Chapter 7 — Globalisation

According to the chapter, globalisation fundamentally deals with flows — of ideas, capital, commodities, and people — from one part of the world to another. The crucial element is the 'worldwide interconnectedness' created and sustained by these constant flows. It is a multidimensional concept with political, economic, and cultural manifestations, and its impact is vastly uneven across societies.

The chapter identifies technology as a critical, though not sole, cause of globalisation. Inventions such as the telegraph, the telephone, and the microchip have revolutionised communication between different parts of the world. Equally important is the growing awareness that events in one part of the world can affect other parts — for instance, bird flu or a major economic event does not respect national boundaries.

The chapter identifies three aspects. First, globalisation erodes state capacity as the old welfare state gives way to a more minimalist state, with the market becoming the prime determinant of economic and social priorities. Second, state primacy and national rivalries have not disappeared — states continue to discharge essential functions like law and order. Third, enhanced surveillance technologies available through globalisation can boost state capacity, making states more powerful than before.

Economic globalisation has increased trade in commodities by reducing import restrictions and has eased capital movement, allowing investors from rich countries to invest in developing countries. The spread of the internet and computer-related services illustrates the flow of ideas. However, globalisation has not produced the same degree of freedom in the movement of people; developed countries use visa policies to guard their borders. The gains are unevenly distributed, and some economists have described economic globalisation as 're-colonisation of the world'.

Cultural homogenisation refers to the rise of a uniform culture driven by globalisation. The chapter clarifies this is not the emergence of a genuine global culture but the imposition of Western — primarily American — culture on the rest of the world, described as the 'soft power of US hegemony'. Critics call this 'McDonaldisation' and warn it shrinks the rich cultural heritage of humanity. It is distinct from cultural heterogenisation, where cultures become more different and distinctive through selective adoption of outside influences.

Cultural heterogenisation is the process by which globalisation can make cultures more different and distinctive rather than uniform. The chapter gives the example of blue jeans worn with a khadi kurta — a unique combination originating in India that has since been exported back to the United States. This shows that cultural exchange is rarely one-way, even though power differences between cultures remain.

'McDonaldisation' is the term used in the chapter to describe the cultural consequence of globalisation whereby cultures worldwide are seen as buying into the dominant American way of life. The politically and economically dominant society leaves its imprint on less powerful societies. The chapter notes this is dangerous for all of humanity because it leads to the shrinking of the world's rich cultural heritage.

During the colonial period, India became an exporter of primary goods and raw materials and a consumer of finished goods due to Britain's imperial ambitions. After independence, India adopted protectionism — producing domestically and restricting imports — to allow its own producers to develop. While some advances were made, critical sectors such as health, housing, and primary education were neglected and economic growth was sluggish. In 1991, responding to a financial crisis and a desire for higher growth, India embarked on economic reforms that de-regulated sectors including trade and foreign investment.

The World Social Forum is a global platform bringing together human rights activists, environmentalists, and labour, youth, and women activists opposed to neo-liberal globalisation. The first WSF meeting was held in Porto Alegre, Brazil, in 2001. The fourth meeting was held in Mumbai in 2004. The most recent WSF meeting mentioned in the chapter was held in Nepal in February 2024.

In 1999, at the World Trade Organisation (WTO) Ministerial Meeting in Seattle, there were widespread protests alleging unfair trading practices by economically powerful states. Protesters argued that the interests of the developing world were not given sufficient importance in the evolving global economic system.

Left-wing critics argue that contemporary globalisation represents a phase of global capitalism that makes the rich richer and fewer, and the poor poorer, while weakening the state reduces its capacity to protect the poor. Right-wing critics fear the weakening of the state politically, want a return to self-reliance and protectionism in certain economic areas, and worry that traditional culture will be harmed and age-old values lost.

Resistance in India has come from multiple directions. Left-wing protests against economic liberalisation have been voiced through political parties and forums like the Indian Social Forum. Trade unions of industrial workers and farmer organisations have protested against the entry of multinationals. The patenting of plants like Neem by American and European firms also generated considerable opposition. From the political right, resistance has focused on cultural influences such as foreign TV channels, the celebration of Valentine's Day, and the westernisation of dress among school and college students.

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