Globalisation and its Impact on

Contemporary Indian Art

Ms. Vrushali Dhage

Department of Art History & Aesthetics

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Faculty of Fine Arts
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Table of contents

Acknowledgement 4

Introduction 6

List of Abbreviations 11

1 Globalisation: Economic Phenomenon 13

1.1 Contemporary Indian Art: Globalisation of Relevance 13

1.2 Step towards Globalisation: Trade and Liberalisation 17
1.3 Neo-Liberal Economy 25
1.4 India in the Global Arena 36
1.5 Free Markets or Economic Colonisation? 49

2.2
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Globalisation: Socio-Cultural Phenomenon

2.1 Social Structures and Axial Shifts

Globalisation and the beginning of a change
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2.3 Migrations, Movements and new Meanings: Diaspora and Transnationalism 78
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2.4 Is the Globalised World ‘Flatly’ Flat? 98
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3 The Indian Art Market 117

3.1 The Art Markets and the changes to come 117

3.2 Galleries: Arenas of Viewership 132
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3.3 Auction Houses: Mammoth Players of the Secondary Market 148

3.4 Pervasive Impact of the Notion of Branding 164
3.5 Other Art Market Tools 175
3.6 Scope for Mergence: Art Markets to Financial Markets 182
3.7 Market Analysis, Reporting and Product Development 187
3.8 From Spaces of Circulation towards Spaces of Creation 199

4 Globalisation: Contemporary Indian Art 203

4.1 The Pre-liberalisation and steps towards the Global Pedestal 204
4.2 Globalising Effects: The Global Nodes, Networks and Functional Processes 215
4.3 Spaces of Movement: On the Boundaries 216
4.4 De-territorialisation and the New Geographic Tropes 225
4.5 Global Nodes 226
4.6 Global Capitalism / Consumerism – Core of the Global Networks 267
4.7 New Technologies: Expansion of Sensorial Experience 285
4.8 Human Concerns: Steps beyond Borders 299
 4.9 Modes, Destinations, Processes and Manners of Circulating Art 312

Conclusion: Amorphous Boundaries 344

List of Illustrations & Credits 353

List of Graphs 363

Bibliography 364

Notes 375

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Acknowledgement

First and foremost, I would like to sincerely thank my guiding teacher,

Prof. Shailendra K. S. Kushwaha. It has been an honour to be his student. His
guidance, right from the preparatory phase till the final submission has been
crucial. Being an extremely approachable person he always catered to even the
smallest of my queries, given which I never felt lost throughout the near-four
years that I worked on the thesis.

I would also like to thank Prof. Deepak Kannal and Prof. Milind Malshe
who have been always been the teachers I have looked up to.

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The completion of the thesis wouldn’t have been possible without the
contributions from various individuals, especially each and every artist on
whom I have written about in the thesis. Most of them managed to spare time
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from their busy schedules to have meetings, share reading material and images
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of their works. Similarly, I would like to thank all the art galleries namely
Chemould Prescott Road, The Guild Art Gallery, Nature Morte, Gallery Ske
and Studio La Città who extended their support by sharing images, catalogues
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and books, or granting permissions for image usage. Auction Houses –

Sotheby’s and Christie’s too promptly replied to the requests sent across. I
would also like to thank the Deutsche Bank, for sharing images of the works
which are a part of their collection and also the Kochi-Muziris Biennale
Foundation for the sharing information and catalogues. The material and inputs
provided by these individuals and organisations have immensely helped in the
structuring and expansion of the thesis.

I would like to thank the staff at the office and the library of the Faculty
of Fine Arts, Baroda, The GCU Section, the Academics Section and the
Examination Section, for guiding me through the administrative processes. I
would also like to thank Kanika Mondal, a fellow UGC-SRF.

