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Globalisation (or globalization) describes the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade. The term is most closely associated with the term economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence. However, globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political, and biological factors. The term can also refer to the transnational circulation of ideas, languages, or popular culture through acculturation. An aspect of the world which has gone through the process can be said to be globalised.
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1 Definitions 2 Effects 2.1 Cultural effects 2.2 Negative effects
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7 See also 8 References 3 Advocates 4 Critics 5 History
2.2.1 Sweatshops 2.2.2 Negative effects of economic liberalization 2.2.3 Brain drain 2.2.4 Environmental degradation 2.2.5 Food security 2.2.6 Disease 2.2.7 Drug and illicit goods trade
5.1 Post-World War II 6 Measurement 6.1 International social fora
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9 Further reading 10 External links
Definitions According to the Oxford English Dictionary, the word 'globalization' was first employed in a publication entitled Towards New Education in 1952, to denote a holistic view of human experience in education.An early description of globalization was penned by the American entrepreneur-turned-minister Charles Taze Russell who coined the term 'corporate giants' in 1897, although it was not until the 1960s that the term began to be widely used by economists and other social scientists. The term has since then achieved widespread use in the mainstream press by the later half of the 1980s. Since its inception, the concept of globalization has inspired numerous competing definitions and interpretations, with antecedents dating back to the great movements of trade and empire across Asia and the Indian Ocean from the 15th century onwards. The United Nations ESCWA says globalization "is a widely-used term that can be defined in a number of different ways. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labor... although considerable barriers remain to the flow of labor... Globalization is not a new phenomenon. It began towards the end of the nineteenth century, but it slowed down during the period from the start of the First World War until the third quarter of the twentieth century. This slowdown can be attributed to the inward-looking policies pursued by a number of countries in order to protect their respective industries... however, the pace of globalization picked up rapidly during the fourth quarter of the twentieth century..."
HSBC, the world's largest bank, operates across the globe. Shown here is the HSBC Global Technology Centre in Pune, India which develops software for the entire HSBC group.
Tom J. Palmer of the Cato Institute defines globalization as "the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result."
Thomas L. Friedman has examined the impact of the "flattening" of the world, and argues that globalized trade, outsourcing, supply-chaining, and political forces have changed the world permanently, for both better and worse. He also argues that the pace of globalization is quickening and will continue to have a growing impact on business organization and practice. Herman E. Daly argues that sometimes the terms internationalization and globalization are used interchangeably but there is a significant formal difference. The term "internationalization" (or internationalisation) refers to the importance of international trade, relations, treaties etc. owing to the (hypothetical) immobility of labor and capital between or among nations. Finally, Takis Fotopoulos argues that globalization is the result of systemic trends manifesting the market economy's grow-or-die dynamic, following the rapid expansion of transnational corporations. Because these trends have not been offset effectively by counter-tendencies that could have emanated from trade-union action and other forms of political activity, the outcome has been globalization. This is a multi-faceted and irreversible phenomenon within the system of the market economy and it is expressed as: economic globalization, namely, the opening and deregulation of commodity, capital and labour markets which led to the present form of neoliberal globalization; political globalization, i.e., the emergence of a transnational elite and the phasing out of the all powerful nationstate of the statist period; cultural globalization, i.e., the worldwide homogenisation of culture; ideological globalization; technological globalization; social globalization. Effects Globalization has various aspects which affect the world in several different ways
Industrial - emergence of worldwide production markets and broader access to a range of foreign
products for consumers and companies. Particularly movement of material and goods between and within national boundaries. International trade in manufactured goods increased more than 100 times (from $95 billion to $12 trillion) in the 50 years since 1955. China's trade with Africa rose sevenfold during 2000-07 alone.
Financial - emergence of worldwide financial markets and better access to external financing for
borrowers. By the early part of the 21st century more than $1.5 trillion in national currencies were traded daily to support the expanded levels of trade and investment. As these worldwide structures grew more quickly than any transnational regulatory regime, the instability of the global financial infrastructure dramatically increased, as evidenced by the Financial crisis of 2007–2010.
As of 2005–2007, the Port of Shanghaiholds the title as the World's busiest port.
Economic - realization of a global common market, based on the freedom of exchange of goods and
capital. The interconnectedness of these markets, however, meant that an economic collapse in one area could impact other areas. With globalization, companies can produce goods and services in the lowest cost location. This may cause jobs to be moved to locations that have the lowest wages, least worker protection and lowest health benefits. For Industrial activities this may cause production to move to areas with the least pollution regulations or worker safety regulations.
Almost all notable worldwide ITcompanies have a presence in India. Four Indians were among the world's top 10 richest in 2008, worth a combined $160 billion. In 2007, China had 415,000 millionaires and India 123,000.
Health Policy - On the global scale, health becomes a commodity. In developing nations under the
demands of Structural Adjustment Programs, health systems are fragmented and privatized. Global health policy makers have shifted during the 1990s from United Nations players to financial institutions. The result of this power transition is an increase in privatization in the health sector. This privatization fragments health policy by crowding it with many players with many private interests. These fragmented policy players emphasize partnerships and specific interventions to combat specific problems (as opposed to comprehensive health strategies). Influenced by global trade and global economy, health policy is directed by technological advances and innovative medical trade. Global priorities, in this situation, are sometimes at
odds with national priorities where increased health infrastructure and basic primary care are of more value to the public than privatized care for the wealthy.
Political - some use "globalization" to mean the creation of a world government which regulates the
relationships among governments and guarantees the rights arising from social and economic globalization.
Politically, the United States has enjoyed a position of power among the world powers, in part because of
its strong and wealthy economy. With the influence of globalization and with the help of The United States’ own economy, the People's Republic of China has experienced some tremendous growth within the past decade. If China continues to grow at the rate projected by the trends, then it is very likely that in the next twenty years, there will be a major reallocation of power among the world leaders. China will have enough wealth, industry, and technology to rival the United States for the position of leading world power.
Among the political effects some scholars also name the transformation of sovereignty. In their opinion, 'globalization contributes to the change and reduction of nomenclature and scope of state sovereign powers, and besides it is a bilateral process: on the one hand, the factors are strengthening that fairly undermine the countries' sovereignty, on the other – most states voluntarily and deliberately limit the scope of their sovereignty'.
Informational - increase in information flows between geographically remote locations. Arguably this is a
technological change with the advent of fibre optic communications, satellites, and increased availability of telephone and Internet.
Language - the most popular first language is Mandarin (845 million speakers) followed by Spanish (329
million speakers) and English (328 million speakers). However the most popular second language is undoubtedly English, the "lingua franca" of globalization:
About 35% of the world's mail, telexes, and cables are in English. Approximately 40% of the world's radio programs are in English. English is the dominant language on the Internet.
Competition - Survival in the new global business market calls for improved productivity and increased
competition. Due to the market becoming worldwide, companies in various industries have to upgrade their products and use technology skillfully in order to face increased competition.
Ecological - the advent of global environmental challenges that might be solved with international
cooperation, such as climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species. Since many factories are built in developing countries with less environmental regulation, globalism and free trade may increase pollution and impact on precious fresh water resources(Hoekstra and Chapagain 2008). On the other hand, economic development historically required a "dirty" industrial stage, and it is argued that developing countries should not, via regulation, be prohibited from increasing their standard of living.
Some consider such "imported" culture a danger. Spreading of multiculturalism. through the export of Hollywood).000 people arrived to live in the UK whilst 427. and better individual access to cultural diversity (e. cloth and other aspects once more firmly attached to a single culture.000 people are on planes at any one time. Cultural .000. advent of new categories of consciousness and identities which embodies cultural diffusion.g. In 2008. there were over 922 million international tourist arrivals.growth of cross-cultural contacts. In reality. Australia or New Zealand. estimates were published that stated that approximately 30% of London's total population was from an ethnic minority group. people who always lived in their native countries maintain their cultures without feeling forced by any reason to accept another and are proud of it even when they're acceptive of immigrants. although aspects of their culture often become a curiosity and a daily aspect of the lives of the people of the welcoming countries.London is a city of considerable diversity. with a growth of 1. 590.000 left. Canada. Also see Transformation of culture. Thus not mere cultural assimilation as mentioned above but the obliteration of culture as we know it today. The latest official figures show that in 2008. As of 2008. meaning that net inward migration was 163. Some bemoan the resulting consumerism and loss of languages. Greater international travel and tourism. Others consider multiculturalism to promote peace and understanding between people. WHO estimates that up to 500.9% as compared to 2007. while people who are newly arrived simply keep their own culture or part of it despite some minimum amount of assimilation. and participate in a "world culture". A third position that gained popularity is the notion that multiculturalism to a new form of monoculture in which no distinctions exist and everyone just shift between various lifestyles in terms of music. as it happens in countries like the United Kingdom. causing reduction in diversity or even assimilation. . the desire to increase one's standard of living and enjoy foreign products and ideas. since it may supplant the local culture. adopt new technology and practices.
communication satellites. Social . Spread of local consumer products (e. Idol series. copyright laws. YouTube. Technical Development of a Global Information System. including illegal immigration. Greater immigration. and MySpace.g.. and wireless telephones Increase in the number of standards applied globally. submarine fiber optic cable. Iran Worldwide sporting events such as FIFA World Cup and the Olympic Games. As the sponsors of the All- Blacks rugby team. . The emergence of Global administrative law. Adidas had created a parallel website with a downloadable interactive rugby game for its fans to play and compete. Legal/Ethical The creation of the international criminal court and international justice movements. food) to other countries (often adapted to their Worldwide fads and pop culture such as Pokémon. accessible only to those who have Internet or Television. patents and world trade agreements. Kish. Sudoku.. Orkut. Crime importation and raising awareness of global crime-fighting efforts and cooperation. global telecommunications infrastructure and greater transborder data flow.development of the system of non-governmental organisations as main agents of global public policy. culture). Numa Numa. Origami. The IOM estimates there are more than 200 million migrants around the world today.Dariush Grand Hotel. leaving out a substantial portion of the Earth's population. including humanitarian aid and developmental efforts. using such technologies as theInternet. Incorporation of multinational corporations into new media. Facebook. The construction of continental hotels is a major consequence of globalization process in affiliation with tourism and travel industry. Newly available data show that remittance flows to developing countries reached $328 billion in 2008.g. e.
Culture is what people eat. ideas. Japanese noodles. there is a lack of comprehension in the meaning of Chinese characters that people get. respectively. . Also. and practices and their ideas of the meanings and values of particular spaces. For example. This street in Hong Kong. a few of which incorporate both Chinese and British English.000 and 18.000 locations operating worldwide. and American burgers and fries have become popular outside their countries of origin. Another common practice brought about by globalization is the usage of Chinese characters in tattoos. French cheese. with over 31. Culinary culture has become extensively globalized. Japanese McDonald's fast food as evidence of corporate globalization and the integration of the same into different cultures. making this an example of cultural appropriation. Italian meatballs. a former British colony. how they dress. Two American companies. These tattoos are popular with today's youth despite the lack of social acceptance of tattoos in China. and the activities they practice. Cultural effects Globalization has influenced the use of language across the world. McDonald's and Starbucks. Religious The spread and increased interrelations of various religious groups. Globalization has joined different cultures and made it into something different. "Culture" is defined as patterns of human activity and the symbols that give these activities significance. are often cited as examples of globalization. shows various signs. Indian curry. the beliefs they hold.
Then if labour laws alter in those countries and stricter rules govern the manufacturing process the factories are closed down and relocated to other nations with more business favorable policies. Photo sharing websites allow interaction even where language would otherwise be a barrier. One example used by anti-globalization protestors is the use of sweatshops by manufacturers. lowering the quality of life. Negative effects See also: Alter-globalization. smaller countries' cultures. There are factories set up in the poor countries where employees agree to work for low wages. The concern is that the stronger.The internet breaks down cultural boundaries across the world by enabling easy. Along with globalization of economies and trade. near-instantaneous communication between people anywhere in a variety of digital forms and media.  Sweatshops A maquila in Mexico In many poorer nations. and Global Justice Movement Globalization has generated significant international opposition over concerns that it has increased inequality and environmental degradation. globalization has eaten away at its competitive edge in industry and agriculture. According to Global Exchange these "Sweat Shops" are widely used by sports shoe manufacturers and mentions one company in particular – Nike. In the Midwestern United States. . such as Cambodia or Bangladesh. culture is being imported and exported as well. leading to those customs and values fading away. globalization is the result of foreign businesses utilizing workers in a country to take advantage of the lower wage rates. Some also view the effect of globalization on culture as a rising concern. bigger countries such as the United States. Participatory economics. may overrun the other. This process is also sometimes referred to as Americanization or McDonaldization. The Internet is associated with the process of cultural globalization because it allows interaction and communication between people with very different lifestyles and from very different cultures.
