Causes And Consequences Of Globalization, Effect Of Globalization On Economic, Social, Cultural And Political Aspects Of Life In Twenty-First Century

Written by: MANVI SHARMA


This article deals with the understanding of globalization and its challenges. The author is trying to find out the history and current situation related to globalization on national as well as on international level and how it improves the relations between the countries. It also deals with the effects, consequences and what is the impact of globalization on our daily life and nation by trying to link the globalization with the constitution of India, that how globalization strengthening right to freedom of life and liberty as per the Indian constitution. This article has described the impacts of globalizations on economic, social, cultural and political aspects of life in today’s world.


Globalization, Constitution, Economic challenges, cultural, development . INTRODUCTION:

the term "globalization, which we read and hear everywhere was coined by Theodore Levitt, who was a former professor at the Harvard Business School

Globalization in simpler terms can be said Nations without border, where everything from knowledge, culture, law and justice can be mutually exchanged and adapted as per self-need and mass demand in able to live comfortably and developed life. In terms of trade and technology, it has made the world into a more connected and interdependent place. While in other scenario, it also impacts on scope of the economic and social changes

Globalization integrates the national economy with the world economy by removing barriers on international trade and capital movements

The Advancement and technology such as mobile phones, airplanes, telephones and the internet have made the growth of the transport and communication networks possible. Amongst other things these means that people and countries can exchange information and goods more quickly and in a less a complicated way. In Indian context, The term globalization, in our mind formulate the ideas of Liberalization, Privatization and Globalization (LPG), in terms of politics and economy of the country and we directly corelate it to the crisis of 1991. 1 > 2006/07/06 › business. (last date of visiting October 10, 2022) 2 > encyclopedia › glo. (last date of visiting October 10, 2022)

3 Sandeep Garg: Indian Economic Development (2020) Dhanpat Publication, page 10. Globalization a topic that is often debated controversially. However, it is a complex phenomenon. which impact on every single one of us? DEVELOPMENT OF GLOBALIZATION Globalization is not new. Since the start of civilization, people have traded goods with their neighbours. when exactly Globalization began, nothing exactly can be said regarding this.

In old and medieval history we studied about trader, who used to visit country to country just for the trade with countries in exchange of money or goods. We exchange services and goods according to the needs of the country. Because every country have their geographical area in which they produce limited goods, no country in this world is self-sufficient, we are depend on each other, that’s why we need globalization.

Globalization is a way to connect people. The concept of globalization old as human origin. With the time we just developed the technology and the ways of exchanging services and goods.


Since independence, India followed the mixed economic system, (capitalist and socialist) but, in reality, the public sector dominated the control and regulations of our economy and private sector was ignored. There was huge investment in the public sector and low investment in private sector for about 4 decades, which results crisis of 1991. Due to the crisis, the new economic policy was announced in July 1991. It consisted wide range of economic reforms. The main aim of the policy was to create a more competitive environment in the economy and remove barriers to entry and growth of firms.

There were various reasons, which aroused the need for making major economic

reforms in the country.

• -poor performance of public sector

• -deficit in balance of payments

• -inflationary pressures

• -fall in foreign exchange reserves

• -huge burden of debts

• -inefficient management

Crisis of 1991 Forced India for Financial help from IMF and World Bank: To manage the crisis, Indian government approached for loan from International Bank for Reconstruction and Development (IBRD), popularly known as World Bank and International Monetary Fund (IMF).India availed $ 7 million from these agencies as loan

4 4 › introduction-to-lpg (last date of visiting October 10, 2022) 5 Sandeep Garg: Indian Economic Development (2020) Dhanpat Publication, page 56. Changes or benefits made by the globalization of the Indian economy: The concept of globalisation in India resulted in the following benefits that helped to transform the Indian economy and the country as a whole –

1. Increased employment opportunities: -The introduction of globalisation brought an influx of foreign investments and the favourable policies of the Indian government also helped companies to set up units in this country. This has resulted in new employment opportunities. In a nutshell, the employment opportunities in this country rapidly progressed after globalisation and Indian business merged.

2. Increase per-capita Income:-As a direct effect of more employment opportunities, the per-capita income of Indian households also increased after globalisation. Resultantly, it altered their standard of living and improved the purchasing power of an average Indian.

3. More Choices for Consumers:-Globalisation and the Indian economy provided Indian consumers with a plethora of choices. Indian, as well as foreign manufacturers, brought various products of the same kind, and consumers got a chance to select their preferred one.This increase in competition prompted manufacturers to create better products at a much lower price point.

4. Access to Untapped Markets:-A noticeable benefit of globalisation is that it provides access to many untapped markets with huge potential. The globalisation of the Indian economy means it allowed foreign companies to operate in the Indian market. Also, Indian businesses got an opportunity to operate on a global scale. As a result, the import-export sector in India saw an astonishing rise after 1991.

5. Other benefits- Increase in rate of economic growth due to Inflow in foreign investment resulted in Rise in exports, therefore it Increased the role of private sector, which improve employment condition and also Improve international trade relations: 6 Disadvantages of globalization in the context of Indian economy: 1-the large market like India had harder time to maintain a free, convertible, and open access enabled transnational market.

2-The negative effects of globalization on the Indian Industry are that with the coming of technology the number of labour required is decreased and this resulted in increasing unemployment, especially in the arena of the pharmaceutical, chemical, manufacturing, and cement industries.

