Add : D-108, Sec-2, Noida (U.P.), Pin - 201 301Email id : helpdesk@campus100.in

Call : 09582948810, 09953007628, 0120-2440265

Effects of GlobalizationEffects of GlobalizationEffects of GlobalizationEffects of GlobalizationEffects of Globalizationon Indian Societyon Indian Societyon Indian Societyon Indian Societyon Indian Society

[1]

CH

R

CH

R

CH

R

CH

R

CH

RO

NIC

LE

ON

ICLE

ON

ICLE

ON

ICLE

ON

ICLE

IA

S

IA

S

IA

S

IA

S

IA

S AAAAACADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

GLOBALIZATION AND ITSIMPACT ON INDIAN SOCIETIES

CHRONICLEIAS ACADEMYA CIVIL SERVICES CHRONICLE INITIATIVE

Globalization has become a key word in today'sworld. And the world of today is very differentfrom what it was ten years ago, even from what itwas yesterday. Today, development happensovernight. One of the countries that has beenfocused on during the past decades is India. India,the diverse country with deep rooted traditions, adeep rooted culture and religion that lives alongsideone of the fastest growing economies in the world.

India is an ancient state but a moderncivilisation. Interesting is the fact that this ancientstate has "survived" during the process ofglobalisation. Especially India's diverse and deeplyrooted culture which has always been and still isinfluenced by a lot of different religions, languagesand traditions. Additionally, in connection withglobalisation, the western values seem to havegained acceptance in India.

If we look at one of the many definitions ofglobalisation which is free trade and free mobilityof goods, it is evident that globalisation has changedIndia. India's market has changed from being aseller's market into being a consumer's market.Concerning the economic matters, undoubtedly,India has gone through a rapid change during thepast decades this is a continuing process. Thesedefinitions of globalization do not consider theeconomy but also the issue of culture which is thefocus point."Globalization is a term that tries tocapture the rapid social change that is occurringsimultaneously across a number of dimensions,including the economy, politics, communicationsand culture.

"Critics of globalization contend that, even ifincreased trade promotes material prosperity, itcomes with a high spiritual and cultural cost,running roughshod over the world's distinctivecultures and threatening to turn the globe into onebig, tawdry strip mall."

Socialization of people for improving businessand financial activities across the globe can bereferred as globalization. It is not a newphenomenon as people kept searching new placesand avenues to increase their business activities asevident by explorations of Vasco da Gama,

Columbus and East India Company. Bitterexperiences from East India Companies & Britishrule make Indians little bit cautious for adventuresof globalization. This has been the root cause fordelay in liberalization in India. In the initial senseof the term, globalization refers to the spread ofnew forms of non-territorial social activity. To makethe term more clear, Globalization has been definedas the process of rapid integration of countrieshappening through greater foreign trade andforeign investment.

In essence, it refers to increased possibilities foraction between and among people in situationsirrespective of geographical considerations as perthe definition of social theorists. Developedcountries have been trying to pursue developingcountries to liberalize the trade and allow moreflexibility in business policies to provide equalopportunities to multinational firms in theirdomestic market. International Monetary Fund(IMF) and World Bank has helped them in thisendeavour.

Liberalization began to hold its foot on barrenlands of developing countries like India by meansof reduction in excise duties on electronic goods ina fixed time frame. Indian government did thesame and liberalized the trade and investment dueto the pressure from World Trade Organization.Import duties were cut down phase-wise to allowMNCs operate in India on equality basis. As a resultglobalization has brought to India new technologies,new products and also the economic opportunities.Despite bureaucracy, lack of infra-structure, andan ambiguous policy framework that adverselyimpact MNCs operating in India, yet they arelooking at India in a big way, and are makinghuge investments to set up R&D centres in thecountry. India has made a lead over other growingeconomies for IT, business processing, and R&Dinvestments.

There has been both positive and negativeimpact of globalization on social and cultural valuesin India. There is no denying of the fact thatglobalization has brought cheers to people's life byopening new vistas of employment. It has also made

[2]

CH

R

CH

R

CH

R

CH

R

CH

RO

NIC

LE

ON

ICLE

ON

ICLE

ON

ICLE

ON

ICLE

IA

S

IA

S

IA

S

IA

S

IA

S AAAAACADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

inroads in the cultural heritage of this country.