2 million – one in six U. as well as the right to decent working conditions. and textiles into the United States. leading to brain drains.S. Environmental degradation . the United States and some African countries. bicycles.S.4 million American jobs between 2001 and 2008. Europe.S. which have thus far failed inCongress. Brain drain has cost the African continent over $4. and temporal displacement manifested in health problems and alienation from family and friends. factory jobs – have disappeared between 2000 and 2007. Chinese textile and clothing exports have recently encountered criticism from Europe. freedom of association. In the USA. has led to a global financial crisis and recession on a scale not seen since the Great Depression.According to left-wing ideologists. There are also concerns about the emergence of "electronic sweatshops. such as customer serviceand Information Technology work. an intense work pace.” Negative effects of economic liberalization Further information: Neoliberalism The world today is so interconnected that the collapse of the subprime mortgage market in the U. A flood of consumer goods such as televisions. The legislation would legally require companies to respect human and worker rights by prohibiting the import. Brain drain Opportunities in rich countries drives talent away from poor countries. trade deficit with China has cost 2. In South Africa. no forced labor.  Indian students going abroad for their higher studies costs India a foreign exchange outflow of $10 billion annually. theNational Labor Committee has proposed a number of bills as part of The Decent Working Conditions and Fair Competition Act. However.1 billion in the employment of 150. these core standards include no child labor. to India has resulted in “longer work hours. The increasing U. according to a study by theEconomic Policy Institute (EPI). radios.000 expatriate professionals annually. Specifically. some 300. or export of sweatshop goods. and Japan has helped fuel the economic expansion of Asian tiger economies in recent decades." Shehzad Nadeem writes that the outsourcing of service work.There are several agencies that have been set up worldwide specifically designed to focus on anti-sweatshop campaigns and education of such. sale. A total of 3. government deregulation and failed regulation of Wall Street's investment banks were important contributors to the subprime mortgage crisis.000 textile workers have lost their jobs due to the influx of Chinese goods. right to organize and bargain collectively.
 . without the Revolution. soybeans have become one of the most important contributors to deforestation in the Brazilian Amazon. In the longterm these effects can lead to increased conflict over dwindling resources and in the worst case a Malthusian catastrophe. In 2007. zinc could be used up by 2037. It is said that if China and India were to consume as much resources per capita as United States or Japan in 2030 together they would require a full planet Earth to meet their needs. both indium and hafnium could run out by 2017. grain production increased by over 250%. there would be greaterfamine and malnutrition than the UN presently documents (approximately 850 million people suffering from chronic malnutrition in 2005). Recently. India. Only 1 percent of the country’s 560 million city inhabitants (2007) breathe air deemed safe by theEuropean Union. The report states: The world's ecological capacity is simply insufficient to satisfy the ambitions of China. The removal of forest to make way for cattle ranching was the leading cause of deforestation in the Brazilian Amazon from the mid 1960s. tropical rainforests in Indonesia would be logged out in 10 years. doubling from 1996–2006. and terbium could be gone before 2012. Food security The head of the International Food Policy Research Institute. stated in 2008 that the gradual change in diet among newly prosperous populations is the most important factor underpinning the rise in global food prices. as the Green Revolution transformed agriculture around the world. At present rates.  From 1950 to 1984. China and India are quickly becoming large oil consumers. Japan. The world population has grown by about 4 billion since the beginning of the Green Revolution and most believe that. China has seen oil consumption grow by 8% yearly since 2002. A major source of deforestation is the logging industry. The Worldwatch Institute said the booming economies of China and India are planetary powers that are shaping the global biosphere. Europe and the United States as well as the aspirations of the rest of the world in a sustainable way Without more recycling.Burning forest in Brazil. driven spectacularly by China and Japan. Papua New Guinea in 13 to 16 years. China overtook the United States as the world's biggest producer of CO2. State of the World 2006 report said the two countries' high economic growth hid a reality of severe pollution.
the world would run out of wild-caught seafood in 2048. In 2006. cocaine and synthetic drugs. but they also open the airways to the transcontinental movement of infectious disease vectors. One example of this occurring is AIDS/HIV. Drug and illicit goods trade The United Nations Office on Drugs and Crime (UNODC) issued a report that the global drug trade generates more than $320 billion a year in revenues. the UN estimates there are more than 50 million regular users of heroin. 90% of the  populations of the civilizations of the "New World" such as the Aztec. shifting horticulture. The international trade of endangered species is second only to drug trafficking. food and water by 2030. according to the UK government chief scientist. Due to immigration. Modern modes of transportation allow more people and products to travel around the world at a faster pace. . the leaf. The world will have to produce 70% more food by 2050 to feed a projected extra 2.5 times that of U. and tiger bones and claws) has created controversy and resulted in a black market of poachers who hunt restricted animals. which predicted that. Disease Further information: Globalization and disease Globalization has also helped to spread some of the deadliest infectious diseases known to humans. peak grain and peak fish. the United Nations' Food and Agriculture Organisation (FAO) warned. and also ingredients from animals and minerals. at prevailing trends. Maya. due to the decline in fossil fuels and resulting crisis in transportation and food production. The journal Science published a four-year study in November 2006. approximately 500. peak phosphorus. 29% of open sea fisheries were in a state of collapse.000 people in the United States are believed to be infected with Chagas disease. falling energy sources and food shortages will create the "perfect storm" by 2030. Growing populations.born persons. and Inca were killed by small pox brought by European colonization. the Black Death killed at least one-third of Europe's population in the 14th century. The use of parts of endangered species (such as seahorses. Traditional Chinese medicine often incorporates ingredients from all parts of plants.  Starting in Asia. the tuberculosis (TB) rate among foreign-born persons in the United States was 9.  In 2003.It is becoming increasingly difficult to maintain food security in a world beset by a confluence of "peak" phenomena.S. namely peak oil. Social scientists have warned of the possibility that global civilization is due for a period of contraction and economic re-localization. Even worse devastation was inflicted on the American supercontinent by European arrivals. peak water. and pastoralism.3 billion people and as incomes rise. Worldwide. stem. rhinoceros horns. flower. He said food reserves are at a 50-year low but the world requires 50% more energy. root. saiga antelopehorns. One paper even suggested that the future might even bring about a restoration of sustainable local economic activities based on hunting and gathering.
more employment. encouraged by business organizations and organizations such as the International Monetary Fund or the World Trade Organization. and some libertarians. should be followed by a phase of building global political institutions representing the will of world citizens. as Naomi Klein argues in her book No Logo. especially among developing nations. Participatory economics. particularly free market deregulation. which was market-oriented. Dr. goods and beliefs. with all countries involved in the trade benefiting.C. enhances civil liberties and leads to a more efficient allocation of resources. such as former Canadian Senator Douglas Roche. Francesco Stipo. Anti-globalization may occur in order to maintain barriers to the international transfer of people. A world confederation would not supersede the authority of the State governments but rather complement it. higher output and a higher standard of living for those in developing countries. In general.. say that 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. They believe that the first phase of globalization. They see globalization as the beneficial spread of liberty and capitalism. Supporters of democratic globalization are sometimes called pro-globalists. as both the States and the world authority would have power within their sphere of competence". simply view globalization as inevitable and advocate creating institutions such as a directly elected United Nations Parliamentary Assembly to exercise oversight over unelected international bodies. and Global Justice Movement "Anti-globalization" can involve the process or actions taken by a state or its people in order to demonstrate its sovereignty and practice democratic decision-making. The difference from other globalists is that they do not define in advance any ideology to orient this will. but would leave it to the free choice of those citizens via a democratic process. writes in favor of political globalization in the form of a world government. O. Some. Economic theories of comparative advantage suggest that free trade leads to a more efficient allocation of resources. Critics Main article: Anti-globalization movement See also: Alter-globalization. Moreover. this leads to lower prices. Director of the United States Association of the Club of Rome. Proponents of laissez-faire capitalism.Advocates Supporters of free trade claim that it increases economic prosperity as well as opportunity. anti-globalism can denote either a single social movement or an umbrella term that encompasses a number of separate social . suggests that it "should reflect the political and economic balances of world nations.
human rights. ” Some members aligned with this viewpoint prefer instead to describe themselves as the "Global Justice Movement". and egalitarianism. assistance for refugees. a breakdown of democracy. in its more honest moments. and a number of other terms. increasing poverty and alienation" which they claim are the unintended but very real consequences of globalization. The terms globalization and anti-globalization are used in various ways. Podobnik states that "the vast majority of groups that participate in these protests draw on international networks of support. more rapid and extensive deterioration of the environment. In either case. the environment particularly air quality indexand rain forests . all occur as a result of the economic transformations related to globalization. and damage the democratic rights of citizens. such as the Happy Planet Index. the "Counter-Globalization" movement. including the right to form a union." Joseph Stiglitz and Andrew Charlton write: “ The anti-globalization movement developed in opposition to the perceived negative aspects of globalization. The term 'anti-globalization' is in many ways a misnomer. They point to a "multitude of interconnected fatal consequences–social disintegration. the spread of new diseases. miscegenation. the "Anti-Corporate-Globalization Movement". as the corporations exercise power through leveraging trade agreements which in some instances create unemployment. as well as the perceived human costs. multi-national corporations. advocates of other forms of globalization are ” . Journal). the critics contend. Critiques of the current wave of economic globalization typically look at both the damage to the planet. for example. Noam Chomsky believes that “ The term "globalization" has been appropriated by the powerful to refer to a specific form of international economic integration. the "Alter-globalization" movement (popular in France). used to measure progress promulgated by institutions such as the World Bank. and look to other measures. Some people who are labeled "anti-globalist" or "sceptics" (Hirst and Thompson) consider the term to be too vague and inaccurate. aid. the "Movement of Movements" (a popular term in Italy). with the interests of people incidental. and health and safety legislation. participants stand in opposition to the unregulated political power of large. Accordingly. in terms of the perceived unsustainable harm done to the biosphere. injustice and the erosion of traditional culture which. That is why the business press. and global environmental issues. They challenge directly the metrics. or laws as they may otherwise infringe on cultural practices and traditions of developing countries. refers to the "free trade agreements" as "free investment agreements" (Wall St. created by the New Economics Foundation. as well as national government's sovereignty to determine labor rights. such as poverty.movements such as nationalists and socialists. since the group represents a wide range of interests and issues and many of the people involved in the anti-globalization movement do support closer ties between the various peoples and cultures of the world through. such as GDP. one based on investor rights. and they generally call for forms of globalization that enhance democratic representation. inequality.
It is a gathering of huge numbers of people from all over the world. with rare exceptions. unfortunately.. No sane person is opposed to globalization. and possible even his/her family if their previous jobs were unavailable. there are also negative consequences because some countries try to save their national markets. The main export of poorer countries is usually agricultural goods. This has contributed to the deterioration of the middle class which is a major factor in the increasing economic inequality in the United States . It is true that the workers are free to leave their jobs. those of people being incidental." This is simply vulgar propaganda. etc. Surely not the left and the workers movements. which privileges the rights of human beings. An observer watching this farce from Mars would collapse in hysterical laughter at the antics of the educated classes. Take theWorld Social Forum. that is.described as "anti-globalization". called "anti-globalization" in the propaganda system – which happens to include the media. “ The dominant propaganda systems have appropriated the term "globalization" to refer to the specific version of international economic integration that they favor. and are called "pro-globalization" by the propaganda system. and some. not private power systems. It is not only vulgar. like the term "anti-Soviet" used by the most disgusting commissars to refer to dissidents. but idiotic. even accept this term. apart from the extremely narrow highly privileged elites who meet at the competing World Economic Forum. which privileges the rights of investors and lenders. which were founded on the principle of international solidarity — that is. this would mean starvation for the worker. This results in loss of jobs in the high cost locations. become "anti-globalist. This also means that people in the lower class have a much harder time climbing out of poverty because of the absence of the middle class as a stepping stone. The shift to outsourcing: Globalization has allowed corporations to move manufacturing and service jobs from high cost locations to locations with the lowest wages and worker benefits. those who favor a different form of international integration. though economists question if consenting workers in a competitive employers' market can be decried as "exploited". though it is a term of propaganda that should be dismissed with ridicule. Larger countries often subsidise their farmers (like the EU Common Agricultural Policy). (See Agricultural subsidy for more information. but in many poorer countries. Due to the lack of protections. companies from powerful industrialized nations are able to offer workers enough salary to entice them to endure extremely long hours and unsafe working conditions. the educated classes. which lowers the market price for the poor farmer's crops compared to what it would be under free trade. . The WSF is a paradigm example of globalization. ” Critics argue that globalization results in: Poorer countries suffering disadvantages: While it is true that globalization encourages free trade among countries. globalization in a form that attends to the rights of people. In accord with this usage. international integration. Families that were once part of the middle class are forced into lower positions by massive layoffs and outsourcing to another country. from just about every corner of life one can think of.) The exploitation of foreign impoverished workers: The deterioration of protections for weaker nations by stronger industrialized powers has resulted in the exploitation of the people in those nations to become cheap labor.
