Globalisation: Impact on Indian Society, Benefits, and Challenges

Globalisation -A process of the “reconfiguration of geography, so that social space is no longer wholly mapped in terms of territorial places, territorial distances and territorial borders.”

To prepare for INDIAN SOCIETY for any competitive exam, aspirants have to know about the Impact of Globalisation on Indian Society. It gives an idea of all the important topics for the IAS Exam and the Economy syllabus (GS-II.). Important Impact of Globalisation on Indian Society terms are important from Economy perspectives in the UPSC exam. IAS aspirants should thoroughly understand their meaning and application, as questions can be asked from this static portion of the IAS Syllabus in both the UPSC Prelims and the UPSC Mains exams. 

Globalisation: A WORLD OF INTERCONNECTED ECONOMIES AND SOCIETIES #

Globalisation is a process of increasing interdependence, interconnectedness and integration of economies and societies to such an extent that an event in one part of the globe affects people in other parts of the world.

OR

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Globalisation is a process of interaction and integration among the people, organizations, and governments of different nations, a process driven by international trade and investment and aided by information technology. 

Globalisation THROUGHOUT HISTORY: INDIA’S EARLY CONNECTIONS AND CONTEMPORARY IMPACTS #

• India was not isolated from the world even two thousand years ago. We know about the historical and famous Silk route, which centuries ago connected India to the great civilizations, which existed in China, Persia, Egypt and Rome.
• We also know that throughout India’s long past, people from different parts came here, sometimes as traders, sometimes as conquerors, sometimes as migrants in search of new lands and settled down here.
• In remote Indian villages often, people ‘recall’ a time when their ancestors lived elsewhere, from where they came and settled down where they now live.
• Though this exchange process has been going on for time immemorial, this process was termed as ‘Globalisation’ for the first time around the second half of the 20th century.
• The adaptation of export-oriented development strategies and trade liberalization was widespread.
• The Globalisation of national policies, policy-making techniques, implementation strategies of the national government is the result of Globalisation itself.
• Globalisation has some externalities associated with it and thus creates a set of Global ‘bads’ – climatic change, global warming, depletion of the ozone layer, etc.
• Social and cultural aspects
• Technology and communication
• Corporate world
• International trade, relations and economy

Driving Forces Behind Globalisation: Catalysts Shaping a Global Village  #

• Technology – Has reduced the speed of communication manifolds. The phenomenon of social media in the recent world has made distance insignificant.
• LPG Reforms: The 1991 reforms in India have led to greater economic liberalisation which has in turn increased India’s interaction with the rest of the world.
• Faster Transportation: Improved transport, making global travel easier. For example, there has been a rapid growth in air-travel, enabling greater movement of people and goods across the globe.
• Rise of WTO and multilateral organisations: The formation of WTO in 1994 led to reduction in tariffs and non-tariff barriers across the world. It also led to the increase in the free trade agreements among various countries.
• Improved mobility of capital: there has been a general reduction in capital barriers, making it easier for capital to flow between different economies. This has increased the ability for firms to receive finance. It has also increased the global interconnectedness of global financial markets.
• Rise of MNCs: Multinational corporations operating in different geographies have led to a diffusion of best practices. MNCs source resources from around the globe and sell their products in global markets leading to greater local interaction.
• Above factors have helped in economic liberalization and Globalisation and have facilitated the world in becoming a “global village”.

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Globalisation: FACTORS CONTRIBUTING #

Globalisation: BENEFITS IMPACTING INDIA #

• Globalisation helps to boost the long-run average growth rate of the economy of the country through:
• Improvement in the allocative efficiency of resources;
• Increase in labor productivity
• Globalisation attracts an entry of foreign capital along with foreign updated technology which improves the quality of production.
• Globalisation usually restructure production and trade pattern favoring labor-intensive goods and labor-intensive techniques as well as the expansion of trade in services
• Globalisation enhances the efficiency of the banking insurance and financial sectors with the opening up of those areas to foreign capital, foreign banks, and insurance companies.
• Improved Standard of Living and Better Purchasing Power
• In a globalized scenario, domestic industries of the developing countries become conscious about price reduction and quality improvement to their products so as to face foreign competition.

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Globalisation: CHALLENGES #

• Globalisation 4.0 (which is driven by technology and the movement of ideas, people, and goods) could, like preceding waves of Globalisation, have mixed results e.g. even though many countries are globally connected but the political crisis and global level conflict have also increased.
• Globalisation has alerted the village and small-scale industries and sounded death-knell to it as they cannot withstand the competition arising from well-organized MNCs
• Globalisation is also posing a threat to agriculture in developing and underdeveloped countries of the world. As with the WTO trading provisions, the agricultural commodities market of poor and developing countries will be flooded with farm goods from countries at a rate much lower than that of indigenous farm products leading to a death-blow to many farmers.
• Although globalisation promotes the idea that technological change and increase in productivity would lead to more jobs and higher wages, during the last few years, such technological changes occurring in some developing countries have resulted in more loss of jobs than they have created leading to a fall in employment growth rates.
• Globalisation paves the way for a redistribution of economic power at the world level leading to domination by economically powerful nations over the poor nations.
• Globalisation has also let loose the forces of “uncivil society” and accelerated the transnational flows of terrorism, human and drug trafficking, organized crime, piracy, and pandemic diseases (For instance, Covid-19). The growth of these transnational networks threatens state institutions and civil society in many countries.
• Human trafficking is among the darkest sides of Globalisation, turning human beings into commodities bought and sold in the international marketplace. Women and children are among the most exposed to it.