Due to economic liberalization and globali-zation, the world has become a "global village".There is increasing interaction between people ofdifferent countries. As a result food habits, dresshabits, lifestyle and views are being internationa-lized. The influence of globalization on such aspectsare analyzed under the following heads:

IMPACT ON RELIGION

India is the birth place of Dharmic religionssuch as Hinduism, Buddhism, Jainism and Sikhism.Dharmic religions, also known as Indian religions,are a major form of world religions next to theAbrahamic ones. India is one of the most religiouslydiverse nations in the world, with some of the mostdeeply religious societies and cultures. Religion stillplays a central and definitive role in the life ofmost of its people. Despite the strong role of religionin Indian life, atheism and agnostics also havevisible influence along with a self-ascribed toleranceto other faiths.

Along with Christian religion came the rest ofBritish or Western culture, thought and customsand the gradual end of traditional ways of life.Thus our traditional religions and cultures weregradually subverted or eliminated. The new Indianconverts to Christianity were encouraged not onlyto give up their religion but their culture, whichoften had religious or spiritual implications as well.A good Indian Christian convert would dress likean Englishman and emulate English manners in allthings. Thus in India the Hindus who converted toChristianity were encouraged to think, behave andlive like Englishmen.

IMPACT ON TRADITIONALSTRUCTURE OF SOCIETY

The traditional Indian culture is defined byrelatively strict social hierarchy. From an early age,children are reminded of their roles and places insociety. Several differences such as religion divideculture. However, far more powerful division isthe traditional Hindu bifurcation into non-pollutingand polluting occupations. Strict social taboos havegoverned these groups for thousands of years.Among developing countries, India has low levelsof occupational and geographic mobility. Peoplechoose same occupations as their parents and rarelymove geographically in the society.

IMPACT ON FAMILY

India for ages has had a prevailing tradition ofthe joint family system. Arranged marriages havethe tradition in Indian society for centuries.Overwhelming majority of Indians have theirmarriages planned by their parents and otherrespected family members, with the consent of thebride and groom. Although women and men areequal before the law and the trend towards genderequality has been noticeable, women and men stilloccupy distinct functions in Indian society.Woman's role in the society is often to performhousehold works and pro bono community work.

IMPACT ON FESTIVALS

India, being a multi-cultural and multi-religioussociety, celebrates holidays and festivals of variousreligions. The 3 National holidays in India, are theIndependence Day, the Republic Day and theGandhi Jayanti, Popular religious festivals includethe festivals of Diwali, Durga puja, Holi,Rakshabandhan, Dussehra, Ramzaan, etc.

IMPACT ON CLOTHING

Traditional Indian clothing for women are thesaris and also Ghaghra Cholis. For men, traditionalclothes are the Dhoti, Kurta. In southern India menwear long, white sheets of cloth called dhoti withshirts. Women wear a sari draped over a simple orfancy blouse. This is worn by young ladies andwoman. Little girls wear a pavada. Traditionally,the red bindi (or sindhur) was worn only by themarried Hindu women, but now it has become apart of women's fashion. Indo-western clothing,the fusion of Western and Sub continental fashionis in trend nowadays.

IMPACT ON PERFORMING ARTS

Music

The music of India includes multiple varietiesof religious, folk, popular, pop, and classical music.India's classical music includes two distinct styles,Carnatic and Hindustani music. It remainsinstrumental to the religious inspiration, culturalexpression and pure entertainment. Indian dancetoo has diverse folk and classical forms.Bharatanatyam, kathak, kathakali mohiniattam,kuchipudi, odissi are popular dance forms in India.Kalarippayattu or Kalari for short is considered

[3]

CH

R

CH

R

CH

R

CH

R

CH

RO

NIC

LE

ON

ICLE

ON

ICLE

ON

ICLE

ON

ICLE

IA

S

IA

S

IA

S

IA

S

IA

S AAAAACADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

one of the world's oldest martial art. There havebeen many great practitioners of Indian martialarts including Bodhidharma who supposedlybrought Indian martial arts to China.

Impact:

� Indian Classical music has gained worldwiderecognition.

� Western music is becoming very popular in ourcountry.

� Fusing Indian music along with western musicis encouraged among musicians.

� More Indian dance shows are held globally.

� The number of foreigners who are eager to learnBharatanatyam is rising.

� Western dance forms such as Jazz, Hip hop,Salsa, Balley have become popular amongIndian youngsters.

