BPSE - 212

11th Part

Block -7 (Unit - 29)

Q. Evaluate the political impact of globalization.

A.  a)  It is argued that the great expansion of liberal democracy worldwide would not have been possible without the promises of globalization.

b) Globalization has strengthened accountability and transparency of power and led to good governance.

c) It has greatly limited the power of the nation-state. Opponents of the ruling government and the disadvantaged groups have access today to a wider world. In fact, several dissident voices and advocacy groups have effectively made use of globalization to advance their concerns. This has helped in pressurizing govt to

safeguard human rights violations.

d) There are new institutions of governance today at various levels for exm. Panchayati raj system. It led to the decentralization of power and empowered people at the grass-root.

e) Globalisation has affected class relations enormously. There is a shift of power to capital and to the developed world and transfer of decision making to an alliance of international financial organizations and corporate capital. There is a decline in the power of the organized working class.

f) Globalization has led to the migration of people in search of livelihood. At the same time, it has created a pool of migrant and local labor at the bottom of the labor market.

g) Globalization has led to the explosion of ethnic and community identities and the renewal of fundamentalism.

h) Globalization has reinforced inequalities within and between nations in terms of access to information and knowledge. They have created new social categories of 'information-rich' and information poor'. There are a group of ppl who have access to

technology and can benefit from it while a large section doesn’t have this technology.

i) The reigning ideology under globalization stresses on market freedom, private property,, and accumulation of wealth. It has little respect for alternative ideology. At the same time, globalization has led to the formation of a hierarchical world presided over by the US and global capital.

j) There has emerged an interesting coalition of the traditional 'left', as opposed to global corporate capital and the 'right' defending national culture. Globalization has led to the rise of new social movements that do not fall within the vortex of traditional class movements, such as women, peasants, ethnic communities, displaced people, etc.

Q. Comment on the cultural impact of globalization in India.

A. a) Globalisation has facilitated a phenomenal growth in the global circulation of cultural goods. They include printed matter, music, visual arts, cinema and photography, radio and television. These have the power to influence the ethnic cultures of India and can not be controlled. The ownership of these goods is concentrated in the hands of media corporations. Indian govt. have little control over them as they are dominated by transnational corporations such as Time Warner, Disney, Viacom, Telecommunications Inc., New Corporation, Sony, Seagram, General electronic, Dutch Philips, etc.

b)  Under globalization, there has been a great expansion of western and particularly American culture in India. There has been a great imbalance between cultural flows. There are frequent accusations of western cultural imposition and domination that has been widely heard. Cultures have become vulnerable. eg. vernacular languages in India which are facing the onslaught of the popular language which is circulated through mass media. However, the extent of domination of the western culture and the ability of the local cultures to contest it has been a debated issue.

c) The English language has emerged as a preferred language of communication within India and between global organizations and institutions. It has facilitated the inflow of western goods and services into India.

d) It is interesting to note that in spite of globalization certain institutions such as the press, television, national broadcasting are still reflected the national and the cultural ethos. Govt has also taken initiatives to support and popularize vernacular languages and culture. Debates, public discussions, and literary festivals are officially organized in vernacular languages and cultural festivals are organized to support ethnic culture.

e)  Globalization led to extensive migrations of people both within & across states. This strengthens the fabric of cultural pluralism as people from distinct backgrounds, cultures, and states merge together which confronts the tendencies for cultural domination.

Q. Comment on the Economic impact of globalization.

A. I) It has been beneficial to consumers. Due to globalization consumers have got value for money. The quality and quantity of goods are far better and caters to the needs of every strata of the population.