Cultural Dynamics: Navigating the Spectrum Between Homogenization and Glocalization in a Globalized World #

• A central contention is that all cultures will become similar, that is homogeneous. Others argue that there is an increasing tendency towards glocalization of culture.
• Ritzer (2004) has coined another word Globalisation that refers to what he calls “growth imperatives(pushing) organizations and nations to expand globally and to impose themselves on the local”.
• Glocalization It refers to the mixing of the global with the local. It is not entirely spontaneous. Nor is it entirely delinked from the commercial interests of Globalisation.
• It is a strategy often adopted by foreign firms while dealing with local traditions in order to enhance their marketability.
  • In India, we find that all the foreign television channels like Star, MTV, Channel V and Cartoon Network use Indian languages.
  • Even McDonald’s sells only vegetarian and chicken products in India and not its beef products, which are popular abroad. McDonald’s goes vegetarian during the Navratri festival.
  • In the field of music, one can see the growth of popularity of ‘Bhangra pop’, ‘Indi pop’, fusion music and even remixes.
  • Culture cannot be seen as an unchanging fixed entity that can either collapse or remain the same when faced with social change. What is more likely even today is that Globalisation will lead to the creation of not just new local traditions but global ones too.
• Global
• Local
• Food
• Marriage
• Festivals
• Movies
• French, German and Spanish

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Homogenization of Culture #

It is a process of increasing global interdependence and interconnectedness that lead toward growing cultural standardization and uniformization.

• Family structure: Joint families have been adversely affected due to Globalisation. There has been an increase in nuclear families. This can be clearly manifested in the increasing number of old age homes that are present now.
• Food: due to opening up of food joints like McDonalds, KFC across the country, there has been a homogenization of food available across the country, but there has also been heterogenization in food. Old restaurants are now replaced by Mc. Donalds. Fast food and Chinese dishes have replaced juice corners and Parathas.
• Borrowing of money has become more acceptable now as compared to the past. Taking loans is very common due to increasing access to financial institutions
• In place of old cinema halls, multiplex theatres are coming up.
• Use of English has increased manifold in urban areas, this has led to a homogenization in language across the country, but the rural areas have been less affected by it.
  • Value system – increasing homogeneity of world values like rationalization, free market competition, commodification and democratic or human rights and above all a global culture.

Glocalization of Culture #

• Food: India has its unique cuisine, but the cuisines of foreign countries have become more easily available, they are modified to suit the taste buds of Indians (like Paneer Tikka Burger in McDonalds). This has led to a wide variety of food being available, leading to heterogenization
• French, German and Spanish are taught to students right from school level along with indigenous languages, this is an exemplification of hybridization of culture.
• Movies: popularity of foreign movies has increased, Hollywood, Chinese, French and Korean movies are quite popular among the urban youth. Along with this, dubbing of these foreign movies in local languages is testimony of increased glocalization.
• Festivals: celebrations of Valentines’ day, Friendship day are examples of change in cultural values related to festivals. However, along with these new days, traditional festivals are celebrated with equal enthusiasm.
• Marriage: Importance of marriage is decreasing, there has been an increase in divorce, increase in live-in relationships, and single parenting is increasing. Marriage used to be considered as bonding of the souls; but today marriage is becoming professional and contractual. However, despite changes in forms of marriage, it has not declined as an institution.

Indian society is subdivided in communities which enjoy ‘enormous cultural autonomy’. This provides colossal cultural resilience to communities in India to filter the effect of Globalisation through refectory and prismatic adaptation. That is why India’s core values have never changed despite giving shelter to divergent religions of the world and accommodating them within its civilization. 

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CULTURAL REVIVAL IN THE GLOBALIZED ERA: IMPACT ON YOGA, AYURVEDA, RELIGION, AND HANDICRAFTS #

• Revival of Yoga in the country as well as at the international level. This can be seen in the popularity of the ‘Art of Living’ course by Ravi Shankar, or the celebration of International Yoga day across the world
• There has been a revival of ayurvedic medicines in the country as well as outside it.
• Due to increasing uncertainty by inter-linkage with the outside world, there has been religious revivalism. This can be manifested in the use of religion to attract voters, or mobilizing people on the basis of religion.
• Increasing demand for local handicraft products in the global market: such as Chikenkari or bandhani.
• Due to increasing global tourism, locals are making efforts to preserve their diversity and revive their traditions.

We can see that the western culture is influencing Indian culture, but it is not replacing it, rather there is a mixture of both cultures. 

Globalisation IN INDIA: SOCIO-ECONOMIC IMPACT #

In the age of rapid technical progression, many countries are unified and transformed due to the process of Globalisation. Globalisation has a huge impact on the cultural, social, monetary, political, and communal life of countries.

Impact on Indian Economy #

Globalisation in India is generally taken as integrating the economy of the country with the rest of the world. 

Pros:

• The growth rate of the GDP of India has been on the increase from 5.6 percent during 1980- 90 to 4 percent shown by the union budget 2016-17.
• There is an international market for companies and for consumers, there is a wider range of products to choose from.
• Increase the inflow of investments from developed countries to developing countries, which can be used for economic reconstruction.
• The greater and faster flow of information between countries and greater cultural interaction has helped to overcome cultural barriers.
• Many new companies were formed by Indian entrepreneurs across different industrial segments in view of liberalized economic policies announced by the Government.
• A large number of job opportunities increased in India.
• It helped in faster developments in telecommunication, roads, ports, airports, Insurance, and other major sectors.
• It Increased FDI and FII.
• Benefits for consumers are lower prices of goods and a wide range of goods available to choose from.

