The Myth of Prosperity: Globalization and the South
Introduction
During the turn of the century, the world experiences more drastic changes than before, and these include changes happening in the environment, in the people, culture, religion, information, education, economy, and technology. In comparison to the events that happened in the past centuries, everything happens today in fast-pace. With what is happening to the world right now, it can be understood that these changes are being brought about by the continuous development of knowledge and technology, and the development in such aspects led to globalization.
Globalization refers to the scurried development of economic activities, which cut across national and local peripheries (Hurrell, 1999), and has long been the subject of various political, sociological and even anthropological debates. It has been viewed from many perspectives, both positively and negatively. Many researchers hold the economist’s view that globalization, or the increase of cross-border economic, social, technological and cultural exchange, is inherently good for the welfare of all nations. Meanwhile, others are more apt to view globalization negatively ( 1996). The phenomenon some claim has been linked to humankind for hundreds of years (2000). It is certainly at a very intensive stage today, with the integration of financial services and economic activities in using information technology ( 1999). In addition, according to (2004), although economic activities may be the prime mover behind globalization, the consequences affect all aspects of land and life, as cultural patterns, political arrangement, and social development are all undergoing widespread change.
It is evident that the massive economic progress that has transpired since the dawn of the twentieth century is one of the major contributions of globalization. However, the worldwide increase in Gross Domestic Product or GDP is also coupled with the uneven distribution of economic development across nations, which further widens the gap between the rich and poor countries. As globalization flourishes, rich nations continuously grow economically and socially, while developing countries are lagging behind. This can be supported by recent findings on the disparities between the GDP increase of First World countries and that of the Third World nations (1999), wherein the increase of GDP among rich countries averages to nearly a six-fold, while poor countries have recorded less than a three-fold. This implies that income inequality has indeed amplified. This can be further proven by the condition of most countries in Africa, where GDP declines at a staggering rate relative to that of most highly industrial societies.
Along with this problem, some other sources of problems can be identified, as brought about by globalization. In the case of India, globalization has also played a crucial role in the development of its society and economy. The colonization of India has brought about its primary globalization, with its effects of democracy, laws, a judiciary, a free press, 40,000 miles of railroad track, canals, harbors, and the English language (2007). However, despite these advantages, at present, India remains to be “poor and impoverished” (Wells, 2007), for material benefits for the few has not translated into a generous ‘trickle down’ for the poor masses. Because of this, the advent of globalization, though generally seen in a positive light has nonetheless posed a complex intellectual problem in analyzing its effects. Primarily, does globalization writ-large promote a greater understanding of the world or does it merely diffuse a wider array of essentialist and simplistic stereotypes? Does it propagate income disparity and exploitation or does it offer freedom of choice?
Given the information at hand, the purpose of this research is to fully explore the impacts of globalization on the nations of the South, more specifically, on the inequities and imbalances in terms of the existing poverty, imbalances of trade and adverse social and environmental impacts that the globalization process furthers. In addition, this paper will be relating important concepts to the modern Dependency Theory or Neo-Dependency, in challenging the Myth of Prosperity brought about by globalization. These concepts will be given emphasis in relation to India’s globalization.
Purpose of Research
The aims of this research are:
Proposed Methodology
To further gather evidence of the negative effects of globalization to the Indian society, this research will be basing its findings and conclusion on the concrete proofs and testimonies of participants and use of surveys that proves the increasing incidence of poverty in India, brought about by globalization. The actual immersion of the researcher to the Indian society would be helpful, as the researcher will be given enough chance and opportunity to interact with the poor masses. In this way, the whole research will be obtaining reliable and credible sources regarding the views and conditions of the masses in the Indian society. In addition, actual immersion with the poor Indian masses would help the researcher know the needs and wants of the members of the society, thus, making it easier for the authorities and members of the government to provide for the citizens of India.
Participants of the research will be chosen from the entire Indian population through random sampling. Random sampling is a process of selecting a sample or subset from a set of all sampling units, giving each sampling unit in the frame an equal chance of being included in the sample, and when a specific sample of a size of population is truly random, all samples of that size have the same chance of being selected (1978). Random sampling has four types, namely, simple, systematic, stratified, and cluster random sampling. In this proposed method, the research will be using stratified random sampling. Stratified random sampling or proportional or quota random sampling involves dividing a particular population into homogenous subgroups, called strata, and then taking a simple random sample from each subgroup (2006). This sampling strategy will be useful to guarantee that the sample will contain sufficient numbers of certain kinds of items or persons (1978). Using this type of random sampling involves a number of advantages. First, it guarantees the researcher that he or she will be able to represent not only the overall population, but also the key subgroups of the sample, especially small minority groups (2006). Second, this type of sampling allows for more comprehensive data analysis since information is provided for each stratum or subpopulation, and lastly, it is administratively convenient (1978).
