Globalisation ( Phenomenon and Application)

1. Globalisation(Phenomenon and Application) National and International Affairs

2. Introduction • Globalisation refers to increasing global connectivity, integration and interdependence in the economic, Social, technological, cultural, political, and ecological spheres (Wikipedia) • Globalisation is the pursuit of: • classical liberal policies (free market of economic liberalization) • The growing dominance of western (even American) forms of political, economic, and cultural life (westernization) • The proliferation of new information technologies (Internet Revolution) • The notion that humanity stands at the threshold of realizing one single unified community in which major sources of social conflict have vanished (global integration) (Stanford)

3. Globalisation is the process by which the experience of everyday life, marked by the diffusion of commodities and ideas, can foster a standardization of cultural expressions around the world (Britannica) • Globalisation is the increasing connectivity of economies and ways of life across the world • In the views of scholars and observers globalization stresses convergence of patterns of production and consumption and a resulting homogenization of culture • Globalisation is the phenomenon which has the potential to take many diverse forms

4. Historical Perspective • This term “Globalisation” was first used by Theodore Levitt, a professor at the Harvard Business School in 1983 • In actual, this term was in use since 1944 • It is a centuries old phenomenon but got acceleration during thw last 50 years • Earlier forms of globalisation existed during the Arab Empire, when knowledge from many cultures were integrated • Tthe Mongol Empire, when there was greater integration of cultures along the Silk Road • Global integration continued through the expansion of European trade, as in the 16th and 17th centuries, when the Portuguese and Spanish Empires reached to all corners of the world • Globalisation became a business phenomenon in the 17th century when the Dutch East India Company, which is often described as the first multinational corporation, was established

5. Liberalization in the 19th century is often called "The First Era of Globalization", a period characterized by rapid growth in international trade and investment • Lenin's Imperialism, the Highest Stage of Capitalism (1916) provided a seminal critique of this period as being characterised by the exploitation of the third world by those in the first. This theme forms the basis of many recent critiques of globalisation • Globalization in the era since World War II has been driven by advances in technology which have reduced the costs of trade, and trade negotiation rounds • The Uruguay round (1984 to 1995) led to a treaty to create the World Trade Organization (WTO), to mediate trade disputes and set up a uniform platform of trading • The world increasingly is confronted by problems that can not be solved by individual nation-states acting alone • Since the end of World War-II, following the advent of the UN there has been an explosion in the reach and power of multinational corporations and the rapid growth of global civil society

6. Important Aspects of Globalisation • Industrial - emergence of worldwide production markets and broader access to a range of goods for consumers and companies • Financial - emergence of worldwide financial markets and better access to external financing for corporate, national and subnational borrowers • Economic - realization of a global common market, based on the freedom of exchange of goods and capital • Political - Political globalisation is the creation of a world government which regulates the relationships among nations and guarantees the rights arising from social and economic globalisation

7. Informational - increase in information flows between geographically remote locations • Cultural - growth of cross-cultural contacts; advent of new categories of consciousness and identities such as Globalism - which embodies cultural diffusion, the desire to consume and enjoy foreign products and ideas, adopt new technology and practices, and participate in a "world culture“ • Ecological- the advent of global environmental challenges that can not be solved without international cooperation, such as climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species • Social - the diffusion of social impacts of societies with one another to build up the “world culture”

8. Greater international travel and tourism • Greater immigration, including illegal immigration • Technical - Development of a global telecommunications infrastructure and greater transborder data flow, using such technologies as the Internet, communication satellites, submarine fiber optic cable and wireless communication technology • Legal - The push by many advocates for an international criminal court and international justice movements

9. Economic Globalisation Measurement • Goods and services, e.g. exports plus imports as a proportion of national income or per capita of population • Labour/people, e.g. net migration rates; inward or outward migration flows, weighted by population • Capital, e.g. inward or outward direct investment as a proportion of national income or per head of population • Technology, e.g. international research & development flows; proportion of populations (and rates of change thereof) using particular inventions (especially 'factor-neutral' technological advances such as the telephone, motorcar, broadband) • According to the Swiss Think tank KOF the index measures the three main dimensions of globalisation: economic, social, and political

