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...