3.-The universalization of information technology has boons but also banes, in terms of cybercrime and other darknet activities. The increase in on the ecologies and environments of nations that need safeguards that lessen the negative effects ›(last date of visiting October 10, 2022) rather than exploiting them without regard to such concerns the number of cyberattacks in India is proof of this.

4.-There are a few challenges for companies, due to globalization was like Migration, relocation, labour shortages, competition, and changes in skills and technology.

5-other Disadvantages-Lack of local business, Increases potential recessions in SMEs and small traders. Which opened the opportunity to Exploits cheaper labour markets.


The world grows closer together and there is an active exchange of goods between countries, more affordable products are available for more people. However, not only doesn’t exchange of products and economic goods take place but also of services, knowledge, cultural goods and even languages, all of these individual elements are closely linked and influence each other. increasing homogeneity of world values like rationalization, free market competition, commodification and democratic or human rights and above all a global culture7. The process of globalization increased access to television, mobile and other entertainment sources over the years. Even in the rural areas satellite television (last date of visiting October 10, 2022) has an established market. In the cities, Internet facility is everywhere and it is being extended to rural areas also through schemes like Smart Cities Mission. There is an increase in the global food chain and restaurants in the urban areas of India. Multiple movie halls, big shopping malls, and high-rise residential are seen in every city. Food: due to opening up of food joints like McDonalds, KFC across the country, there has been a homogenization of food available across the country, but there has also been heterogenization in food. Old restaurants are now replaced by Mc. Donalds. Fast food and Chinese dishes have replaced juice corners and Parathas The entertainment sector in India has now obtained a global market. After economic liberalization, Bollywood expanded its area and showed a major presence on the global scale. Bollywood movies are quite famous in Middle Eastern and many African countries as well. Western styles began to be incorporated into Bollywood films to expand the outreach. As these new cultural ideologies began to permeate the Indian population, the Indian urban population was pushed to re-evaluate their traditional Indian cultural ideology. Bollywood movies are also distributed and accepted at the international level.

Similarly, famous big international brands and companies such as Armani, Gucci, Nike, and Omega are also making investments in the Indian market with the changing of fashion statement of Indians. WOMEN are getting the equal opportunities they very well deserve now in more numbers due to the globalization of the market. Their empowerment has given considerable opportunities and possibilities for improving employment conditions through global solidarity and coordination. It is found that the growth of computers and other technologies enabled women with better waged, flex timings, and capacity to negotiate their role and status in-home and at the corporate level. Family structure: Joint family has been adversely affected due to globalization. There has been an increase in nuclear families. This can be clearly manifested in the increasing number of old age homes that are present now.


• Political development which is accompanying globalization is the growth of international and regional mechanisms for political collaboration.

• The European Union (EU), the Association of Southeast Asian Nations (ASEAN), South Asian Regional Conference (SARC), and more recently South Asian Federation of Trade Association (SAFTA) are just some of the examples that indicate the greater role of regional associations.

• There has been the rise of International Governmental Organisations (IGOs) and International Non-Governmental Organisations (INGOs).

• The concept of good governance has been strengthened due to increasing Globalization.

• This has led to a policy change towards a rights-based approach to governance.

• The effects of globalization on democracy is not limited to a special scope. Some thoughtful beliefs that, globalization affects all foundations of democracy such as freedom of expression, freedom of belief and religion, civil community, citizenship rights, confinement of state activity, legitimacy of governors, freedom of the press, and etc. Globalization and the Article 21 and 51 of the Constitution of India: -Article 21 talks about the Right to Life or Personal Liberty. - Article 51 Adherence to the international convention that we have signed over the years.

India has signed many conventions including the conventions of human rights etc. so that could be linked to article 21. Globalization has had a positive impact overall. If we see that the poverty rate in India has following since globalization, we have lifted around 270 Million people out of poverty, secondly women empowerment has been given an imputes, because of the coming of globalization and globalization has brought with it a lot of foreign direct investment which is providing people the right to livelihood, which is an essential part of right to life. CONCLUSION & SUGGESTIONS: Globalization has undoubtedly brought many positive changes to less-developed countries, but it has also- in some ways- harmed the balance of cultures and daily life for people in these countries. Sometimes international intervention and industrial advancements can harm the biodiversity, and put endemic species at risk as well.

We live in an increasingly interconnected and interdependent world. Globalization touches every part of our lives, from the products we buy to the food we eat to the ways we communicate with one another. Globalization is also tied to some of the other biggest issues we face in the modern era, including climate change, trade, and terrorism. Being intertwined with countries and markets all over the world has both benefits and downsides, so globalization has both proponents and detractors. No matter which side you're on, globalization is simply a reality of modern life; therefore, it’s important to understand how it affects us and the choices we make.

The author feels that overall concept of globalization is good. Everyone should be working together to build a more positive society. However, the groups that have the most power such as the governments and large corporations are so money oriented and solely focused on economic growth that they forget about sustainability. what is important is to realize that globalization itself is neither good nor bad it just a glimpse how people deal with all the new possibilities in the future. So, there should be conducting or regulating authority, under which all the rules and regulations should be defined. If any country have grievance than they should refer the matter to that authority just to redress the grievance. For example ,To deal with issue related to globalisation and conflict with Other countries, jurisdictional issue should be solved and an independent international tribunal in field of environment , commerce and human rights should be made to resolve the disputes.