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Globalisation & Impact on Indian Society

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TranscriptofSitaramYechurysInauguralSpeech
AtSeminarOnGlobalisation&ItsImpactonIndianSociety
SVKendram,Hyderabad,October2001

Thepresidentofthissession,Dr.RadhakrishnaMurthygaru,eminentintellectuals,leadersofthedemocraticandLeftmovementandmydearfriends,

Itisagreathonourtobeaskedtoinauguratethisseminar.Fromthelistofthecontributorsandthosewhoaregoingtoparticipate,Inoticesomeofthebestcreativemindsof
AndhraPradesh,particularlyofHyderabad.Iam,therefore,hesitantbecauseIdontthinkthereismuchthatIcanreallyaddintermsofintellectualcalibertotheinputthatall
thesecontributionswouldmake.But,nevertheless,sinceIhavebeenaskedtoinaugurate,Ihavetofulfillthisformality.
ThisseminarhasbeentitledasGlobalisationanditsimpactonIndianSocietyandIhavebeenaskedtogiveanoverviewofthedevelopmentsthataretakingplace.Iwill
attempttodothat.But,itwouldnotbe,Imustconfess,averystructuredlecture.VariousaspectsofthisthemethatIwouldliketotouchupon,Iamsureinthenexttwodaysyou
willdeliberateingreaterdetail.
TounderstandtheentirecanvasofthetermGlobalisation,Ithink,attheoutset,wemustbeclearaboutitsinternationaldimension,beforewetalkaboutitsimpactinIndia.
BecauseoftenthereisamisconceptionthatthisGlobalisationistheresultofsomesortofaconspiracybythedevelopedcountries.Theyarecomingtogethertoconspireagainst
therestoftheworldandwhathasbeenputoutinthenameofGlobalisationisnothingelse,butanewrecipefortheimperialistdominationovertheworld.Thereisanelementof
truthinthis,butthisisnotthewholetruth.Wehavetofollow,Iamafraid,themethodoflegalproceedingswhenyousaythatIshallspeakthetruth,thewholetruthandnothing
butthetruth.TheothertwoaspectsofnothingbutthetruthandthewholetruthalsohavetobetakenintoaccountwhenwearediscussingGlobalisation.
Becauseitsnotonlyaconspiracybytheimperialistwest.Thispointwemustunderstandintermsoftheinternaldynamicsofcapitalismandcapitalistdevelopment.Itwas
nearly150yearswhenMarx,(IamgoingbacktoKarlMarxnotonlybecauseIamaMarxistorIbelongtotheCommunistParty.ButIsincerelybelievethatthemostpenetrating
analysisofcapitalismwasdonebyhimandinapropheticmanner,hesaidmanythingswhichareveryveryrelevanttotodaysconditions.Iwillcomebacktosomeofthese
aspectslater,particularlywhenwespeakofcultureandtheimpactofGlobalisationonthat.)analysingthedevelopmentofcapitalism,oneseminalpointthathemadewasthat
ascapitalismdevelops,thereisatendencytowardscentralisationandconcentrationofcapitalandoveraperiodoftime,youwillhavefewerandfewercapitalistsbutlargerand
largercapitalists.This,Ithink,intheeraofGlobalisationhasturnedouttobeabsolutelytrue.Because,whatweseedevelopingparticularlybeforethisnewoffensivewhichwe
callGlobalisationcameintobeingintheworld,isaveryhighdegreeofconcentrationofcapitalinafewhands.Thewatershed,inthatsense,thedistinguishingcharacteristic
ofthisphaseofGlobalisationiswhatisnowoftendefinedasGlobalisationoffinancecapital.Thisfinancecapitalwhichessentiallywascapitalthatusedtoliveofandliveon
theindustrialcapitalhasbranchedoftobecomeapowerfulsourceonitsown.Itsdimensioncanbeunderstood,forinstance,bythefactthatworldtradetodayissomethingto
thetuneofseventrilliondollarsannually.Thefinancialflowsintheworldtodayaretothetuneofsomethinglike400trilliondollars.Thatismorethan50timestheactual
tradeintheworldisactuallytakingplaceintermsoffinancialspeculationandfinancialactivity.Thisfinancecapitalthathasgrowninsuchadimensionhasspecificfeatures.