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Cons:

• Globalisation has generated problems like jobs and social insecurity. The public sector provides jobs along with social as well as job security and other benefits also.
• The agriculture sector is the backbone of the Indian economy. The above 50 percent of people are working in the agriculture sector. This sector has been neglected by the government in the post-reform period and the share of agriculture has decelerated continuously.
• Post reform period has witnessed a drastic increase in child labor because due to LPG policy the role of the public sector was reduced. Therefore, the corporate is working for profit motive only.
• Process of Capital intensive from labor-intensive adopted global technologies and automatic machinery. But this has resulted in the high rate of unemployment in India which is becoming the biggest challenge for the Indian Economy and the Government today.
• We may call Globalisation a double-edged weapon that helped Indian consumers to enjoy all high-Quality global brands. On another hand, it helped the Government of India to tide over its serious foreign exchange problem, even though temporarily by getting a loan from the World Bank. But, it has been at the cost of decontrol of the Indian Government over its economy and at the cost of the local Industry.

Psychological Impact on Indian Society #

• Stress and insecurity because of cut throat competition.
• Emergence and spread of fundamentalism.
• Self-selected culture:
  • Here, people choose to form groups with like-minded persons who wish to have an identity that is untainted by the global culture and its values. The values of the global culture, which are based on individualism, free market economics, and democracy and include freedom of choice, individual rights, openness to change, and tolerance of differences are part of “western values.”
• Spread of emerging adulthood:
  • The timing of transitions to adult roles such as work, marriage and parenthood are occurring at later stages in most parts of the world as the need for preparing for jobs in an economy that is highly technological and information based is slowly extending from the late teens to the mid-twenties.
  • Additionally, as the traditional hierarchies of authority weaken and break down under the pressure of Globalisation, the youth are forced to develop control over their own lives including marriage and parenthood.
  • For young people in developing countries, emerging adulthood exists only for the wealthier segment of society, mainly in urban areas, whereas the rural poor have no emerging adulthood and may even have no adolescence because they begin adult-like work at an early age and begin relatively early.
• Identity Confusion:
  • The individuals from non-western cultures experience it as a response to Globalisation. While people may adapt to changes and develop bicultural or hybrid, multicultural identities, some may find it difficult to adapt to rapid changes.

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Impact on Agriculture #

With a view to moving towards liberalizing the agricultural sector and promoting free and fair trade, India, a member nation of the World Trade Organisation (WTO) (WTO) signed the Uruguay Round Agreements on 1st January 1995.

The Agreement on Agriculture of the WTO was the first multilateral agreement, meant to curb unfair practices in agricultural trade and set off the process of reforms in the agricultural sector. 

Positives of Globalisation on agriculture: #

• Increase National Income – Receiving the international market for the agricultural goods of India, there is an increase in farmer’s agricultural product, new technology, new seeds, etc. helped to grow the agricultural product.
• Introduced new water-saving practices in India such as drip irrigation
• With Globalisation, farmers were encouraged to shift from traditional crops to export-oriented ‘cash crops’ such as cotton and tobacco but such crops needed far more inputs in terms of fertilizers, pesticides, and water.
• Increase in the export of agricultural goods – The prices of agricultural goods are higher in the international market than in Indian markets. If the developed countries reduce grants, they have to increase the prices. So, there will be an increase in the export in the Indian market and if the prices grow, there will be profit.
• Appropriate use of agricultural equipment, suited to the crops and the region of cultivation, lead to efficient utilization of farm inputs, making farming financially viable and profitable.
• Research collaboration with foreign countries and institutions has increased.
• Globalisation has encouraged the concrete of corporate and contract farming which have helped farmers.
• The proliferation of food processing industries has improved farmers’

Negatives of Globalisation on agriculture: #

• Small production field – In India 60% of the population depends on agriculture. The pressure on agriculture is increasing because of the increasing population. The possession of land is small and so the production cost is higher. There is also the problem of standard etc. So, there are unfavorable impacts on Indian agriculture.
• Cash crop demand increases farmer focus on these crops. But the demand and price of these crops may fluctuate. This has major implications when farmers deviate from food crops. This has issues for countries’ food security.
• More importantly, Globalisation has shifted the public discourse from agriculture to industry. Globalisation has indirectly led to industrial growth. This needs land and resultantly increases in the displacement of farmers.
• Intellectual property rights: – Intellectual property rights cause unfavorable impacts on Indian agriculture. Multinational companies can easily enter the field of agriculture and it will be bad for the marginal farmers.
• A forum like WTO pressurizing to tone down security net for the agriculture sector
• Input cost for agriculture is also affected by global events. Tension in the Eurasian region can cause fluctuation in the price of
• Prices in global markets are able to impact local prices. the sugar industry

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Impact of Globalisation on the Informal sector #

• Globalisation has resulted in the casualization of labor. Global competition tends to encourage formal firms to shift formal wage workers to informal employment arrangements without minimum wages, assured work, or benefits.
• There has been a shift in the composition of the labour force in favor of the skilled laborers, in general, and more significantly in the unorganized As a natural consequence, labor productivity indicated faster improvement both in organized and unorganized sectors
• Globalisation tends to benefit large companies which can move quickly and easily across borders but possess disadvantage to labor, especially lower-skilled workers that cannot migrate easily or at all.
• As more and more men enter the informal economy, women tend to be pushed to the lowest income end of the informal economy.
• But Globalisation can also lead to new opportunities for those who work in the informal economy in the form of new jobs for wageworkers or new markets for the self-employed

