CHAPTER 12

Globalisation and Social

Change
Chapter at Glance livelihood of women fish sorters, dryers, vendors
• With the opening up of the market and removal of and net makers thereby get affected.
restrictions to the import of many products we have • In Gujarat, women gum collectors, who were
many more products from different corners of the picking from the 'julifera' (Baval trees), lost their
world in our neighbourhood shops. employment due to the import of cheaper gum from
• Since April 1, 2001, all types of quantitative Sudan.
restrictions (QR) on imports were withdrawn. It is • In almost all cities of India, the rag pickers lost
no surprise now to find a Chinese pear, an Australian some of their employment due to import of waste
apple vying for attention in the local fruit stall. paper from developed countries.
• The neighbourhood store also has Australian orange Are Global Interconnections New To World And
juice and ready to fry chips in frozen packets. To India
• What we eat and drink at home with our family The early years: India was not isolated from the world
and friends slowly changes. The same set of policy even two thousand years ago. Centuries ago, the famous
changes af fects consumers and producers Silk route connected India to the great civilisations, which
differently. existed in China, Persia, Egypt and Rome.
• These changes are personal because they affect - Since India's long past, people from different parts
individuals' lives and lifestyles. came here, sometimes as traders, sometimes as
• They are obviously also linked to public policies conquerors, sometimes as migrants in search of
adopted by the government and its agreement with new lands and settled down here.
the World Trade Organisation (WTO). - Global interactions or even a global outlook are
• The dramatic changes in the media are perhaps thus not novel developments unique to the modern
the most visible effect of globalization. period or unique to modern India.
Effects Colonialism And The Global Connection: Colonialism
was part of the system that required new sources of
• The effect of globalisation is far reaching. It affects
capital, raw materials, energy, markets and a global
us all but affects us differently.
network that sustained it.
• Thus, while f or some it may mean new
- Often globalisation today identifies large-scale
opportunities, for others the loss of livelihood.
movement of people or migration as a defining
• Women silk spinners and twisters of Bihar lost feature.
their jobs once the Chinese and Korean silk yarn
Independent India And The World: Independent India
entered the market.
retained a global outlook. In many senses this was
• Weavers and consumers prefer this yarn as it is inherited from the Indian nationalist movement.
somewhat cheaper and has a shine. Similar
- Commitment to liberation struggles throughout the
displacements have come with the entry of large
world, solidarity with people from different parts of
fishing vessels into Indian waters.
the world was very much part of this vision.
• These vessels take away the fish that used to be
- Many Indians travelled overseas for education and
earlier collected by Indian fishing vessels. The
work.
- Migration was an ongoing process. sectors of the economy (agriculture, industry,
- Export and import of raw material, goods and trade, foreign investment and technology, public
technology was very much part of development sector, financial institutions etc).
since independence. Foreign firms did operate in - The basic assumption was that greater
India. integration into the global market would be
Understanding Globalisation beneficial to Indian economy.
- Globalisation refers to the growing interdependence • Economic reforms and IMF
between different people, regions and countries in - The process of liberalisation also involved the
the world as social and economic relationships taking of loans from international institutions
come to stretch world-wide. such as the International Monetary Fund (IMF).
- Although economic forces are an integral part of - These loans are given on certain conditions.
globalisation, it would be wrong to suggest that The government makes commitments to
they alone produce it. pursue certain kind of economic measures that
- It has been driven forward above all by the involve a policy of structural adjustments.
development of information and communication - These adjustments usually mean cuts in state
technologies that have intensified the speed and expenditure on the social sector such as
scope of interaction between people all over the health, education and social security.
world. - There is also a greater say by international
The Different Dimensions Of Globalisation institut ions such as the W orld Trade
Organisation (WTO).
• Economic Dimension
b. The transnational corporations
a. The Economic Policy of Liberalisation
- Among the many economic factors driving
- Globalisation involves a stretching of social and globalisation, the role of transnational
economic relationships throughout the world. corporations (TNCs) is particularly important.
- Very broadly this process in India is termed - TNCs are companies that produce goods or
liberalisation. The term liberalisation refers to market services in more than one country.
a range of policy decisions that the Indian state
took since 1991 to open up the Indian economy - These may be relatively small firms with one
to the world market. or two factories outside the country in which
they are based.
- This marked a break with an earlier stated
policy of the government to have a greater - They could also be gigantic international ones
control over the economy. whose operations crisscross the globe.
