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World Affairs: The Journal of International Issues
INTRODUCTION
T
he term “globalisation” refers to the integration of economies and
societies across countries through the flow of capital, finance, ideas,
information, goods, people, services and technologies. The International
Monetary Fund (World Economic Outlook, Washington DC, May 1997, p45)
defines it as:
“No more than Canute’s soldiers can we oppose the tides of the borderless
world’s ebb and flow of economic activity”.
As a consequence, the room for political initiatives has become limited and
the only option for politics is to adjust to globalisation to benefit from it.
Noam Chomsky (“Corporate Globalisation, Korea and International Affairs”,
Interview with Sun Woo Lee, ZNet: The Spirit of Resistance Lives, 22 February
2006) describes it as the neoliberal form of economic globalisation.
“The strongest proponents of globalisation have always been the left and
the labour movements. ... The strongest advocates of globalisation are the
remarkable and unprecedented global justice movements, which get together
annually in the World Social Forum and by now in regional and local social
forums. In the rigid Western-run doctrinal system, the strongest advocates of
globalisation are called ‘anti-globalisation’. The mechanism for this absurdity
is to give a technical meaning to the term ‘globalisation’—it is used within
the doctrinal system to refer to a very specific form of international economic
integration designed in meticulous detail by a network of closely interconnected
concentrations of power—multinational corporations, financial institutions,
the few powerful states with which they are closely linked and their international
economic institutions (International Monetary Fund, World Bank, World Trade
Organisation, etc). Not surprisingly, this form of ‘globalisation’ is designed to
serve the interests of the designers. The interests of people are largely irrelevant”.
Globalisation has severe implications for the marginalised and poor in the
form of increasing individualism and a growing culture of consumerism as
well as expanding and exploiting material desires, creating identity dislocation
and a collective relative deprivation in a large section of people (Sagar Sharma
and Monica Sharma, “Globalisation, Threatened Identities, Coping and Well-
Being”, Psychological Studies, vol55, no4, October–December 2010, p313). The
issues of globalisation are not confined to the economic field but also deeply
affect the sociocultural sphere. The changes associated with it are important for
understanding the impact on and responses of individuals, communities, cultures
and governments to its consequences (ibid, p314). The changes have a direct
bearing on the well-being of individuals and groups. The uneven distribution
of economic gains that excludes many increases the level of stress, alienation
and feeling of injustice among the majority of vulnerable individuals and
marginalised groups (ibid). According to Zygmunt Bauman (Globalisation: The
Human Consequences, Cambridge: Polity Press, 2000), globalisation has changed
the way people think about the world and themselves. A traditional model of
stable and reliable employment has given way to a new experience of a working
life characterised by the absence of contracts, outsourcing, unstable working
conditions, labour market deregulations as well as social and job insecurity
(Vishal Bhavsar and Dinesh Bugra, “Globalisation: Mental Health and Social
Economic Factors”, Global Social Policy, vol8, December 2008, p380).
Globalisation in India is an amalgam of cultural, economic and social
outcomes resulting from the “opening up” of the Indian economy to the global
market (Ruchira Ganguly and Timothy J Scrase, Globalisation and the Middle
Classes in India: The Social and Cultural Impact of Neoliberal Reform, New York:
Routledge, 2009, p4). The Indian economy experienced major policy changes in
the early 1990s and new economic reforms, popularly known as liberalisation,
privatisation and globalisation (the LPG model), aimed at making the economy
a fast growing and globally competitive one. A series of reforms were undertaken
in the financial, industrial and trade sectors to make the economy more efficient.
Many aver that the policy of economic liberalisation has resulted in a mass of
wealthy middle class people—the principal beneficiaries of the globalisation
process. While they have benefited from consumption and new opportunities
for education and jobs and are seen an engine of growth, on the other hand
the lives of the marginalised and poor have become more difficult due to rising
prices, increasing debt and competition for jobs. Although opportunities have
undoubtedly increased, they have been accompanied by higher levels of financial
and personal stress (ibid, p3). The process of globalisation is guided by the
principle of neoliberalism, which offers consumers a freedom of choice but at
the cost of liberal values like equality and liberty.
“The right of the weak, aged, destitute, poor, women, children and other
underprivileged persons” (Maddela Abel, Remade in India: Political Modernisation
in the Indian Context, Hyderabad: Institute of Chartered Financial Analysts of
India University Press, 2006, p246).
It is a social value for providing a stable society and securing the unity of a
country. This article is based on distributive justice and the principle of John
Rawls’s (A Theory of Justice, Cambridge: Harvard University Press, 1971) theory
of justice based on the “difference principle”, which implies an alternative, more
morally sound scheme for the global economic order then the prevalent one. It
leaves open the possibility of a free market as long as the “least advantaged groups
benefit from it”. According to Rawls (ibid), “circumstances, institutions and
historical traditions” decide which economic systems and social institutions best
serve the realisation of justice. He applies socially institutionalised mechanisms
for redistribution.