Thankstothetechnologicaladvancesitisinstantlymobileacrosstheglobeinitssearchforprofits.Itcantravelacrosstheglobewithinseconds.Sothereisnobarriersoto
speakforthemovementofthisfinancialcapitalandsincethebarrierformovementsdontexisttheimmediatedemandthatfollowsfromthisdevelopmentisthatnosovereign
nationoracountrycanimposeanybarrieronthisflow.SothedevelopmentofthisphaseofGlobalisation,withtheexpansionandconcentrationofthisinternationalfinance
capital,makesacorollarydemandformaximisingitsprofits:Therecannotbeanyconditions,restrictionsorbarriersforitsmovementacrossthecountries.Thisisthefirst
characteristic,thedemandonsovereigncountriestoadoptFinancialLiberalisation,i.e.,donotimposeanyconditionsontheflowoffinancecapital.Thisisonepartthatthe
developmentstakingplace.
Theotherpartofdevelopmentthatistakingplaceinternationallywasthehighdegreeofconcentrationofindustrialcapital.Allofyouareawareaboutthegrowthofthe
multinationalcorporationsandthedominancethattheyactuallyhaveovertheworld.Infact,someofthesecorporationshaveannualsales,whicharelargerthantheGDPsof
manycountries.Americanmultinationalcorporationsand,infact,thetop200companiesintheworldtodayareestimatedtoaccountfornearlyonethirdoftheworldsincome.
Thisconcentrationofindustrialcapitalalsodemandsthatinthesearchformaximisationoftheirprofits,conditionswherethereareminimalornorestrictionsimposedonthe
inflowandoutflowofthiscapitalintovariouscountries.Sotherefore,thedemandthatcameinfromtheinternationalisationoffinancecapitaltodoawaywithallrestrictionson
itsflow,isbuttressedbythedemandthatcomesfromthecentralisationofindustrialcapitalwhichalsosaysrestrictionsshouldberemovedandnocountrywillhavetherightto
imposeanyconditionsontheentryofthisindustrialcapitalintothosecountriesinsearchofmaximisationoftheirprofitsbyexploitingtheirresourcesandtheircheaplabour
etc.

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Therefore from both ends, from the development of finance capital and the development of industrial capital, there was a tendency in the international development of
capitalismtomovetowardsthisphaseofGlobalisation,thatweseenow.Addtothisthesimilardemandsonhavingnorestrictionontradeflowsandthepictureofglobalisation
iscomplete.
Thisisnothappeningbecauseofthewillofsomebodybutthisishappeningbecauseinternaldynamicsofcapitalismitselfissuchthatitbringsyoutothispointwherethe
higherdegreeofconcentrationcapitaldemandsanewerglobalorder.Sothatthefundamentalaspectofcapitalism,thatofmaximisationofprofits,continuesunhindered.Sothis
independentsortofdevelopmentoftheinternaldynamicsofcapitalismissomethingthatshouldnotbeignoredbecauseotherwiseitappearsasthougheverythingishappening
onthebasisofthewillofhumanbeings:soandsoisgoodandsoandsoisbad.Sincewehavebadpeoplegoverningtheworldtoday,youhavethissortofeconomicconditions
thataredeveloping.Thatisnotthecase.Actualconcretedevelopmentsaretakingplace.Rememberin`Capital',Marxmakesaveryverypertinentpoint,sayingthatprofitisthe
motiveforceofcapitalistdevelopment,hesaysWithadequateprofit,capitalisverybold.Acertain10percentwillensureitsemploymentanywhere20percentcertainwill
produceeagerness50percentpositiveaudacity100percentwillmakeitreadytotrampleonallhumanlawsand300percentandthereisnotacrimeatwhichitwillscruple,
norariskitwillnotrun,eventothechanceofitsownerbeinghanged."Sotheobjectivelawofcapitalistdevelopmentispushingtheworldtowardsthisphaseofwhatwecall
Globalisation.Itis,therefore,thesystemandnotasetofanyindividualsorcountriesthatareresponsibleforthisdevelopment.