This type of sampling will be relevant and useful for obtaining important information from the population, because the framework of the Indian society is also composed of strata or layers, as in the caste system. The use of the stratified random sampling would enable the researchers to obtain credible and consistent data from each strata of the society. In this way, it would be easier for the researchers to classify the needs and wants of citizens belonging to different strata of the Indian society. With this, it would be simpler to classify their conditions as being brought about by globalization or some other economic, societal, political, or religious factors.
Data will be collected in the residential area of the participants, wherein 50 families will represent each stratum. Each family will be asked to select a participant, who will be asked to answer surveys or questionnaires and interviews. During the visits of the researchers to each families belonging to five different classes, namely, the Brahmans or priests, Kshatriyas or rulers, warriors, and landowners, the Vaishyas or merchants, the Shudras or artisans and agriculturalists, and the Harijans or the ‘untouchables’ (2007), observations regarding their lifestyle will be made. Observations of the lifestyles of families from each class will be done in terms of the food they eat, the clothes they wear, the amount of money they obtain from their livelihood, their education, their literacy, and the other needs of their family. In addition, another aspect of observation that can be done to analyze their needs is through observation of their attitudes towards other members of their caste, and towards members of other castes. In this way, even the personal and individual effects of globalization can also be obtained.
Aside from these methods of observation in obtaining primary data, reliable and credible data can also be obtained through surveys. Surveys are relevant and useful alternatives in allowing the participants to answer questions regarding their lifestyles and opinions in relevance to their needs and wants. Through surveys or questionnaires, the researcher will be able to measure and observe the literacy rate among the participants, and their ability to answer and rate each items in the questionnaires respectively. Each questionnaire or survey will contain 15 to 20 items that corresponds to the possible conditions and opinions of the participants. Items in the questionnaires or survey would generally tackle the present condition of India’s society, regardless of the caste system that each participant belongs to. Through this, the differences from each caste or stratum will become evident.
Moreover, obtaining useful and relevant first-hand information can be done through a series of interviews. Interviews can also be useful to support the answers of the participants in the surveys or questionnaires and to explain their opinions on it. In addition, interviews serve to be a good source of information regarding the opinions of participants on the effects of globalization in India. This would also be a good avenue for reinstating their needs and wants, the changes that they would like to propose, and the current conditions they suffer from. Through interviews, the researchers will be able to effectively and efficiently interact with the participants, in order to obtain and extract adequate information from them.
Obtaining information and immersing in the society would take approximately four to six months, to completely acquire sufficient and relevant information. The researchers will be able to mingle and interact with all the members of the 50 families in each caste system. Interacting and mingling with the members of the family would mean eating the same food that they eat, wearing the clothes they wear, and doing the same chores that they do. In this way, it would be easier for the researchers to understand their situation and be able to extend their help to these citizens. Moreover, completely understanding their desolate situations would enable the researchers to effectively relay the message to the authorities and to the government.
After obtaining adequate amounts of data, the researchers must be able to compile them into one useful source of relevant information. To be able to do this, statistical analysis by using statistical methods can be used. Through statistical analysis and the use of statistical methods, such as simple mean, median and mode, it will be easier for the researchers to analyze their data and find significance from them. Several statistical methods can be used, including, T-test, chi-square test, analysis of variance or ANOVA, Mann-Whitney U test, regression analysis, correlation analysis, Pearson correlation coefficient analysis, and the Spearman’s rank correlation analysis (2007). The use of these statistical methods would enable the researchers analyze and conclude if the globalization of India really plays a role in the present condition of the citizens. These conditions include poverty, illiteracy, underdevelopment, and inefficiency in terms of governance.
The use of different statistical tools or methods would lead to the results of the research or study. The results from the gathered raw data and the combined data in using the statistical tools will be used to form the conclusion of the study. The results will be then be explained and justified using the gathered resources or evidences, written, researched, and studied by other authors and researchers. These researched sources will be used to support the arguments and results presented by the actual study or research. With these researched sources, the results of the study will be further proven, with the support of the arguments of other authors. This will be easier for the researchers of the study to make conclusions and convey their message to the citizens of India, most especially to the authorities and the members of the government. Moreover, through the results and the supporting evidences, the researchers will be able to provide their readers with necessary evidences that would further give solid testimonies for their arguments. From these, it would be easier for the readers to understand and assess their situation under the mercy of globalization. In addition, they will be able to provide themselves with solutions to the problems they encounter. This would also give them the right to demand from their government, thus, pressuring the government to give importance to the welfare of the citizens, not only to the middle-class and elites, but also to those who badly need their assistance and care.