IMPACT ON AGRICULTURE

Globalization does not have any positive impacton agriculture. On the contrary, it has few detri-mental effects as government is always willing toimport food grains, sugar, etc. whenever there is aprice increase of these commodities. Governmentnever thinks to pay more to farmers so that theyproduce more food grains but resorts to imports.On the other hand, subsidies are declining so costof production is increasing. Even farms producingfertilizers have to suffer due to imports. There arealso threats like introduction of GM crops, herbicideresistant crops, etc.

IMPACT OF GLOBALISATION ONINDIAN BUSINESS CULTURE

The Indian economy had been booming for thepast few years. The country held great promise forthe future. Liberalized foreign policies hadunleashed the entrepreneurial spirit of its peopleand many multi-national firms, attracted by thedusty plains of Deccan, had already set up bigoffices throughout the nation.

The foreign culture can have both positive andnegative influence on people and business firms.New ways of thinking and working may developleading to higher efficiency. A few examples ofimpact of foreign culture on business practices aregiven below:

� Indian companies adopting internationalaccounting standards.

� Just-in-time and other more efficient techniquesof inventory control.

� Flexitime and new practices of human resourcemanagement.

� Social responsibility and business ethics ideas.

� Improvement in corporate governance prac-tices.

� Customer relationship management practices.

� Inflow of foreign funds.

� Healthy competition with foreign products.

The business sector in India is highly promisingin the present scenario. The impact of globalizationhas changed the business procedure in India interms of psychology, methodology, technology,mindset work culture, etc. Newer challenges, neweropportunities are day-by-day in front of Indianindustries, which are profitable and prospective.

The fundamental scope of doing business inIndia is lying with its people. The huge populationof India has created a large unsaturated market ofconsumers. This is one of the reasons why globalcompanies are very much interested in doingbusiness in India. In the post globalization era thisscope has increased immensely for globalmultinational companies as Government of Indiahas also played a very crucial and supportive rolein this respect through liberalized policies andlegislative structure.

Let us glance through a few situations that havearisen in India post liberalization:

� Shifting of Agriculture workers to industrysector.

� Urbanization-People are shifting from rural tourban areas.

� Opening up of trade market-export importboom.

� Big open saturated market for products.

� A growing market for high quality and lowprice product.

� Gradual increase of organized retail chains.

� Growing number of Mergers and Acquisitions.

� Lucid license policies for overseas MultinationalCorporation.

� High growth rate is showing economicprosperity in India.

� Indian Market leaders going global.

But there are certain negative impacts occurredaftermath the globalization impact in India, whichare as follows -

[4]

CH

R

CH

R

CH

R

CH

R

CH

RO

NIC

LE

ON

ICLE

ON

ICLE

ON

ICLE

ON

ICLE

IA

S

IA

S

IA

S

IA

S

IA

S AAAAACADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

� Unequal distribution of wealth disparity inincome.

� Rapid privatization, government driven publicsector units are on sale.

� Uneven growth in respect of different sectors.

� Extreme mechanization is reducing demand formanual labour.

� Both employee and consumer exploitation areon the rise by private sector.

Overwhelming impact of globalization can beobserved on the Indian culture. Every educatedIndian seems to believe that nothing in Hindu India,past or present, is to be approved unless recognizedand recommended by an appropriate authority inthe West. There is an all-pervading presence of apositive, if not worshipful, attitude towardseverything in western society and culture, past aswell as present in the name of progress, reasonand science. Nothing from the West is to be rejectedunless it has first been weighed and found wantingby a Western evaluation.

"Swami Vivekananda foresaw the dangers ofGlobalization as early as in 1893 when he spoke atthe Parliament of World Religions in Chicago. Toquote his soul-stirring words: 'Shall India die? Then,from the world all spirituality will be extinct, allsweet-souled sympathy for religion will be extinct,all ideality will be extinct; and in its place willreign the duality of lust and luxury as the maleand female deities, with money as its priest, fraud,force, and competition its ceremonies, and humansoul its sacrifice. Such a thing can never be'."

Precisely such a terrible thing is taking place inIndia today on account of the inexorable andimmutable process of Globalization. In the end wecan say that, every step of movement towardseconomic, political and cultural modernization,taken by the state in India, is responded to by thepeople with an enhanced sense of self-consciousnessand awareness of identity. Cultural modernization,sponsored by the forces of globalization, is resentedif it encroaches upon or does not promote the corecultural values of society, its language, socialpractices and styles of life. The vigour of therenewed sense of self-awareness generated amongthe members of the local cultures and communitiesis such as to succeed in making adaptivereconciliation with the forces of globalization. Thelinkages both visible and invisible, defining thecultural interdependence among communities andregions in India which have existed historically,reinforce instead of threatening the national

identity. These bonds seem to become stronger asIndia encounters the forces of modernization andglobalization.