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 I owe greatly to the Department of Art History and Aesthetics. It has
been the place where I came to as a student from a background of Economics,
but in no time, became comfortable with the new subject I was desirous of
learning. The department has a lot to offer, apart from the lectures, and the
formal training, to me it has been a second home. Further, it is here that the
teachers showed confidence in me to undertake a multi-disciplinary subject for
my doctoral thesis. I would like to thank Dr. Jayaram Poduval, who was my
guiding teacher for my Master’s dissertation, and since then I have always taken
the liberty to ask him for his guidance in ever project I have undertaken. His
inputs on Contemporary Western Art have been valuable. I would like to thank
Dr. Rita Sodha for providing research references and material on
postmodernism and globalisation during the beginning of the doctoral study, as

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it helped get clarity about the subject. Further, I would like to thank Dr. Shete,
Nitesh Patel, Ritesh Panda, Aparna Roy Baliga, for their support and inputs;
Geeta Parmar for helping me find the required material from the Department
Archives. To Ravindra Kadam, our ever-dependable Ravi Bhai, I cannot list out
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the things I could thank him for, as it is way too diverse and long.
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Apart from those who contributed directly to the study, I would like to
thank my family in Baroda, Priya Nair, Pallav Ghosh and their little angel
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Anaisha. The pampering and care which they have always extended to me has
meant a world to me.

Finally, to my eternal source of support…

To my father Mr. Anil Dhage, a disciplinarian, who taught me the value
of being self-critical, and the man who taught me to enjoy and value the finer
things of life. My mother Mrs. Veena Dhage, who has been a source of immense
love and hope for me. I can never thank her enough for having confidence in
me and motivating me through each and every endeavour of mine. It is her
motivation that never lets me slip into stagnancy. Finally, my longest standing
friend and now my husband, the most patient man I have known, Zulfikarali
Barodawala. About Zul, I do not want to write at length, just to say that, I
possibly cannot dare to imagine how would things would be without his support.

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Introduction

Globalisation as a phenomenon and a term has gained rising currency

over the past few decades. The importance of the same, can be understood by
its constant reference in various and varied fields. From serious discourses at
academic levels, policy making at the government institutions, private
businesses and financial policy making, environmental concerns, human
resources, to that of a mere colloquial usage in our daily lives, the term and its
multiple implications have had a wide range circulation and impact. One can
say, that the ubiquity and at times its random usage has created a sense of
ambiguity as to what actually the phenomenon is. My involvement with

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globalisation began as a student of Economics at the University of Mumbai
from 2002-04. This was a time when the talks on economic globalisation, were
already taking a debatable form. It is during the same period when the Nobel
Prize winning economist, Joseph Stiglitz had published his book titled,
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Globalization and its Discontents. As the very title suggests, it looked at the
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notion of globalisation not in a propagandist way, but provided a critical

analysis of the same. As a student, his work seemed extremely bold; even as
Stiglitz was the Chairman of President Clinton’s Council of Economic
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Advisers, and a once proponent of economic liberalisation, he strongly voiced

the concerns of those who were not benefitted, rather exploited with the advent
of globalisation.

This was the time, when on one hand, in India we were rejoicing the
success of the field of Information and Communication Technology (ICT), and
Stiglitz highlighted the extreme disparity within the metropolises which
enjoyed these benefits. As increasing number of young educated Indians were
getting employment opportunities across the globe, and a similar number of
small-scale local industries were being consumed by various giant-size
international brands. It seemed like an ambiguous see-saw game; on one hand,
we in India were rejoicing the success, of the mark made by many fellow
Indians in the global arena, marking prosperity, and the deserved international

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attention, and at the same time were becoming increasingly aware of the way
globalisation had in disguise of prosperity exploited many. There seemed to be
no conclusive statement which could be condensed down upon. As a student,
both the sides held relevance, meaning and seemed justified. We ourselves were
enjoying the benefits of technological advancements, with the availability of
Personal Computers, internet services, mobile phones, of availability of branded
products, and the prospects of good job opportunities in the increasing number
of Transnational and Multinational Companies. These perks convinced one, of
the benefits of globalisation, and that India as a country with a large strength of
intellectual capital deserved it. At the same time, an uneasy feeling gripped
one’s mind, on understanding the way the rural, semi-urban areas and at times
many underdeveloped countries were being exploited by the dominating First
World players; Sub-Saharan Africa being the most prominent example. Further
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the degrading of the environment, loss of local businesses, imposition of tariffs
of exports and the consequent strain on the export revenue, the constant
interference of the hegemonic bodies in the policy making of the countries
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under the guise of ‘help’, made the threats of globalisation palpable. The same
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was aggravated, on learning about the protests against globalisation, be it at

WTO Ministerial Conference in Seattle in 1999, or in Indian Economic Summit
organised by the Confederation of Indian Industry and the World Economic
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Forum in New Delhi, 2003. Given the same, globalisation seemed an undefined
and ambiguous phenomenon, such that stepping on any one side seemed
impossible.

