Globalisation and Liberalisation – Geography – UGC NET – Notes

Introduction

Modem civilisation has brought profound changes in the productive capacities of men and women, in their social relations and institutions id the way they have thought of themselves and the world around them. However, these tranformations were primarily bounded by what came to be called as the nation-state. There were some processes that went beyond the confines of the nation-state such as trade; expansion of capital; growth of knowledge; spread of ideologies; affiliation to religion and beliefs; spread of culture, arts, sports and even the rise of certain international institutions but the nationstate remained the final court of appeal. However, the last three decades have witnessed certain profound changes in this configuration resulting in new and larger networks of exchange; great movement of peoples, goods and information; transnational social and economic interaction and increasing flows of trade, investment and culture. New economic, political and cultural institutions have arisen. These changes have circumscribed the place and role of the nation-state in a profound way. Increasingly our lives today are intimately shaped by developments beyond the confines of the nation-state. Changes in technology and information have radically altered the hitherto familiar notions of space and time. The relationship between culture, economics and politics is being redefined through rapid exchange of information, ideas and knowledge. These widespread changes are attempted to be captured by the term globalisation.

Globalisation: Meaning and Approaches

Globalisation during last two decades has been called as the most talked about phenomenon. However, what exactly needs to be included under the term globalisation is deeply contested. It is a multi-dimensional phenomenon, involving diverse activities and interactions including the economic, political, technological, cultural and environmental.

Meaning

Anthony Giddens sees Globalisation as, “The intensification of world-wide social relations which link distant localities in such a way that local happenings are shaped by events occuring many miles away and vice-versa”. The term has been used expansively to include an enormous range of features of contemporary life. Five of them can be considered as crucial to its understanding:

Stretched Social Relations:

Globalisation invokes cultural, economic and political networks of relations spread across the world, denser than in any previous periods. Further they are nut confined td merely specific regions. They envelop the whole world.

Intensification of Flows:

Globalisation is manifest in the rapid flow of information, capital and goods. They result in networks and interactions that transcend any effective monitoring and control by the nation-states. They beget social interactions that could have little to do with geographical and cultural contiguity. Mobile phones, satellite television and internet, which are based on thew flows, do not respect the spatial frameworks that bound communication hitherto.

Increasing Interpenetration:

Under globalisation cultures and societies that were hitherto distinct come face to face with one another and get interwoven into the ways of social life of others. Differences of language, food, dress and beliefs become constitutive of social make-up.

Global Infrastructure:

They are formal and informal institutional arrangements in the economic, political and cultural domains that facilitate networking and flows. Their reach transcends the bounds of nation-state. They facilitate the functioning of a global market. They embody codes and regulations holding transnational interactions in place. They provide the mechanisms of global governance.

Reformulation of Social Relations:

Under globalisation relations between social classes are brought sharply to focus on a global scale. In the earlier phases of capitalism class relations were primarily defined within the vortex of the nation-state. Globalisation brings about a dense interaction between dominant classes and regions outstripping national cleavages. It throws up new social strata and factions both at the national and global levels. It reformulates inequalities and existing unevenness in economic and power relations.

Characteristics:

The above five-fold features shape the following key characteristics of the globalising world:

• The world has become highly interconnected. Instant modes of communication link people across the globe, while many of the challenges faced today—such as climate change, ozone layer depletion, terrorism, drug trafficking, and ocean pollution—are global in nature and cannot be addressed by individual nation-states alone.
• Events occurring in one part of the world can have rapid and significant effects elsewhere. For example, the East Asian Financial Crisis of 1997–1998 had serious repercussions on financial markets such as the New York Stock Exchange, NASDAQ, and even the Bombay Stock Exchange.
• Globalisation has led to the emergence of global social groups sharing common cultural traits. The widespread use of the English language, global fashion like blue jeans and sweatshirts, and similar lifestyles increasingly penetrate national cultures, often leading to cultural homogenisation in patterns of living, thinking, and interaction.
• Globalisation encompasses the entire range of social relations and affects every aspect of life—economic, political, social, and cultural. However, these changes do not occur at a uniform pace, resulting in uneven development and disparities across regions and societies.
• Power relations are increasingly being articulated at the global level under globalisation. As a result, new international organisations and institutions have emerged to manage and regulate global interactions.
• Advances in communication technology have weakened the authority of the nation-state by challenging traditional notions of sovereignty and control.
• Globalisation links local communities directly with the global system, often bypassing national boundaries altogether.
• Individuals and small institutions equipped with advanced technology can sometimes challenge the power of large global organisations by forming strategic alliances. This has given rise to new forms of entrepreneurship, particularly in knowledge-based industries.
• The dominant pattern of globalisation has widened economic inequalities and adversely affected the poor. It has also posed a serious threat to the survival of local cultures and traditions.
• At the same time, globalisation creates new opportunities. It greatly expands the choices available to individuals and reduces traditional barriers between town and countryside or centre and periphery. People can now live locally while remaining connected to global flows of information and resources.
• The integration of global financial markets is one of the defining features of globalisation. It involves new forms of financial transactions supported by advanced communication technologies, leading to the weakening of national stock markets and rapid growth in cross-border equity trading, international banking, and bond markets.
• Globalisation also involves intense competition for dominance in global markets and the centralisation of economic power in a few organisations. The rise of multinational corporations (MNCs) and the expanded roles of institutions like the International Monetary Fund (IMF), World Bank, and World Trade Organisation (WTO) reflect this trend.
• So far, the process of globalisation has been accompanied by strong Americanisation, symbolised by brands such as Coca-Cola and McDonald’s, reinforcing the cultural and economic influence of the United States over other regions of the world.