Discussion
The main themes or issues that can be identified include the concepts of globalization and its effects to Third World countries, such as India, and its relation to the concept of modern dependency theories or neo-dependency.
As defined by the International Monetary Fund or IMF, globalization is the growing economic interdependence of countries worldwide through increasing the volume and variety of cross-border transactions in terms of goods and services, free international capital flows and more rapid and widespread diffusion of technology ( 2007). From this definition, it can be understood that globalization is related to various economic, political, cultural, and technological aspects. In terms of economics, businesses participate in globalization to increase the international flow on capital, including foreign investments, which would lead to the economic stability of the nation, to provide developments in infrastructures and establishments. It could also create international agreements among different nations, and may lead to more job opportunities in the nation. This also affects the political aspect, as more projects will be produced, locally and nationally, and will practically help the nation or country in their stability and leadership. More opportunities may also mean the boosting of confidence of each individual to become more productive and effective. Culturally, there will be an increase in the exchange of information, and multiculturalism will be achieved, having no inferior or superior races. This will lead to a boom in travel and tourism, which would totally help locals promote their products, and profit from their small businesses.
Theoretically speaking, this situation seems easy to achieve through globalization. However, although the chain of events mentioned above can be attained through it, several disadvantages are still overlooked, which entirely affects the economy and society of a nation. Primarily, as mentioned earlier, the worldwide increase in GDP is coupled with the uneven distribution of economic development across nations, which further widens the gap between the rich and the poor. In addition, globalization has four dimensions, namely, trade, movement of capital, movement of people, and the spread of knowledge and technology. Only those developing nations that are able to keep up with the pace of global trade have benefited from globalization. Asian countries like Singapore, Japan, and Taiwan have fared well from the global trade, while the entire African region has managed scantily. Another disadvantage is the increase of “brain-drain” in many Third World countries, brought about by the migration to advanced countries. These disadvantages, and many others, thus contribute to the uneven distribution of wealth in the economy of many nations.
In the case of India, since the early 1990s, the country’s economy has been liberalizing with the unanimous approval of the more affluent nations of the population, such that foreign investors that have flooded into the country are not subject to the purview of national laws, as are the domestic investors. Dependence on foreign capital has always led to the sacrificing of national policies in favor of the demands and conditions of international agencies of international finance. International lenders rarely lend without conditions and external liberalization in India, the lowering of import duties was a condition imposed by international financiers, which led to the reduction in social spending that is often disguised as a matter of improving “efficiency” and controlling “unnecessary budget deficits”. This results to providing few material benefits and has not translated into a generous “trickle down” for the poor masses.
The problem with water, roads, and electricity, contributed to the desolate conditions of the 700 million residents still living in rural India, and the 200 million that constitute the urban poor. In addition, problems in politics brought about the voting out of the ruling nationalist coalition in the midst of the most rapid expansion in years, for elections took place in the aftermath of the generous monsoons that boosted spending in much of rural India. Television is the most dominant gateway of globalization affecting the perceptions and attitudes of the younger generations. Traditional dress is increasingly displaced by Western dress seen on TV, and teenage abortions rose by 20% in a year, as teenagers feel pressure to have sex, because of the explosion of sexually explicit imagery from sources like MTV and the Indian equivalent channels ( 2007). Another disadvantage that can be pointed out is the increasing rate of Indian immigration to the United States and other countries, which is particularly related to the high-tech sectors. It has been reported that 25% of the graduates of India’s four most prestigious technology institutes immigrated to the United States, and has led to a situation, wherein more Indian technological talent is in the U.S. rather than in India ( 2007). This has led to the country’s “brain-drain”, wherein more advanced countries utilize the talents and skills of immigrants, instead of being used in their own countries.
India’s intellectual elites periodically pay attention to these deficiencies but the middle classes were too much occupied by the ruling party’s mantra of “India Shining” to anticipate the recent electoral shock. In its wake, the masses’ growing urgency for basic needs has come to the forefront again. India can build dams but cannot maintain rural irrigation systems. It can launch satellites but cannot or will not build public toilets. India’s political elite has taken a long time to grasp the message from India’s poor and the “feel good” liberalized economy has yet to provide the right balance for India’s poor majority.