quarrying. and typically raise the possibility of alternative global institutions and policies. The critics of globalization typically emphasize that globalization is a process that is mediated according to corporate interests. whereas the new numbers indicate global inequality to be at 70 on the Gini scale. salvage. e. national liberation factions. including church groups. peasant unionists. possibly economists will revise calculations. a country that experiencing increases in labor demand because of globalization and an increase the demand for goods produced by children. artists. In December 2007. Some are reformist. Also. pornography and other illicit activities. Global inequality was estimated at around 65 Gini points. protectionists. An increase in exploitation of child labor: for example.. "incomes in the lower deciles of world income distribution have probably fallen absolutely since the 1980s". The movement is very broad. intellectuals. those in support of relocalization and others. the World Bank's figures on absolute poverty were challenged. is increasing as a result of these processes. As a result unions hold less power over corporations that are able to easily replace workers. cash cropping but also includes the trafficking of children. Weak labor unions: The surplus in cheap labor coupled with an ever growing number of companies in transition has caused a weakening of labor unions in the United States. The article was skeptical of the World Bank's claim that the number of people living on less than $1 a day has held steady at 1. will experience greater a demand for child labor. prostitution. and have the option to not offer unionized jobs anymore. and he also believed that there are considerable implications estimates of global inequality and poverty levels. Furthermore. as well as environmental concerns in a more equitable way. children in bondage or forced labor. One article from 2001 found that significantly. World Bank economist Branko Milanovic has called much previous empirical research on global poverty and inequality into question because. Unions lose their effectiveness when their membership begins to decline.2 billion from 1987 to 1998.g. Milanovic remarks that "literally hundreds of scholarly papers on convergence or divergence of countries’ incomes have been published in the last decade based on what we know now were faulty numbers. This can be "hazardous" or "exploitive". (arguing for a more moderate form of capitalism) while others are more revolutionary (arguing for what they believe is a more humane system than capitalism) and others arereactionary. income inequality has increased in the twenty years ending 2001. improved estimates of purchasing power parity indicate that developing countries are worse off than previously believed. according to him. often for lower wages. in 7 out of 8 metrics. anarchists." With the new data. One of the key points made by critics of recent economic globalization is that income inequality. which they believe address the moral claims of poor and working classes throughout the globe. . believing globalization destroys national industry and jobs. both between and within nations. because of biased methodology.
the rich) at the expense of the poor. both North America's and the European Union's shares of cultural exports declined. China was the third largest exporter of cultural goods. Distribution of world GDP.7% Second 20% 11.e. Between 1994 and 2002. markets and object being brought into other countries. .A chart that gave the inequality a very visible and comprehensible form. In 2002.2% Source: United Nations Development Program. markets and so on into each others countries.4% Poorest 20% 0. So globalization. a much more diversified phenomenon. Americanization related to a period of high political American clout and of significant growth of America's shops. which showed the distribution of global income to be very uneven. with the richest 20% of the world's population controlling 82.7% Third 20% 2. relates to a multilateral political world and to the increase of objects. after the UK and US. Related factors are the fact that Asia's population and area are several times that of North America. A 2005 UNESCO report showed that cultural exchange is becoming more frequent from Eastern Asia but Western countries are still the main exporters of cultural goods.3% Fourth 20% 2. Critics of globalization talk of Westernization. 1989 Quintile of Population Income Richest 20% 82.7% of the world's income. was contained in the 1992 United Nations Development Program Report. while Asia's cultural exports grew to surpass North America. the so-called 'champagne glass' effect. 1992 Human Development Report Economic arguments by fair trade theorists claim that unrestricted free trade benefits those with more financial leverage (i.
Trade was widespread during that period. the annual trade may have reached 300. Perhaps the most extreme proponent of a deep historical origin for globalization was Andre Gunder Frank.000 tons. The increasing articulation of commercial links between these powers inspired the development of the Silk Road. Athens. others regard it as a phenomenon with a long history. and the Han Dynasty. and it is the first time the idea of a cosmopolitan culture (from Greek "Cosmopolis". . Frank argued that a form of globalization has been in existence since the rise of trade links between Sumer and the Indus Valley Civilization in the third millenniumB.Some opponents of globalization see the phenomenon as the promotion of corporatist interests. with such cities as Alexandria. History Extent of the Silk Road and Spice traderoutes blocked by the Ottoman Empire in 1453 spurring exploration The historical origins of globalization are the subject of on-going debate.C. trade. Globally significant crops such as sugar and cotton became widely cultivated across the Muslim world in this period. reached the boundaries of the Parthian empire. and continued onwards towards Rome. when Jewish and Muslim traders and explorers established a sustained economy across the Old World resulting in a globalization of crops. knowledge and technology. With 300 Greek ships a year sailing between the Greco-Roman world and India. Others have perceived an early form of globalization in the trade links between the Roman Empire. They also claim that the increasing autonomy and strength of corporate entities shapes the political policy of countries. while the necessity of learning Arabic and completing the Hajj created a cosmopolitan culture. The Islamic Golden Age was also an important early stage of globalization. Critics of this idea contend that it rests upon an over-broad definition of globalization. when commercialized urban centers were focused around the axis of Greek culture over a wide range that stretched from India to Spain. and Antioch at its center. an economist associated with dependency theory. which started in western China. the Parthian Empire. Though some scholars situate the origins of globalization in the modern era. An early form of globalized economics and culture existed during the Hellenistic Age. meaning "world city") emerged.
Portuguese carrack in Nagasaki. when the two Kingdoms of the Iberian Peninsula . Vanilla. communicable diseases. animals. Tobacco The advent of the Mongol Empire.Rubber. and culture between the Eastern and Western hemispheres. greatly facilitated travel along the Silk Road. human populations (including slaves). The Age of Discovery brought a broad change in globalization. It began in the late 15th century. introducing an international business center under a royal monopoly. however. This permitted travelers and missionaries such as Marco Polo to journey successfully (and profitably) from one end of Eurasia to the other.sent the first exploratory voyages around the Horn of Africa and to the Americas. These pre-modern phases of global or hemispheric exchange are sometimes known as archaic globalization. It witnessed the creation of the first international postal service. It . Tomato. being the first period in which Eurasia and Africa engaged in substantial cultural. though destabilizing to the commercial centers of the Middle East and China. 17th century Japanese Nanban art Native New World crops exchanged globally: Maize. The so-called Pax Mongolicaof the thirteenth century had several other notable globalizing effects. Shortly before the turn of the 16th century. Potato. foods. Up to the sixteenth century. Portuguese started establishing trading posts (factories) from Africa to Asia and Brazil. the House of India. as well as the rapid transmission of epidemic diseases such as bubonic plague across the newly unified regions of Central Asia. the enormous widespread exchange of plants. Global integration continued with the European colonization of the Americas initiating the Columbian Exchange. Cacao. even the largest systems of international exchange were limited to the Old World. material and biologic exchange with the New World. spices and timber.Portugal and Castile . "discovered" in 1492 by Christopher Columbus. to deal with the trade of local products like gold.
agriculture. It was in this period that areas of sub-Saharan Africa and the Pacific islands were incorporated into the world system. This phase is sometimes known as proto-globalization. globalization became also a private business phenomenon whenchartered companies like British East India Company (founded in 1600). notably sub-Saharan Africa. vast populations of these regions became ready consumers of European exports. while rapid population growth created sustained demand for commodities. In the 17th century. and later the Dutch and British Empires. by Europeans yielded valuable natural resources such as rubber. as well as the Dutch East India Company (founded in 1602) were established. often described as the first multinational corporation. diamonds and coal and helped fuel trade and investment .was one of the most significant global events concerning ecology. and culture in history. in the 16th and 17th centuries. the conquest of new parts of the globe. first thePortuguese and Spanish Empires. the first after the Middle Ages) became an important mechanism to raise capital funds for and share the risk of international trade by ship. It was characterized by the rise of maritime European empires. New crops that had come from the Americas via the European seafarers in the 16th century significantly contributed to the world's population growth. Globalization in this period was decisively shaped by nineteenth-century imperialism. Meanwhile. The issuance of shares of stock (starting with the Dutch East India Company. After the Opium Wars and the completion of British conquest of India. Animated map showing Colonial empiresevolution from 1492 to present 19th century Great Britain become the first global economic superpower. The 19th century witnessed the advent of globalization approaching its modern form. because of superior manufacturing technology and improved global communications such assteamships and railroads. Industrialization allowed cheap production of household items using economies of scale.
have included: Promotion of free trade: elimination of tariffs. Their work led to the Bretton Woods conference. originally under the auspices of the General Agreement on Tariffs and Trade (GATT). and the founding of several international institutions intended to oversee the processes of globalization. Worldwide export of western culture went through the new mass media: film. which led to a series of agreements to remove restrictions on free trade. especially resulting from development of containerization for ocean shipping. for which GATT is the foundation. creation of free trade zones with small or no tariffs Reduced transportation costs. technology and products.between the European imperial powers. sipping his morning tea. and worldwide exchange of new developments in science. is partly the result of planning by politicians to break down borders hampering trade. ” The first phase of "modern globalization" began to break down at the beginning of the 20th century. the various products of the whole earth. Since World War II. since World War II. and trade negotiation rounds. Globalization has been facilitated by advances in technology which have reduced the costs of trade. an agreement by the world's leading politicians to lay down the framework for international commerce and finance. The final death knell for this phase came during the gold standard crisis and Great Depression in the late 1920s and early 1930s. barriers to international trade have been considerably lowered through international agreements — GATT. Particular initiatives carried out as a result of GATT and the World Trade Organization (WTO). “ The inhabitant of London could order by telephone. their colonies. and the International Monetary Fund. Said John Maynard Keynes. Post-World War II Globalization. The novelist VM Yeates criticised the financial forces of globalization as a factor in creating World War I. with most significant inventions of this time having their origins in the Western world according to Encyclopedia Britannica. radio and television and recorded music. and the United States. . and reasonably expect their early delivery upon his doorstep. Globalization was also driven by the global expansion of multinational corporationsbased in the United States and Europe. What an extraordinary episode in the economic progress of man was that age which came to an end in August 1914. Militarism and imperialism of racial and cultural rivalries were little more than the amusements of his daily newspaper. with World War I. These institutions include the International Bank for Reconstruction and Development (the World Bank). Development and growth of international transport and telecommunication played a decisive role in modern globalization.