The second round of involvement with globalisation began as I worked

as a correspondent with a business publication named, Business India. Having
insisted on writing on contemporary art, I was allowed to do so, only on
bringing in a business or financial perspective in place. It is during this period
that I had to churn stories on the art market and its various elements. It is here
that I realised, that globalisation had played an equally important hand with not
just the art market but also the very field of Visual Arts. My interest in the same
increased to an extent, that I decided to venture the field of Visual Arts, in the
capacity of writing on it. Then the course at the Department of Art History and
Aesthetics, Faculty of Fine Arts, M.S.U., Baroda, opened a window to a

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different world altogether, allowing me to make use of the background of my
studies in Economics with that of Art History. The current thesis can then be
considered as a merging ground for the two fields of study, which helped me
develop a composite way of understanding globalisation.

Given the same, the current topic of ‘Globalisation and its Impact on
Contemporary Indian Art’, has been divided in a manner based on the two
subjects which on which it is based, that is, of Economics and Art History.
Therefore, the study has been divided in four major parts. First of understanding
the economic phenomenon of globalisation, second of its socio-cultural impact,
third of the rise and expansion of the art market and finally of contemporary
Indian art. Since the phenomenon of globalization, over the period having been
associated to various fields it is difficult to define it in a crisp and precise way.
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Therefore, we begin the first chapter by choosing an aspect of globalisation
which has held relevance to the field of Visual Arts; which is of Economic
globalisation. In this section, on justifying this form of globalisation as the base,
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we shall trace the way in which it rose from its inception to the current form.
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This shall be done by providing a backdrop of the post-World War era, where
the need for peaceful and mutual co-existence amongst countries, brought about
attempts to fortify the same through economic co-dependence and support.
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Given the same, we shall look at how economic liberalisation embodied the
characteristics which paved a way towards globalisation. Along with the same
another aspect which held an inseparable association with globalisation was that
of the revolution of Information and Communication Technology (ICT), which
shall be studied as one of the important factors leading to the establishment of
the intricately and deeply connected world. The same shall be understood at a
global level and with respect to India.

Given the foundation of economic globalisation, the second chapter

analyses the way it has affected various socio-cultural aspects. The transition of
social structure, based on the earlier agricultural to industrial and towards the
contemporary form where the intellectual capital is valued, we shall trace the
beginning of a ‘new social order’ based on the global changes; and also explain
the movement from the modern to a postmodern global society. Given the same,

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the availability of opportunities of employment across the world, changed the
notions of migration, movements and the diaspora. A comparative analysis shall
be done, as to how the earlier methodologies of reading and understanding the
migrants and the diaspora need to be revised given the globalised phenomenon.
Along with the same, a contrasting understanding of the concept of the ‘global
village’ has been provided. This shall give a clear picture of the networked play
of globalisation based on the nodes of power, notions of progress, junctions of
interactions and meaning creation and their projections. These range from the
rising importance of the metro- and megapolises, the changing topographies of
these spaces, of the notion of power associated with the maintenance and
management of information, of the rise and change of migratory patterns, and
the consequent multicultural understanding of the society. One important aspect
of enlisting these changes and analysing them, is of understanding how the

of the art market in India.

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Indian diaspora became a powerful entity and contributed to the development

The third chapter builds on the earlier two. Firstly, understanding how
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the global economic changes, contributed to the development of the global and
the Indian art market. Secondly, of the development of the Indian diaspora
which over the years has provided impetus to the Indian art market. Along with
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the same, the ICT too contributed in providing a different structure to the
existing art market tools. The increasing web presence of the market players,
like the, galleries, auction houses, dealers, etcetera, drastically changed the
conventional notions of visibility. This chapter provides a comparison with the
earlier and the latter character of these conventional players, and also explains
the birth of a new art market structure, based on the entry of new players, like
the art funds, pension trusts, financial management, various tools of market
analysis and art investment. Further this chapter provides an understanding as
to how these transitions art market marked a movement towards a purely
practical one from the earlier sentimental one.