These conditions have led many economists and sociologists to believe that the poverty in India is partly brought about by globalization and the concept of Neo-Dependency. Neo-dependency is defined as the development of a nation, as part of an international system in which the leading powers have used their economic strength to make a nation’s development dependent on, and subordinate to, the interests of those leading powers (1999). Results of such dependence include the reliance of most countries on almost exclusively on one or two export goods, and their internal growth is arrested because they are at the mercy of the fluctuating and changing world prices for their only exports, thus, this larger market is controlled by the great powers (1999).
The concept of neo-dependency is relatively simple. However, its explanation is quite complicated, if this will be associated to the decline of economies of different Third World nations. The concept can be explained as follows: poor or developing countries export primary commodities or raw materials to the developed or rich countries, which then manufacture or process these raw materials into new and innovative products. These new and combined products are then sold to the poorer countries as their imports. The “Value Added” by manufacturing a usable product always costs more than the primary products or raw materials used to manufacture those products, thus, Third World countries would never be earning enough from their export earnings to pay for their imports (1996). In essence, the concept of neo-dependency encompasses the entire operations in the economy of a nation, such that this concept explains the tendency for poor or developing countries to opt for exporting their raw materials to developed or rich countries for profit. However, because of being poor, many developing countries lack the capacity and the technology to afford technical and industrial advancements that would enable them to develop. Because of this, many developing countries use their cheap labor to produce such raw materials that would be used to produce innovative products in other countries. Unfortunately, the manufactured products are then sold to developing countries as their necessity. Because the manufactured products are expensive, the profit from selling raw materials does not compensate the expenditures in purchasing the manufactured imported products. From this, it can be understood that neo-dependency explains the reality, of what is happening currently at the economy and society of India.
Aside from this explanation, the concept of neo-dependency can be perceived as one of the strategies and avenue for globalization. Through the exchange of goods of different countries, globalization is already taking place. The concept of globalization does not mean presence around the world, but means that a country must perceive global competition and global markets to prosper. “Global” means the entire world, but is made up of smaller, more individual geographic entities beginning with the market in the nation’s current state or province and extending beyond (2002). Through making effective relationships with other countries, India is able to export its products and raw materials to other countries, thus, introducing their crafts and products to the world. Due to this interaction, India is able to establish market in countries like the United States, China, and the United Kingdom.
However, because of neo-dependency, India is becoming dependent and reliant on the importation and exportation of products, which contribute to their poverty and debt as a nation. The exploitation of such avenue for the nation’s growth, development and source of income is attributed to its large scope of land that can be maximized for agriculture and other land-based businesses. It has been reported that India’s economy is diverse and encompasses agriculture, handicrafts, textile, manufacturing, and a multitude of services, with two-thirds of the country’s workforce earn directly or indirectly from agriculture and the growing sector ( 2007). Because of this, the economy of India has been reliant on the production of crops, which are used as raw materials in other countries, and this made the citizens of the nation stagnant on their role in the society. Nevertheless, the advancement of science and technology in other countries led countries, such as the United States, United Kingdom, and Japan to invent and innovate technologies that would enable them to make production of goods faster and more efficient. With this, agricultural countries lagged behind due to the high costs of those technologies. In addition, such countries like India are characterized by high levels of population, and this can help the country with an increased workforce to till the land and harvest produce, for more hands can be depended upon for agricultural advantage.
In relation to the concept of neo-dependency is the theory of dependency, which can also explain the current condition of India in relation to its globalization. Dependency can be defined as an explanation of the economic development of a state in terms of the external influences, including political, economic, and cultural, on national development policies, and a historical condition, wherein the economy of a certain group of countries is conditioned by the development and expansion of another company, to which their own is subjected (1996). The Dependency Theory has three common features, where one, is that dependency characterizes the international system, having two sets of states described as the dominant and the dependent, where the dominant states are considered the advanced industrial nations and the dependent states are those from Latin America, Asia and Africa, having low per capita GNPs and rely heavily on the export of a single commodity for foreign exchange earnings. Second feature is that external forces are of significant importance to such dependent states, where external forces include multinational corporations, international commodity markets, foreign assistance, and communications. Last feature, the relationship between the dominant and the dependent states is dynamic due to the fact that their interactions are not only reinforced but also intensify the unequal patterns (Ferraro, 1996). From this, it can be understood that the Third World nations are dependent on the business and foreign resources provided by the dominant or developed countries. The explanation is similar to the concept of neo-dependency, for it also indicates that India’s economy is at the mercy of the dominant country’s economy. With this, once the developed country has already exhausted India’s resources, it will soon find new sources and leave India’s economy and industry weeping and suffering.