Impact of Globalisation on family #

• Since ancient times, the joint family system has been one of the chief characteristics of the Indian social system in general and tribal social structure in particular.
• Recently the joint family pattern throughout India has been showing a declining tendency.
• The diversity in family forms has given way to the dominance of nuclear families in globalized India.
• Globalisation has led to large scale migration and urbanization since it becomes difficult to maintain a joint family system because of the high cost of living.
• Some argue that in the era of economic restructuring the institution of the family is emerging as a much stronger institution than ever before; others argue that family is becoming progressively weak due to Globalisation and individualism is growing up.
• Family involvement in finding a groom/bride is reduced to nominal. Apart from regular festivals, new occasions like ‘Valentine’s Day’, ‘Mother’s Day’, ‘Father’s Day’ is Weekend parties, kitty parties, visiting pubs and discos almost became a very natural thing.
• The pattern of change in family dining is also worth observing. Having dinner while watching Television or chatting on the computer became a very common thing in most households.
• The proportion of dual-earning couples (DEC) is also substantially growing. It has enormously altered the traditional and functional role of women, family planning while distressing family dynamics and affecting children and the elderly at home.

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Impact of Globalisation on Marriage #

Pros:

• Due to Globalisation, the concept of love marriages is increasing and elders have started to accept and appreciate it in the same way.
• Inter caste and inter-religious marriages have become more common
• Parents are turning to the web to search for brides and grooms, they prefer NRI for their westernized outlook, lifestyles, and higher disposable income.

Cons:

• The importance of marriage is decreasing, there has been an increase in divorce, an increase in live-in relationships, and single parenting is increasing.
• Marriage used to be considered as bonding of the souls, but today marriage is becoming professional and contractual.
• Other issues like serial monogamy, live-in relationships are viewed against the culture of India.
• However, despite the change in forms of marriage, it has not declined as an institution.

Impact of Globalisation on Food and Festival #

• Due to the opening up of food joints like McDonald’s, KFC across the country, there has been a homogenization of food available across the country, but there has also been heterogenization in food. Old restaurants are now replaced by McDonalds.
• Fast food and Chinese dishes have replaced juice corners and Parathas
• Celebrations of Valentines’ day, Friendship day are examples of changes in cultural values related to the festival. However, along with these new days, traditional festivals are celebrated with equal enthusiasm.

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Globalisation and Education #

Education holds the key to India’s growth and socio-economic development. This has assumed greater importance over the last decade with India positioning itself as a knowledge economy in a fast globalizing world 

Globalisation and Education: PROS

• Through cultural immersion, students who participate in global education programs are able to gain a greater depth of knowledge about and appreciation for new cultures. This often includes acquiring advanced language skills
• It aims at enhancing the overall core values in terms of research and technological advancements.
• By experiencing the differences and similarities between their host country and their home country, the student will enhance their global perspectives and obtain a greater awareness of global affairs, including political, educational, societal, and economic issues.
• School facilities have also come under the scanner as there is a demand for quality in available infrastructure that can aid in preparing a different class of people who are ready for a global world.
• With the advent of Globalisation, the Indian higher education system has made considerable progress in terms of capacity creation and enrolment especially in the last decade yet it lags significantly in terms of “global relevance and competitiveness”.
• Globalisation promotes new tools and techniques such as E-learning, Flexible learning, Distance Education Programs, and Overseas training.
• There are enormous effects observed in the educational sector due to Globalisation such as the literacy rate becoming high and Foreign Universities collaborating with different Indian Universities.

Globalisation and Education: CONS

• Globalisation has put extra pressure on the education system to create ‘winners’ who are ready to battle in the race for the survival of the fittest.
• It has led to the preparation of a curriculum that has to be internationally acceptable.
• In the contemporary context, students are seen as customers as well as partners in the process of learning.
• Commercial institutions offering specialized education have come up everywhere. In view of Globalisation, many corporate universities, both foreign and Indian, are encroaching upon government institutions.
• The growth of computers and other technologies enabled women with better wages, flexible timings, and the capacity to negotiate their role and status in-home and at the corporate level.
• Globalisation could erode our traditional values and ethos.
• Education has become beyond the reach of poor students because of Globalisation. Since the educational level by these agencies has been elevated, the monetary requirements to become admitted and study has also spiraled.

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Globalisation and Caste System #

The rise in Globalisation has brought changes to the caste system both in positive as well as a negative way:

Pros:

• The rigid caste system is gradually giving its way to relaxed norms in the form of inter-caste marriages, intermingling, and socializing.
• Due to Globalisation, there has been an expansion of economic opportunities, education, and liberal thoughts, which has resulted in the weakening of the caste system.
• The traditional division of labor was breaking down due to industrialization; this was given a boost by Globalisation.
• The rise in professionalism, improvement in education, etc. have provided employment opportunities and thus improving the conditions of the vulnerable

Cons:

• However, despite changes, the caste system has shown immense resilience and still continues to exist as one of the significant features of Indian society.
• Due to a lack of skills, Globalisation has forced vulnerable caste towards the informal sector doing menial jobs.
• Despite Globalisation, the practice of untouchability is still prevalent in India.