ThesecondaspectisthesubjectiveutilisationoftheseobjectiveconditionsbythewesterncountriesparticularlybytheUnitedStatesofAmericaledimperialism.Withthe
collapseofsocialismintheSovietUnionandEasternEurope,theeconomiccounterveilingpowerthatexistedgloballycollapsed.Theseformersocialisteconomieswerealso
suckedintothevortexoftheglobalcapitalism.Oncethishappened,theonwardmarchofglobalcapitalformaximisingitsprofitsdidnothaveanysortofanobstaclethatit
usedtofaceduringthefourdecadesafterthesecondworldwar.Insuchasituation,youhadavisionofanewworldorderthatwasarticulatedbypresentBushsfather,i.e.,Bush
senior,whenhewasthePresidentofUnitedStatesofAmerica.ThisvisionenvisagedtheglobaldominationoftheWestparticularlyofimperialismundertheleadershipof
UnitedStatesofAmerica.Itwasgivenaconcreteandalsoalegalshape.TheinstitutionsoftheIMF,theWorldBank,andthelaterformedWTOin1994allbecamethe
instrumentstoputintopracticethisnewworldorder.
This is the current phase of Globalisation what we are talking about. I have noticed various papers by distinguished participants on various sectional impacts of this
Globalisation.Iamnotgoingintothosedetails,butwhatisthemainobjectiveofthisentireprocess?Themainobjectiveinmyopinionistocreateconditionswherebytherest
oftheworld,thatisthedevelopingworld,isagainbroughtbackintoabondageofeconomicslavery.Globalisation,asitiscurrentlyenvisionedbyimperialism,isactuallya
blueprintfortheeconomicrecolonisationofthedevelopingworld.
Keepingboththeseobjectiveandsubjectiveaspectsinmind,wewillhavetoactuallyevaluatewhatishappeningatthegloballevelandtheimpactthatistakingplaceonour
country.Inthelasttenyearsyoufindthatthelowestonethirdoftheworld'speople'saveragepercapitaincomedeclinedfrom3percentofthetoponethirdto1.9percentand
forthemiddleonethird,itdeclinedfrom12.5percentto11.4percentoftoponethird.Thatisthelowestonethirdpopulationoftheworldtodaygetspercapita1.9percent,
whatthetoponethirdearnsandthemiddleonethirdgetsabout11.4percentofwhatthetoponethirdearns.Thatisputtogether13percentgoestotwothirdsofthehumanity
and87percentgoestothetoponethirdandthistrendthatiswidening.Theessentialpointthatemergesistheintensificationoftheexploitationofthepeopleonaglobalscale.
Therearemorethan100countrieswhoareactuallypoorertodaythantheywere15yearsago.Thatis,inabsoluteterms,thereisadeclineintheirincomescorrespondingly,in
absoluteterms,thereisincreaseinprofitsgeneratedbytheglobalcapitalfromtheircountries.ThisprocessofGlobalisation,therefore,representstheclassicalshiftinthe
balanceofforcesawayfromthepeopletowardsbigcapitalists.ThisisthepoliticalimpactofthisGlobalisation:shiftinfavourofmultinationalcapitalandtheirprofitsatglobal
leveland,intheprocess,economicexploitationofthirdworldcountriesorthedevelopingworldhasbeenintensified.Therefore,thesingulardefiningfeatureofGlobalisationat
theinternationalscaleisthegrowingofinequalities.Thegrowingofinequalitiesbetweencountriesandthegrowingofinequalitiesinsidecountriesbetweentherichandthe
poor.
Assomeoneremarked,financecapitalisthesingleplayerintheworldcasino.Theworldisagamblingplaceandthisfinancecapitalisonitsspeculationmarchmakingsuper
profit.Sothefirstdirectimpactonusaregrowingpressurestoremoveallrestrictionsoninflowandoutflowoffinancialcapital.
The second, which is currently being negotiated in the WTO, which is called the multinational agreement on investment MAI, i.e. remove all restrictions on the inflow of
industrialcapitalandremoveallrestrictionsontherepatriationsofprofits.We,inIndia,haveimplementedthistoalargeextentallowingthefreeflowofFDI.ThisVajpayee
governmenthasgonetotheextentofopeningupeverysector.Thestrangestthingyouwillfindwiththisgovernmentisithasopenedup100percentaccesstoFDIinreal
estate.Evencountries,whichareadvocatesofliberalisation,Globalisationetc,haverestrictionsonforeignersacquiringproperty.