Both concepts are related to the globalization of India, as neo-dependency and dependency indicate the operations in the economy of the country. Through the application of these concepts, India is become “globalized”, and thus, participate in the globalization of other countries also. In line with globalization is the role of the capitalist system in the application of the two concepts, which enforced a firm international division of labor that is responsible for the under-development of many nations in the world. The dependent states, such as India, supply cheap minerals, agricultural commodities, cheap labor, and serve as the repositories of surplus capital, obsolescent technologies, and manufactured goods, wherein its flow is dependent and determined by the economic interests of the dominant or developed states (Ferraro, 1996). With capitalism, division of labor is being implemented in such states, which supposedly contribute to the growth and development of the country. However, due to capitalism, the economy of India becomes dependent on the economy of the dominant states.
In addition to this, despite many important advances since the “Bretton Woods” agreement, the state of Third World development remains extremely unsatisfactory. About a billion people live in extreme poverty and more than 800 million do not get adequate nutrition. Third World Debt looms large on the horizons of most underdeveloped nations and development continues to benefit the Third World elites, the developed nations, and their multinational corporations. The division between the North and the South continues to widen with very little “tricking down” to the poor majority in many nations, and one-third of the world’s poor are getting poorer. Moreover, in both rural and urban areas, the broader enabling environment does not adequately support the needs of the poor, such that rural poverty can be associated with isolation, lack of roads, poor infrastructure, and limited institutional presence, while urban poverty is generally associated with poor quality housing, over-crowded, unsanitary slum settlements, ill-health related to spread of infectious diseases, the threat of exposure to environmental hazards, and fear of evictions from illegal squatter settlements in precarious locations (2001).
From these, it can be seen that the effects of globalization and the application of the concepts of neo-dependency and dependency did not bring adequate success to the economy and society of India. It can be argued that in addition to the effects mentioned brought about by these concepts is the increasing levels in the population of India. Although the high levels of population can help with the success of the country’s agriculture, the drastic increase in its population may hinder the country to adequately provide shelter, education, employment, and food for most of its population. It is a given fact that India is continually developing and obtaining resources from other richer countries, and simultaneously, the increase in its population also happens. Because of this, it can be understood that India’s sustenance does not compensate the increasing levels of its population, thus, making the majority of its population suffer from poverty. Through globalization, neo-dependency and dependency, the society of India becomes caught in between development and lagging behind, given the structure of their society. A limited number of the society are the ones given the chance to succeed and benefit from globalization, depending on their position in the society, which include businessmen, merchants and the elites, for luckily, they have the access to education and wealth. This leaves the poor to suffer the scraps of success being enjoyed by the few elites and the politicians in the country, as they do not have the chance to obtain education and employment easily. The increasing number of populations has robbed off the chance of most citizens to become employed and to become accommodated in schools and universities. Another reason to be considered also is their culture, which do not give equal opportunities to both genders, in terms of status, employment and education. Globalization has opened a portal of communication to almost all parts of the world, and this enabled interrelations even more effective and efficient to majority of individuals. However, the desolate conditions brought about by the lagging behind of the economy of India have given unequal opportunities to its citizens to enjoy such opportunities. In addition, because of the increasing incidences of “brain-drain”, many Indian talents and skills are not being utilized by its own country, thus, being used by more advanced and developed nations to their edge. This, in turn, lessens the chance of India to develop as a nation, for instead of contributing to the growth of their own country, Indian intellectuals seek employment and shelter from rich countries to compensate their capabilities with money. With this, many Indian intellectuals migrate and become citizens in developed countries such as the United States, Japan and the United Kingdom to give them the opportunity to grow individually, in terms of their career. This, in turn, contributes to the decline of the economy of India, as its intellectual citizens’ skills and talents are not utilized effectively by their own country.
Conclusion
From the above discussion, it can be deduced and understood that globalization is one important concept in the world today, which must be given enough importance and attention. With globalization and the concepts related to it, it can be seen that many countries are given the chance to grow and development in a variety of aspects. However, globalization also brings about negative effects to many citizens in different countries, due to its unequal distribution of wealth and services.
It is true that there is no direct relationship between globalization and poverty. Nevertheless, the events that happen because of globalization may lead to the ineffectiveness and the poverty of many Third World nations. In addition, several factors and aspects must be considered and given importance to be able to pinpoint the causes of such conditions. Nonetheless, this paper argues that globalization is the major cause of such conditions in India. In addition to this, assessments and additional researches must be made to further understand the conditions in India. Through several researches, many will be able to understand the true desires and needs of the citizens of India, thus, would help improve the economic and societal conditions in the country.