Globalisation and Women in India #

Globalisation affects different groups of women in different places in different ways. On the one hand, it may create new opportunities for women to be forerunners in economic and social progress; on the other it may take away job opportunities by providing cheaper avenues in the form of assembly-line production or outsourcing.

Pros:

• Globalisation has indeed promoted ideas and norms of equality for women that have brought about awareness and acted as a catalyst in their struggle for equitable rights and opportunities.
• Different non-profit organizations have been brought to India from around the globe. These organizations have given women the skills they need to advance, such as literacy and vocational skills.
• It has led to an increase in the independence of women, especially in urban areas. This has been manifested through inter-caste marriages, single mothers, live-in relationships
• The women in rural settings have been influenced by Globalisation through media and through numerous intervention programs like non-profit organizations, increasing the self-confidence of women and motivating them to fight for their rights.
• Changes in the attitude of women-more acceptance of western clothes, dating has become common in urban areas, increased use of contraception in rural as well as urban areas.
• Trade openness and the diffusion of new information and communication technologies have translated into more jobs and stronger connections to markets for many women, increasing their access to economic opportunities.
• Greater access to information has allowed many to learn about life and mores in other parts, possibly affecting attitude and behaviors.

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Cons:

• Though employment opportunities for women are increasing, they are most crowded in low paying jobs, and have less social security.
• Women are suffering two-fold. As women in developing countries move into the workforce, their domestic responsibilities are not alleviated. Women work two full-time
• The exploitation of women in the workplace has emerged as a new issue
• Globalisation has occurred with the persistence of the patriarchal mindset of Indians, this has led to problems for women like the commodification of women, the use of social media to harass women, increase in violence against women.
• As consumers, women are increasingly facing a consumer culture which reduces them to commodities and as producers, women are exposed to work exploitation and occupational hazards
• Additionally, prostitution, abuse, and dowry related suicides are increasing.
• Gender differences in education have limited Women’s access to new employment opportunities. But because of lower education levels, female producers experience more constraints in accessing international markets than males.
• Women’s weaker property rights and limited access to productive inputs also constrain their capacity to benefit from trade openness.
• Gender norms for mobility and women’s role in the economic sphere can disproportionately affect Women’s access to technology.

Globalisation and Youth #

The majority of India’s population is young (India is witnessing demographic dividend). The population growth among youth is one of the most critical factors in the way India responds to Globalisation. Indian youth are fueling both positive and negative perceptions given to Globalisation.

PROS:

• Present-day youth, with its more materialistic ambitions and more globally informed opinions, are gradually abandoning the austere ways and restricted traditional Indian markets.
• Youth demand a more cosmopolitan society that is a full-fledged member of the global economy.
• Globalisation has highlighted the importance of imparting education, training, and requisite skills to young people for providing them a platform to become successful participants in the labor
• The increased skill set contributes in the form of increased investment attraction from all around the world.
• It has promoted a cross-fertilization of ideas, cultural values, and aspirations; thus, it has helped to connect youth not only to the rest of the world but also among each other.
• With more awareness, youth are being more vocal towards their rights. Consequently, the government is ensuring more participation of people in policymaking.

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Cons:

• The traditional Indian dress is declining, especially among urban youth, in favor of new fashions from the west.
• Youth are not as close to their grandparents as were earlier generations and spend less time with the older generation resulting in loss of wisdom handed down from generation to generation.
• Lack of physical activity has made youth follow a sedentary lifestyle leading to health disorders.
• Many young people, especially in developing countries remain marginalized from the global economy. They are incapable of accessing the opportunities that Globalisation offers due to inadequate education, limited skills, poverty or they cannot reach out to basic information and communication, and the goods and services that have become available with Globalisation.

Globalisation PROCESS: ETHICAL CHALLENGES #

• Rising inequality: While the advanced capitalist countries enjoy the benefits of industrialization, the rest of the countries are forced to share the negative consequences or externalities thrown up by industrial activities.
• Human rights issues: The bad work environments and low-wages involved in the industry prevent workers from accessing even basic human rights.
• Others: The Dissolution of families and communities, rise in nuclear families and increasing isolation of old-aged parents; privatization and consequent rise in cost of health care, education and other social services are some of the other issues associated with the process of Globalisation.

Way Forward #

• The need of the hour is to design a blueprint from the ground up that can capitalize on new opportunities while prioritizing sustainability and inclusiveness more than ever before.
• Global and local institutions need to advance both universal and targeted strategies to improve outcomes for everyone ensuring vulnerable populations are not left out.
• We should proactively build resilient local and regional systems that can participate in the next wave of Globalisation, making sure regions have the right mix of education, employment, and infrastructure to create and sustain jobs locally.

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Globalisation: POLITICAL CHANGES #

• Political development which is accompanying Globalisation is the growth of international and regional mechanisms for political collaboration.
• The European Union (EU), the Association of Southeast Asian Nations (ASEAN), South Asian Regional Conference (SARC), and more recently South Asian Federation of Trade Association (SAFTA) are just some of the examples that indicate the greater role of regional associations.
• There has been the rise of International Governmental Organisations (IGOs) and International Non-Governmental Organisations (INGOs).
• The concept of good governance has been strengthened due to increasing globalisation.
• This has led to a policy change towards a rights-based approach to governance.
• The effects of Globalisation on democracy is not limited to a special scope. Some thoughtful beliefs that Globalisation affects all foundations of democracy such as freedom of expression, freedom of belief and religion, civil community, citizenship rights, confinement of state activity, legitimacy of governors, freedom of the press, and etc.

