SOCIO-ECONOMIC CHALLENGES OF GLOBALIZATION

Introduction

International interaction has accelerated the pace of development for a long time. So, is the case
with globalization. In pre-medieval period scientific and technological developments took place
in the countries like China, Saudi Arab, India and Turkey. Decimal system reached to Europe
towards tenth century A.D. via Arab countries. Similarly, the knowledge of algorithm, algebra
and the printing press entered into central Europe during eleventh and fourteen century and that
deeply impressed European renaissance, religious reforms and industrialization. Similarly, before
the medieval times, the flow of science and technology was from non-West to West. The process
of globalization is neither initiated by West nor by non-West. That is why, Amartya Sen, the
Nobel Prize winner calls this process 'Global Heritage’. "Marketization of Economy and
globalization of market" are the new mantras contemporary system of development.
Globalization is related to free economic interdependence and integration of the world economy
with its increased tendency. The political globalization has two important aspects. The first, is
related to the factors concerning resources, wealth and technology across regional boundaries
and second one deals with the serious challenges faced by various nations. The Economic
globalization is concerned with the trade, FDI, money flow, competitions, privatization, stability
of inflation, price index etc. Explaining cultural globalization, S. Latouche moves to the extent of
saying that 'Economy is a part of culture itself. Cultural globalization has a major role in
communication system. The social, economic, political and ecological systems get more
organized with an identity because of globalization.

Effects of Globalization

Individual, community, society and sub-national community have developed contacts across the
borders for the long time. The earlier state centric system gradually received international fervor
by global interaction. Even this process is not universal. The process of global integration has
left far behind the concept of 'Global Village' of Marshal Maclham. In the world anybody and
everybody and from anywhere, has got connected to anybody else. A citizen of a country may
live in a different country it makes no differences. Likewise individuals and groups, private and
public organizations keep in touch on the issue of common interests of different places. r
cultures. Revolutionary steps like contacts and increasing cooperation between individuals and
groups are bringing governments closer to each other. Both positive and negative effects of
globalization are now visible. In positive sense, it relates to open economy, increasing economic
interdependence and interaction of world economy. Though considered mainly as an economic
process, it has many other dimensions like technology, communication, polity, culture, ecology
and society.9 All these dimensions are inter-related and some dimensions are fragmented into
sub-dimensions having several branches that represents a network of interdependence. In
negative sense it can be seen as the increasing dominance of developed countries over
developing countries. The process of globalization entails a chain of actions through which every
region is affected by the activities of other decisions. Trade of a country affects labor market,
government and culture at the global level. Technology has changed the methods of trade.
Integration of economies across the national boundaries is related to production, trade and
investment all over the world. It is also related to various organizations like ASEAN, SAARC
OAU and European Union. The spread of globalization has brought fundamental changes in
global economy. This process also includes trade, production, investment by multinational
companies (MNCs) and market. MNCs have reoriented their organizational structure because of
the global network of production. The process of globalization has created conditions for direct
foreign investment. The annual report of WTO released on August 14, 2007 claims that increase
in merchandise trade is not merely restricted to developed countries. Developing countries also
witnessed increase in exports by 0.9% which is largest since 1980. Attracting investors and
raising competitions about various products has become new trend in international economic
system. It is essential for business concerns to sustain in contemporary world environment.
Information and communication have boosted the process of globalization. In mid-1998 the
number of Internet users was 140 million it rose to 700 million in 2001. Today, more than a
billion people surf daily. American economy, which had started shrinking in 1990, is world's
largest economy today. Earlier, the role of national government was quite limited. Now
governments are performing the role of economic deciders rather than economic actors. Socio-
economic globalization enriches the political-cultural environment. Technology provides
information related to economic activities that produce new markets operating beyond
geographical and political limits. Today, different languages and culture in India have come
close than ever before.