The final chapter forms that part of the study, which related directly to
the practice of art making, exhibiting and reading the same. Given the backdrop
of globalisation this section aims to look at the factors related to globalisation

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which directly influenced the artists to make works of art based on the same. At
this juncture, it is necessary to state that the aim is not of providing a list or a
directory of artists who have reacted to different aspects of globalisation; as
evidently this would be an endless project. The aim to use the works of art as
examples to understand the impact of the phenomenon of globalisation.
Therefore, we shall begin by understanding the spaces / places where the global
forces play, defined as ‘nodes’ within the ‘networked’ presence of these forces,
which act as interconnecting and interdependent web. The nodes are spaces like
the metropolises which have been crucial in inculcating the global tendencies.
Artists have reacted to the transitions that came about in these spaces under the
global influences. The networked web, could be understood as the reasons and
factors which have played a role in establishing these connections. One of the
connecting factor has been the increasing tilt towards capitalist businesses and
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consumerist society. Aiding the same, is the aspect of the technological
progress, which has facilitated the ease of connectivity, such that it has
connected people not just based on needs of communication, but also by
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bringing together people of similar ideological stands, and humanitarian
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concerns. Finally, with respect to the practice of exhibiting art, we shall see the
new global taste in the same, with the rise of large-scale exhibitions. With this
we shall also see the notion of presentation of works, the acts of meaning
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making and the growing importance of the exhibition makers. Given the same,
the notion of viewership and the transitions in the same based on a growing
global audience - all of which contribute to the crafting of what can be called as
a global identity. Given the same, at no point is there an attempt to define
globalisation, as the phenomenon remains as plural, diverse and multifaceted.

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List of Abbreviations

AIA Association of Indians in America

APEC Asia-Pacific Economic Cooperation

APT Artist Pension Trust

ASEAN Association of Southeast Asian Nations

ASL Art Secured Lending

AUM Assets Under Management

BoP Balance of Payment

BSE

CFS
Bombay Stock Exchange
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Contracts of Future Sales

CIS Collective Investment Scheme

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CSMVS Chhatrapati Shivaji Maharaj Vastu Sangrahalaya
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CSR Corporate Social Responsibility

FCA Financial Conduct Authority

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FDI Foreign Direct Investment

FIAA Federation of Indian Associations in America

GATT General Agreement on Tariffs and Trade

GDP Gross Domestic Product

GVK Gunupati Venkata Krishna Group

HNI / HNWI High Net Worth Individuals

IBRD International Bank for Reconstruction and Development

ICT Information and Communication Technology

IMF International Monetary Fund

IOM International Organisation for Migration

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KMB Kochi-Muziris Biennale

KPMG Klynveld Peat Marwick Goerdeler

MNC Multinational Corporations

LKA Lalit Kala Academy

NAV Net Asset Value

NRI Non-Resident Indian

NSE National Stock Exchange

OECD Organisation for Economic Co-operation and Development

OPEC Organisation of the Petroleum Exporting Countries

PDC Production, Distribution and Consumption

RBI Reserve Bank of India

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S&P Standard and Poor’s
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SAF Structural Adjustment Facility
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SALGA South Asian Lesbian and Gay Alliance

SAP Structural Adjustment Program

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SDR Special Drawing Rights

SEBI Securities and Exchange Board of India

TNC Transnational Corporation

UHNWI Ultra High Net Worth Individuals

UN United Nations

WB World Bank

WTO World Trade Organisation

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1 Globalisation: Economic Phenomenon

1.1 Contemporary Indian Art: Globalisation of Relevance

Placing a point of entry to understand and study the phenomenon of

globalisation is an extremely challenging process. Globalisation, characterised
by its multi-faceted sources and impacts, which have exhibited influences
across various disciplines, nations, temporalities, etcetera. Therefore, it requires
a reading that would undertake not an insular approach, claiming allegiance of
globalisation to one particular field, but needs to take into consideration its
peripheral, at times interconnected areas. Since the current study aims at tracing

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the developments, and analysing impacts of globalisation on the field of
Contemporary Indian Art, the need is to look the ones relevant to it. This would
be done, by understanding the notion of temporal progression, to get an idea as
to where exactly and how can a timeline of influences and consequent impacts
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be defined, to undertake any further analysis.
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There have been numerous theories with drastically different views

tracing the very beginning of globalisation. Some of these range from that of
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planetary history to that of contemporary uniqueness; evidently the span seems

to be way too broad to pin-point the influence on contemporary Indian art. Each
of these views propose a different form of globalisation, beginning from
different time periods. Some believe that globalisation is not a recent
phenomenon and dates back to the early prehistoric period, that is, between
10,000 BCE to 3500 BCE, with the nomadic movement of the early inhabitants
of the planet. To some, it is the establishment of the early trade routes, both by
land and sea which marked the expansion of trade and culture. This also marked
the discovery of new lands and territories and helped find the unknown parts of
the world. Given which, these were considered as attempts in which the notion
of one globe was being formed. Further some scholars are of the view that
globalisation can be traced to the Industrial Revolution; a time when mechanical

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power fuelled industrial growth bringing about changes in manufacturing
patterns. Which aided trade across borders.