However. including sections of Europe's Maastricht Treaty and the North American Free Trade Agreement (NAFTA) have also been signed in pursuit of the goal of reducing tariffs and barriers to trade. with more restrictions Supranational recognition of intellectual property restrictions (e.. a contrasting trend soon became evident in the emergence of movements protesting against globalization and giving new momentum to the defense of local uniqueness.2% of total gross world product in 2001. Reduction or elimination of capital controls Reduction. was understood at first as a process of homogenization.  China has recently become the world's largest exporter surpassing Germany. World exports rose from 8. The Uruguay Round (1986 to 1994) led to a treaty to create the WTO to mediate trade disputes and set up a uniform platform of trading. the growth of low cost communication networks allowed work done using a computer to be moved to low wage locations for many job types.5% in 1970. and identity. elimination. software development. or harmonization of subsidies for local businesses Creation of subsidies for global corporations Harmonization of intellectual property laws across the majority of states. e.. as the global domination of American culture at the expense of traditional diversity. e. net migration rates.. In the 1990s. exports plus imports as a proportion of national income or per capita of population Labor/people. In late 2000s.g. These center around the four main economic flows that characterize globalization: Goods and services.g. e. to 16. inward or outward direct investment as a proportion of national income or per head of population . weighted by population Capital.g. individuality. and engineering design. Other bilateral and multilateral trade agreements. much of the industrialized world entered into a deep recession. Some analysts say the world is going through a period of deglobalization after years of increasing economic integration. inward or outward migration flows. This included accounting. patents granted by China would be recognized in the United States) Cultural globalization.g. driven by communication technology and the worldwide marketing of Western cultural industries. Measurement Economic globalization can be measured in different ways.
an overall index of globalization and sub-indices referring to actual economic flows.000 delegates. Gaston and Martens (2008). According to the index. It saw the participation of 60. The other two ESFs took place in Paris and London. Switzerland. Recently there has been some discussion behind the movement about the role of the social forums. Some see them as a "popular university". In 2004 it was moved toMumbai.T. followed by Austria. and political. while Indonesia. a multivariate approach to measuring globalization is the recent index calculated by the Swiss think tank KOF. Data is available on a yearly basis for 122 countries. adopting its Charter of Principles. Asian Social Forum. in 2003 and 2004 respectively. Brazil. International social fora See also: European Social Forum. data on information flows. against racism and against neo-liberalism". Technology.g. It was here that the WSF's Charter of Principles was adopted to provide a framework for the fora. Singapore. The slogan was "Against the war. the Central African Republic and Burundi. and data on cultural proximity is calculated. data on personal contact. In addition to three indices measuring these dimensions. e. broadband) As globalization is not only an economic phenomenon. to make it more accessible to the populations of Asia and Africa. However it has often been argued . The WSF became a periodic meeting: in 2002 and 2003 it was held again in Porto Alegre and became a rallying point for worldwide protest against the American invasion of Iraq. international research & development flows. as detailed in Dreher. the United Kingdom and the Netherlands. Others would prefer that delegates concentrate their efforts on the coordination and organization of the movement and on the planning of new campaigns. the world's most globalized country is Belgium. and World Social Forum The first World Social Forum in 2001 was an initiative of the administration of Porto Alegre. The slogan of the forum was "Another World Is Possible". A.000. The index measures the three main dimensions of globalization: economic. The least globalized countries according to the KOF-index are Haiti. Sweden. India and Iran are the least globalized among countries listed. the Netherlands. an occasion to make many people aware of the problems of globalization.. Regional fora took place following the example of the WSF.000 delegates and ended with a huge demonstration against the war of 1.000 people according to the organizers. Kearney and Foreign Policy Magazine jointly publish another Globalization Index. proportion of populations (and rates of change thereof) using particular inventions (especially 'factor-neutral' technological advances such as the telephone. motorcar. The first European Social Forum was held in November 2002 in Florence. This last appointment saw the participation of 75. Ireland. Myanmar. Canada and Denmark are the most globalized. According to the 2006 index. economic restrictions. India. social.
.that in the dominated countries (most of the world) the WSF is little more than an 'NGO fair' driven by Northern NGOs and donors most of which are hostile to popular movements of the poor.
Given that these aspects are key to an individual's quality of life. Cultural and political frictions at all levels can thus be explained as arising from the difference in opinion between two or more parties about the origination. Deportation. Debt. timing.) Power Capital (i. The globalization of trade entails that human beings have greater access to an array of goods and services never seen before in human history. emphasize that globalization cannot be understood separately from the historical development of the capitalist world-system the different definitions highlight the ensuing debate of the roles and relationships of government. where multinational companies directly invest assets in a foreign country.e. to Colombian coffee. from American music to Indian software. and more rapid and widespread diffusion of technology. etc. facilitates these interactions at a rate unprecedented in history. Metals. is in fact the umbrella term for the collective effect. The International Forum on Globalization defines it as the present worldwide drive toward a globalized economic system dominated by supranational corporate trade and banking institutions that are not accountable to democratic processes or national governments. Credit & Lending. the social benefits and costs brought upon them by globalization generate strong debate. from Chinese clothing. Meanwhile. free international capital flows. etc. and the individual in maximizing social welfare within the globalization paradigms.) Most of the stresses and complexities confronted in the general macro affairs of countries. Free migration allows individuals to find employment in jurisdictions where there are labor shortages. Nonetheless.e. Lumber. treatment. communities. can be traced to these four flows. environment and/or a loss of jobs. and technological aspects that may be closely intertwined. to Egyptian cotton. indeed generally across our economies and lifestyles) is caused by four fundamental forms of capital movement throughout the global economy. Equity. Globalization (i. Armed Forces. ownership or value of one or more of the capital flows. The four important capital flows are: • • • • Human Capital (i.e. The economic aspects stressed in globalization are trade. or by indirect investment where individuals and institutions purchase and sell financial assets of other countries. Emigration. human beings may be able to purchase a wide range of goods and services. the aggregate change we observe in our factories.) Resource Capital (i. corporations. etc.e. it is clear that globalization has economic. Critics of free trade also contend that it may lead to the destruction of a country's native industry.e. Immigration. investment and migration. Security Forces.) Financial Capital (i. although often described as the cause of much turbulence and change. Migration. the change itself. From German cars. Connectivity available via cheaper telecommunications and modes of travel-. Aid. storefronts. Alliances. Meaning and debate: The International Monetary Fund defines globalization as the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services. such as Immanuel Wallerstein.made more accessible to more people. cultural. Minerals. Energy. political. etc. The globalization of investment takes place through Foreign Direct Investment. and the interactions between them.Globalization (or globalisation). Critics of international investment . While notable critical theorists.
Finally. And if not strains. or be part of the 1. Tuna caught in the North Atlantic may be served the next day at a Sushi restaurant in Japan. Globalization spreads everything. travel and media move around the globe at lightning speed. and the . Cultural global ties also grow through globalization as news ideas and fashions through trade. Now you can fly around the world in a day. send an email anywhere almost instantly. or support governments that violate the human rights of their citizens. is the central question of this aspect. In general use within the field of economics and political economy. An individual in China enjoys the same soft drink as an individual in Puerto Rico--at opposite ends of the globe. the Euro currency. Moreover. however. critics contend this is really an imposition of cultural imperialism in order to preserve economic interests. Some of these organizations take issue with the economic and political aspects of globalization as they fear that economic interests either subvert the nation state in its ability to protect its citizens from economic exploitation. Global brands such as Coca-Cola. and the environment. billions of dollars in assets and currencies are exchanged daily around the globe by electronic means at virtually no cost. Among the new institutions and rules that have come to fruition as a result of globalization are the World Trade Organization. Transportation costs have come down as result of technological advances that make foreign markets more accessible to trade. The political aspects of globalization are evidenced when governments create international rules and institutions to deal with issues such as trade. This led to specialization of nations in exports. History: Since the word has both technical and political meanings. human rights. The term "liberalization" came to mean the acceptance of the Neoclassical economic model which is based on the unimpeded flow of goods and services between economic jurisdictions. it is a history of increasing trade between nations based on stable institutions that allow firms in different nations to exchange goods and services with minimal friction.contend that by accepting these financial schemes a country loses its economic sovereignty and may be forced to set policies that are contrary to its citizen's interests or desires. different groups will have differing histories of "globalization". The other aspect of globalization is the revolutionary change in technology. Finally. which ostensibly creates a global village. these ties may also cause strains: for example Western Ideas of freedom of expression may clash with Islamic views on Religious tolerance. to name a few. the North American Free Trade Agreement. However. Social activist and non-profit organizations such as Amnesty International and Greenpeace are also becoming more global in scope. Nike & Sony serve as common reference to consumers all over the World. migration may lead to the exploitation of workers from a migrant country and the displacement of workers from a host country. particularly in transport and communication. In 1850 it took nearly a year to sail around the World. multinational companies that invest in a country may also acquire too much political and economic power in relation to its citizens.5 billion viewers watching the final match of the World Cup. Whether a government is to consciously open itself to cross-border links. Critics of globalization also contend that different economic systems that either augment or supplant globalization may maximize social welfare more efficiently and equitably.
are not as d Some authors prefer the term internationalization rather than globalization. considering that in world history. and the development of technology. information. while globalization in its complete form eliminatesnation states. • Economically o Increase in international trade at a much faster rate than the growth in the world economy . So. legal systems. Based on the Pax Britannica and the exchange of goods in currencies pegged to specie. they argue that the frontiers of countries.and trilateral trade agreements. Nature and existence of globalization: There is much academic discussion about whether globalization is a real phenomenon or only an analytical artifact (a myth). who are attempting to use certain images and discourses of world politics to justify their political agendas. and therefore this globalization process is not happening. These include greater international movement of commodities. though exactly when various nations were truly on the gold standard is contentiously debated. The period of the gold standard and liberalization of the 19th century is often called "The First Era of Globalization". In internationalization. the role of the state and the importance of nations are greater. Globalization in the era since World War II has been driven by trade negotiation rounds. many note that such features. and infrastructures to allow this movement. it was argued that nations would trade effectively. Although the term is widespread. In essence. Other bi. originally under the auspices of GATT. Also. The institution of the gold standard came in steps in major industrialized nations between approximately 1850 and 1880. including the increase in international trade and the greater role ofmultinational corporations.pressure to end protective tariffs and other barriers to trade. and people. the Bretton Woods institutions can demand that countries open up their economies to liberalization under Structural Adjustment Programmes that encourage governments to fund privatization programmes. ahead ofwelfare and public services. that is. The actual existence of some of these trends is debated. most of which may have developed since World War II. organizations. many authors argue that the characteristics attributed to globalization have already been seen at other moments in history. which led to a series of agreements to remove restrictions on "free trade". this era grew along with industrialization. Some maintain that globalization is an imagined geography. a political tool of ruling neo-liberalists. are far from being dissolved. The Uruguay round led to a treaty to create the World Trade Organization or WTO. and that any temporary disruptions in supply or demand would correct themselves automatically. internationalization never turned into globalization (the European Union and NAFTA are yet to prove their case). Writers of books such as No Logo claim that by presenting a picture of a globalized world. in a broad sense. The theoretical basis was David Ricardo's work on Comparative advantage and Say's Law of General equilibrium. including sections of Europe'sMaastricht Treaty and the North American Free Trade Agreement have also been signed in pursuit of the goal of reducing tariffs and barriers to trade. to mediate trade disputes. Characteristics: Globalization / internationalisation has become identified with a number of trends. money. and probably will not happen.
o Barriers to international trade have been considerably lowered since World War II through international agreements such as theGeneral Agreement on Tariffs and Trade (GATT). including illegal immigration o Spread of local foods such as pizza. for which GATT is the foundation. communication satellites and telephones Increase in the number of standards applied globally. have included: • Promotion of free trade o Of goods: Reduction or elimination of tariffs. YouTube. It is often argued that even terrorism has undergone globalization. and many others. Sudoku. Most Americans understand some French.g. "Amigo" and "Adios" are Spanish terms many non-speaking spanish people in the US understand.• • • • • • Increase in international flow of capital including foreign direct investment o Creation of international agreements leading to organizations like the WTO and OPEC o Development of global financial systems o Increased role of international organizations such as WTO. by multinational corporations Culturally o Greater international cultural exchange. or harmonization of subsidies for local businesses . o Greater international travel and tourism o Greater immigration.MySpace. with attacks in foreign countries that have no direct relation with the own country. the imported culture can easily supplant the local culture. for example through the export ofHollywood and Bollywood movies. o Spreading of multiculturalism. elimination. using such technologies as the Internet. Particular initiatives carried out as a result of GATT and the WTO. Development of a global telecommunications infrastructure and greater transborder data flow. IMF that deal with international transactions o Increase of economic practices like outsourcing. However. construction of free trade zones with small or no tariffs Reduced transportation costs. copyright laws and patents Formation or development of a set of universal values The push by many advocates for an international criminal court and international justice movements (see the International Criminal Court and International Court of Justice respectively).. Origami. The most prominent form of this is Westernization. and better individual access to cultural diversity. causing reduction in diversity through hybridization or even assimilation. Chinese and Indian food/Pakistani Food to other countries (often adapted to local taste) o World-wide Fads and Pop Culture such as Pokemon.. WIPO. butSinicization of cultures also takes place. o Of capital: reduction or elimination of capital controls o Reduction. o Increasing usage of foriegn phrases. Spanish or Japanese without actually knowing the language. especially from development of containerization for ocean shipping. Example. Numa Numa. e. Idol series.