Globalization has had far reaching conse-quences to both the people living in India and theeconomy in general. Defining what is meant byglobalization is important in the assessment of itsadvantages and disadvantages to India. This isparticularly crucial since the exclusion of those whoclearly support the phenomenon in its present form,that is, those who believe that globalization hasmany advantages and that these advantages willautomatically be felt by the poor, also hold variousand divergent views concerning this process. People,who are opposed to globalization or those con-cerned with its possible detrimental impacts onemployment and poverty, constitute a wide politicalspectrum.

It has been opposed from the perspective ofeconomic and cultural nationalism by the extremeRight. The Liberals on the other hand areconcerned about the loss of national sovereigntysince globalization minimizes the effectiveness ofthe government to intervene in the regulation oflabour and capital, eradicate poverty, among otherthings. There are numerous meanings attached tothe term globalization. These largely depend onthe context and the individual who is makingreference to the term. Even though there is nodefinite meaning or definition of the term currently,there are some definitions that are worthmentioning.

The process of globalization encompasses theopening up of world trade, the establishment ofadvanced communication methods, financialmarket internalization, increased importance ofmultinational companies, the migration ofpopulations, increased mobility of people, goods,ideas, capital, pollution, data, diseases andinfections. The term not only refers to the integrationof global economies through unrestricted trade andfinancial flows but also exchanges in knowledgeand technology. Globalization also includesunrestricted movement of labour between countries.Within the context of India, globalization meansthat the economy is being opened up to directforeign investment by making facilities available tothe foreign companies so that they may invest invarious sectors of economic activities in India,clearing of obstacles and constraints to the entry ofmultinational companies in India, allowingcollaboration between Indian and foreigncompanies and also encouraging the Indian

[5]

CH

R

CH

R

CH

R

CH

R

CH

RO

NIC

LE

ON

ICLE

ON

ICLE

ON

ICLE

ON

ICLE

IA

S

IA

S

IA

S

IA

S

IA

S AAAAACADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

companies to take part in foreign ventures.

This increased integration of societies andeconomies around the world has raised muchconcern and praise at the same time. Thephenomenon has affected the Indian society in bothpositive and negative ways. Among the positiveaspects of globalization are the rapid growth andthe reduction of poverty in India. However, it hasalso generated significant opposition internationallyover concerns that it has resulted in increasedinequality and the degradation of environment.Globalization in India can be traced back to whenit opened up its economy during the nineteennineties following a major financial crisis.

More particularly, India took the first step toglobalization when its currency was devaluedagainst other major international currencies by 18-29 per cent. The Indian economy was dragged tonear defaulting on loans by the crisis which resultedin a slew of domestic and sector policy measures.This was to some degree prompted by the demandsof the multilateral organizations and the immediateneeds of the country. The new policy regime pushedfor an open and more market oriented economythat had far reaching impacts, both positive andnegative.

There are numerous implications of globalizationon the national economy. The phenomenon hasintensified competition and interdependencebetween economies in the global market. In India,the economic reforms have resulted in the overalleconomic growth. The growth in the GrossDomestic Product has improved the global positionof India. The direction of growth has also beenshifted within the sectors. Initially, the primarysector generated a large percentage of the GDP.

Due to globalization, the service sector is nowthe main driver of Indian economy. The overallrate of growth of India's economy is one of themajor advantages of globalization in India owingto the fact that during the 1970s, its rate of growthwas as low as 3 per cent. Countries like Mexico,Brazil, Korea and Indonesia had their GDPdoubling that of India. Even though the 1980s sawIndia's growth rate doubling, it was still lower thanthat of Indonesia, China and Korea. As such, India'sposition in the global arena has been improvingfrom the time that it became part of the globalizedworld. With the increase in the rate of growth thatit experienced with the liberalization of its economy,it moved to the fourth place. Foreign directinvestment has also increased due to globalizationin India.

