CHAPTER Globa Shruti Joshi LEARNING OBJECTIVES, To understand the basic concept of globalization To discuss the history of globalization To analyse the types of globalization To discuss the theoretical underpinnings of globalization To examine the alternate perspectives of globalization lobalization, as a macrosystemic change ‘in the global market space, political realm and world sociocultural fabric, has altracted much attention from theorists and academicians. With the shrinkage of time and spac, with national economies integrating with global economies; with perforated borders and a redefined notion of sovereignty, globalization has reconfigured and reconcep- tualized the prevailing theorizations, Within the broader discoutse, on one hand, there are the hyperglo- bliss, trumpeting the world of a new global dynamics under the forces of globalization, and on the other hand are the sceptics, who uphold the centrality and importance ofthe stat. Between these two, third view emerges inthe form ofthe transformationalsts, who try to take a middle path between the two opposing views and argue for reconceptualizing the notion ofthe nation state and not its demise. The present chapter is an attempt to understand the varied nuances ofthe concept of globalization and tocxplore its alternative perspectives. ‘atch phrase in recent decade, attracting attention of academicians sole, multi-layered phenomenon which has manifested itself into © Scanned with OKEN Scanner© Scanned with OKEN Scanner© Scanned with OKEN Scanner© Scanned with OKEN ScannerUnderstanding Globalization and Its Alternative Perspectives § world history: They see globalization in elation tothe ‘big bang’ significance of 1492, when Christopher Columbus stumbled onthe Americas in search of pices, and 1498, when Vasco da Gama made an end run round Aftica and snatched monopoly rents aay from the Arab and Venetian spice traders (Bentley 1996, 768-768), Infact, these wer two important and historical events But stl, scholars such s James Tracy ofthe early modern world expressed ther scepticism about the 1490s.ig bang theory (Bentley 1996, 749-770). According to Bently, even before 1500, trade networks reached almost all regions of Eurasia and sub-Saharan Africa and large volumes of commerce encouraged specialisation of agricultufal and indus trial production’ (Bentley 1999, 7) Frank also believes that ‘there wasasingle global worldeconomy with a worldwide division of labour and multilateral trade from 1500 onward (Frank 1998, 52). “Another view which seems relevant heres the ole of African countries such as Ghana jn facilitating the ealy developmen of Westen European capitalism through providing gol, slaves and raw materials inthe early sixtenth century The gold provided by West African countries such as Ghana was necessary and even helped Europe’ long-distance trade with Arab and Asian countries (Howard 1978, 17) According to J.D. Fage, ‘by the beginning of 16th century about 100,00 pounds worth of gold was rav- ~ eng annually from Ghana to Portugal, whereas, Sylva Harrop belive it was around 350,000 pounds per annum (Howard 1978, 28). Therefore, it seems that around the sixteenth century, the world wit- nessed the emergence of a European world economy based upon the capitalist mode of production. However, critics ofthis theory do ce trade has been overemphasized by students of the early modern period and atc was poorly integrated before 1800. The exchange of merchandise and trade thé world were further accelerated with the advent of the Industrial Revolution in the nineteenth century. ‘In this fashion, Roland has spoken of a “germination phase” of global Détween the eatly fifteenth and the mid-eighteenth centuries anda “take off” period from the middle ofthe ninetenth century’ (Scholte 2005, 19). Within this phase, th processes of industrilzation ad calonization made countries around the world into consumers of the Buropean mat ji “Tracing globalization to recent decades, scholars such as Michael Porter and the word systems theo- ris Christopher Chase-Dunn have situated the commencement of globalization inthe lat nineteenth century. For them, globalization in if true seise alter the Second World War, when Afro-Asian ov economic stem and trade rations with h ations (UN) and World Trade Organization (WTO) emerged as milestones inthe history of goalaton Thus fe trae was facitated and organizations such as the WTO provided a fom trade and commercial disputes, Some others have linked the daw + networks, In this light, they have linked this process to the present times. ‘From such perspec, current itor is experiencing ait qlobal eveution” and a sudden ep tne realities’ (Scholte 2005, 20). % "As far as the fture cours of globalization sgoxcermed, scholars again have offered divergent views a thet ty fist century will witness the continuation ofthis 2272 ? = Faded § tt. Os