholars: However, the term’s simplicity doesn’t capture its true complexity; scholars have defined it through various lenses, highlighting connectedness, economic integration, mobility, homogenization, and the shrinking role of the state.
• Significance: Globalisation is an essential process for understanding contemporary politics, economy, culture, and society.
• Understanding: Any meaningful discussion of global affairs requires an in-depth understanding of globalisation, which serves as a pivotal phenomenon influencing all aspects of modern life.
• Marxist Perspective:  Marxist scholars argue that globalisation is not a new phenomenon but part of the historical evolution of capitalism.
  • They view globalisation as an inevitable stage where capitalism spreads across the globe, shaping the production and consumption dynamics. Key scholars like Immanuel Wallerstein and Fernand Braudel emphasize the role of capitalism in driving globalisation.
• Ancient World View: Some scholars trace globalisation back to ancient times, focusing on the trade networks and connections between ancient kingdoms.
• Post War Era: After World War II, capitalism and socialism became dominant ideologies, with the US and the USSR championing each, respectively.
• Rise of Globalisation: Over time, capitalism began to outpace socialism, especially by the 1980s, leading to the fall of the Berlin Wall (1989) and the disintegration of the USSR (1991).
  • This marked the end of socialism and the global rise of capitalism, shaping a new era where the market was prioritized over state control.
• Origins: The term globalisation was first used in the 1930s, primarily in education and international relations, signifying the growing interconnectedness of nations.
  • Theodore Levitt, a Harvard professor, is credited with popularizing the concept of globalisation in the context of global economic operations.
  • In his 1983 article, The Globalization of Markets, Levitt defined globalisation as “the changes in social behaviours and technology which allowed companies to sell the same products around the world.”

Drivers of Globalisation

• Advancements in Technology:  Technological advancements have played a pivotal role in accelerating globalisation, particularly in the fields of information technology and communication.
• Impact: Digitally integrated economies, the compression of time and space, and the mass operations of multinational corporations are made possible due to technological strides.
• Government Policies: Governments have facilitated globalisation by reducing trade barriers, embracing free market operations, and standardizing consumption patterns.
• Market Changes: The rise of the aspirational middle class in emerging economies has become a significant force driving the global consumer market.

Advantages of Globalisation

• Economic Opportunities: Globalisation offers tremendous scope for developing countries, providing them with opportunities to integrate into global markets and boost their economic growth.
• Cooperation on Global Issues: Global cooperation has increased, especially on issues like terrorism, hunger, and climate change, with nations collaborating to tackle these common challenges.
• Access to Foreign Cultures and Ideas: Greater access to foreign cultures makes societies more accommodative, fostering open-mindedness and greater cultural exchange.
• Lower Prices: The global market stimulates competition, which often results in lower prices for goods and services, benefiting consumers.
• Increased Awareness: Globalisation increases awareness of peripheral and marginalized regions, often giving a platform to otherwise overlooked communities through media coverage.

Disadvantages of Globalisation

• Economic Inequality: Economic inequality has deepened both between nations (rich nations growing richer while poorer ones become more marginalized) and within countries (widening wealth gaps).
• Cultural Homogenisation: Globalisation’s push for standardisation has led to a decline in cultural diversity, particularly in areas such as food, language, clothing, and entertainment.
  • Sociologist George Ritzer’s concept of “The McDonaldization of Society” describes the process where globalisation promotes uniformity, often at the expense of local traditions and cultures.
• Environmental Degradation: The massive scaling up of operations by multinational corporations has accelerated environmental degradation, as businesses expand their reach to new markets without regard for sustainability.
• Class Divide: Globalisation’s benefits are often not evenly distributed. While it offers significant advantages to the middle and upper classes, it can be detrimental to the poor, exacerbating economic hardships for marginalized groups.
• Rise of Protectionism:  As globalisation led to increased movement of labor across borders, many developed countries began to resent foreign workers, perceiving them as threats to local jobs. 
  • This resentment gave rise to protectionist policies such as high tariffs and restrictions on imports.
• Aversion: Racial aversion and the perception of globalisation as a threat have contributed to the rise of new forms of racism in the Global North.
• Protectionism in the Developing World: In underdeveloped countries, globalisation has led to the collapse of domestic industries under the pressure of big multinational corporations. 
  • Many nations have turned to protectionism as a response, hoping to shield local industries from foreign competition.

Response of Nations to Globalisation

• India: In India, the decline of small-scale industries and traditional crafts has led to the ‘Make in India’ campaign. While not entirely protectionist, the campaign is a response to growing concerns over the dominance of multinational corporations.
  • Economist Raghuram Rajan suggests transitioning to a ‘Make for India’ approach, focusing on domestic demand for products.
• USA: Donald Trump’s protectionist policies in the U.S. have included withdrawing from international agreements, cutting funding to international organizations, and imposing high tariffs. 
  • These actions have raised concerns about the negative impact of protectionism on global trade and cooperation.

Conclusion

The rise of protectionism reflects the growing influence of narrow, interest-driven groups rather than broad-based national welfare. Globalisation should be critically assessed, especially when considering the long-term consequences

DOWNLOAD PDF