for example Noam Chomsky. which has given rise to names such asaltermondialisme in French. as its proponents tend to imply. Many activists also unite under the slogan "another world is possible". or socially and environmentally costly. as activists typically oppose certain aspects or forms of globalization. "Antiglobalization" is the media's preferred term. increased demand for skilled versus unskilled labour. have said that this name is meaningless as the aim of the movement is to globalize justice." a 2003 UN-Habitat report. with more restrictions) o Supranational recognition of intellectual property restrictions (e. and typically raise the possibility of alternative global institutions and policies. Indeed. the rich) at the expense of the poor. Economic arguments by fair trade theorists claim that unrestricted free trade benefits those with more financial leverage (i. as well as environmental concerns in a more equitable way. The critics typically emphasize that globalization is a process that is mediated according to elite imperatives. which they believe address the moral claims of poor and working classes throughout the globe. patents granted by China would be recognized in the US) Anti-globalization: Critics of the economic aspects of globalization contend that it is not.e. In terms of the controversial global migration issue. According to"The Challenge of Slums. and typically raise the possibility of alternative global institutions and policies. whether beneficial. whether and to what extent it is voluntary or involuntary. Activists themselves. the link between migration and the enormous growth of urban slums in developing countries. "the cyclical nature of capitalism. and cite as one notable effect. the global justice movement is a common name. This movement has no unified name. is one of the driving reasons behind the Iraq war and is forcing savings to flow into the United States rather than developing nations. . it can therefore be said that "globalization" is another term for a form of Americanization. necessary or unnecessary Increase in international flow of capital including foreign direct investment Critics of the economic aspects of globalization contend that it is not. Proponents tend to see migration simply as a process whereby white and blue collar workers may go from one country to another to provide their services. which they believe address the moral claims of poor and working classes throughout the globe. global economic booms and busts that ratchet up inequality and distribute new wealth unevenly" contribute to the enormous growth of slums. disputes revolve around both its causes. Many "anti-globalization" activists see globalization as the promotion of a corporatist agenda. not globalization per se. political. which is intent on constricting the freedoms of individuals in the name of profit. and the negative effects of globalisation "in particular. and its effects. while critics tend to emphasize negative causes such as economic. an inexorable process that flows naturally from the economic needs of everyone.g. it can lead to some confusion. as its proponents tend to imply.• Intellectual property restrictions o Harmonization of intellectual property laws across nations (generally speaking. whether and to what extent it is voluntary or involuntary. The critics typically emphasize that globalization is a process that is mediated according to elite imperatives. In terms of the controversial global migration issue. Various aspects of globalization are seen as harmful by public-interest activists as well as strong state nationalists. and environmental insecurity. Some "anti-globalization" groups argue that globalization is necessarily imperialistic. disputes revolve around both its causes. necessary or unnecessary. as well as environmental concerns in a more equitable way. an inexorable process that flows naturally from the economic needs of everyone.
a narchists. peasantunionists. Some advocates of this warrant for anti-globalization are Pat Buchanan and Jean-Marie Le Pen. should be completed by a phase of building global political institutions representing the will of world citizens. resulting in unsustainable growth of debt and debt crises. debt-ridden economy of Thailand but quickly spread toMalaysia. left-wing parties. and the lack of labour rights in many countries in the developing world. The difference with other globalists is that they do not define in advance any ideology to orient this will. into remote locations where protest is impractical. . The main opposition is to unfettered globalization (neoliberal. Many conferences between trade and finance ministers of the core globalizing nations have been met with large. Another more conservative camp opposed to globalization is statecentric nationalists who fear globalization is displacing the role of nations in global politics and point to NGOs as encroaching upon the power of individual nations. demonstrated the new risks and volatility in rapidly changing globalized markets. Most are reformist. The IMF's subsequent 'bailout' money came with conditions of political change (i. Many have decried the lack of unity and direction in the movement. The financial crises in Southeast Asia. South Korea and eventually was felt all around the world. protests from opponents of "corporate globalism". Indonesia. (arguing for a more humane form of capitalism) while others are more revolutionary (arguing for a more humane system than capitalism). Anti-Globalization activists pointed to the meltdowns as proof of the high human cost of the indiscriminate global economy. which should be left to the free choice of those citizens via a democratic process. laissez-faire capitalism). They consider that the first phase of globalization. The movement is very broad. Pro-globalization (globalism): Supporters of democratic globalization can be labelled pro-globalists. Protests by the global justice movement have forced high-level international meetings away from the major cities where they used to be held. anti-racism groups. including church groups.as it is believed by some observers that the United States could be one of the few countries (if not the only one) to truly profit from globalization. but some such as Noam Chomsky have claimed that this lack of centralization may in fact be a strength. that began in the relatively small. government spending limits) attached and came to be viewed by critics as undermining national sovereignty in neo-colonialist fashion. but not people and unions. Some "anti-globalization" activists object to the fact that the current "globalization" globalizes money and corporations. and occasionally violent.e. those in support of relocalization and others. Some argue that globalization imposes credit-based economics. This can be seen in the strict immigration controls in nearly all countries. national liberation factions. environmentalists. which was market-oriented. guided by governments and what are claimed to be quasi-governments (such as the International Monetary Fund and the World Bank) that are supposedly not held responsible to the populations that they govern and instead respond mostly to the interests of corporations.
as well as the proportion of the population with access to clean water. However. radios. Libertarians and other proponents of laissez-faire capitalism say higher degrees of political and economic freedom in the form ofdemocracy and capitalism in the developed world are both ends in themselves and also produce higher levels of material wealth. They see globalization as the beneficial spread of liberty and capitalism. instead leaving the common people to pay the debts later. Women made up much of the gap: Female literacy as a percentage of male literacy has increased from 59% in 1970 to 80% in 2000.200kilojoules) per day decreased from 56% in the mid-1960s to below 10% by the 1990s.Supporters of free trade point out that economic theories of comparative advantage suggest that free trade leads to a more efficient allocation of resources. Many loans have been given to dictators who never carried out promised reforms. not too much.200 calories (9. The percentage of children in the labor force has fallen from 24% in 1960 to 10% in 2000. although some critics argue that more detailed variables measuring poverty should instead be studied. or may be possible without the current form of globalization or its negative consequences. • • • • • • However. They thus see too little capitalism. with all countries involved in the trade benefiting.Income inequality for the world as a whole is diminishing. more employment and higher output. Democracy has increased dramatically from almost no nation with universal suffrage in 1900 to 62. some of these improvements may not be due to globalization. global literacy increased from 52% to 81% of the world. The proportion of the world's population living in countries where per-capita food supplies are less than 2.5% of all nations in 2000. Life expectancy has almost doubled in the developing world since WWII and is starting to close the gap to the developed world where the improvement has been smaller. and telephones per capita. Child mortality has decreased in every developing region of the world. not corporations. like Western world unions. this leads to lower prices. . arguing that they are corrupt bureaucracies controlled and financed by states. Some pro-capitalists are also critical of the World Bank and the IMF. cars. to which the global justice movement objects. Between 1950 and 1999. In general. Critics argue that the anti-globalization movement uses anecdotal evidence to support their view and that worldwide statistics instead strongly support globalization: • the percentage of people in developing countries living below US$1 (adjusted for inflation and purchasing power) per day has halved in only twenty years. There are similar trends for electric power. They also note that some of the resistance to globalization comes from special interest groups with conflicting interests.
more and more places around the world are connected to each other in ways that were previously unimaginable. in newspapers. mutual understanding and friendship between "world citizens". o Technoscapes: the movement of technologies around the globe. i. The formation of a global village closer contact between different parts of the world. For example. In geography. massive legal or illegal immigration has been allowed. mainly in European countries. Green Peace has become a worldwide environmental movement. Economic globalization there are four aspects to economic globalization. For example. and radio.there are also many anti-capitalist who are against the World Bank and the IMF because they believe they are too capitalist and only in interests for profit. with a corresponding erosion of national sovereignty in the economic sphere. In this context. where more and more places are being connected in more and more ways. although some prefer to use globalization to emphasize the erosion of the nation-state or national boundaries. The IMF defines globalization • • . It shares a number of characteristics with internationalization and is often used interchangeably. it does serve to show that globalization is much more than economics on a global scale. Others. o Financescapes: global flows of money. and of technology. o Ideoscapes: the global spread of ideas and political ideologies. refugees. the Green Revolution in rice cultivation introduced western farming practices into many developing countries. Arjun Appadurai identified five types of global connectivity: o Ethnoscapes: movements of people. stock exchanges. with increasing possibilities of personal exchange. Although Appadurai's taxonomy is highly contestable. namely flows of goods/services. and commodity markets. and creation of a global civilization.C.. can be said to contrast with economic nationalism andprotectionism. television. and business travellers. and subsume them into a global culture whose members will be much easier to manipulate through mass media and controlled governments. of capital. A consequence of economic globalization is increasing relations among members of an industry in different parts of the world (globalization of an industry). 'free trade' (or at least freer trade). • In its cultural form. Today. immigrants. Making connections between places on a global scale. It is related to laissezfaire capitalism and neoliberalism. including tourists. O.e. globalization has been a label used to identify attempts to erode the national cultures of Europe. if the concept is reduced to its economic aspects. flows of people (migration). Other uses: "Globalization" can mean: • • • Globalism. simply view globalization as inevitable and advocate creating institutions such as adirectly-elected United Nations Parliamentary Assembly to exercise oversight over unelected international bodies. such as Senator Douglas Roche. o Mediascapes: the global distribution of media images that appear on our computer screens. often driven by interconnected currency markets. this process is known as complex connectivity. referring to four different flows across boundaries.
Chad and the Central African Republic. A more sophisticated approach to measuring globalization is the recent index calculated by the Swiss think tank KOF. data on information flows. In the field of software. and Luxembourg. or products that are extensively tailored to local markets. the United Kingdom. 1997). or foreign direct investment. so-called "sound macro-economic policies" (meaning the gamut of budgetary austerity. downsizing and privatisation) continue to be heralded as the key to economic success and poverty alleviation. Canada.• • • • • as the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services. selling the same cars or soaps or foods with similar ad campaigns to people in different cultures. the world's most globalized country is the USA. This usage is contrasted with internationalization which describes the activities of multinational companies dealing across borders in either financial instruments. both the World Bank and the United Nations Development Programme (UNDP) have asserted authoritatively that economic .until the 1998 financial meltdown ("black September" 1998). The least globalized countries according to the KOF-index are Togo. Many. such as participants in the World Social Forum. globalization is a marketing or strategy term that refers to the emergence of international markets for consumer goods characterized by similar customer needs and tastes enabling. migration. Globalization also means cross-border management activities or development processes to adapt to the emergence of a globalized market or to seek and realize benefit from economies of scale or scope or from cross-border learning among different country-based organizations. May. World Economic Outlook. In addition to three indices measuring these dimensions. In the field of management. for example. deregulation. Global Falsehoods: How the World Bank and the UNDP Distort the Figures on Global Poverty: According to Professor Michel Chossudovsky . the World economy was said to be booming under the impetus of the "free market" reforms. in order to leverage the labor and services of unequally-developed regions against each other. commodities. and more rapid and widespread diffusion of technology (IMF. Without debate or discussion. globalization is a technical term that combines the development processes of internationalization andlocalization. The spread of capitalism from developed to developing nations. an overall index of globalization and sub-indices referring to actual economic flows. According to the index. social. and political. data on personal contact. freer international capital flows. economic restrictions.Benedikt Kiesenhofer Measurement of globalization: To what extent a nation-state or culture is globalized in a particular year has until most recently been measured employing simple proxies like flows of trade. followed by Sweden. and data on cultural proximity is calculated. The index measures the three main dimensions of globalization: economic. In turn. "The concept of globalisation refers both to the compression of the world and the intensification of consciousness of the world as a whole" . use the term "corporate globalization" or "global corporatization" to highlight the impact of multinational corporations and the use of legal and financial means to circumvent local laws and standards. Data are available on a yearly basis for 122 countries. The World Bank defines globalization as the "Freedom and ability of individuals and firms to initiate voluntary economic transactions with residents of other countries".
lack of basic education and lack of access to public and private resources". The HPI for Colombia. The World Bank framework deliberately departs from all established concepts and procedures (eg. The UNDP measurements point to "achievements" in poverty reduction in Sub-Saharan Africa. clothing. the 1997 Human Development Report devoted to the eradication of poverty broadly conveys a similar viewpoint to that heralded by the Bretton Woods institutions. The data is then tabulated in glossy tables with "forecasts" of declining levels of global poverty into the 21st Century. by the US Bureau of Census or the United Nations) for measuring poverty.. Authoritative" World Bank Numbers: These authoritative World Bank numbers are those which everybody quotes. The one dollar a day procedure is absurd: the evidence amply confirms that population groups with per capita incomes of 2. unable to meet basic expenditures of food. Its a numerical game! The UNDP Framework: While the UNDP Human Development Group has in previous years provided the international community with a critical assessment of key issues of global development. Mexico or Thailand." The Devastating Impacts of Macro-economic Reform are casually denied: The increasing levels of global poverty resulting from macro-economic reform are casually denied by G7 governments and international institutions (including the World Bank and the IMF). Based on the above criteria. It consists in arbitrarily setting a "poverty threshold" at one dollar a day per capita. This "subjective" and biased assessment is carried out irrespective of actual conditions at the country level. growth of the latter implies pari passu a corresponding lowering of the levels of poverty. It then proceeds (without even measuring) to deciding that population groups with a per capita income "above one dollar a day" are "non-poor". According to the UNDP. These World Bank "forecasts" of poverty are based on an assumed rate of growth of per capita income.. The World Bank "methodology" conveniently reduces recorded poverty without the need for collecting country-level data.9 percent of Mexico's population are categorised by the UNDP as "poor". The human poverty estimates put forth by the UNDP portray an even more distorted and misleading pattern than those of the World Bank). health and education). for instance. For instance. Yet this . the Middle East and India which are totally at odds with country-level data. The key indicators of human development have advanced strongly. 1. the UNDP Human Development Group comes up with estimates of human poverty which are totally inconsistent with country-level realties. economic concepts are turned upside down. shelter. is of order of 10-11 percent (see Table 1).3 billion people below the poverty line. only 10. But nobody seems to have bothered to examine how the World Bank arrives at these figures. --ie. "the progress in reducing poverty over the 20th century is remarkable and unprecedented. social realities are concealed. The UNDP's "human poverty index" (HPI) is based on "the most basic dimensions of deprivation: a short life span. 3 or even 5 dollars a day remain poverty stricken (ie. official statistics are manipulated.growth in the late 20th Century has contributed to a reduction in the levels of World poverty. --ie.