- The state after independence had put in place - Some of the biggest MNCs are companies
a large number of laws that ensured that the known all around the world: Coca Cola, General
Indian market and Indian indigenous business Motors, Colgate-Palmolive, Kodak, Mitsubishi
were protected from competition of the wider and many others.
world. - They are oriented to the global markets and
- The underlying assumption of such a policy global profits even if they have a clear national
was that an erstwhile colonial country would base. Some Indian corporations are also
be at a disadvantage in a free market situation. becoming transnational.
- The state also believed that the market alone c. The electronic economy
would not be able to look after all the welfare of - The 'electronic economy' is another factor that
the people, particularly its disadvantaged underpins economic globalisation.
sections. - Banks, corporations, fund managers and
- It felt that the state had an important role to individual investors are able to shift funds
play for the welfare of the people. internationally with the click of a mouse.
- Liberalisation of the economy meant the steady - This new ability to move 'electronic money'
removal of the rules that regulated Indian trade instantaneously carries it with great risks
and finance regulations. These measures are however.
also described as economic reforms. - In India often this is discussed with reference
- Since July 1991, the Indian economy has to rising stock markets and also sudden dips
witnessed a series of reforms in all major because of foreign investors buying stocks,
making a profit and then selling them off.
d. The Weightless economy or knowledge - Cellular telephony has also grown enormously
economy and cell phones are a part of the self for most
- The weightless economy is one in which urban-based middle class youth. There has
products have their base in information, as in been a tremendous growth in the usage of cell
the case with computer software, media and phones and a marked change in how its use is
entertainment products and internetbased seen.
services. • Globalisation And Labour
- A knowledge economy is one in which much - A new international division of labour has
of the workforce is involved not in the physical emerged in which more and more routine
production or distribution of material goods, but manufacturing production and employment is
in their design, development, technology, done in the Third World cities.
marketing, sale and servicing. Nike grew enormously from its inception in
- It can range from the neighbourhood catering the 1960s. Nike grew as an importer of
service to large organisations involved in shoes. The founder Phil Knight imported
providing a host of services for both professional shoes from Japan and sold them at athletics
meets like conferences to family events like meetings. The company grew t o a
weddings. multinational enterprise, a transnational
e. Globalisation of finance corporation. Its headquarters are in
- For the first time, mainly due to the information Beverton, just outside Portland, Oregon.
technology revolution, there has been a Only two US factories ever made shoes for
globalisation of finance. Nike. In the 1960s they were made in Japan.
As costs increased production shifted to
- Globally integrated financial markets undertake
South Korea in mid-1970s. Labour costs
billions of dollars worth transactions within
grew in South Korea, so in the 1980s
seconds in the electronic circuits.
production widened to Thailand and
- There is a 24-hour trading in capital and security Indonesia. Since the 1990s we in India
markets. Cities such as New York, Tokyo and produce Nike. However, if labour is
London are the key centers for financial trading. cheaper elsewhere production centres
Within India, Mumbai is known as the financial will move somewhere else. This entire
capital of the country. process makes the labouring population
• Global Communications very vulnerable and insecure. This
flexibility of labour often works in favour of
- Important advances in technology and the
the producers. Instead of mass production
world's telecommunications infrastructure has
of goods at a centralised location (Fordism),
led to revolutionary changes in global
we have moved to a system of flexible
communication.
production at dispersed locations (post-
- Some homes and many offices now have Fordism).
multiple links to the outside world, including
telephones (land lines and mobiles), fax • Globalisation And Employment
machines, digital and cable telev ision, - Another key issue regarding globalisation and
electronic mail and the internet. labour is the relationship between employment
- Despite this digital divide these forms of and globalisation.
technology do facilitate the 'compression' of - For the middle class youth from urban centers,
time and space. globalisation and the IT revolution has opened
- The process of globalisation is giving rise to up new career opportunities.
network and media society. - Instead of routinely picking up BSc/BA/BCom
- To create global interconnectedness more degree from colleges, many young persons are
efficiently, the Government of India has initiated learning computer languages at computer
an ambitious programme in the form of 'Digital institutes, taking up jobs at call centers or
India', in which every exchange will incorporate Business Process Outsourci ng (BPO)
digitisation. companies, working as sales persons in
shopping malls or picking up jobs at the various
- It will transform India into a 'digitally empowered
restaurants that have opened up.
society and a 'knowledge economy'.