There are also other sectors that have exper-ienced growth owing to globalization apart fromthe above mentioned area. These include India'simports and exports. As such, globalization hasresulted in fiscal consolidation, growth in foreignexchange reserve, increased foreign investment andto a considerable extent, control of inflation. Allthese have helped the speeding up of growth ofIndian economy. Globalization has seen an increasein the number of fortune companies in India. Theimplication is that there are more employmentopportunities than before. This also means that thestandards of living have been raised with morewealthy people being created due to the numerousopportunities that exist within the country. Theliberalization of trade which consequently led toflexibilities in business policies to allow for equalopportunities for multinational companies hastherefore resulted in desirable impacts for the overallIndian economy. New technologies and productshave been introduced in India and this has creatednew opportunities. The multinational companieshave made big investments and set up researchand development centres which have brought aboutpositive impacts in the lives of Indian people.

As a result, India is among the leading countriesin information technology, business processing andresearch and development investments. Globali-zation has also had positive impacts on the socialand cultural realm. By opening new opportunitiesfor employment, globalization has improved botheconomic and social life of individuals. Thestandard of living has been raised and more Indianscan now enjoy the luxuries that were not knownto them before. The perceptions of ordinary Indianshave also been changed through increased culturalinteraction through mediums. Indian companies arenow gaining more recognition in the global arenathan before. Products from other parts of the worldare also finding their way into the Indian marketwith more people being in a position to purchasethem owing to improved economic conditions. MoreIndians can also access goods from other parts ofthe world owing to reduced prices. Generally,globalization has improved the economic life ofIndians due to more job opportunities as peopleare no longer worried about government jobs; thereare numerous multinational companies that paymore attractive salaries than the government. Assuch, Indians have gained more from globalizationin ways that are beneficial to both the state andthe individuals within the state.

[6]

CH

R

CH

R

CH

R

CH

R

CH

RO

NIC

LE

ON

ICLE

ON

ICLE

ON

ICLE

ON

ICLE

IA

S

IA

S

IA

S

IA

S

IA

S AAAAACADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

ADVERSE IMPACT OF GLOBALIZATIONON INDIAN ECONOMY AND SOCIETY

As much as there have been numerouseconomic gains attached to globalization in India,there are also disadvantages. The rapid growth ofindustries due to globalization has not broughtabout benefits for everyone. There are various sectorsthat this growth has further aggravated theconditions of particular groups within the Indiansociety. Globalization has brought about rapidgrowth in the informal sector which has resultedin undesirable impacts on the working population.As much as it has led to the creation of jobs formany individuals, globalization is also contributingto the suffering of people within the informal sector.

It is important to note that the informal sectoris deliberately not included in the labor legislation.For instance, informal workers are not subject tothe 1948 Factories Act which covers the generalworking conditions, working hours, safety andhealth, prohibition of child labor, basic amenitiesamong other things.

With globalization finding its way into India, itis clear that its consequences have been undesirablefor workers in the informal sector. Globalizationhas resulted in poor health, deplorable workingconditions and bondage. Employers have been ableto impose working conditions that are extremelyhazardous due to chronic insecurity among worker.For instance, the construction industry which isthe second largest employer in Indian has not takeninto consideration the working conditions of itsemployers. The employers are not concerned aboutthe hazards involved. The proportion of fatalaccidents is very high with some of the causes ofserious injuries and deaths being crushes undercollapsing structures, electrocution, and beingburied under mud . As such, the plight of workersunder globalization has been miserable.

The fish processing industry also expresses thegrave consequences of globalization. The migrantwomen who work in this industry are subjecteddeplorable work conditions. They are virtuallycaptives, forced to work in unhygienic conditionsfor long hours deprived of minimum wages, andsubjected to various kinds of coercion includingbeing sexually harassed. The negative impact ofglobalization is also felt in the Indian agriculturalsector. A great number of laborers in this sectorcome from the 'Scheduled Castes and Tribes'. Inother words, they are from communities that aremost exploited economically and oppressed socially

under the caste system. The plight of thispopulation has been worsened by globalizationowing to the need to increase production to meetthe growing demand from the global markets. Assuch, globalization has resulted in increased povertyand difficulties among particular populations in theIndian society.

It has led to forced labour since employers areusing crude methods to enforce bondage on theworkers. All this is done with the aim of increasingproduction while at the same time cutting costs.Human beings have been turned into machinessimply because of the need to increase profits andbe competitive in the global market. This form of'slavery' is especially rampant in the rural regionseven though not exclusive to it. The exportproduction has also seen an increase in child laboursince liberalization.