The spread of the industrial progress, with relentlessly jostling machines

replaced the craftsmen, and consequently substituted the handmade items by the
standardised products. These industries nevertheless provided different form of
employment – of the industrial labourers. This was further marked by an influx
of labourers and farmers into urban areas, now ready to work in mills, factories
and industries. This changed the patterns of employment, across various
regions, bringing in a sense of homogeneity. Another proposed beginning of
globalisation is that with the advent of colonisation of different lands. The
movement across the sea, for trade took varying connotations, the most
powerful being that of colonisation of the trading lands. This marked the
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movement and transference of rule and economic power into the non-local,
foreign hands. The coloniser-colonised dichotomy brought about exchange
between various states and cultures, which too could be considered as an act of
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global interactions. At this juncture, the effort is of identifying the relevance of
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these propositions to our study and get into the descriptions of the same.

Though various such views and theories exist the most recent is the one,
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which defines globalisation as an outcome of economic transitions taking place

from the 1980s. During this period, various economies adopted an approach of
what was called ‘economic liberalisation’. The very term suggesting a less
restrictive and a more open approach towards international economic
interactions. The background to the formation of this approach its roots in the
post-World War era. This is the time when various countries came together with
an aim to create a stable and sustainable coexistence. Then, with many nations
were in the process of shedding their colonial clutches and of carving an identity
as independent nations. Further, some nations were recovering from the
damages of the World Wars. Considering the fragmented scenario, with the
constant efforts of restoring economic, political and social stability, by most of
these countries, the need for a collaborative and networked approach seemed
apt. As a result, various economic policies, defence treaties, trade agreements,
cultural policies, etcetera were drafted between various countries. This aimed

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at providing mutual support, ensuring that the partners safeguard. Even as many
countries chose to be a part of the same, many remained suspicious and chose
to stay away.

Over the period, a technological revolution was to take the

understanding of the mentioned networked and collaborative coexistence to a
different level altogether. It was marked by the leap in the field of Information
and Communication Technology (ICT). With the ICT the connected-ness of the
world, and of the deeply interwoven functional dependencies moved from the
predictable connections between the countries to that of inextricable
connections, which defied the logic of time, space, nodes and mediums of
functioning and most importantly the number of individual participants (Steger,
2013). By the 1980s the development of the internet and wireless technology
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spread at an uncontrolled rate, and barely left any country untouched. For the
first-time trade, international mobility, employment, communication, finance
and various fields expanded to break down what the economist Joseph Stiglitz1
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called as a sense of isolation (Globalization and its Discontents, 2003). The
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world was now looking forward for interdependent ties, thereby leading to
exchange not just in terms of trade, finance and businesses but also of
technology, art and culture. The various hypotheses mentioned above, ranging
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from planetary history to colonisation, could respectively hold pertinence to

different fields depending on the different scope of studies. Therefore, without
rejecting any of the mentioned hypotheses, the need is to identify what can be
called as the ‘globalisation of relevance’ to the current study.

Sifting through the possible time periods listed above to trace their
individual impacts on Contemporary Indian Art makes it evident that there have
been influences of varying intensities and, directions and nodes of exchange.
One can see that in the earlier eras - of the prehistoric period, the impact was
very sparse and negligible. During the colonial period, even as there was
exchange it was restricted between that of the coloniser and the colonised,
thereby not giving it a global flavour. Further the categorisation of the
Orientalist outlook by the Occident and thereby the un-mendable fissure, on the
contrary opposed the notion of global integration. The immediate pre- and post-

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independence period in India which marked the birth of the nation and need for
national identity, which saw a transition in the manner and method of moulding
ones work to represent the same. These early decades of the newly formed India
also marked the tendency towards internationalism, by breaking the national
borders and entering the international arena. Yet it could be said that these
attempts were fractional. A magnified version of this attitude was achieved
when the international art markets started finding interest in the Indian works.
This interest was primarily fuelled by the financial expansion of the Indian
economy, undertaken through the process of liberalisation in the 1980s and
1990s.