Globalisation: CULTURE OF CONSUMPTION #

Often when we speak of culture, we refer to dresses, music, dances, food. However, culture as we know refers to a whole way of life. There are two uses of culture, one culture of consumption and second is corporate culture.

Culture of consumption:

• Culture of consumption (art, food, fashion, music, tourism) plays a crucial role in the process of Globalisation, especially in shaping the growth of cities. Till the 1970s the manufacturing industries used to play a major role in the growth of cities.
• This is evident in the spurt in the growth of shopping malls, multiplex cinema halls, amusement parks and ‘water world’ in every major city in India.
• Most significantly advertisements and the media in general promote a culture where spending is important. To be careful with, money is no longer a virtue.
• Shopping is a past time actively encouraged. Successive successes in fashion pageants like Miss Universe and Miss World have led to a tremendous growth in industries in the fields of fashion, cosmetics and health.
• Young girls dream of being Aishwarya Rai or Sushmita Sen.
• Popular game shows like Kaun Banega Crorepati (KBC) actually made it seem possible that your fortunes could turn over in a few games.

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Corporate culture:

• It is a branch of management theory that seeks to increase productivity and competitiveness through the creation of a unique organizational culture involving all members of a firm.
• A dynamic corporate culture – involving company events, rituals and traditions – is thought to enhance employee loyalty and promote group solidarity.
• It also refers to the way of doing things, of promotion, and packaging products.
• The spread of multinational companies and the opportunities opened up by the IT revolution has created in the metropolitan cities in India a class of upwardly mobile professionals working in software firms, multinational banks, chartered accountancy firms, stock markets, travel, fashion designing, entertainment, media and other allied fields.
• These high-flying professionals have highly stressful work schedules, get exorbitant salaries and are the main clientele of the booming consumer industry.

Impact of Globalisation on Labor: Striking a Balance between Growth and Worker Welfare #

• Globalisation is perceived as a double-edged sword, because, on one hand, it has created huge potential for business development across the world and on the other; it has made both global and local markets more competitive. It has given birth to a new “Global Economic Map”.
• Globalisation is seen as a major driver of economic growth via international trade in goods and services and capital flows through FDIs and portfolio investments.
• From another perspective, it is feared that Globalisation adversely affects labour interests. In a globally competitive environment, the transnational corporations are relentlessly engaged in squeezing every resource for maximizing their economic returns. In that process, though the owners of capital seem to have gained, the laborer’s have lost out.
• In spite of the presence of apex bodies like International Labour Organization (ILO), WTO, failure to recognize trade unions, wage disparity, violation of health and safety norms are recurrent in various parts of the world.
• Advocates of human rights and labour movements argue that labour conditions have been deteriorating continuously, mainly due to firms ‟ attempts to adjust to the competitive forces of a global economy”.
• The most vulnerable groups are temporary/contract labourers and the workers having low or no skills.

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Impact of Globalisation on Labour in India: #

• After 1991 GoI changed its industrial policy and accepted Liberalization, Privatization, Globalisation (LPG) This policy aims at opening the economy to the world, leading to completion of industrial change.
• Globalisation has impacted the labour in positive and negative manner in following way:
  • The reforms propelled India’s GDP growth rate to nearly 7-8% from the prevalent 2-3%. They have created a robust private sector and thus employment for millions of Indians over the years.
  • However, a substantial amount of these jobs have either remained informal or have been lost with time.
  • Opening up of the market and free flow of trade and low tariffs encouraged flow of foreign goods lowering the employment opportunities of Indian labourers.
  • It has created avenues for women who want to participate in industry. Women have entered the labour force in large numbers in countries that have embraced liberal economic policies. Industrialization in the context of Globalisation is as much female-led as it is export-led. The overall economic activity rate of women for the age group 20-54 increased drastically.
  • But the informal sector where women were absorbed in large numbers along with Globalisation offer very poor labor conditions. Such industries where women were mostly engaged happened to be highly labour intensive, service oriented and poorly paid.
  • Liberalization of the economy has in some sectors caused loss of employment without creation of new employment.
  • The big corporate companies like TNCs and MNCs have evolved a vendor system of subcontracting for their production. This results in job insecurity of the labourer and worsening of labour welfare since there is no checking system for their welfare.

• Globalisation
• Privatization
• Liberalization

Balancing Act: Exploring the Environmental Impacts of Globalisation #

• The architects of Globalisation have ignored the social, biological and physical constraints on their created system.
• Critics of Globalisation have noted that global free trade promotes the social and economic conditions most likely to undermine its own existence. The same can be said of the biological and physical limiting factors-especially, in the short term, the dwindling supplies of cheap energy.
• The effects of Globalisation on environment include, but are not limited to, reduced genetic diversity in agriculture (loss of crop varieties and livestock breeds), loss of wild species, spread of exotic species, pollution of air, water and soil, accelerated climatic change, exhaustion of resources, and social and spiritual disruption.