10. Pro-Globalisation Globalisation advocates such as Jeffrey Sachs point to the above average drop in poverty rates in countries, such as China, where globalisation has taken a strong foothold, compared to areas unaffected by globalisation, such as Sub-Saharan Africa, where poverty rates have remained stagnant

11. It increases economic prosperity as well as opportunity, especially among developing nations • It enhances civil liberties and leads to a more efficient allocation of resources • This leads to lower prices, more employment, higher output and a higher standard of living for those in developing countries • The world is not a zero-sum struggle but rather is a positive-sum opportunity in which improving technologies and skills can raise living standards around the world • Higher degrees of political and economic freedom in the form of democracy and capitalism in the developed world are ends in themselves and also produce higher levels of material wealth • Liberals see it as a tool for relieving poverty and providing the poor with a foothold in the global economy • The pro-globalists argue that the anti-globalisation movement uses anecdotal evidence to support their protectionist view, whereas worldwide statistics strongly support globalisation

12. Outcome of Globalisation • Life expectancy has almost doubled in the developing world since World War II and is starting to close the gap between itself and the developed world • In Sub-Saharan Africa life expectancy increased from 30 years before World War II to about 50 years now • Infant mortality has decreased in every developing region of the world • Democracy has increased dramatically from almost no nations with universal suffrage in 1900 to 62.5% of all nations having it in 2000 • Feminism has made great advances in third world through economically liberating and empowering women with jobs • Between 1950 and 1999, global literacy increased from 52% to 81% of the world. Women made up much of the gap: female literacy as a percentage of male literacy has increased from 59% in 1970 to 80% in 2000

13. The percentage of children in the labor force has fallen from 24% in 1960 to 10% in 2000 • There are similar increasing trends toward electric power, cars, radios, and telephones per capita, as well as a growing proportion of the population with access to clean water • The book The Improving State of the World also finds evidence for that these, and other, measures of human well-being has improved and that globalization is part of the explanation. It also responds to arguments that environmental impact will limit the progress • The proportion of the world's population living in countries where per-capita food supplies are less than 2,200 calories per day decreased from 56% in the mid-1960s to below 10% by the 1990s

14. Anti-Globalisation Critiques say the globalisation has brought: • Damage to the planet, in terms of the perceived unsustainable harm done to the biosphere • Damage to the perceived human costs, such as increased poverty, inequality, injustice and the erosion of traditional culture, all occur as a result of the economic transformations related to globalization • More harm to the poorer countries instead of changing their fate in the right direction • Multitude of interconnected fatal consequences • Social disintegration • A breakdown of democracy • More rapid and extensive deterioration of the environment • The spread of new diseases • Alienation (Unfriendliness)

15. It is a process that is mediated according to corporate interests, and typically raise the possibility of alternative global institutions and policies • Exploitation of poor • Environmental concerns • More inhumane form of capitalism • Destruction of national industry and employment • Income inequality (A study from 2001 found that income inequality has increased in the twenty years ending 2001) • Ethnic, religious, and factional tensions that lead to wars and help breed terrorism • Controversial global migration issue • Economic, political, and environmental insecurity • Enormous growth of urban slums in developing countries • Unequal distribution of wealth in macro level economy • Globalised injustice

16. Conclusion Whole of the above discussion concludes that globalisation is a necessity in some cases and harmful in some other sense: • The pro-globalisation community says that it’s the only way through which different countries of the world can come more closer to one another • Anti-globalisation supporters say that economically it will affect the world adversely i.e; tough trade polices of WTO • The pro-globalists say that politically there will be a world government to take the decision regarding different issues • The anti-globalists say that another super power, along with U.S, will rise and whole of the world will fall in world wars in future as happened before in the history • Pro-globalists claim that with the diffusion of different cultures of the world there will be a more advanced and refined culture for whole of the world • Anti-globalists agitate that the diffusion of cultures will impose negative impact on the local cultures and the states’ survival will be difficult on the basis of protection of their local cultures