Ii)  It has released huge unutilized resources that would have otherwise gone unnoticed. This led to great economic recovery worldwide.

iii)  It has resulted in the opening of the economy, undermined bureaucracy, reduced monopoly of PSU and less control or intervention by govt. This has led to a spurt in entrepreneurship and a knowledge-based industry.

iv) It has introduced a great deal of flexibility in comparison to the rigidity that prevailed under the welfare regime and state control. There is now more flexibility in terms of production, work processes, labor markets, production, education, patterns of

consumption, savings, etc.

v) It has introduced and increased the process of mergers and acquisitions of enterprises, promising a global economic order of both scale and quality.

vi) Globalization has tightened the rules of the game while at the same time introducing flexibility. Within the nation-states, liberalization has enhanced fiscal discipline.

vii) Globalization has greatly facilitated the movement of capital and goods. This has reduced the dependence of developing countries on bilateral and multilateral agencies such as the IMF and world bank. They can make their options today for FDIs or have access to global capital markets to raise money.

viii) For several developing countries like India globalization has been instrumental in helping to upgrade their technology and get access to the global markets to sell their products.

ix) Globalization has led to the appreciation of several technological innovations that closed societies may not have encouraged.

x) Globalization has linked communities and cultures throughout the world.

Q. Comment on the response of the Indian state towards globalization.

A.  In the beginning the response of the Indian govt. to the larger measures of liberalization continued to be lukewarm and hesitant. The Indian economy was in a major crisis of repayment in 1991, with reserves of $1 billion, which forced the govt to take steps that started the integration of the Indian economy into the global economy. The economic reforms, Liberalization, Privatization, and Globalization (LPG model) as they were called aimed at making the Indian economy fastest growing economy and globally. It involved the following major changes in policy:

Trade policy reform: Earlier there were qualitative and quantitative restrictions on the import of goods. The trader needs to obtain a license for the import of goods. The reforms led to the dismantling of the license system for the import of goods. Except for consumer

goods non-tariff barriers were phased out.

Industrial Policy Reform: It led to the abolition of the industrial licensing system for all sectors except for a few specified industries like defense, nuclear energy, etc. Mergers and acquisitions were encouraged, and restrictions on investment by large industrial houses were abolished.

Devaluation: To solve the balance of payment problem Indian currency was devalued by 18 to 19%.

Exchange rate reform: The rupee was devalued in 1991. Partial convertibility of the rupee was done in 1992-93 and full convertibility on the current account in 1994.

Disinvestment: To make the LPG model smooth, many of the public sectors were sold to the private sector.

Capital market reform: These were undertaken by setting up the Securities and Exchange Board of India (SEBI).

NRI Scheme: The facilities which were available to foreign investors were also given to NRI's.

Financial Reforms: Private sector banks including foreign joint venture banks came to be permitted to undertake and expand their operations. A new policy was also introduced for private non-banking finance companies to operate in the market.

                The government has attempted to build in competition in sectors where hitherto the public sector enjoyed a monopoly. It had thrown open the insurance sector for market competition. The private sector which earlier enjoyed state patronage was thrown open for competition. Govt initiated the process of disinvestment and removed tariffs on a large number of items in accordance

with its agreement with the WTO.

Q. Define Liberalization.

A.  In the context of globalization, liberalization primarily means the removal of controls and regulations at various levels of the economy. It means facilitating the market forces to determine its course and direction. It favors a competitive market solution to

economic issues and a reduced role for the state in economic management. It also means accountability of power, periodic elections, a multi-party system, and an impartial and independent judiciary. 

       Govt functioning should be transparent, responsive and can be scrutinized. liberalization proclaims freedom of trade & investment; creation of free trade areas; elimination of government controls on the allocation of resources in the domestic economy; progressive removal of restrictions on external trade and payments; expansion of foreign investment, loans and aid and rapid technological progress. Liberalization also advocates a balanced budget; fiscal discipline, reduction in progressive taxation, social security and welfare and a diminished role for the state in economic management. It does not favor subsidies and state protection and resource allocations through administrative means.

Q. What are the main challenges to secularism? Explain.

A.  Some of the challenges are -

Politics - All major political parties do not subscribe to the ideals of secularism. These parties have repeatedly created the wedge among different religious communities by the exploitation of communal fears and sensibilities of the electorate. The cynical use of religion was perfected into an electoral strategy in the 1980s by parties leading to disastrous consequences. The political parties commitment to pluralism soon degenerated into politics of vote banks where only the numerical strength of the majority & the minority community mattered for electoral purposes. The sharpening of social and economic conflicts and the intensifying environmental degradation robbed the ordinary people of their livelihoods creating discontentment among the masses. 