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Ways in Which Globalisation Affects Environment: #

• An increase in the consumption of products, which has impacted the ecological cycle. Increased consumption leads to an increase in the production of goods, which in turn puts stress on the environment.
• Increase in the transportation of raw materials and food. This led to an increase in the pollution levels in the environment. It has also led to noise pollution and landscape intrusion.
• Ozone layer depletion and enhanced greenhouse effect pose additional challenges.
• The industrial waste that is generated as a result of production is dumped in oceans. This has killed many underwater organisms and has deposited many harmful chemicals in the ocean. Oil spills from oil tankers pose a threat to the marine environment.
• Due to Globalisation and industrialization, various chemicals have been thrown into the soil. This toxic waste has caused a lot of damage to plants by interfering in their genetic makeup.
• It has put pressure on the available land resources.
• Globalisation increases the vulnerability of ecosystems and societies, and the least resilient ecosystems.

Ways in Which Environment Affects Globalisation #

• Natural resource scarcity or/and abundance are drivers of Globalisation, as they incite supply and demand forces in global markets.
• The need for environmental amelioration can extract costs from the economy and siphon resources away from development goals.
• Environmental stress can trigger alternative technological paths, e.g., dematerialization, alternative energy, etc., which may not have otherwise emerged.
• Environmental standards influence patterns of trade and investment nationally and internationally.

The data for energy utilization per capita and CO2 emission after LPG reforms in India are given

It is important to highlight that not only does Globalisation impact the environment, but the environment impacts the pace, direction and quality of Globalisation. For example: environmental resources provide the fuel for economic Globalisation. Similarly, social and policy responses to global environmental challenges constraints and influence the context in which Globalisation happens. 

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Globalisation Impact: The Evolution of Indian Entertainment and Media in a Globalized Era #

• Entertainment industry in India has registered an explosive growth in the last two decades making it one of the fastest growing industries in India. Today, there are more than 400 active channels in the country.
• Online content, Over the Top Platforms (OTP) and Social media seems to be catching up with viewers across India.
• The most visible effect of Globalisation is widespread communication networks.

Role of Television: #

• Exchange of Talent: Globalisation has helped the film production companies to share the international pool of talent.
• Role of the internet: Social networks like Facebook and LinkedIn bring integrity and help people stay connected. It acts as a platform to the society for better connectivity and hence being aware or updating themselves regarding what is happening around them.
• Role of the Radio: It is one of the easiest and cheapest media sources. It is easily available in most parts of the country. The biggest advantage of the radio as a means of media Globalisation is that it can be understood by even an illiterate person and can cater to a larger number of people. Moreover, it has a greater impact on the rural population as they are able to connect to the radio easily. Therefore, the importance of radio in society is indispensable.

IMPACT OF Globalisation: TRIBAL COMMUNITIES #

• Tribal people constitute 8.6% of the nation’s total population, over 104 million people according to the 2011 census.
• For the Tribal, Globalisation is associated with rising prices, loss of job security, and lack of health
• In the name of up-gradation of the lifestyle of poor indigenous tribal people, the market forces have created wealth for their interests at the cost of livelihood and security of these tribes in the areas.
• Inadequate social and economic infrastructure in areas that have insufficient resources for participation in mainstream development also has been at the root of various “sub-national movements” such as the Jharkhand, Uttarakhand, and Bodoland.
• In poverty-stricken tribal areas, large scale migration has revealed the increasing movement of young women towards urban centers in search of work. Their living conditions are unhygienic, the salary is poor and tribal women are vulnerable to exploitation by unscrupulous agents.
• Tribals are being forcefully integrated into the society leading to them losing their unique cultural features and their habitat threatened.
• Land Alienation of Tribals: Land is a very important component for tribal development. It occupies their source of livelihood. But the Globalisation trend has alienated Tribals from their mainstay.
• Displacement of Tribals: It is estimated that owing to the construction of over 1500 major irrigation development projects since independence, over 16 million people were displaced from their villages, of which about 40 percent belong to the tribal populations.

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Globalisation 4.0: Embracing the Technological Frontier #

• Globalisation 4.0 is the latest stage of Globalisation which involves cutting-edge new technologies like artificial intelligence, big data analytics, machine learning that powers forward with the explosion of information technology. These technologies shrink distances, open up borders and minds and bring people all across the globe closer together.
• The development of advanced technologies like artificial intelligence (AI), big data, nanotechnology, the internet of things (IoT), 3D printing and autonomous vehicles all have the potential to significantly impact global productivity.

Globalisation 4.0: Challenges #

• Globalisation 4.0’ could, like preceding waves of Globalisation, have mixed results – economic growth and poverty alleviation on the one hand, and political crises and greater income inequality on the other.
• For millennials, our economic opportunities are uncertain and we believe we may not have the skills needed for the jobs of the future. If we are not intentional in our preparation for Globalisation 4.0, we risk exacerbating these problems.
• The last wave of Globalisation in the 1990s lifted some countries out of poverty. However, income inequality is increasing in those countries and in large economies including the US.
• Other countries with low-cost labour are anticipating the benefits of the next wave of Globalisation, but there is a risk of laying a foundation that drives inequality for generations.
• Globalisation 4.0 may increase income inequality even if it can create more wealth.