tte @ scanned with OKEN Scanner6 SHRUTI JOSHI Thus, the history and future course of lot remain open to debate Dimensions Of Globalization Economic Globalization bution, manage Beonortic globalization involves four distinct factors (Figure 1.1): production, dist rent, and trade and finatce (Sorensen 1998, 83-100}. The key fedtures of economic globalization ate: Fin theres integration ofthe national economies duet the mushroming of multinational cOFP® rations (MNCS) and transnational corporations (TNCs). Actual this took place in the 19605 and 19776 FIGURE 1.1 Dimensions of Globalization sO Nam a tb Source: wwslidsh | ii aes © Scanned with OKEN Scanner© Scanned with OKEN Scanner© Scanned with OKEN Scanner© Scanned with OKEN Scanner© Scanned with OKEN Scanner© Scanned with OKEN Scanner© Scanned with OKEN Scanner@ scanned with OKEN Scanner© Scanned with OKEN Scanner© Scanned with OKEN Scanner© Scanned with OKEN ScannerD tee teed: Understanding Clebaliation ond ts Miernatrt Perspectives 47 Thes group of theneeticiams whe express sceptics th regael tothe shagptr of the process of balization, poses a strong critique of gobalcation For them, the level of berdliation. openness sad \ctegrance ofthe world ecomceny w tot segeecedented. as argued by types Sceptia bebeve that nation states and naticeal economies wf bold regpibcance 1d pore 2 ena tole in promoting iberaization and cros+-border activity. Many ecomeenic and political policies whic are crucial for the existence and teartaring of chtens are sl perlorm by nao tates AS opposed to the byperplobalist argument that national economics ae losing their sipaificance vwthin global economies, sceptics argue that the international ecomoeny is am apprepae of natal located economies. Infact, according to them, the international economy i il determined by sational econcesies (Hirst and Thompson 1999, 10) At the same time, they strongly oppose the view of the bypergichals that gbalzation i Oring bith to world society or 2 world economy. According a them, slong withthe rise of overeching gobal institutions, the world is witnessing the emergence of regional bodies which are shaping world politics in their own nique way. “The creation of regional blocks 2 the eseatil Garactersic of the world economy offers argamentation that the world econceny is les integrated than twas ix the Lae nine teenth century’ (Held and McGrew 2007, 5). Sceptics also raise doubts on the homogenizing capability of balizatin and ts forces sfx 2s socal relations, culture and ideas are concerned. According to thems, the possiblity of heterogencity and, z times, hybridization also exists. Infact, globalization has provided new space forthe assertion of idestity ad resistance within cvd society. Huntington, in this regard, opines tha the posibity of a singe mi- fied world is being reduced. A possible reason coald be the rise of radical resistance within indrvideal cultures, which in the end can lead toa conflict of civinations (Huntington 1997). “Thus, scepticism is expressed not only in terms ofthe presence and impact of globalization, bat also in terms of sustainability ofthe unification which t produces at the global level (Stefanovic 208, 267). Transformationalists In between these two extreme positions isthe third school of though, represented by scholars such as James N. Rosenas, Giddens, Scholte, Manvel Castells and Gregorio Walerscin They assume that Jobalzation plays 2 tremendous role in restructuring the world order and in ceat- ing rapid economic, political and social changes. In the words of Hed and McGrew, ‘Globalization denotes the intensification of worldwide social relations and interactions sach that distant events acquire very localised impacts and vice versd (Held and McGrew 2007, 2). Through globalization, individuals! day-to-day activities ae increasingly influenced by events happening onthe other side ofthe wodld. Conversely, lca lifestyle habit also tend to get global attention (Holmes 200,13). ‘Transformationaists thus are more moderate and assume a centrist postion as far asthe presence and cfiect of gobalztion process are cogcerned. Fr thes scholars, though globalization ha been ditinc- tive and significant development inthe contemporary worl, its effect, scale and consequences need to be evaluated ina qualified and controlled way For them, itis not the only process which has transformed fbuman history. Scholte argues thatthe process of globalization unfolds alongside and i closely inte- linked with other majo social tends, such as shifts inthe structures of production, governance, identity and knowledge (Scholte 205,19) The argument ofthe tranformationalss is that through globalization, the world not only witnesses the emergence ofa new Sovereignty regime but also experiences the emergence of power new @ scanned with OKEN Scanner© Scanned with OKEN Scanner© Scanned with OKEN Scanner