            To tackle this problem and divert attention from its own governance failure, Congress party in 1980 adopted majoritarian politics which was a complete reversal of its historical role as the principal adversary of communalism. Congress thus adopted a strategy of downplaying broader social issues and decided to make a direct appeal to the majority community. The strategy was to define the Indian nation increasingly in terms of the majority community thus preparing the grounds for communal politics that took the form of cultural nationalism. Thus, instead of responding to popular discontent and demands, an attempt was made to foist

another set of issues by involving sentiments and feelings that engender communally attitudes.

The Nature of Capitalist Development - Decades of development have not altered the deeply uneven nature of Indian society; uneven capitalist development has actually heightened the social tensions. Given the limited nature of opportunities that are available, politics and ideology promoting narrow and exclusivist interests direct this social tension against the minorities. It is indeed a fact that conditions of life have worsened and alienation has increased, the dissatisfaction that people feel over the increasing gulf between the rich and the poor instead of being articulated through democratic struggles is being channelized into religious revivalism. Hence it is clear that the secular state, its structures and secular politics itself are today severely challenged by the growing forces of communalism that have its roots in various social, political, historical, economic and electoral factors.

Q.  Secularism in Constitution.

A.  Relevant constitutional provisions pertaining to secularism

Fundamental Rights

Article 14: Equality before law.

Article 15: Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth.

Article 16: Equality of opportunity in matters of public employment.

Article 19: Protection of certain rights regarding freedom of speech, etc.

Article 21: Protection of life and personal property.

Article 25: Freedom of conscience and free profession, practice and propagation of religion.

Article 26: Freedom to manage religious affairs.

Article 27: Freedom as to payment of taxes for promotion of any particular religion.

Article 28: Freedom as to attendance at religious instruction or religious worship in certain educational institutions.

Article 29: Protection of interests of minorities.

Article 30: Right of minorities to establish and administer educational institutions.

Directive Principles of State Policy

Article 44: Uniform civil code for the citizens.

Article 48: Organization of agriculture and animal husbandry.

Article 51A: Fundamental duties

Clause (e): to promote harmony and the spirit of common brotherhood amongst all people of India transcending religious, linguistic and regional or sectional diversities; and to renounce practices derogatory to the dignity of women.

Clause (f): to value and preserve the rich heritage of our composite culture.

Preamble:

42nd Constitutional Amendment Act, 1976 inserted the word ‘secular’ in the Preamble of the Constitution.

Q. Discuss the impact of reservation on social change and equality in India.

A.      The Constitution of India makes provisions for affirmative action or protective discrimination. In principle, the protective discrimination policy is one of the most important instruments for promoting social justice. These policies have provided an opportunity for a large section of society to participate in the decision-making process & become an integral part of the structure of governance. The emergence of a substantial middle class among the OBCs and to a certain extent among the Scheduled Castes and Tribes has been a major development of the post-independence period. Apart from job reservation, reservations in the educational institutions have also provided opportunities to the candidates

belonging to these groups.

               Articles 14, 15 (1) and 16(1) of the Constitution establish

the equality principle, Articles 15(4) and 16(4) incorporate the principle of social justice. If Article 14 proclaims equality before the law and equal protection of the law, Article 15(1) prohibits discrimination on grounds of race, caste, sex, religion or place of birth. Article 16(1) further provides equality of opportunity to all. The protective discrimination clauses of Article 15(4) and 16(4) become decisive with regard to the protection of rights of socially and economically deprived groups of the hierarchical system. These Articles follow the different principles leading to social justice.

                The abolition of Zamindari and the introduction of new

agricultural technology altered the class-caste structure in rural areas wherein the middle caste and backward castes maximized the benefits of the changes in their favor. As a consequence, they emerged as a visible force in the rural power structure, which enforced their significance in the political arena of the state. In many parts of the country, the backward castes emerged as dominant players in politics. The political assertion combined with the growing economic power of the backward castes has a direct bearing on the agenda of social justice and the politics of reservation.