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Globalisation: Way Ahead #

• Innovate educational institutions and aggressively close the skills gap: By 2022, at least 54% of employees globally will require re- and up-skilling. Not only do we need to support people in getting the training they need for jobs in the next five years, but we need to prepare young students with the skills to adapt to the types of jobs we will need in the next 20 years.
• Focus on the most vulnerable populations: Negative effects of Globalisation will have a disproportionate impact on some populations. Global and local institutions need to advance both universal and targeted strategies to improve outcomes for everyone.
• Stop climate change: Climate change is going to have a disproportionate impact on vulnerable regions and populations. The challenges of Globalisation 4.0 will be compounded if resources that could be put towards strengthening local economies and education have to be diverted to mitigate the costs of climate change.
• Build a movement focused on equity: Advancing the priorities above and creating greater equity will require a more coordinated global movement than exists today. Many businesses, NGOs, advocacy groups, academics and even individuals have unprecedented global reach and ability to influence equitable outcomes.
• Invest in strengthening local and regional economies: We should proactively build resilient local and regional systems that can participate in the next wave of Globalisation, making sure regions have the right mix of education, employment and infrastructure to create and sustain jobs locally

Deglobalization #

De-Globalisation is the process of reducing interdependence and integration between nations around the world. It is characterized by decline in economic trade and investment between countries, protectionism and unilateral withdrawal from international organizations and agreements. This decline reflects that economies become less integrated with the rest of the world economies. 

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Factors responsible: #

• Tariff wars are one aspect of de-Globalisation policies.
• Right wing ideology
• Outbreak and transboundary spread of diseases and pandemics – E.g. COVID19
• Sub-prime crisis of 2008
• Stricter IPR regime, sanitary and phytosanitary measures.
• Emergence of Emerging Market Economies
• Inward looking mentality and attitude.
• Political rivalry – Russia and USA, USA and Iran, South Korea etc.
• Brexit is another facet that can cost countries too. Britain’s divorce with the EU is estimated to cost companies on both sides $80 billion a year without a trade deal.
• Trade: With global demand weak, and many nations erecting import barriers, trade is slumping. Measured as a share of global gross domestic product, trade doubled from 30 percent in 1973 to a high of 60 percent in 2008. But it faltered during the crisis and has since dropped to 55 percent.
• The decrease in migration is another aspect. Despite the flood of refugees into Europe, net migration from poor to rich countries decreased to 12 million between 2011 and 2015, down by four million from the previous five years.
• Refugee crisis – climate induced and political factors E.g. Rohingya crisis.
• The flow of capital – mainly bank loans – is retreating even faster. Frozen by the financial crisis and squeezed afterward by new regulations, capital flows had decreased to just under 2 percent of G.D.P. from a peak of 16 percent in 2007.

Impact on Advanced Economies (AEs) #

• Labour Market Loss: The major hurdle faced by the Advanced Economies is the death of relatively low skilled sectors like textile and the support economies that grew around it. The reabsorption of this displaced labour has been slow and incomplete which is reflected in the share of wages to GDP that dropped by 5% from 2000 to 2017.
• Technology: Advanced Economies have largely depended on technological change for per capita income growth. There is deceleration in technological change, during the last decade, partly due to low investment in innovation and partly due to fading additional gains from the internet computer revolution.
• Consumer Credit: As a bid to keep spending alive, Advanced Economies focused on consumer credit in the early 2000s. This precipitated into the Great Financial Crisis of 2008.

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Impact on Emerging Markets (EMs) #

• Trade: The increase in tariff barriers by the Advanced Economies have led to the shrinking of exports in EMs which is destroying their job intensive manufacturing sector.
• Migration: Advanced Economies are the hot destination of high skilled labour from EMs. The increased protective measure by Advanced Economies for free movement of high skilled labour is threatening their productive growth and job opportunities.

Impact on India: #

• Social impact: It leads to a decrease in standards of living as it will impact exports and economic growth impacting welfare of the poor, vulnerable sections and their standard of life.
• Political impact: It would affect polity leading to instability in the political framework of countries due to increase in prices and cost of living may lead to civil Uprisings.
• Impact on technology: These tendencies limit technological advancement of the world as whole and of developing countries in particular. The limited knowledge sharing, lack of flow of technology to developing countries limit advancement in science.
• Impact on women employment: It would impact women empowerment efforts as it will impact women movements across the globe. The lack of cooperation among nations will reduce opportunities for women across the world.

Way Forward #

• Promotion of new forms of international and regional integration that preserve and allow the multiple dimensions of life to flourish.
• The culture of tolerance and understanding must be promoted which provides space for positive dialogue.
• More and more Cooperation is needed for hours to make the world economy more predictable, to mitigate vulnerabilities and to strengthen the free trade system.
• More focus should be on creating organizations/coalitions like International Solar Alliance, Coalition for Disaster Resilient Infrastructure that contribute to global sustainable development along with promoting coordination among nations.

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Previous Year Questions #

• ‘Globalisation is generally said to promote cultural homogenization but due to this cultural specificity appears to be strengthened in the Indian Society.’ Elucidate. (2018) – 15 Marks
• To what extent Globalisation has influenced the core of cultural diversity in India? Explain. (2016)
• How Globalisation has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country? (2016)
• Has the Indian governmental system responded adequately to the demands of liberalization, Privatization, and Globalisation started in 1991? What can the Government do responsive to this important change? (2016) 12.5 Marks
• Discuss the positive and negative effects of Globalisation on women in India. (2015) 12.5 Marks
• Critically examine the effects of Globalisation on the aged population in India. (2013) 10 Marks

Practice Questions #

• Discuss the impact of Globalisation on Indian society.
• Critically examine the Impact of Globalisation on Tribal Communities
• India has long preached the ideals of Vasudhaiva Kutumbakam. Discuss the relevance of the statement in changing the Indian social context.
• Examine the challenges posed in Indian society due to the rise of Globalisation.
• Discuss the impact of Globalisation on the family system of India?

Examine whether Globalisation is a beneficial force or it erodes communities and widens the gap between the elites and the rest of the world.