Thethirdareaofglobalisationistheremovalofallrestrictionsonforeigntradeandprovideaccessofyourmarketsfortheproductsproducedbytheindustrialisedworld.
BendingoverbackwardstoappeaseUSimperialism,thisVajpayeegovernmenthasalready,notonlyremovedquantitativerestrictions,butalsoprogressivelyreducedimport
dutiessothatvirtuallywemovetowardsazeroimportdutyregime.Thatisthegoodsfromtheadvancedcountriescancomeandtakeoverourmarketsandmaximiseprofits.
Asaresult,Indiaismovingdangerouslytowardsbeingenslavedagaineconomicallybytheindustrialisedwest.Youareaware,fromthe9 thofthismonth,theWTOmeetingis
going to take place at Doha. Though we dont know whether the venue will be Doha or some other place because Americans have decided to land their land troops in
Afghanistanyesterdaysowhathappensinthatareawedontknow,butinanycaseitisveryclearthatAmericansdontwantpostponementbecausetheyseeaveryopportune
momentbecauseofthissocalledwaragainstterrorism.TherewillbeveryfewcountriesthatwillbeabletostanduptoUSpressures.
LetusspecificallydiscusstheimpactonIndia.Youhavecirculated,Inotice,Prof.PrabhatPatnaik'spaper,whichtellsusthatintenyearsofreformswhathashappenedto
Indianeconomy.Therefore,Idonotwanttodealwiththeeconomyingreaterdetail.OtheraspectsofGlobalisationanditsimpactonIndia,Ithink,alsomeritattention.Buton
theeconomicfront,letustosumupwhathashappenedasaresultofglobalisation.Ifyoulookatitsectorwiseorifyoulookatitsmacropicture,onemyththathasbeen
explodedisthatGlobalisationhasleadtoahighergrowthrateinIndia.ThepunditsofGlobalisationhavebeensayingwehavebrokenoutofthesocalledHindurateof
growth.TheHindurateofgrowththeydefinebetween2and3percentandtheysaythatGlobalisationhasgivenusgrowthrateofmorethan6percent.Nowthispointisbrought
outinPrabhatPatnaik'spaper.Whenyoulookintoit,intermsofthefiveyearaverages,thehighestgrowthwasbetween1986and1990,whenyoucrossed8percentandafter
thatinthenext5yearaveragesyouwillactuallyfindadecline.Thatyoucomedowntofrom8to7andthento6percentbyyear2000.Wehavehadanactuallydeclining

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growthrateduringthisdecadeofreformsone.Second,inmacrotermsyouseeparticularlytheaccentuationofinequalitiesbetweentherichandthepoor.Thishasinaglaring
mannerleadactuallytoacontractionofthedomesticdemand.`Richhavebecomethericherandthepoorhavebecomethepoorer'isunfortunatelyregardedaclich.Butas
mostclichesdoitmakessense.Intheprocessofthepoorbecomingpoorertheactualdomesticaggregatedemanddeclined.Thenetresulthasbeentheinabilityoflargesections
ofthepeopletobuyleadingtotheinabilityofindustrytosellwhatithasproducedresultinginarecession.This,inturn,isresultingindeclineinemployment.This,inturn,
againisstrengtheningtheprocessofdecliningdomesticdemand.Thiscompletestheviciouscircleoftherecessionandunemployment.Theworstsituationcurrentlyfacingour
country.Inthefirsttwoquartersofthisfinancialyear,ifyoutakeyourcoresector,thatisbasicsectorsintheeconomysteel,cement,coaletctheyhavegrownby0.1percentas
comparedto6.3percentinthecorrespondingperiodlastyear.Soifyourcoresectorhasdeclinedlikethismeansthatyourentireindustrialsectorisinabigcrisis.Andthatis
whythecaptainsofindustrywhenthebudgetwasbeingpresentedIamsureallofyouwereseeingonTVMr.RahulBajajwasgiving9.8pointsoutof10pointstothisbudget.I
remember,ontheDoordarshan,Iwascalledforthelastsessioninthenight.TheanchorwhenhecalledmesaidSitaramitsbeenaboringdaybecausetherehasnotbeena
singlepersonwhoopposedthebudget."ThenIsaidyoucalledmelateyouknow,ifyoucouldhavecalledmeearlierIcouldhaveopposeditearlier.HesaidMr.RahulBajaj
gave9.8pointsoutof10tothisbudgetsoIsaidIwouldnotgivemorethan2.Isaidwithin6monthsyouwillfindthisbudgetinsteadofrevivingorkickstartingtheeconomy
willpushtheeconomyintogreaterrecession.Thathasbeenvindicated.
