The globalised world

BACKGROUND TO GLOBALISATION: Avinash Jha; published by Centre for Education and Documentation (CED), 3, Suleman Chambers, 4, Battery Street, Mumbai-400001. Rs. 150.

UNTIL RECENTLY, marketing had been one of the neglected functions in the Indian business environment. Few Indian companies had assiduously applied and practised marketing strategies till about a decade ago. They had mostly confined their efforts to distribution and selling. Since the 1990s, however, the climate has changed considerably, thanks to what is being referred to by some economic journalists as LPG - liberalisation, privatisation and globalisation.

The term globalisation was first used by Mr. Theodore Levitt in 1983 in an article he wrote in the Harvard Business Review. The logic of globalisation leads us to the dictum, that we are on the threshold of an era in which we may neither find any national products, national companies, nor any national identity. The increasing integration of the international economy, the appearance of more and more alliances, dealer networks, and joint ventures - all these constitute the syndrome of this paradigm shift. It is likely that such changes may usher in the emergence of a new world economic order. The new currency in the continent, known as ``Euro''; the economic and trade pacts and partnerships between China and the U.S., which were earlier poles apart; the founding of the WTO which is gradually gaining ground in the global arena - all these are harbingers of the cataclysm on its way.

Organisations will need to master and muster new competencies in order to advance and progress in this scenario. Managers and workers will require new skills to function in the context of a global conglomerate. Globalise or perish may be the mantra for achieving any commercial success in the millennium. It is not only the commercial or economic changes, but all the other resonant and consequent changes in the political, social, cultural, and military milieux of the country, which render this upheaval seismic and epoch-making.

The book under notice seeks to provide a basic understanding and appreciation of all these processes associated with globalisation. This volume concentrates more on the decision- making and formulating aspects involved in globalisation, whereas it does not focus on the impact of globalisation on other sectors of the society. It is so ``because there is already much material available on these subjects.''

The book contains six chapters, besides the introduction, and the appendices. The introduction explains the need for and the structure of the book, in brief terms. There are two appendices, which contain summaries from seven articles on the subject written by eminent authorities in the field, which represent a broad spectrum of the concepts and principles pertaining to globalisation from different points of view.

Chapter one explains the evolution of the global market, the theory of the state and the nation, the historical perspective of different models of the national economy, and their correlation to the genesis and growth of globalisation as a contemporary phenomenon.

The next chapter traces the origin of the modern global economy in the particular context of Europe, starting from the industrial revolution and the subsequent transition to the capitalist economy. The third chapter outlines the political philosophies and economic theories of eminent thinkers like Adam Smith, Kant, Jeremy Bentham, John Stuart Mill and Karl Marx.

Chapter four presents a detailed description of the development of globalisation during the interregnum between the two World Wars. It deals with the Great Depression, the establishment of the Gold Standard, the Bretton Woods Conference, and the manner in which 44 countries worked out some basic rules and methodology to regulate the post-war international monetary system. The story proceeds further to trace the emergence of the Third World in the international economic and political firmament.

The fifth chapter depicts the core and central subject-matter of the book, viz, the genesis of globalisation in the context of and in sequel to the crisis in the international economy. It discusses inter alia the drift from welfare capitalism to laissez-faire economy, the role of the International Monetary Fund, the creation of a world order under the banner of the United Nations, and also, the more recent collapse of the Soviet Union and formation of the Commonwealth of independent states.

The concluding chapter presents a commentary on the role and function of the market and the state in juxtaposition to the inalienable and firm foundation of the phenomenon of globalisation as a feature to be reckoned with in the current international economic arena. It includes a discussion about the emergence of ``information'' as the dominant form of socially meaningful knowledge touching almost all domains of modern life; how the economic, cultural, technological, and institutional changes associated with information are bringing about a revolution in the society; and the long-term vision of a second enlightenment, this time in terms of information, instead of science - all these find a place in the last chapter.

The Centre for Education and Documentation has brought out this publication as part of three ``background books'', the other two being Women's Movement, and Non-government Organisations. As an introduction to the subject of globalisation, this book is excellent. There is no jugglery with the jargon, and the narrative is simple, lucid, and logical. The economic processes taking place around us concern everyone, and all responsible citizens want to know more about these, but invariably give up after struggling in the dark and deep fathoms of the technical vocabulary. The writer has rendered yeoman service by demystifying the concepts for the layman.

R. DEVARAJAN

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