More children have been forced to work inindustries even though it is clear that children arenot supposed to work. It is only in India wherechildren are forced to work for long hours andunder deplorable conditions even though there arelegislations that are meant to protect children fromany form of labour. From the above mentionedcases, it is clear that as much as globalization hasresulted in economic gains for India, the peoplewho work in the industries are wallowing inextreme poverty apart from being subjected todeplorable working conditions. As such, it may beargued that globalization has only resulted in gainsfor the rich industrialists and multinationals whilethe bulk of the population is languishing in poverty.What it has done is to increase the gap betweenthe rich and the poor to levels that cannot beimagined.

From this perspective, globalization hasworsened the conditions of individuals who are atthe bottom of the social ladder. On a broaderperspective, globalization has led to low-incomegroups being increasingly undernourished due tothe failure not only to create more jobs but also toimprove the working conditions for this population.

IMPACT ON ENVIRONMENT

Apart from these impacts on particular groups,globalization has also contributed to the destructionof the environment through pollution and clearingof vegetation cover. With the construction ofcompanies, the emissions from manufacturingplants are contributing to environmental pollutionwhich further affects the health of many indivi-

[7]

CH

R

CH

R

CH

R

CH

R

CH

RO

NIC

LE

ON

ICLE

ON

ICLE

ON

ICLE

ON

ICLE

IA

S

IA

S

IA

S

IA

S

IA

S AAAAACADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

duals. The construction also destroys the vegetationcover which is important in the very survival ofboth humans and other animals.

Globalization has had both desirable andundesirable consequences for India. These conse-quences have been felt from the general economyto more specific conditions of life for the individual.As mentioned, globalization has resulted in thegrowth of Indian economy which in turn hasimproved the lives of many people. It has alsocreated many employment opportunities.

However, it has also widened the gap betweenthe rich and the poor apart from resulting in moreoppression for those at the bottom of the socialladder. However, it may be said that globalizationis inevitable in the twenty first century despite thesedisadvantages considering the advances ininformation technology which has led to moreintegration between nations. Various ills such asinequality that it has created are also some of itsinevitable consequences which results from thecompetitive environment and the need to increaseproduction so as to meet the growing globaldemand. As such, it has created both winners andloser in India with losers being workers in theinformal sector.

IMPACT OF GLOBALIZATION ONINDIAN DIASPORA

Apart from initiating a number of changes inmany areas, globalisation has had a positive impacton the Indian Diaspora across the globe. IndianDiaspora had not only become strong but ittriggered a flow of funds back home in variouscapacities such as angel investors for business sectoror in the real estate or for that matter asphilanthropists. This was not the case only withIndia, but most of the developing countries thathad opened up the economic front. globalisationbasically encompassed the areas of economics,culture, politics and sociology. On the economicfront globalisation had seen huge capital flow andlabour force transcending geographical boundaries.Migration of labour, considering both highly skilledand lesser-skilled labour force, made a huge positiveimpact on the economy of India. The IT/ITES boomin India was mainly due to globalization. Migrantshave become agents of development. The totalremittance transfer from developed to developingnations in 2010 has been 300 billion USD and Indiaaccounts for Rs. 55 billion alone, which was thehighest. On the cultural side globalisation had seen

the free flow of ideas and technology, and digitalmedia played a great role.

IMPACT OF GLOBALIZATION ONRURAL POOR

In villages, farmers are not much aware ofglobal economic system. Most of the food crops areconverted into cash crops. Sugarcane farmers aregetting advance loan from banks and MNCs. Theyused to supply hybrid seedlings, fertilizers andhighly advanced equipments. This equipment utilityreduced the human labour force. Hence the ruralpeople are shifting from place to place for want oflabour for their livelihood. Natural manure isreplaced by synthetic fertilizers. As there is a shiftfrom food crops to export crops, the prices of fooditems went on high, and the poor people couldn'tbuy from their meagre income. Similar trendcontinued for clothing, housing, transportation,health, etc. So people were forced to consume lessof even basic necessities.

More than one fourth of the World's poor livein India. India's economic liberalization in the early1990s resulted in high rates of growth, whether itreduced the numbers of poor or benefit onlyincreasingly wealthy urban elite is a question.Because of growing inequality, consumption by thepoor couldn't rise as fast as average consumptionand poverty reduction was only about two-thirdsof what it would have been had the distributionand consumption remained unchanged. The gapbetween rural and urban areas widened becauseof the vast differences in the levels of literacy,availability of living facilities such as water,drainage, housing, power, lighting, food andtransport etc.

