Globalization and Its Implications

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Globalization, as the name suggests, is a global economic movement which involves all national and international economic players, including the all pervasive bureaucracy. It is a multi-role, multi-layered phenomenon in which everyone contributes his bit. The growing progress of science and faster means of communication have converted the world into a global village wherein people from all strata of society have converged to share the economic benefits which are a resultant of increase in production. States' national boundaries are shrinking and an inter-state commonwealth is emerging on the basis of a common cooperative endeavor. In every such growing economy, one feels the presence of an "invisible hand" 1 of bureacracy.

The term globalization implies economic integration through cross country flow of information, ideas, technologies, goods and services. Its seminal features are:

(i)    Removal of trade barriers to facilitate free flow of goods all over world  (ii)    Generating environment which conduces to the free flow of capital among nation-states  (iii)    Facilitating the free flow of technology, and 

(iv)    Providing opportunities for the free and unfettered movement of labor among various nations 

To put it in a nutshell, globalization leads to economic growth and integration which can happen through trade in goods and services, movement of capital, and flow of finance through movement of people. But in reality globalization is a multi-layered phenomenon. Across borders, unity ushered under the impact of globalization has several dimensions - cultural,  social,  political and economic. That  is why  some  economists  termed  it  as  a  process  of creation of global economy, whereas others talked of political and social globalization, a globalization of ideas that led to technological changes.2 

Broadly speaking it can be suggested that   "Though   the  world   globalization   (as   a   synonym   for privatization  and  liberalization)   is  more  often  used  in  its economic sense of removing trade barriers and state controls on   economic   activities   of   people,   it   implies   widely   the unification   of   peoples,   cultures,   nations   and   continents through interaction in various fields."3 

The tempo and pace of globalization is so momentous that it has transformed world politics. States are no longer closed and compact political units that could control their economies independently. They are greatly influenced by international financial and trade institutions, and policies. Common global culture is a world wide phenomenon and under its influence, most urban centers of various nations have developed a close affinity with one another. "The  world is  becoming more  homogeneous. Differences between people are diminishing. Time and space seem to be collapsing. Our old ideas of geographical space and chronicle time are undermined by the speed of modern communication and media. There is emerging a global polity, with  transitional   social  and   political  movements  and  the beginning of a transfer of allegiance from the state to sub-state, transitional and international bodies. A cosmopolitan culture is developing."4 

The proponents of globalization stress that as a result of the policies of globalization, developing nations would be able to improve their finances and march towards rapid economic growth. In India globalization has become synonymous with economic liberalization which was adopted when the Indian economy faced unprecedented crisis in July 1991 and tons of gold had to be mortgaged with England. The government, headed by Prime Minister P.V. Narasimha Rao, felt compelled to reverse the licence-permit raj resting on an economic policy of stringent controls and protectionism. Consequently, structural adjustments involving liberalization of trade and gradual opening up of the economy by means of a program of privatization were undertaken, resulting in the process of...
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