• Globalisation And Political Changes • Globalisation And Culture
- In many ways it was a major political change, - There are many ways that globalisation affects
namely, the collapse of the erstwhile socialist culture.
world that hastened globalisation. - Thus there are heated debates in our society
- And also gave a specific economic and political not just about political and economic issues
approach to the economic policies that underpin but also about changes in clothes, styles,
globalisation. These changes are often termed music, films, languages, body language.
as neo-liberal economic measures. - A central contention is that all cultures will
- Broadly these policies reflect a political vision become similar, that is homogeneous.
of free enterprise which believes that a free reign - Glocalisation refers to the mixing of the global
to market forces will be both efficient and fair. with the local. It is not entirely spontaneous.
It is, therefore, critical of both state regulation Nor is it entirely delinked from the commercial
and state subsidies. interests of globalization.
- The existing process of globalisation in this - It is a strategy often adopted by foreign firms
sense does have a political vision as much as while dealing with local traditions in order to
an economic vision. enhance their marketability.
- W e, hav e the concept of an inclusiv e - In India, we find that all the foreign television
globalisation, that is one, which includes all channels like Star, MTV, Channel V and Cartoon
sections of society. Network use Indian languages.
- Another significant political development which - Even McDonald's sells only vegetarian and
is accompanying globalisation is the growth of chicken products in India and not its beef
international and regional mechanisms for products, whi ch are popular abroad.
political collaboration. McDonald's goes vegetarian during the
- The European Union (EU), the Association of Navaratri festival. In the field of music, one can
South East Asian Nations (ASEAN), South see the growth of popularity of 'Bhangra pop',
Asian Association for Regional Corporation 'Indi pop', fusion music and even remixes.
(SAARC) are just some of the examples that • Gender And Culture
indicat e the greater role of regional
associations. - Globalisation can be taken as a bogey to
defend unjust practices against women.
- The other political dimension has been the rise
of International Governmental Organisations. - Fortunately for us in India we have been able
(IGOs) and International Non-Governmental to retain and develop a democratic tradition and
Organisations (INGOs). culture that allows us to define culture in a more
inclusive and democratic fashion.
- An intergovernmental organisation is a body
that is established by parti cipat ing • Culture Of Consumption
governments and given responsibility for - Till the 1970s the manufacturing industries used
regulating, or overseeing a particular domain to play a major role in the growth of cities.
of activity that is transnational in scope. Presently, cultural consumption (of art, food,
- The World Trade Organisation (WTO) for fashion, music, tourism) shapes to a large
instance increasingly has a major say in the extent the growth of cities.
rules that govern trade practices. - This is evident in the spurt in the growth of
- ING Os di f f er f rom intergov ernmental shopping malls, multiplex cinema halls,
organisations in that they are not affiliated with amusement parks and 'water world' in every
government institutions. major city in India.
- Rather they are independent organisations, - Most significantly advertisements and the
which make policy decisions and address media in general promote a culture where
international issues. spending is important.
- Som e of the best known INGOs are • Corporate Culture
Greenpeace (see chapter 8), The Red Cross, - Corporate culture is a branch of management
Amnesty International and Medecins Sans theory that seeks to increase productivity and
Frontieres (Doctors Without Borders). competitiveness though the creation of a unique
 organisational culture involving all members of technology revolution has created in the
a firm. metropolitan cities in India class of upwardly
- A dynamic corporate culture - involving mobile professionals working in software
company events, rituals and traditions - is companies, multinational banks, chartered
thought to enhance employee loyalty and accountancy firms, stock markets, travel,
promote group solidarity. It also refers to way fashion designing, entertainment, media and
of doing things, of promotion and packaging other allied fields.
products. - These high-flying professionals have highly
- The spread of multinational companies and the stressful work schedules, get exorbitant
opportunities opened up by the information salaries and are the main clientele of the
booming consumer industry.

Exercise

1. Some years back, there were reports of large 6. World Trade Organization is an example of the
number of suicides by the traditional weavers in following -
Sircilla village of Karimnagar district and in Dubakka (a) International governmental organization
village in Medak district, both in Andhra Pradesh. (b) Inter-governmental organization
The reason of suicide attempts was -
(c) International non-governmental organization
(a) No money to invest in technology (d) Regional organization
(b) Boom in the powerloom sector 7. W hich of the following changes hastened
(c) Increase in the market competition globalization?