CULTURE PROLIFERATION DUE TOGLOBALIZATION

Globalization diluted the native cultures, morethan diluting the culture, it led to cultureproliferation. The interaction of cultures has givenbirth to sub-cultures. On the political front thatglobalisation did bridge the gaps between countriesas international organisation such as WTO, ILOand World Bank had a much larger role to play."It has set a stage for negotiations for importantissues such as climate and food security.Globalisation played a major role in changing thesocial fabric of the world, especially that of themiddle class. Globalization had not only changed

[8]

CH

R

CH

R

CH

R

CH

R

CH

RO

NIC

LE

ON

ICLE

ON

ICLE

ON

ICLE

ON

ICLE

IA

S

IA

S

IA

S

IA

S

IA

S AAAAACADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

the consumption pattern but also had a positiveimpact on the economic development and did helpin fostering democratic ideas.Globalization hasmade countries to realize that nations can no longerbe cocooned in their own cultural or economic nestsbut invariably be part of the larger picture whichtakes into account the competencies, interests andthe dependencies of economies worldwide. The zealof globalization has even forced Governments tobe tuned to the merits of a Global economy.Thewinds of globalization have been speeded up inthis era of an Information Society and the increasingusage of Information and CommunicationTechnologies (ICT). Greater awareness of marketsand knowledge of Capital resources have openedup the floodgates of International competition andtrade. The world today is a closer place due tothese technologies which are indirectly fosteringGlobalization. But again for those citizens who donot have adequate literacy levels, the digital divideis proving to be further detrimental to their progress.

CRITICAL ANALYSIS

Although we may not have yet reached "theend of history," globalisation has brought us closerto "the end of geography" as we have known it.The compression of time and space triggered bythe Third Industrial Revolution -roughly, since 1980- has changed our interactions with the inter-national environment. For many, globalization - theintensified cross-border exchange of goods, services,capital, technology, ideas, information, legalsystems, and people - is both desirable andirreversible, having underwritten a rising standardof living throughout the world. Others recoil fromglobalisation as they feel it is the soft underbelly ofcorporate imperialism that plunders and profiteerson the back of rampant consumerism.

Globalisation is not uncontrolled. The movementof people remains tightly restricted. The flow ofcapital is highly asymmetrical. Over the last twodecades, overseas development assistance from therich to poor countries has totalled $50-80 billionper year. In the same period, every year, $500-800billion of illegal funds have been sent from the poorto rich countries. That is, for every one dollar ofaid money over the table, the West gets back $10under the table and, for good measure, lectures therest on corruption.

The benefits and costs of linking and delinkingare unequally distributed. Industrialised countriesare mutually interdependent; developing countries

are largely independent in economic relations withone another; and are highly dependent onindustrialised countries. Brazil, China and Indiaare starting to change this equation.

There is a growing divergence in income levelsbetween countries and peoples, with wideninginequality among and within nations. Assets andincomes are more concentrated. Wage shares havefallen. Profit shares have risen. Capital mobilityalongside labour immobility has reduced thebargaining power of organised labour.

The deepening of poverty and inequality -prosperity for a few countries and people,marginalisation and exclusion for the many - hasimplications for social and political stability amongand within states. The rapid growth of globalmarkets has not seen the parallel development ofsocial and economic institutions to ensure balanced,inclusive and sustainable growth. Labour rightshave been less sedulously protected than capitaland property rights, and global rules on trade andfinance are inequitable. This has asymmetric effectson rich and poor countries.

Even before the global financial crisis (GFC),many developing countries were worried thatglobalisation would impinge adversely on economicsovereignty, cultural integrity and social stability."Interdependence" among unequals translates intothe dependence of some on international marketsthat function under the dominance of others. TheGFC confirmed that absent effective regulatoryinstitutions, markets, states and civil society can beoverwhelmed by rampant transnational forces.

Globalisation has also let loose the forces of"uncivil society" and accelerated the transnationalflows of terrorism, human and drug trafficking,organised crime, piracy, and pandemic diseases.The growth of these transnational networksthreatens state institutions and civil society in manycountries.