The opening of the Indian economy was a momentous happening as it

transformed the decades to come. It is during this period that India was being
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considered as an emerging economy and gained international attention.
Reciprocating to this, the international art market entities too started looking at
works of Indian artists. This period witnessed the increasing opportunities for
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artists to travel, to get a first-hand taste of internationalism, further benefitted
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by the advent of the ICT and availability of information, of going beyond

conventional media. With many such causal factors, contemporary Indian art
found a stable ground for growth and a pedestal to be in the global arena. All of
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which implied that the period beginning from the 1980s, proved crucial not just
for the Indian economy but for contemporary Indian art too, therefore it shall
be considered as the point of entry for the current study. Since it was primarily
driven by economic activities that transformed the world and were fuelled by
the ICT, the economic globalisation is considered as a seed giving rise to intense
global interactions, connectivity and interdependence, affecting socio-cultural
changes and, also affecting the art market and, the artists and thereby artworks
in a significant manner.

The current chapter therefore aims at defining the notion of globalisation

in a holistic manner through its primary causal factors of the economic and the
technological growth, of the late 1980s and early 1990s. This has been done not
just by stating the current scenario but by giving its historical backdrop, which
created grounds for globalisation to take full form. Since the study deals with

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Indian art and global interactions, the phenomenon of globalisation has been
discussed with respect to both, the international level and India, which
constitute the two main sections of this chapter. The first section on the
international economic aspect of globalisation provides a backdrop to the
advent of the phenomenon of globalisation. Thereby beginning from its roots in
the post-World War times, when there seemed a need for various countries to
come together and to take a protective stance. For the first time the developed,
developing and the underdeveloped countries came together for participation.
These protectionist bodies sustained for nearly three decades before the advent
of neo-liberal economy. Later the Regan-Thatcher collaboration which marked
the new form of liberal economy is discussed.

The spread of the neoliberal economy and its characteristics which

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paved a way towards globalisation are dealt with in this subsection; this is done
keeping in mind its progressive tendencies of venturing new territories and
sectors. These new territories had potential for larger financial benefits and
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came to be known as the emerging markets, especially those from Asia. One of
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these emerging markets was India. This brings forward the second section,
which deals with the Indian Economy. This section explains how various
economic and political factors led to the adaptation of the liberal policies. These
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provide a phase-wise picture of the continuations, finally leading to India’s

presence in the globalised world. Further a detailed understanding of the
progressions and impacts of the ICT is done, as a catalyst for globalisation. As
globalisation has been fraught with polar views, as to whether it has been
beneficial or detrimental, an analysis of the same is provided, mainly at an
economic level, and also briefing at its socio-cultural impact, which form the
core concern of the second chapter.

1.2 Step towards Globalisation: Trade and Liberalisation

Having established the relevance of the economic phenomenon of

globalisation to the field of Contemporary Indian Art it would necessitate
tracing the evolution of the same from its inception to the current stage.
Globalisation as an economic phenomenon has been an outcome of various

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processes that gradually took shape over a considerable period of time;
involving numerous countries, institutions, prominent individuals, visionaries,
etcetera, who played vital roles through these stages. To understand the
phenomenon holistically, the important economic and political happenings
around the world need to be looked at in detail. Beginning from the backdrop
of 1940s, the happenings in this period have to be studied as they had a direct
correlation to the decisions taken in the subsequent decades, which defined the
phenomenon. The decisions and policies formed in the 1940s were evidently
taken keeping in mind the repercussions of the World Wars and the Great
Depression, and its multi-dimensional impact. Therefore, these policies did not
just have a single economic focus but also of political and social stability, and
maintenance of regional and global peace.

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This is also the time when many, now independent countries were under
colonial rule and were in a transitionary phase of decolonisation. To these
nascent countries an invitation to participate in a global order was particularly
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a matter of pride, a near attestation of their independent status and political
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identity; further adding pertinence to the chosen period of 1940s as the

beginning point to understand the causal factors leading to globalisation over
the decades to come. In a way, these policies could be considered as one of the
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early attempts to form a collective and interdependent functioning across the

globe, which found a magnified and an intense version over the next half of the
century. The process was a gradual and can be traced over a timeline. It is
important to note that these early interactions of various countries gave an idea
of building relations of trade partnerships, if not with all but of a select few
countries. In the early years this was largely restricted to the interactions
between the governments, whereas in the later decades the private entities
started taking utmost advantage of the same, precisely defining the
characteristics of global businesses; making it clear that it was not just the
spread of the connections across the globe but the depth and the intensity which
characterised it, which percolated from the governmental to the personal.
Therefore, we shall trace the same beginning from the period of late 1940s, and
analyse its altering nature.