The concept of marginality is generally used to analyse cultural, political and
“The temporary state of having been put aside, of living in relative isolation,
at the edge of a system (cultural, economic, political or social) ... when one
excludes certain domains or phenomena from one’s thinking because they do
not correspond to the mainstream philosophy” (“Homepage”, International
Geographical Union, online at http://www.swissgeography.ch).
The marginalised are groups of people that are economically, legally, politically
or socially excluded, ignored or neglected and therefore vulnerable to livelihood
changes (ibid). Marginalisation is a multilayered concept. Sometimes, whole
societies may be marginalised at national or global levels, while classes and
communities may be marginalised from the dominant social order at the local level
(Carolyn Kagan and Mark Burton, “Working with People who are Marginalised
by the Social System: Challenges for Community Psychological Work”, online
at http://www.compsy.org.uk). Thus, marginalisation is a complex, shifting
phenomenon linked to social status.
In India, caste and class prejudices exclude many communities and hinder
their participation in economic and social development. Globalisation too has
promoted development at the cost of equity. It has enhanced the gap between the
“haves” and “have-nots” and furthered marginalisation. It is well known, India is a
multicultural, plural society with many groups and sections based on caste, class,
religion, etc. These groups are heterogeneous in nature, facing diverse problems.
Many are marginalised groups that are not empowered to tackle the challenges of
competing for equality even more than sixty years after independence.
India is the world’s largest democracy with a federal setup. Inequalities in the
country have two main dimensions—regional inequality between states and
interpersonal inequality. Globalisation has had an adverse impact on regional
inequality, which has the potential to create political tensions in a society where
regional loyalties have been traditionally powerful. Interpersonal inequality in
the wake of the globalisation process in India has also attracted the attention
of academics and policymakers (DM Nachane, Liberalisation, Globalisation and
the Dynamics of Democracy in India, London School of Economics and Political
Science, Asia Research Centre Working Paper 32, June 2010, p21). Privatisation
in India has often led to the rapid concentration of wealth in the hands of the
elite, high service charges by privatised utilities, employment restructuring and
the erosion of regulatory control, which have all impacted marginalised groups
unfavourably (ibid). Even subsidy policies at times do not achieve their short-
term goals of providing greater resources to the poor, as they are either not
targeted at the poor or are hijacked by the rich. The public distribution system
in which a fixed amount of food grain is given per person and a few essential
commodities are sold at subsidised prices has had a negligible impact on rural
poverty, while the central government alone spends four rupees to distribute
one among the intended beneficiaries (Elias Dinopoulos, Pravin Krishna, Arvind
Panagriya and Kar-yiu Wong (Eds), Trade Globalisation and Poverty, New York:
Routledge, 2008, p24).
India’s success owes more to its democratic institutions and processes and
less to external stimuli provided by globalisation. Its economic growth record has
been fairly impressive so far and the country has been steadily marching forward
since independence. India is among the developing countries that have enjoyed
sustained though slow growth in per capita incomes since 1950. Its economy has
been improving since the adoption of economic reforms and in recent years it has
averaged a rate of nearly six to seven per cent (Gowher Rizvi, “Emergent India:
Globalisation, Democracy and Social Justice”, International Journal, Canadian
International Council, Toronto, vol62, no4, Autumn 2007, p760). According to
a World Bank report (The Economic Times, 30 April 2014), India has displaced
Japan to become the world’s third biggest economy in terms of purchasing power
parity. However, while its share of goods and services has increased globally and
there is every indication that the growth of the economy will accelerate, India’s
development has been characterised by persistent inequality.
India’s record for dealing with the marginalised and disadvantaged while
substantial is far from satisfactory (Rizvi, ibid). The marginalised groups are
poor, mostly illiterate, the least healthy and secure, malnourished, and without
an effective voice. These groups, especially those that have suffered historic
discrimination, have received less than a fair share of the benefits of development
(ibid). They are predominantly dalit and adivasi (tribal)—the worst affected
marginalised groups. The conditions of both communities are at the bottom of
almost all indicators of the Human Development Index. Modern development
has largely bypassed these politically
Privatisation in India has often
and socially disadvantaged people.
Globalisation too has hurt them— led to the rapid concentration
while it has created opportunities of wealth in the hands of the
for employment in the services elite, high service charges by
sector, particularly in information privatised utilities, employment
technology, financial services and the restructuring and the erosion of
retail sector, most jobs are at the lower
regulatory control, which have
levels of business process outsourcing
(JS Sondhi, “An Analysis of India’s all impacted marginalised groups
Development: Before and After unfavourably.