Challenges

Under prevailing circumstances the process of globalization has opened the doors to unlimited
opportunities. It believes in integrated economy, culture and administration. Being directed by
the trade powers, globalization increases economic abilities, production and profits. d. As per
statement of EU trade commissioner dated Sept. 3, 2007, India is much better placed than Europe
concerning hazards of globalization. Europe has yet to decide about the political approach
towards globalization. Several persons have opposed it blindly considering it as a problem.18
Therefore; this process has become a matter of concern throughout the world. Through the terms
like liberalization, privatization and globalization often used in contemporary world, the
economic structure has never been defined properly. The process of Privatization started in
1980s. Eastern Europe, Russia, Ukraine and Poland are still passing through this process. It is
also evident that an economic concern of the state creates problems in other areas. The true
picture of privatization, globalization and liberalization is quite different and complex. No doubt
the trade promotes economic developments but the economic globalization and trade
liberalization have been fitted into international business houses at large. 98. The total income of
six major corporations (Axon, G.M., Ford, MITSU, Dane! Cristler, Mitsubishi) is more than the
total budget of 64 countries with 58 percent population of the world. Only seven countries
(France, Britain, Italy, China, Japan, Germany and U.S.) have the budget bigger than these
corporations. The world today is more polarized than ever before. Globalization has created two
types of classes or societies - a. small category that has enjoyed the benefits of globalization and
the second - a major category that is poor and devoid of facilities. Thus it seems that
globalization does talk about human development, which is restricted to small elite only. This
inequality, not only creates disintegration, but also causes the emergence of social and national
divisive forces. The growing global production has dramatically changed the economic, social
and cultural decision making system of the state. The mechanism of production and its exchange
has become the main reason behind the semi-permanent employment, which has squeezed the
concept of welfare state. The garb of cultural globalization has resulted in the rise of cultural
colonization in due course of development. It is interesting to note that globalization goes against
the process of nation building so far as the position of developing countries.

Scope

To make the face of globalization humanitarian up to the expectation, it is essential to add the
powerful global administration with values, trends and criteria with inbuilt steps towards
accountability, freedom, equality, liberalism, cooperation and honesty. Social issues like health,
education, employment environment and inequality often affect the government, market and
trans-corporations. They, in turn, affect the individuals. If individual is not satisfied, he can
negatively affect the MNC’s. Regional organizations like EU, ASEAN, SAARC, NAFTA and
APEC have become enough so for as important international trade is concerned. The process of
economic integration between developing and industrialized countries started in 1980s, but
regional agreements are still not capable enough to attract sufficient foreign capabilities and
investment. No interrelation can be certainly made between reforms, unemployment and
temporary growth. Furthermore the policy makers while making the policies must create
opportunities for at least minimum possibility of the success of trade. It is commonly behaved in
the developing countries that global market is against them in the matter of goods and services.

Conclusion

The process of globalization has got special importance in human civilization of the day. Trade is
a mobile force of world economy. Everyone has a share in the system. Market economy is based
on division of labor while different actors of the system co-ordinate with each other and an actor
gets benefits according to his labor. Historically, state and market system came into existence
simultaneously. In the due course of time development activities were undertaken so as to cope
with changing situations and this process enhanced modernization. State is concerned with the
related to security as market is related to the wealth. China, Myanmar (Burma), Thailand and
Japan cannot be called Indianization because they adopted it according to their own society.
Japan China, Saudi Arabia and Singapore can be termed as modernized, not westernized. It can
be said that global society is a cultural melting pot where fusion of culture has become a fashion.
Global economy is fast getting integrated but it is not Zero-sum-game. This process is beyond
profit and loss. In global economy many actors like trade, organization government and liberal
interest groups together solve the problem. The world can be given new shape by the process of
globalization. Bringing the nations and people of different nature together, strong pillars of
development and understanding can be constructed and international peace can be sustained.
Multi-dimensional issues of public welfare like health, education, security, employment, human
rights, energy, environment, technology, culture and economic needs can be better dealt with
international co-operation. In this regard, regional organizations and International Corporations
have become powerful source of organized social change, if political stability in the concerned
nation is assured and sovereignty is respected.