Theclassicfeatureofliberalisationhasbeentheintensificationofexploitation,capitalistexploitationoftheIndianpeoplewherebyprofitshavegrown,peoplescapacityto
spendhasdecreased,asaresultofwhich,overalleconomyisinaphaseofrecession.Thisisverytypicalofaliberalisedeconomy,becausetheobjectiveisnotoveralleconomic
growthbuttomaintainandincreasethelevelsofprofitsofyourcapitalistclass.Thisimpoverishesalargesectionofthepeopletotheextentthattheeconomicsurveyofthis
yearhasshownasthattheemploymentgrowthrateoflastyearhasbeencloseto0percent.AndifyoulookNSSdata,itshowsyouthatduringthisphaseofliberalisation,there
isadrasticfallbothinruralandurbanemployment.Ifyoulookattheprimarysector,thatisagriculture,forthefirsttime,youhavethegrowthoffoodgrainoutput,actually
fallingbelowthepopulationgrowthrateandnothingtypifiestheactualgraphicdescriptionofthisliberalisedeconomyasthemountainoffoodstocksyouhaveononehand
andthestarvationdeathsanddistresssuicidesoffarmersontheother.Thisisthatglaringinequalitythatwetalkofwhichisexacerbatedafterthesepolicieshavebeenbrought
in.Agricultureinthatsensehasbeengoingthroughaveryseriouscrisis,withathirdcontinuosyearofeitherstagnationordeclineinitsgrowth.
Now,thisistypicalagainofGlobalisation.OneimportantfeatureofliberalisationistheStateswithdrawalformeconomicactivityinthenameoffreemarketthephilosophy,
theideologicaltenetofGlobalisation.This,inotherwords,meanstheStatescapacitytoinvestintheeconomydeclinesleadingtoadeclineincapitalformation.Declining
domesticcapitalformationadverselyaffectsthefuturehealthofeconomy.Thatisactuallywhatishappening.Stateswithdrawalhastwotypesofimpact.Oneisthatthegross
domesticcapitalformationdeclines,whichimpactsonthegeneraleconomicgrowth.Secondlystateswithdrawalmeanswhateverlittleresponsibilitythatthestatehastowards
thepeopleintermsofeducation,health,intermsofothersocialobligations,areprogressivelyabandonedbythegovernment.Inotherwords,thepeoplehaveadoublepronged
attackonthem.Becauseofdecreasedeconomicactivitytheemploymentopportunitiesandtheirlivelihoodgetadverselyaffected.Secondly,becauseoftheState'swithdrawal
fromsocialsectorwhateverrelieftheyweregettingthatalsogetsreduced.Thelivelihoodofthevastmassesofthepeopledeterioratessharply.
ImpactofGlobalisationinIndiahasalsomanyotherdimensions.Ithaswiderangingimpactoneverythingelseconnectedwithourlives.Itimpactsourentirecultureorthe
entirevaluesystem,onthemilieuinwhichweareliving.AgainIgobacktoMarx.150yearsago,heactuallysaidthatcapitalismnotonlyproducestheobjectforthesubject
butitalsoproducessubjectsfortheobject.Hemadeaverypenetratingstatement.Intodaysadvertisingworldifyouseethiswhatisactuallybeingcreated.Youarecreating
humanbeingswhoarecapableofconsumingcertainproducts.Theemphasisisnolongeroncreatingtheproductsthatarerequiredbythehumanbeingsrathercreatinghuman
beingsthatarerequiredfortheproducts.ThisisessentiallythedefiningfeatureofcultureunderGlobalisation.Humanbeingsarereducedtothestatusofproductswhowill
consumetheotherproductsthatcapitalismproduces.Thisentiretrendofcultureconsumerism,degenerationetccreatesitsownatmospherewhicheffectseveryaspectof
ourlifeandsociety.