Globalisation”, Indian Journal of Industrial Relations, vol43, no3, January 2008,
p329). Even internet access is differentiated by education, gender, location
and social class—collectively referred to as the digital divide. Information
and communication technologies play an important role in shaping uneven
development within the economy. In India, the development of the shrinking
world due to “time-space compression” has led to new social divisions between
those who have access to information and communication technologies and
those marginalised from them. There is a wide gap between the opportunities
available to those who speak English and operate computers and the rest of
the population. Such inequities at times result in localised conflicts between the
“haves” and “have-nots”, often reinforced by traditional social divisions based
on caste, region and religion (Surya Deva, “Globalisation and its Impact on the
Realisation of Human Rights: Indian Perspective on a Global Canvas” in C Raj
Kumar and K Chockalingam (Eds), Human Rights, Justice and Constitutional
“The unemployment rate at 36 persons out of 1000 persons at an all India level
is lowest in the scheduled tribes category, followed by 44 persons under the
other backward classes category, 45 persons under the scheduled castes category
and 56 persons out of 1000 persons each under the general category”.
India has now moved away from the concept of government towards governance.
In the governance paradigm, in large part reflecting the changed circumstances
resulting from economic liberalisation, technological advances and the rise of
market ideology, governments are moving away from being operational agencies
to regulatory authorities. From the perspective of the poor, the rollback of
government’s operational role in the management of the economy does not
augur well. Through economic reforms, the government has downsized many
state enterprises and privatised many public sector ones leading to a loss of jobs
for marginalised groups that had reservations under a policy of affirmative action
(Rizvi, ibid, p765). As Rizvi (ibid) adds:
“While it is true that as the economy expands and privatised state enterprises
flourish, new and better paid jobs will be created ... in a knowledge-based
economy, only those who are well-educated, skilled, information-savvy,
English-speaking and internationally connected will be able to take advantage
of the opportunities”.
In India as well, the gap between the rich and the poor has widened and those
without requisite skills have been the losers. Post-globalisation there was much
churning amongst those below the poverty line. Although some have been pulled
out of poverty and enriched, others have been pushed into impoverishment
(ibid, p328).
The Indian caste system is structured and defined by principles of graded
inequality and as such produces economic disparities across caste groups. The
most deprived are the scheduled castes (scheduled refers to the government
schedule in which they are originally listed as eligible for affirmative action
benefits) also known as dalits, literally the oppressed/exploited (Sesha Kethineni
and Gail Diane Humiston, “Dalits, the ‘Oppressed People’ of India: How are
their Social, Economic and Human Rights Addressed”, War Crimes, Genocide
and Crimes against Humanity, vol4, no1, 2010, p100). They still face cultural,
economic, political and social discrimination in the name of caste. Perpetuated
discrimination has resulted in them accounting for a disproportionate number
of the poor in India and in the creation of obstacles that hinder their ability to
change their situation (Ellyn Artis, Chad Doobay and Karen Lyons, Economic,
Social and Cultural Rights for Dalits in India: Case study on Primary Education
in Gujarat, Princeton: Woodrow Wilson School of Public and International
Affairs, 2003, p9). About three-fourths of all dalits live in rural areas, where
the main sources of income are either wage labour in agriculture or non-farm
employment. In urban areas, there is also a big gap between dalits and the
advantaged groups. Moreover, the economic and social inequality of dalits maps
on to regional disparities—there is socioeconomic inequality of dalits versus
other communities and their economic deprivation has persisted over time. The
general process of globalisation and economic development has not reduced the
extent of inequality between dalits and non-dalits.
The Indian National Commission for Enterprises in the Unorganised
Sector has introduced categories of the “marginal poor” and “vulnerable”. This
categorisation indicates the position of these groups in the socioeconomic hierarchy.
Table 1 below shows that marginalised groups are heavily underrepresented at
the top and overrepresented at the bottom of the hierarchy (Judith Heyer and
Niraja Gopal Jayal, The Challenge of Positive Discrimination in India, Centre
for Research on Inequality, Human Security and Ethnicity Working Paper 55,
February 2009, p5).
“The numbers in the ranks just below the top are increasing too. However, if
25 per cent of the total population has benefited from the growth of the Indian
economy in the 1990s and early 2000s, only about half of this proportion of
scheduled castes has done so”.
As per surveys of businesses conducted in 1990 and 1998 by the Centre for
Monitoring the Indian Economy, the total numbers of scheduled caste businesses
declined over the 1990s, a period in which the total number of businesses owned
by all other social groups including scheduled tribes increased (Barbara Harriss-
White and Kaushal Vidyarthee, “An Atlas of Dalits in the Indian Economy”,
unpublished paper, 2007, cited in Heyer and Jayal, ibid, p54). The amount of
public sector credit to scheduled castes also fell in the 1990s, contrary to the case
CONCLUSION