Globalisation and its Impact on Indian Economy – Geography – UGC NET – Notes

Introduction

• The term globalisation refers to the integration of the economy of the nation with the world economy. It is a multifaceted aspect.
• It is a result of the collection of multiple strategies that are directed at transforming the world towards a greater interdependence and integration.
• It includes the creation of networks and pursuits transforming social, economical, and geographical barriers. 
• Globalisation tries to build links in such a way that the events in India can be determined by the events happening distances away.
• To put it in other words, globalisation is the method of interaction and union among people, corporations, and governments universally.
• India is one of the countries that succeeded significantly after the initiation and implementation of globalisation. The growth of foreign investment in the field of corporate, retail, and the scientific sector is enormous in the country.
• It also had a tremendous impact on the social, monetary, cultural, and political areas.
• In recent years, globalisation has increased due to improvements in transportation and information technology. With the improved global synergies, comes the growth of global trade, doctrines, and culture.

Impact of Globalisation on Nation-State

The Retreat Scholars: State Lost Authority

Marshall McLuhan: Global village

• Global village describes the phenomenon of the entire world becoming more interconnected as the result of the propagation of media technologies throughout the world. The term was corned by Canadian media theorist Marshall McLuhan in his books The Gutenberg Galaxy: The Making of Typographic Man (1962) and Understanding Media (1964).

Kenichi Ohrnae: Borderless world

• According to Ohmae (1994) political boarders are becoming less and less important, as countries increasingly form a giant, interlinked economy – this is especially true of the most developing countries, such as America, Europe and Japan, and these being joined by rapidly developing countries such as Taiwan, Singapore and Hong Kong.
• Ohmae argues that in the Interlinked Economy, corporations and consumers are more closely connected across borders than ever, and politicians, bureaucrats and the military are declining in importance.

Susan Strange: Casino Capitalism (1986):

• Susan Strange comments: “The Western financial system is rapidly coming to resemble nothing as much as a vast casino” Strange argues that, between about 1965 and 1985 considerable increases in risk and uncertainty in economic markets gave rise to substantiat social and political disruptions in the global system.

She links these changes to Five Majors:

• innovations in the way financial markets operate;
• the increased scope of markets;
• the shift from commercial to investment banking;
• the rise of the Asian investment markets;
• Removal of government regulation from banking,

State-Centric; State is a Central Actor

Linda Weiss:

• Weiss questions the converging effect associated with globalisation by pointing to the mediating role played by domestic nation-state institutions and capabilities and arguing that the effect non-state powers have upon a government can be enabling as well constraining: Furthermore, within this argument, Weiss sees the emergence of what she calls “governed interdependence.” This theory is forwarded in The Myth of the Powerless State (1998) and submitted to empirical testing in States in the Global Economy (2003).

Robert Gilpin:

• Gilpin maintains that global capitalism and economic globalization have rested and must continue to rest on a secure political foundation. However, this foundation has eroded since the end of the Soviet threat. To ensure survival of the global economy, Gilpin concludes that the United States and other major powers must recommit themselves to working together to rebuild its weakened political foundations. For Gilpin, a great power such as the ‘ United States is essential to fostering international cooperation. Exploring the relationship between politics and economics first highlighted by Adam Smith, Karl Marx, and other thinkers of the eighteenth and nineteenth centuries, Gilpin demonstrated the close ties between politics and economics in international relations, outlining the key role played by the creative use of power in the support of an institutional framework that created a world economy.

Transformationalists: No Winning/Loosing Game

David Held:

• Held emphasised that democracy within states must always be understood in relation to wider issues in the international order — above all as the world become increasingly interconnected. As globalisation advances, democratic governance above the level of the nation-state is a crucial complement to the internal politics of states — even if its advance is fraught with problems and conflicts. Held was a pioneer of the idea of “cosmopolitan democracy” – the notion that the ideals of democratic government do not stop at the borders of nations but are crucial also for transnational institutions.

Anthony Me Grew:

• Globalization reconstructs the world as a shared social space. However it does so in a far from uniform manner: contemporary globalization is highly uneven—it varies in its intensity and extensity between different spheres of activity; it is highly asymmetrical; and it embodies a highly unequal geography of global inclusion and exclusion. In doing so it is as much a source of conflict and violence as of co-operation and harmony in world affairs. A post-Westphalian world order is in the making as sovereign statehood is transformed by the dynamics of globalization.

Sorenson:

Different states have been impacted differently:

• Advanced Industrial States: Post-modern multilevel governance
• Weak post-colonial states: Lost sovereignty
• Modernising States: BR1CS; Better positioned