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1.2.1 The Bretton Woods Conference: Step towards an interdependent World

The World War II had begun on the 1st of September 1939. The
destruction of the First World War had given a clear picture of the probable
damages to various countries, and therefore the need was to be equipped to deal
with them, nearly as an anticipatory preparation. The United States of America
and the United Kingdom started anticipating the need for an enduring economic
stability and reconstruction, considering the probable post-war financial
situation. The necessity for working at a larger and wider level, by grouping
with numerous countries was thought to be pertinent. Consequently, the two
visionary economists, John Maynard Keynes2, an advisor to the British
Treasury, from the United Kingdom and Harry Dexter White3, Special Assistant
to the US Secretary of the Treasury, proposed the need for specific institutions
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which in the long-run would deal with the financial, developmental and
reconstruction, and stabilisation matters of various affiliated countries (Figure
1-1). They drafted policies based on the individual roles these bodies were to
play. Various rounds of meeting were held to discuss the same. The focus of the
I
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meetings was evidently to hedge all the participating countries from any form
of economic instability. This would be attained through a cooperative
establishment of rules and regulations on free trade, evaluation of tariff barriers,
demolition of discriminatory trade blocs, moderation of currency value
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fluctuations, debt crisis, labour standards, social security, economic

development and advancement, aiming to attain mutual cooperation and in the
long-run towards sustaining an economically stable and a non-hostile
environment. This evidently seemed like a protective measure ensuring stability
and an indirect but desired outcome towards mutual peace.

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Figure 1-1: White and Keynes

The Atlantic Charter issued by President Roosevelt of the USA and

British Prime Minister Winston Churchill at the Atlantic Conference of August
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1941, echoed this vision. This intention of rising and strengthening through
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mutual cooperation as a goal, gained momentum. The focus was primarily of

economic stability. White and Keynes, then independently drafted plans for
organisations that would provide financial assistance to countries dealing with
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major economic problems. To state an example, the organisation would help

countries manage problems related to the short-term deficits in the Balance of
Payment (BoP), or helping them strengthen the BoP positions in the long-run.
Finally, on April 21, 1944, the leaders released a ‘Joint Statement by Experts
on the Establishment of an International Monetary Fund.’ This statement
provided the basis for the negotiations to be taken place at Bretton Woods (The
Bretton Woods Conference, 1944, 2001).

The Bretton Woods Conference, officially known as the United Nations

Monetary and Financial Conference, was held at town named, Bretton Woods,
in New Hampshire, USA, from the 1st of July to the 22nd of July 1944. Delegates
from forty-four countries met during the conference, to discuss and decide upon
a series of new rules, in anticipation to the post-WWII international monetary
system (Schuler & Bernkopf, 2014). By this time most of the countries knew

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 that it would be impossible to prosper in isolation, especially when various
economies would have to build and recover from the post-war damage. The
need for economic assistance or defence assistance from other countries would
be a matter of an inevitable need. Given which, participation in diplomatic
affiliations would help secure the future of their respective countries. For the
conference, USA had the largest delegation consisting of politicians and
economists. The Indian delegation included Indian nationals and British
citizens, as India was then still a part of the British Empire. Various countries
put forward their concerns and also expressed the manner in which they could
extend help to other members. Even as the conference successfully managed to
build a large number of members (Figure 1-2), one of the strongest outcome of
the conference was the establishment of the International Monetary Fund (IMF)
and the International Bank for Reconstruction and Development (IBRD); these
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were called as the Bretton Woods Institutions. The Soviet Union initially
actively participated in the conference but later decided not to join the Fund and
the Bank. This cooperation of the USA and USSR delegations was a fleeting,
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positive moment before the onset of the Cold War (The Bretton Woods
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Institutions Turn 60, n.d.). At the end of the three-week-long conference, the
Final Act of the United Nations Monetary and Financial Conference, was signed
by the delegates. At the same time the framework for the functioning of the IMF
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and the IBRD were decided.

Figure 1-2: Gold Room Bretton Woods Participating Nations Display Case

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