(d) All of the above I. Collapse of socialist world
2. Which of the following is true about corporate II. Specific economic and political approach to the
culture? economic policies
(a) It seeks to increase productiv ity and (a) I only (b) II only
competitiveness (c) Both I and II (d) Neither I nor II
(b) Company ev ents, rituals and traditions Read the following passage and answer the
enhances its profit. following questions 8, 9 and 10
(c) It keep on engaging employees through The condition of our dombari community is very bad.
periodical amusements. Television and radio have snatched away our means of
(d) None of the above livelihood. We perform acrobatics but because of the
3. The examples of cultural consumption are - circus and the television, which have reached even in
(a) Street market (b) Multiplex cinema remote corners and villages, nobody is interested in our
(c) Open theatres (d) Cultural theatres performances. We do not get even a pittance, however
hard we perform. People watch our shows but just for
4. McDonald's goes vegetarian during the Navaratri
entertainment, they never pay us anything. They never
festival, is an example of -
bother about the fact that we are hungry. Our profession
(a) Globalization (b) Marketization is dying.
(c) Glocalization (d) Commoditification 8. Dombari community's condition is degrading due
5. India is member of which of the following regional to -
organizations? (a) Loss of people's attention
I. European Union (b) Radio and television presents the same
II. ASEAN performance easily
III. SAARC (c) Decline of circus culture
(a) I and II (b) II and III (d) None of the above
(c) I and III (d) All of the above
 9. Acrobatics performance by Dombari community (a) Both A and R are true and R is the correct
is no more interesting among the people. The explanation of A
reason is - (b) Both A and R are true and R is not the correct
(a) Circus and television has made it reach to the explanation of A
remotest areas (c) A is true and R is false
(b) Easy availability of performance (d) A is false and R is true
(c) The culture of acrobatics is dying 16. Which of the following cities are known as financial
(d) All of the above trading cities?
10. The central problem among dombari community I. New York
is - II. Delhi
(a) Decline of culture (b) Uninterested crowd III. Mumbai
(c) Globalization (d) None of the above (a) I and II (b) I and III
11. Which of the following is true about the concept of (c) II and III (d) All of the above
an inclusive globalization? 17. An economy in which workforce is not involved in
(a) Representation of all the sections of society the physical production, is known as
(b) Inclusion of all the section of society (a) Organized sector
(c) Inclusion of downtrodden section (b) Unorganized sector
(d) Reaching to the rural areas (c) Knowledge economy
12. The largest number of poor people lives in South (d) Electronic economy
Asia. Particularly the poverty rate is high in which 18. Banks, corporations, fund managers and individual
of the following South Asian countries? investors are part of which type of economy?
I. India II. China (a) Physical economy
III. Nepal IV. Bangladesh (b) Knowledge economy
(a) I, II and III (b) II, III and IV (c) Virtual economy
(c) I, III and IV (d) All of the above (d) Electronic economy
13. In case of Nike shoe company, shift of production 19. Which of the following statements are correct
took place due to increase in the labor cost. This regarding transnational companies?
phenomenon leads to -
I. They produce goods or market services in more
(a) Loss of revenue to the government than one country.
(b) Make labor population very vulnerable and II. They are relatively big firms with their factories
insecure outside the country in which they are based.
(c) Reduction in the foreign exchange III. They could also be gigantic international ones
(d) Increase in the poverty whose operations criss-cross the globe.
14. Rural areas are still unconnected through internet. (a) I and II
What are the possible reasons? (b) II and III
I. Illiteracy (c) I and III
II. Lack of infrastructure (d) All of the above
III. Lack of government funding 20. Due to liberalization, India economy witnessed
IV. Erratic power supply reforms in the following sectors -
(a) I, II and IV (b) II, III and IV I. Agriculture
(c) I, II and III (d) All of the above II. Foreign investment
15. Assertion (A): Globally integrated financial markets III. Financial investment
undertake billions of dollars worth transactions (a) I and II
within seconds in the electronic circuits.
(b) II and III
Reason (R): For the first time, mainly due to the
(c) III only
information technology revolution, there has been
a globalisation of finance. (d) All of the above
 Answer Keys

1. (d) 2. (a) 3. (b) 4. (c) 5. (b) 6. (a) 7. (c) 8. (b) 9. (a) 10. (c)

11. (b) 12. (c) 13. (b) 14. (a) 15. (a) 16. (b) 17. (c) 18. (d) 19. (c) 20. (d)