For developing countries, lowering all barriersto the tides of the global economy may end updrowning much of local production. Raisingbarriers that are too high may be counterproductive,if not futile. Countries that find the golden middle,like Chile and Singapore, tend to thrive, channellingthe enormous opportunities offered by anexpanding world economy for the benefit of theircitizens. Those that do not, like many in Centraland Western Africa, are marginalised and leftbehind.

Finding the right, if difficult, balance between

[9]

CH

R

CH

R

CH

R

CH

R

CH

RO

NIC

LE

ON

ICLE

ON

ICLE

ON

ICLE

ON

ICLE

IA

S

IA

S

IA

S

IA

S

IA

S AAAAACADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

CADEM

Y

openness and regulation requires keeping awatchful eye on trans-border crimes that thrive inthe interstices of the national and the international.Illicit trade, accounting for 10 per cent of globaleconomic product according to some estimates,could be growing at seven times the rate of growthof legal trade.

The growth in transnational flows has not beenmatched by an equivalent growth in globalgovernance mechanisms to regulate them. And yetthe very nature of the structure of globalisednetworks, which intertwine global actors andinterests, ensures that no single power is able tomaintain its position within the newly emergingglobal disorder without making compromises withother global players.

In Africa, home to 36 of the world's 50 leastdeveloped countries, state weakness often hasopened the door to transnational crime andterrorism. Pathologies that are particularlyprevalent across Africa: illegal exploitation ofnatural resources, terrorism, the drug trade, illegalmigration and human trafficking, gun running, andmoney laundering. According to some, GuineaBissau has already become the world's first narco-state.

One response to global governance gaps thathave made these illegal activities possible has beenregional governance. The transfer of state functionsto supranational forms of regional governancecould enhance the capacity of individual states tocombat uncivil society. The sharing of expertise,institutions, policy tools, personnel and otherresources can go a long way in stemming the tideof unwanted activities.

Human trafficking is among the darkest sidesof globalisation, turning human beings intocommodities bought and sold in the internationalmarketplace. Women and children are among themost exposed to it. NGOs from all continentsattempt to cope with this nefarious activity andreport on those involved in it.

Southern Africa has witnessed the rise ofelaborate transnational crime organisations. Theillegal trafficking in narcotics, mineral resources,ivory, counterfeit products and stolen property isthriving. International crime syndicates exploitgovernment weaknesses to make huge profits. Illegalmigration and money laundering rob the state ofvaluable human and material resources, in a regionthat desperately needs them.

A different kind of challenge is posed byinsurgencies that thrive as a result of the inequalitiescreated by globalisation. The "developmentdichotomy" explains why dramatic national-levelprogress in India has gone hand in hand with anever greater gap between the prosperity of urban,middle-class Indians and the squalor still seen inmany of its 600,000 villages where most Indianslive. Uprooted from ancestral lands and unable toadapt to the demands of a modern economy,"aboriginal populations (Adivasis) often seerevolutionary redemption as the only way out oftheir predicament."

Sri Lanka's Tamil Tigers, on the other hand,might well have been one of the most globalisedterrorist movements anywhere. Part of the reasonfor their considerable, if ultimately transient, successwas the effective way they relied on the Sri LankanTamil diaspora both to obtain resources and tomarshal political support for their cause.

Jihadists have excelled at using modern IT andtelecom technology to promote their cause andfoster their objectives, building on the link betweenthe drug trade and terrorism pioneered by the CIAin Southeast Asia, Central America and Afgha-nistan. Jihadis have perfected into an art form theinternational transfer of funds in ways that areessentially untraceable, by relying on ancientmechanisms that replicate the old-fashioned wayOsama bin Laden gets his information - throughpieces of paper brought to him by hand by loyalmessengers - which was one reason he remainedat large. It remains to be seen whether the GFChas brought to an end globalisation as we haveknown it for three decades. But there is little doubtthat the "dark side" of globalisation is here to stay.

However the outright rejection of globalisationand a retreat into autarky is neither practical nordesirable: who wants to be the next Myanmar orNorth Korea? As one wag has put it, opposingglobalisation is like opposing the sun coming upevery morning, and about as fruitful. Equally,though, who wants to be the next Iceland, Greeceor Ireland? The notion that endless liberalisation,deregulation and relaxation of capital and allborder controls (except labour) will assure perpetualself-sustaining growth and prosperity has provento be delusional. The three Baltic nations thatembarked on this course (Estonia, Latvia andLithuania) - to which, for good measure, theyadded the flat tax - all had double-digit negativegrowth in 2009.

�����