shelter. Moreover. In the West. Table 1 THE UNDP'S HUMAN POVERTY INDEX Selected Developing Countries Country Poverty Level . however. Both the Bank and the UNDP fail to acknowledge the existence of poverty in Western Europe and North America. What it fails to mention. health and education. The 1997 UNDP Report points to a decline of one third to a half in child mortality in selected countries of Sub-Saharan despite the slide in State expenditures and income levels. clothing. the overwhelming majority of the population would be categorised as "poor". In Peru. the methods for measuring poverty have been based on minimum levels of household spending required to meet essential expenditures on food. Double Standards in the "Scientific" Measurement of Poverty: "Double standards" prevail in the measurement of poverty: the World Bank's one dollar a day criterion applies only to the "developing countries". This measurement was based on a broad consensus within the US Administration. if the US Bureau of Census methodology (based on the cost of meeting a minimum diet) were applied to the developing countries. The cost of living in many Third World cities is higher than in the United States.estimate contradicts the situation observed in Mexico since the mid-1980s: collapse in social services. A recent OECD study confirms unequivocally the mounting tide of poverty in Mexico since the signing of the North American Free Trade Agreement (NAFTA). In the United States. for instance. Moreover. The IMF-World Bank sponsored macro-economic reforms have also led to a collapse in the process of data collection. retail prices of essential consumer goods are not appreciably lower than in the US or Western Europe. While this exercise of using "Western standards" and definitions has not been applied in a systematic fashion. the one dollar a day criterion is in overt contradiction with established methodologies used by Western governments and intergovernmental organisations to define and measure poverty in the "developed countries". 83 percent of the Peruvian population according to household census data were unable to meet minimum daily calorie and protein requirements. for instance. following the 1990 IMF sponsored "Fujishock". household budget surveys for several Latin American countries suggest that at least sixty percent of the population the region does not meet minimum calorie and protein requirements. The prevailing situation in Sub-Saharan Africa and South Asia is more serious where a majority of the population suffer from chronic undernourishment. impoverishment of small farmers and the massive decline in real earnings triggered by successive currency devaluations. the Social Security Administration (SSA) in the 1960s had set a "poverty threshold " which consisted of "the cost of a minimum adequate diet multiplied by three to allow for other expenses". It is largely an "office based exercise" conducted in Washington and New York with few insights or awareness of "what is happening in the field". is that the closing down of health clinics and the massive lay-offs of health professionals (often replaced by semi-illiterate health volunteers) responsible for compiling mortality data has resulted in a de facto decline in recorded mortality. it should be noted that with the deregulation of commodity markets. Conversely. The investigation on poverty by both organizations take official statistics at face value.
from Gothenburg to Genova) while thinking along very narrow and short-term lines. table 1. which has never been the defender of the local community and the protector of the individual person. 21 Table 2 POVERTY IN SELECTED G7 COUNTRIES. The arguments of the anti-globalization movement lead us back into the crushing embrace of Big Brother the nation state. .3 Source: Human Development Report 1997.0 17.0 13. The "think globally act locally" message has been turned upside down by the antiglobalizers who act globally (from Seattle to Prague. ** Centre for International Statistics.6 17.0 Beyond globalism and antiglobalism: This essay has aimed to refute many of the arguments put forward by the antiglobalization movement and has tried to show that globalism is not a reactionary plot by powerful sharks but the revolutionary activity of many small fish. Country Poverty Level (percent of the population below the poverty line) 13.9 11.0 41. p.Trinidad and Tobago Mexico Thailand Colombia Philippines Jordan Nicaragua Jamaica Iraq Rwanda Papua New Guinea Nigeria Zimbabwe (percent of the population below the poverty line) 4.1 10.7 10.9 27.1.2 12. navigating the oceans and freely communicating with each other.7 17.7 17. BY NATIONAL STANDARDS Countries United States (1996)* Canada (1995)** United Kingdom (1993)*** Italy (1993)*** Germany (1993)*** France (1993)*** Source: *US Bureau of Census.9 32.8 20.0 17.1 30.7 37. The main focus should not be on the MacDonaldÕs outlets of this world but on the MacArthur (the generals) and the McCarthy (the politicians). Canadian Council on Social Development ***European Information Service.7 10. otherwise they will always prevail with their nefarious interventions even after hamburgers and fast food have gone out of fashion.
anti-globalization but liberation vs. October 2002 by Asta Maskaliunaite. the form it takes is far from the one that has been dreamed of by the various activists of global civil society organizations. for many people. it is very doubtful that the . The debate about the impacts of the terrorist network on the development of globalization is much more controversial. ISSN 1505-1161. especially with reference to the nation state with its protected cohort of monopolistic producers and parasitic consumers (the bureaucracy. In fact the processes of globalization seemed to advance after these events as United States received a possibility to both assert its leadership and transfer the blame over the world recession on the works of terrorists. Enhancing the free trade was one of the main arguments of this rhetoric. Although the tactics resembling terrorism is traced as early as the Jewish struggle against the Roman empire. Hence. that the earth belongs to humankind for the care of present and future generations and is not the closed territorial racket of national rulers and their corrupt or credulous appendages. after listening carefully to the various positions and arguments put forward and having worked out in our mind all the possible implications. actually. However. whenever and wherever a debate on globalization takes place. Such optimistic views. While it is rather clear that the processes of economic globalization will not halt. cultural alienation. already from the 1970s terrorism has been considered one of the global problems. For this reason. we should sincerely ask ourselves: where is freedom? who is really advocating freedom? how can we better develop freedom? According to the answers we should know where we stand. can hardly be sustained in the view of the current events. even this grand vision of emancipation and progress connected to globalism does not represent the core of the matter. almost all the states of the world have experienced terrorist attacks in the last three decades. In this sphere two main conflicting ideas can be distinguished: there are authors who claim that terrorism would slow down globalization processes and there are ones who argue exactly the opposite that it would speed up the processes of integration worldwide. the only way to escape political oppression.Globalism is. These events: death of Che Guevara in 1967.What is at stake is not globalism or localism but freedom and nothing else than freedom. which showed the shortcomings of guerrilla warfare. an era of what has been called age of terrorism. especially in the media. the student uprisings of the 1968 having a similar influence on the view of impact of such type of revolts and the Six Day War of June 1967 that gave an impetus for an increasing use of the termterrorism by the Western media. Several events of that time influenced both the increasing usage of terrorist tactics in attempt to influence the political agenda and the appearance of the word terrorism in the everyday language. The real issue is not globalization vs. the army. it is the end of the 1960s that marks the beginning of the contemporary terrorist activities. We do not need to pile up data or write long treatises to show that freedom is a human value and servitude is not. economic poverty.). however. etc. and. subjection. Terrorism and Globalisation: According to the E-journal. The arguments for the strengthening of globalization received even more credibility because of the events that followed the September 11 attacks and the rhetoric that president Bush’s administration adopted after them. being still full of limitations and distortions linked to a discourse based on globalism versus antiglobalism.
Hence. As a final point. The process of globalization does not seem to have stopped and the form of it is not much different from the one experienced before the September 11th attacks either. it could be argued that we are spinning in some kind of vicious circle where the shape of globalization. it actually reinforces it. which also means the affirmation of its dominant position in the world. However. it is also perceived as a resistance to the domination of the United States in the world. contrary to the more optimistic views of the global civil society activists and some social scientists. To the contrary. the analysts who promote the idea that because of the threat of terrorism the process of globalization will be just advanced also have important arguments. The world is gathered around the United States in its fight against terrorism. which is confirmed by the fact that such organizations as al Qaeda achieve truly global dimensions. again. there is not much multilateralism and mutual cooperation between the states and societies to be seen. These arguments lead are connected with the idea that terrorism became truly a global actor. resists domination. the assertion of hegemony by United States has recently reached rather impressive dimensions. it also gives causes for such a terrorism primarily by creating great discrepancies in the economic conditions in various countries of the world. but exactly a reverse one than intended. It uses global networks and advances causes that are deeply connected with the way the politics of the world function. While analyzing the relationship between globalization and causes of terrorism. . Summarizing briefly the arguments exposed so far it could be said that globalization provides means for the global terrorism by its technological advances.terrorist attacks and the need to respond to the terrorist threat would greatly enhance the creation and development of the global civil society Conclusions: Various debates about the mutual impact of terrorism and globalization show the multifaceted relationship between the two phenomena. the process of globalization was not advanced by the terrorist attacks and no sense of a need of multilateral cooperation between the countries for countering the threat of terrorism was created. The world itself. which we witness. it could be argued that terrorism has an effect on globalization. On the other hand. in words of Baudrillard. In this sense. that instead of weakening the position of hegemonic power. engenders terrorism and terrorism itself enforces exactly this kind of globalization based on a hegemony of the United States.
Laws.Globalization The human society around the world.The term globalization means international integration. 4. Allowing Foreign Direct Investment (FDI): FDI was allowed in a wide range of sectors such as Insurance (26%). Money. The Indian economy was in major crisis in 1991 when foreign currency reserves went down to $1 billion and inflation was as high as 17%. Devaluation: To solve the balance of payment problem Indian currency were devaluated by 18 to 19%. Then the following measures were taken to liberalize and globalize the economy. Disinvestment: To make the LPG model smooth many of the public sectors were sold to the private sector. trade and social sector to make the economy more competitive. political and economic changes. The world is more interdependent now than ever before . over a period of time. It also heralded the integration of the Indian economy into the global economy.Multinational companies manufacture products across many countries and sell to consumers across the globe. but the pace has increased rapidly since the mid 1980’s. technology and raw materials have broken the International barriers. Privatization and Globalization in India (LPG). It includes an array of social. Unimaginable progress in modes of communications. defense industries (26%) etc. has established greater contact. Culture and Law is the order of the day. transportation and computer technology have given the process a new lease of life. Not only products and finances. 3. The formation of General Agreement on Tariffs and Trade (GATT). overcome cultural barriers. economies and social movements have become international in nature and not only the Globalization of the Economy but also the Globalization of Politics. which can be used for Greater and faster flow of information between countries and greater cultural interaction has helped to Technological development has resulted in reverse brain drain in developing countries. Globalization in India In early 1990s the Indian economy had witnessed dramatic policy changes. but also ideas and cultures have breached the national boundaries. International Monetary Fund and the concept of free trade has boosted globalization. NRI Merits Scheme: The facilities and which were available Demerits to foreign investors of were also given to NRI's. The Demerits of Globalization are as follows: . 2. Fiscal deficit was also high and NRI's were not interested in investing in India. There is an International market for companies and for consumers there is a wider range of products to choose Increase in flow of investments from developed countries to developing countries. • • • economic reconstruction. Steps Some of the Taken steps taken to to Globalize liberalize and globalize Indian our economy Economy were: 1. Globalization The Merits of Globalization are as follows: • from. The idea behind the new economic model known as Liberalization. An array of reforms was initiated with regard to industrial. The economic changes initiated have had a dramatic effect on the overall growth of the economy. was to make the Indian economy one of the fastest growing economies in the world.
