Waves of Globalisation Origin of globalization

 1st wave : Age of Discovery - 1450-1850 : European
expansionism and Conquest
 2nd Wave : 1850-1945 : Spread and entrenchment of
European Empires
 3rd Wave : Contemporary Globalisation : 1960
onwards : Microchip and Satellite (comm. tech), Shift
from West to East
 4th Wave : May be in the making : One driven by
emerging economic powers : China, Brazil, India and
others
 Most common understanding: end of cold-war (end
of history)
o WTO as the highest moment in globalization.
o Anthony Giddens: culmination of
modernization
 Marxist view: dates back to East India Company
o Present globalization is global expansion of
capitalism.
o Global in terms of only goods and not people.

Nature of globalization
Present model Other models
 Based on neo-liberal ideology  Socialist idea of proletariat internationalism
 Hegemonic idea  Vedic idea of Vasudhaiv Kutumbukam
 Not ‘THE’, but ‘One of the’ forms of globalization.  Buddhist idea of conquering hearts not land
 Imposed from top without civilization dialogue (Bhikhu  Islamic Caliphate
Parekh)
 Discontents against globalization - Stiglitz

Globalization as reality
Thomas Friedman

 Kenichi Ohmae: Borderless world
 Marshall McLuhan: global village
 Anthony Giddens : Stretching and
deepening of relations across space
and time
 The Lexus and the Olive tree
 Globn as an inexorable integration of markets, nations states, technology
 Interactions have become
o Farther, Faster
o Cheaper, deeper
 No longer just a Buzzword

Globalization as myth
 Rosenberg: self-serving myth, conceptual folly to make Hirst and Thompson (Marxist school)
capitalism and U.S. hegemony more acceptable  International economy is less open now
  Jorge Heine and Ramesh Thakur: soft belly of
capitalism
 Arundhati Roy (Capitalism: A Ghost Story):
Neoliberal capitalism as a mutant variety of colonialism
- remote controlled and digitally operated
 Trade is restricted to west.
 No shift in finance from developed to developing
 Growth of internationalization and regionalization
 Genuine transnational companies are less.

Arguments in Favour 
Jagdish Bhagwati
Jospeh Stiglitz
 In Defence of Globalisation Amartya Sen
 Making Globalisation work
 Qualitative &Quantitative Analysis
 Democratic Deficit in instis
 Opposing globn are psychiatrists and not economists  Countries in
of global governance -
 Trickle down globn better than
address them  to make globn
 Inequality diminished - First time those out
work
o Life Expectancy - double  Uneven benefits
 Glob in developed countries
o IMR - declined  Capacity building
o Plutocrats - better
o Global literacy - 60-80% to make it a win
o Middle income -
 Globn itself not solution - many steps needed win situation
worse
 If properly governed, globalisation is the most
o Poor - worst
powerful social good today

Arguments against 
Immanuel Wallerstein (Instrumental
Marxist)
 Nothing new - continuation of
the old capitalist exploration of
17th cent
 Poverty in Africa, War in
Balkans - capitalist search for
markets and accumulation of
capital
 Globn in last stage
 Swan Song - dying its death
 2 options
Noam Chomsky Prof Ramesh Thakur
 Profit Over People
 Effect on Americans
as well
 Americans lost lives
in capitalist wars
 Tax payer money to
Arms dealers
 Go to war- force
countries to open up
markets for
bourgeoise of
 The Dark side of Globalisation
 Not End of History, but End of Geography
 Wages, bargaining power of workers, socio-
econ rights - down
 Property rights have risen
 Effects
o Baltic states - negative growth
o Africa - LDCs - constant
o Guinea Bissau - Narco State
 Adverse effect on
o Econ sovereignty
 o Pol sov
o barbarianism o Social and cultural stability
Capitalist countries
o Socialism  Rise of Uncivil society and transnational
organised crime

More balanced view:

Post-colonial critique Christine Lagarde: Rising Pratap Bhanu Mehta
inequalities is the Achilles
 Edward Said: Heel of market driven  Globn in Question
orientalism was a globn  Similar to Stiglitz
project  Anti globn sentiment
 Cultural globalization to Sorenson o Earlier- South
perpetuate western o Now - working class-north
culture.  It has affected the  Effect on electoral choices -
 Eurocentric sovereignty of o Rise of Right
 Criticize humanitarian poorer and smaller o Xenophobia
interventions. nations in a worse o Ethnic Chauvinism
 Globalization led to way than the bigger o Anti-immigrant sentiment
insecurity dilemma ones  Globn at
 Criticize euro-centric  Globalisation and o Best : Imagination of vast opportunities
institutions of global Liberal world order o Worst : Elites looking for new pastures of
governance. is in crisis opportunity

Current Prospects of Globalisation Future Prospects of Globn being led by China

 Global leaders at both WEF in Davos and
G-20 summit, Germany - expressed
pessimism regarding future of Globn
 Reasons
o USA’s America First Policy
o Brexit (resentment from middle
class)
o France, Netherlands - Rise of
Right
o G-20 existence - anti-globn
protests
o Failure of global governance:
WTO, UN
o Since the global financial crisis,
the ratios of world trade to output
have been flat, making this the
longest period of such stagnation
since World War II.
 Only countries which seem to have
benefitted (Own pace of globn: Stiglitz)
o China : 4% (1991) —> 17%
(2016)
o India : 4% ( 1990) —>  7%
(2016)
o SE Asian nations
 Steps Taken
o WEF - Xi Jinping says - ready to lead globn
o Enhance rule based economic order
 AIIB
 NDB
 BRI
o Indicated - will increase overseas investment
o Correcting its currency policy
o Speech - says that globn is wrongly blamed for many
issues
 Global Financial Crisis: Failure of Financial
regulation and not because of Globn
 Challenges (C. Rajamohan)
o New Normal - Chinese economy slowing down
o Cannot supply world with a large & accessible market as
USA
o Export & investment based economy —> Consumption &
services led economy — not an easy transition
o Structural problems
 Excess capacity
 Mounting corporate debt
o Lack of legitimacy
o Pressure cooker syndrome
o Kindleberger trap
o Free rider on USA-led globalization.

Article of C. Rajamohan

As China steps into the vacuum, India will have to confront a different problem.

 India has long been ambivalent about US-led globalisation.

 It has supported Beijing’s efforts to construct non-Western institutions in the name of Asian
solidarity and global multipolarity.
 Yet, in the last few years, Delhi has found itself at the receiving end of China’s new clout in the
multilateral arena, including at the United Nations, and the Nuclear Suppliers Group.
 Given that experience, might Delhi want to jump from the frying pan of Western economic
primacy to the fire of China-led globalisation?

Also, China won’t be alone in the race to fill up the gap being left by US. Germany has also sought
interest in sharing influence in the Indian Ocean region along with other powers like Australia, Japan.

 Way Forward 
o Address the democracy deficit international level 
 o Focus on Innovation to mitigate the negative effects of globn 
o Countries should honour promises and abide by the international rules 
o Both USA and China will have to work together to take forward globn 

Xi Jinping - we must not retreat into harbours as soon as we encounter a storm as then we would
never be able to reach the opposite end