Congratulations!
All India UPSC Essay Competition
Kirandeep Kaur Saini
All India Rank: 18th
Prize: CL Course worth Rs. 10k.
- UPSC attempt given before- NO,Currently preparing for the UPSC exam.
- Pre-qualified - NO
- Main Qualified- No
- Final Selected - No
- Graduation: Graduation and Post Graduation (masters) in Commerce.
- College:Pillais college, Panvel, Navi Mumbai.
Globalization & its impact on Democracy
Let's look back at the history of globalization. when did international trade start and how did it led to globalization? And how do globalization impact on democracy? History of globalization. Silk road (1st century BC)- People have been trading goods for almost as long as they’ve been around. But in 1st century BC, products from China were traded to Eurasian continent through Silk Road. Trade become global. But after several centuries, this trade was interrupted due to local enemies of Rome and China. Spice route (7th century)- The founder of Islam, the prophet Mohammed, was famously a merchant. The main focus of Islamic trade were spices (mostly from Indonesia). spices were traded by sea. But as it was a luxury product, trade was relatively low. Globalization still didn’t take off, but the sea route and Road (Silk Road) of trade between East and West did now exist. Age of discovery (15th century). Global trade kicked off in the Age of Discovery. The Portuguese, Spanish, Dutch and the English first “discovered” and then integrated new lands in their economies. Potatoes, tomatoes, coffee and chocolate were introduced in Europe. First wave of globalization (19th century)- Great Britain started to dominate the world both geographically and technologically. It was the era of the First Industrial Revolution. Steamships and trains could transport goods. But large countries like India, China, Mexico or Japan, were either not able to adapt the industrial and global trends or the Western powers restraint on their independent development. Finally, many workers did not benefit from globalization. The world wars. The years between the world wars, caused a further breakdown of the global economy. By the end of World War II, world GDP had fallen to 5%–a level not seen in more than a hundred years. 2nd and 3rd wave of globalization. The World War II marked a new beginning for the global economy. The newly created World Trade Organization (WTO) encouraged nations all over the world to enter into free-trade agreements. At the same time, a new technology from the Third Industrial Revolution, the internet, connected people all over the world. In the 2000s, global exports raised rapidly. Globalization 4.0. That brings us to today, when a new wave of globalization is once again upon us. Globalization 4.0 was the theme for World Economic Forum Annual Meeting 2019 held in Davos, Switzerland. Globalization 4.0 is latest stage of globalization which involves cutting-edge new technologies like artificial intelligence. Globalization and Democracy. The businesses located in democratic countries have access to capital flows, technology, human capital, cheaper imports, and larger export markets due to globalization. Impact of Globalization on democracy is economical, psychological, socio-cultural. •It increase trade and standard of living. •It also provides poor countries, the chance to develop economically. •By reducing cross-border distances, globalisation has increased cross-cultural understanding and sharing. •Globalization represents free trade which promotes global economic growth, creates jobs, makes companies more competitive, and lowers prices for consumers. Negative impact of globalization on democracy. The global financial crisis was a turning point of liberal democracy and free-market capitalism. •Wealth inequality and rising unemployment provided a perfect breeding ground for political and economic ills. •It has made the rich richer while making the poor poorer. •Free trade policies have now been severely impacted due to Covid-19. Which effected free market ideology. Conclusion. We cannot say that the impact of globalization has been totally positive or totally negative. It has been both. Each impact mentioned above can be seen as both positive as well as negative. However, it becomes a point of concern when, an overwhelming impact of globalization can be observed on the Indian culture.