The number of landless families has increased and farmers are still committing suicide. it could indirectly lead to a subtle form of colonization. The share of agriculture in the GDP is only 17%. it can be said that very soon India will overcome these hurdles too and march strongly on its path of development. There is a greater threat of spread of communicable diseases. .7% in 2007-2008. There is an underlying threat of multinational corporations with immense power ruling the globe. Summary India gained highly from the LPG model as its GDP increased to 9. But seeing the positive effects of globalization.• • • • The outsourcing of jobs to developing countries has resulted in loss of jobs in developed countries. condition of agriculture has not improved. India ranks fourth in the world. But even after globalization. For smaller developing nations at the receiving end. In respect of market capitalization.
ports. Over the years there has been a steady liberalisation of the current account transactions. India is Global: The liberalisation of the domestic economy and the increasing integration of India with the global economy . The Indian tariff rates reduced sharply over the decade from a weighted average of 72.com Definition: Globalised World . But globalisation has also thrown up new challenges like growing inequality across and within nations. amendment of the monopolies and the restrictive trade practices act. diseases and pollution Impact on India: India opened up the economy in the early nineties following a major crisis that led by a foreign exchange crunch that dragged the economy close to defaulting on loans.5% in 1991-92 to 24. Also Globalisation has brought in new opportunities to developing countries. more and more sectors opened up for foreign direct investments and portfolio investments facilitating entry of foreign investors in telecom. population migrations and more generally increased mobility of persons. reduction in tariff rates and change over to market determined exchange rates. volatility in financial market and environmental deteriorations. airports. Till the nineties the process of globalisation of the Indian economy was constrained by the barriers to trade and investment liberalisation of trade.6 in 1996-97.com What is Sensex?You don’t need tuitions to learn. development of advanced means of communication. Stephen Gill: defines globalisation as the reduction of transaction cost of transborder movements of capital and goods thus of factors of production and goods. insurance and other major sectors. Peak tariff rates are to be reduced to be reduced to the minimum with a peak rate of 20%. data and ideas but also infections. roads. including almost all quantitative restrictions.Sharekhan-Firststep.Impact of Globalisation on Developing Countries and India Impact of Globalisation on Developing Countries and India by Chandrasekaran Balakrishnan Chandrasekaran Balakrishnan for The 2004 Moffatt Prize in Economics Introduction: Globalisation is the new buzzword that has come to dominate the world since the nineties of the last century with the end of the cold war and the break-up of the former Soviet Union and the global trend towards the rolling ball. growing importance of MNC's. internationalisation of financial markets. The frontiers of the state with increased reliance on the market economy and renewed faith in the private capital and resources. capital.1% in 2001-02. investment and financial flows initiated in the nineties has progressively lowered the barriers to competition and hastened the pace of globalisation Sponsored Links Calculating GHG EmissionsLearn how to save 30% off your energy costs from the experts!schneiderelectric. economic and political globalisation? Though the precise definition of globalisation is still unavailable a few definitions worth viewing.Guy Brainbant: says that the process of globalisation not only includes opening up of world trade. India is committed to reduced tariff rates. The new policy regime radically pushed forward in favour of amore open and market oriented economy. The response was a slew of Domestic and external sector policy measures partly prompted by the immediate needs and partly by the demand of the multilateral organisations.com FedEx IBL ChallengeDo you think you are a Business Champion? Then Enter FedEx IBL! InternationalBusinessLeague. goods. Another negative aspect of globalisation is that a great majority of developing countries remain removed from the process. Major measures initiated as a part of the liberalisation and globalisation strategy in the early nineties included scrapping of the industrial licensing regime.What does it mean? Does it mean the fast movement of people which results in greater interaction? Does it mean that because of IT revolution people can be in touch with each other in any part of the world? Does it mean trade and economy of each country is open in Non-Intrusive way so that all varieties are available to consumer of his choice? Does it mean that mankind has achieved emancipation to a level of where we can say it means a social.Though tariff rates went up slowly in the late nineties it touched 35. a process of structural adjustment spurred by the studies and influences of the World Bank and other International organisations have started in many of the developing countries.Sharekhan. reduction in the number of areas reserved for the public sector. in another 2 years most non-tariff barriers have been dismantled by march 2002. Greater access to developed country markets and technology transfer hold out promise improved productivity and higher living standard. start of the privatisation programme. The First Step Kit teaches enough.
•It is interesting to note the remark made last year by Mr. Many Indian companies have started becoming respectable players in the International scene.5% of GDP against 5% for China 5. There will be new prospects in rural India.3% in 2002-03 mainly because of the worst droughts in two decades the growth rates are expected to go up close to 70% in 2003-04. This is major improvement given that India is growth rate in the 1970's was very low at 3% and GDP growth in countries like Brazil. But it is not the only reason for this often unrecognised progress. It may be organised in a collective way with the help of co-operatives to meet the global demand. Where does Indian stand in terms of Global Integration? India clearly lags in globalisation.8% in 1996-97. President Bush's recent proposal to eliminate all tariffs on all manufactured goods by 2015 will do it. new business openings for small and medium enterprises. Globalisation and Poverty: Globalisation in the form of increased integration though trade and investment is an important reason why much progress has been made in reducing poverty and global inequality over recent decades.India's share of world merchandise exports increased from . Export and Import: India's Export and Import in the year 2001-02 was to the extent of 32.5% for Brazil. In fact it may exacerbate the prevalent inequalities. •India's share of global trade is similar to that of the Philippines an economy 6 times smaller according to IMF estimates. Bimal Jalan. Korea and Indonesia. According to this proposal. large part of east and far east Asia and eastern Europe. The performance in the first quarter of the financial year is5. sound institutions and domestic political stability also matter. Understanding the current status of globalisation is necessary for setting course for future. Cereals (mostly basmati rice and non-basmati rice).1%.4% as per the Economic Survey in 2000-01. In fact we are one of the least globalised . Though growth rates has slumped to the lowest level 4. which picked up from 5.2 billion of the developing world 4. we are now where ever close being globalised in terms of any commonly used indicator of globalisation. India has to concentrate on five important areas or things to follow to achieve this goal. Governor of RBI. GDP Growth rate: The Indian economy is passing through a difficult phase caused by several unfavourable domestic and external developments. The manufacturing of technology and management of technology are two different significant areas in the country. Number of countries have a clear lead among them China. proximity to markets and labour cost advantages. The global economy experienced an overall deceleration and recorded an output growth of 2. poverty remains one of the most serious international challenges we face up to 1. When GDP is calculated on a purchasing power parity basis. tariffs of 5% or less on all manufactured goods will be eliminated by 2005 and higher than 5% will be lowered to 8%. Consequently India's position in the global economy has improved from the 8th position in 1991 to 4th place in 2001. The growth of Indian economy very much depends upon rural participation in the global race.8% and second quarter is 6. But the proportion of the world population living in poverty has been steadily declining and since 1980 the absolute number of poor people has stopped rising and appears to have fallen in recent years despite strong population growth in poor countries. In 2000-01 Agricultural products valued at more than US $ 6million were exported from the country 23% of which was contributed by the marine products alone. Korea.9% it was still lower than the growth rate in China. After implementing the new economic policy the role of villages got its own significance because of its unique outlook and branding methods. Despite this progress. Starting 2010 the 8% tariffs will be lowered each year until they are eliminated by 2015.8 billion people still live in extreme poverty. Whereas FDI inflows into China now exceeds US $ 50 billion annually. oil seeds. Though India's average annual growth rate almost doubled in the eighties to 5. Indonesia. Agriculture exports account for about 13 to 18% of total annual of annual export of the country. Lets look at a few indicators how much we lag. The areas like technological entrepreneurship. It is only US $ 4billion in the case of India •Consider global trade .4% during the past year growth in real GDP in 2001-02 was 5. •Over the past decade FDI flows into India have averaged around 0.have helped step up GDP growth rates. For example food processing and packaging are the one of the area where new entrepreneurs can enter into a big way. tea and coffee are the other prominent products each of which accounts fro nearly 5 to 10% of the countries total agricultural exports. and Mexico was more than twice that of India.6% in 1990-91 to a peak level of 77. A Global comparison shows that India is now the fastest growing just after China. Marine products in recent years have emerged as the single largest contributor to the total agricultural export from the country accounting for over one fifth of the total agricultural exports. good national polices .05% to . If the proportion living in poverty had not fallen since 1987 alone a further 215million people would be living in extreme poverty today. Despite all the talk. The pick up in GDP growth has helped improve India's global position. 07% over the pat 20 years. For all nations to reap the full benefits of globalisation it is essential to create a level playing field. new prospects in rural areas and privatisation of financial institutions. Domestic output and Demand conditions were adversely affected by poor performance in agriculture in the past two years.362 million respectively. India under trades by 70-80% given its size. importance of quality management. Over the same period China's share has tripled to almost 4%.572 and 38. Growth rates have slowed down since the country has still bee able to achieve 5-6% growth rate in three of the last six years.
Globalisation has intensified interdependence and competition between economies in the world market. denting of political and economic sovereignty and greater acceptance of democracy as a way of life. As a result domestic economic developments are not determined entirely by domestic policies and market conditions.An International Journal of Ideas.Velayudham.Carolina.Jan 2004.Sagar Jain. University of N. Third Concept . Challenges and the Strategies. .however we look at it. Globalisation and Poverty: Centre for International Economics. Globalisation and India -Lecture : Prof .K. 9. greater trade linkages. they are influenced by both domestic and international policies and economic conditions. Consequences: The implications of globalisation for a national economy are many. This goes without saying even as we move into what is called a globalised world which is distinguished from previous eras from by faster travel and communication.Lecture : V.A.T. "Globalisation and Liberalisation" Prospects of New World Order . politicocultural entity has been interacting with the outside world throughout history and still continues to do so. Rather.Lecture .Ojha. 8. Page 3. in decision-making at the national level. ~ References: 1. 3.N. •As Amartya Sen and many other have pointed out that India. It has to adapt.among the major countries . assimilate and contribute. 66. while formulating and evaluating its domestic policy cannot afford to ignore the possible actions and reactions of policies and developments in the rest of the world. Aug 2002.Dr. Globalisation Trend and Issues . Williamson. This constrained the policy option available to the government which implies loss of policy autonomy to some extent. as a geographical. The Indian and Global Business . WIDER ANNUAL LECTURE 6: Winners and Losers over two centuries of Globalisation:Jeffery G. 6.K. 7. Page 39.Ravi Kastia.Rai. Australia. Repositioning India in the Globalised World . It is thus clear that a globalising economy. 5. Page 30. Globalisation and India's Business prospectives . This is reflected in Interdependence in regard to trading in goods and services and in movement of capital. Globalisation: Imperatives. 2. 4.
Though the precise definition of globalisation is still unavailable a few definitions are worth viewing. particularly from parts of Asia and Latin America. and other countries that were poor 20 years ago. The new policy regime radically pushed forward in favour of a more open and market oriented economy. Guy Brainbant: says that the process of globalisation not only includes opening up of world trade. population migrations and more generally increased mobility of persons. Key Words: Multi National Companies. data and ideas but also infections. International Center Waljat Colleges of Applied Sciences. Introduction Globalization has many meanings depending on the context and on the person who is talking about. are playing as initiators of globalization through their own MNCs. development of advanced means of communication. But Globalization has also generated significant international opposition over concerns that it has increased inequality and environmental degradation. goods. Muscat. Muscat P. India. Rusayl. there is an underlying focus on the impact of LPG on Indian economy. Attention should also be focused on the role which some developing countries. growing importance of MNC’s. internationalisation of financial markets. PC-124. Box-197. Throughout this paper. has been a positive aspect of Liberalization Privatization and Globalization (LPG). There is a need to study the impact of globalization on developing countries from the viewpoint of inward foreign direct investment. Privatization. Oman E-mail: kagoyala@gmail. India opened up the economy in the early nineties following a major crisis that led by a foreign exchange crunch that dragged the economy close to defaulting on loans. The term globalization refers to the . This paper explores the contours of the on-going process of globalization Liberalization and privatization. Rapid growth and poverty reduction in China. capital. diseases and pollution. The response was a slew of Domestic and external sector policy measures partly prompted by the immediate needs and partly by the demand of the multilateral organisations.com Phone 00968 92373238 Abstract The growing integration of economies and societies around the world – has been one of the most hotly-debated topics in international economics over the past few years.Impact of Globalization on Developing Countries (With Special Reference To India) Krishn A Goyal Department of Management Birla Institute of Technology. Liberalisation. It also comments on impact of LPG on Developing countries.
In fact. The Important Reform Measures (Step Towards Globalization) Indian economy was in deep crisis in July 1991. Along with these bottlenecks at home. These were the economic compulsions at home and abroad that called for a complete overhauling of our economic policies and programs. as also through mutual exchange of technology and knowledge. South East Asia. In context to India. Under the privatization scheme. removing constraints and obstacles to the entry of MNCs in India. this measure was taken in order to resolve the BOP crisis • Disinvestment-In order to make the process of globalization smooth. it also contains free inter-country movement of labour. many unforeseeable changes swept the economies of nations in Western and Eastern Europe. Capital was flying out of the country and we were close to defaulting on loans. when foreign currency reserves had plummeted to almost $1 billion. fiscal deficit was very high and had become unsustainable. therefore globalization has been identified with the policy reforms of 1991 in India. foreign investors and NRIs had lost confidence in Indian Economy. Ideally. Major measures initiated as a part of the liberalisation and globalisation strategy in the early nineties included the following: • Devaluation: The first step towards globalization was taken with the announcement of the devaluation of Indian currency by 18-19 percent against major currencies in the international foreign exchange market.integration of economies of the world through uninhibited trade and financial flows. allowing Indian companies to enter into foreign collaborations and also encouraging them to set up joint ventures abroad. this implies opening up the economy to foreign direct investment by International Research Journal of Finance and Economics . Inflation had roared to an annual rate of 17 percent. most of the public sector undertakings have been/ are being sold to private sector . carrying out massive import liberalisation programs by switching over from quantitative restrictions to tariffs and import duties.Issue 5 (2006) 167 providing facilities to foreign companies to invest in different fields of economic activity in India. privatization and liberalisation policies are moving along as well. around the same time. Latin America and elsewhere.
development of integrated townships (upto 100%).Issue 5 (2006) .• Dismantling of The Industrial Licensing Regime At present. The Department has also strengthened investment facilitation measures through Foreign Investment Implementation Authority (FIIA). In addition. enhancement of FDI limits in private sector banking. only six industries are under compulsory licensing mainly on accounting of environmental safety and strategic considerations. Government has extended some concessions specially for NRIs and overseas corporate bodies having more than 60% stake by NRIs • Throwing Open Industries Reserved For The Public Sector to Private Participation. A significantly amended locational policy in tune with the liberalized licensing policy is in place. include opening up of sectors such as Insurance (upto 26%). electronic mail and voice mail to 100% foreign investment subject to 26% divestment condition. inter alias. • Non Resident Indian Scheme the general policy and facilities for foreign direct investment as available to foreign investors/ Companies are fully applicable to NRIs as well. opening up B2B e-commerce. The Department has put in place a liberal and transparent foreign investment regime where most activities are opened to foreign investment on automatic route without any limit on the extent of foreign ownership. • The reduction of the peak customs tariff from over 300 per cent prior to the 30 per cent rate that applies now. allowing FDI up to 100% under the automatic route for most manufacturing activities in SEZs. Some of the recent initiatives taken to further liberalise the FDI regime. Now there are only three industries reserved for the public sector • Abolition of the (MRTP) Act. tea plantation (upto 100% subject to divestment of 26% within five years to FDI). 168 International Research Journal of Finance and Economics . • Allowing Foreign Direct Investment (FDI) across a wide spectrum of industries and encouraging non-debt flows. defence industry (upto 26%). etc. No industrial approval is required from the government for locations not falling within 25 kms of the periphery of cities having a population of more than one million. which necessitated prior approval for capacity expansion • The removal of quantitative restrictions on imports. Internet Service Providers (ISPs) without Gateways.
and Mexico was more than twice that of India. The services sector remains the growth driver of the economy with a contribution of more than 57 per cent of GDP. Indonesia.• Severe restrictions on short-term debt and allowing external commercial borrowings based on external debt sustainability. Though India’s average annual growth rate almost doubled in the eighties to 5. Earlier the maximum part of the GDP in the economy was generated from the primary sector but now the service industry is devoting the maximum part of the GDP. The pick up in GDP growth has helped improve India’s global position.This is major improvement given that India’s growth rate in the 1970’s was very low at 3% and GDP growth in countries like Brazil. During 1991-92 the first year of Rao’s reforms program.a growing economy Structure of the Economy Due to globalization not only the GDP has increased but also the direction of growth in the sectors has also been changed.2% 199394. A growth rate of above 8% was an achievement by the Indian economy during the year 2003-04. Globalization has intensified interdependence and competition between economies in the world market. and 6. including the deregulation of interest rates.9%only. The Indian economy grew by 0. when GDP is calculated on a purchasing power parity basis. strong regulation and supervisory systems. and the introduction of foreign/private sector competition. Korea. Consequently India’s position in the global economy has improved from the 8th position in 1991 to 4th place in 2001.9%. Korea and Indonesia. Impact of Globalization The implications of globalization for a national economy are many. and insurance sectors. capital markets. • Wide-ranging financial sector reforms in the banking.3 % in 1992-93. These economic reforms have yielded the following significant benefits: Globalization in India had a favorable impact on the overall growth rate of the economy. India’s GDP growth rate can be seen from the following graph since independence India . it was still lower than the growth rate in China. However the Gross Domestic Product (GDP) growth accelerated to 5. India is ranked 18 .
259 c) NRI . ta represent net inflow of funds by FIIs. TOTAL (A+B) 103 6. International Research Journal of Finance and Economics .918 8.th among the world’s leading exporters of services with a share of 1. Other capital # 438 488 357 B. Data on foreign investment presented in this table represent inflows into the country and may not tally with data presented in other tables.5 21.16 C.1 22..4 56.764 2.7 51.3 per cent in world exports.909 a) GDRs/ADRs 600 459 613 b) FIIs @ 377 10. They may also differ from data relating to net investment in stock exchanges by FIIs.536 I.2 26.Issue 5 (2006) 169 Table-1: Structure of the Economy (Percentage) (% Of GDP) 1984-85 2002-3 2003-4 2004-5 Agriculture 35.445 P: Provisional *: Relates to acquisition of shares of Indian companies by non-residents under Section 6 of FEMA 1999.387 3.816 III.673 5. PORTFOLIO INVESTMENT 6 979 11.5 Industry 26. Table 2: Foreign Direct investment inflows (USD $ Million) INVESTMENT 1990-91 2002-03 2003-04 2004-05 (P) A.6 21.280 c) Off-shore funds & others 6 2 . Equity 2.1 21.050 14.014 16. Software and the ITES-BPO sectors have recorded an exponential growth in recent years. The services sector is expected to benefit from the ongoing liberalization of the foreign investment regime into the sector.377 8.DIRECT INVESTMENT 97 5.d) Acquisition of shares * 916 735 930 e) Equity cap.7 20.7 57.833 1. Growth rate in the GDP from major sectors of the economy can be seen from the following Table.363 a) Government (SIA/FIPB) 919 928 1.062 b) RBI 739 534 1. Source: Reserve Bank of India Annual Report for 2004-05 . #: Data pertain to inter-company debt transactions of FDI entities 2.9 Services 38. Reinvested earnings 1. The details of the foreign investment inflow can be seen from the following table.798 1.6 Source: Economic Survey 2000 &2005 Foreign Direct investment inflows FDI increased from around US$100 million in 1990/91 to USD 5536 million in 2004-5. of unincorporated bodies 190 190 112 II.035 4.
62 percent higher than previous year's imports of US $ 57. increase in foreign exchange reserve and greater foreign investment and technology towards India. Oil imports zoomed by 19 percent with the import bill being US $ 29. These were about then US$1 billion during the 1990–91 balance of payments crises. Table-3:Foreign Trade (US $ Million) Trade 1990-91 2002-3 2003-4 2004-5 Total Exports 18477 52719 63843 79247 Total imports 27915 61412 79149 107066 Trade Balance -9438 -8693 -14307 -27819 Source – Reserve Bank of India Annual Report 2004-05 Thus we find that the economic reforms in the Indian economy initiated since July 1991 have led to fiscal consolidation. and currently stand at around 17 per cent and 22 per cent.Issue 5 (2006) in the corresponding period last year.62 percent compared with US$ 79 billion in the previous fiscal. • The composition of debt is also favorable.• The current account deficit has hovered at less than 1 per cent of GDP in recent years. It stood at US $ 79 billion in 2004-05 compared with US $ 63 billion in the previous year. gold. Non-oil imports during 2004-05 are estimated at USD 77.59 billion 170 International Research Journal of Finance and Economics . which is 33. SDRs and the reserve position with the IMF which touched US $ 141. Both debt service payments as a proportion of current receipts. • The strength of the external sector was reflected in a sizeable accumulation of India's foreign exchange reserves comprising foreign currency assets.08 billion against USD 20. Short-term debt amounts to 3.5 per cent of external debt and concessional debt amounts to 36. Foreign Trade (Export. and the external debt-to-GDP ratio have been falling steadily during the 1990s. This has helped the Indian economy to grow at a faster rate. 2005. respectively. Export also increased by 24 percent as compared to previous year. Presently more than 100 of the 500 fortune companies have a presence in India as .651 billion in 2003-04. • The external debt burden looks sustainable according to a range of measures of indebtedness.5 per cent of total debt.Import) India’s imports in 2004-05 stood at US$ 107 billion recording an increase of 35.5 billion as on March 31. control of inflation to some extent.036 billion.
It was only $ 2880 in 2003 (World Bank figures). and the production of harmful chemicals and the destruction of organic agriculture.07% over the past 20 years. . Over the same period China’s share has tripled to almost 4%. Indian Economy: Future Challenges • Sustaining the growth momentum and achieving an annual average growth of 9-10 % in the next five years.compared to 33 in China. • Over the past decade FDI flows into India have averaged around 0. • Developing world-class infrastructure for sustaining growth in all the sectors of the economy • Allowing foreign investment in more areas. • India’s share of global trade is similar to that of the Philippines an economy 6 times smaller according to IMF estimates. Due to a high population growth. A Comparison with Other Developing Countries • Consider global trade – India’s share of world merchandise exports increased from . • Checking the growth of population. • Effecting fiscal consolidation and eliminating the revenue deficit through revenue enhancement and expenditure management. • Some regard globalization as the spread of western culture and influence at the expense of local culture. • Global corporations are responsible for global warming. It is only US $ 4billion in the case of India. by at least 10% per year to integrate not only the surplus labour in agriculture but also the unprecedented number of women and teenagers joining the labour force every year. 05% to . India is the second highest populated country in the world after China. • Simplifying procedures and relaxing entry barriers for business activities and Providing investor friendly laws and tax system. • Expanding industry fast.5% of GDP against 5% for China and 5. Protecting domestic culture is also a challenge. However in terms of density India exceeds China as India's land area is almost half of China's total land. • Boosting agricultural growth through diversification and development of agro processing. the depletion of natural resources. FDI inflows to China now exceed US $ 50 billion annually. GNI per capita remains very poor.5% for Brazil.
Third concept. India. Third concept. And Tenth Five Year plan 2002-07 .K.K. India must maximize the benefits of its youthful demographics and turn itself into the knowledge hub of the world through the application of information and communications technology (ICT) in all aspects of Indian life although.  Ojha. It should develop infrastructure with what Finance Minister P Chidambaram International Research Journal of Finance and Economics . Government had reduced its controls on foreign trade and investment in some areas and has indicated more liberalization in civil aviation. References  Goyal K A. 1992-97 New Delhi. Conclusion The lesson of recent experience is that a country must carefully choose a combination of policies that best enables it to take the opportunity . & P. Eighth Five Year Plan. For over a century the United States has been the largest economy in the world but major developments have taken place in the world economy since then. 1992.• The government should reduce its budget deficit through proper pricing mechanisms and better direction of subsidies. • Empowering the population through universal education and health care. August-2002. leading to the shift of focus from the US and the rich countries of Europe to the two Asian giants.while avoiding the pitfalls. Planning Commission.Khicha. An International Journal of Ideas. the government is committed to furthering economic reforms and developing basic infrastructure to improve lives of the rural poor and boost economic performance. Globalization & Liberalization – prospects of new world order.  Government of India. . “Globalization of Business: Future Challenges”. may overtake Japan and become third major economic power within 10 years. which is now the fourth largest economy in terms of purchasing power parity. Economics experts and various studies conducted across the globe envisage India and China to rule the world in the 21st century.India and China.An International Journal of Ideas.Issue 5 (2006) 171 of India called “ruthless efficiency” and reduce bureaucracy by streamlining government procedures to make them more transparent and effective. A. telecom and insurance sector in the future.
2001. China’s Transition and its Implications for International Business”. Christopher A and Samantha Ghoshal.UNCTAD. “Going Global-Lessons from late Movers”. March. December 2004. World Bank Indicators  Indian Government. Volume 32 Number 2001  United Nations. New Delhi  Michael Porter. 2002-03-04-05  Reserve Bank of India Annual Report-2004-05  The India Economic Summit Report – 2005 .April 2000  Child. Bimal 1996. Jalan. Tse. Economic survey. Penguin Books. Harvard Business Review. Harward business Review. India’s Economic Policy: Preparing for the Twenty-First Century. World Investment report  World Bank. john and David K. Beyond Off shoring: Assess Your Company’s global potential. Competitive advantage of Nation  Diana Farrell. Journal of International Business studies. December-2004  Bartlett.