Oneimmediateimpactcanbeseeninthedecliningpoliticalculture.GlobalisationhasthrownupinIndiaabsolutelyneweravenuesforcorruption,whichwereunheardofor
unconceivabletenyearsago.Theentirerangeofcorruptionthatyoufindinourcountrytodayandthepoliticalcorruptionthatyoufindasaconsequencefloodgateshave
beenopenedbythisprocessofGlobalisation.
Globalisationandliberalisationmeantheopeningupofareasforkickbacksandcommissionstoalargeextent.Intheprocess,theentirecultureofcorruptionifwemaycallit,
hasundergonea`revolutionary'changewhereyoufindthewaysinwhichmoneycanbemadehasnotonlyexpandedbutitishavingatremendousimpactonthepoliticallifeof
thiscountry.Thisisanimportantaspectbecausethecausalityhereisactuallygenuinedemocracyandtheobviousconsequenceistheverysharpriseinpoliticalopportunism.
Thissharpriseinpoliticalopportunismalsoiscreatingadegreeofpoliticalinstabilitywhichwillseektomovethepolitytowardsauthoritarianism.Thedegenerationofpolity
seekstodivorcepoliticsfromalldemocraticcontentandreduceittosordidbargainingandmanouvering.Veryoften,weseenowadays,thecorporateworldsayingseparate
economicsfrompolitics.Thisistheirpolitics!Theyareactuallysayingthatreformprocessshouldtakeplaceindependentofwhatishappeninginourpoliticallife.Theywant
toseparatereformsfrompoliticssothatnobodycaninterfereandthepoliticiansaretoldthatyoucanconfineyourselfeithertodestroyingMasjidsandbuildingtemplesor
givingreservations!Thatisyouragendaanddonottalkofeconomics.Sotheattempttoseparateeconomicsfrompoliticsinotherwordsseparatethepoliticallifeofthecountry
formtheactualeconomicdecisionsthatarebeingtaken,isaveryimportantconsequenceoftheprocessofGlobalisation.Howthisisimpactingonourpoliticallifeweareable
toseeinvariousaspectsofthetypeofgovernancethatweareseeinginthelastfewyearsbothatthecenteraswellasinyourstateAndhraPradesh.
ThetypeandscopeofcorruptionintheGlobalisationperiodisenormouslyenlarged.Thisishavingadirectimpactonthepolity:whowillformthegovernmentsandwhowill
notformthegovernments.In1998whentheVajpayeegovernmentfellbyonevote,whateverbetheotherpoliticalaspects,theprospectofanalternategovernmentwiththe
supportofleftwassomething,thatthecorporateworldactivelyworkedtomakesuredoesnothappen.Why?Becauseyouhadontheagendatheprivatisationofinsurance
sector,youhadontheagendathechangesinthepatentlawsthathadtobebroughtabout.Nowthemomentagovernmentcomeswiththesupportoftheleftthenthisentire
processofeconomicreformsorliberalisationwillnotproceedatthesamepacethatthecorporateworldwants.Therearerumorsoflargeamountsofmoneythatweretransferred
tomakesurethatsuchapossibilitydoesnotoccur.So,withthisGlobalisation,liberalisationyouhaveanactiveinvolvementofthecorporatesectorandbigmoneyindefining
ordecidingonwhattypeofgovernmentyouwillhave,whatsortofpartieswillcometogetherwithwhomandthereforetheentireprocessofyourpoliticalinstitutionsandthe

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politicalstructureofourcountryitselfisbeingalteredsignificantly.Globalisationishavingaseriousimpactonthecontentofdemocracythatwehave,spreadofdemocracy
thatwehave.
Letusreturntocultureatlarge.Globalisationisaccompaniedbyaneedtohomogenisetheproduct,eventheculturalproduct.Themorehomogenoustheproduct,thegreater
themarketithaswhether.Whereeveryougointheworld,youwillhavethesamesoaps,sametoothpaste,andthesamesortofotherproductsthatyouwillfindinourcountry.
Thehomogenisationoftheproductisthefirststepinaglobalisedeconomyformaximisationofprofitsbythemultinationalcorporations.Homogenisationofproductsalsohasa
naturalconsequenceinthehomogenisationofculture.StudieshaveshownthatinSubSaharanAfrica,peoplemaynothaveanythingtoeat,theymaynotknowhowtoreadand
writebutthemomentyoushowthemWaltDisney'smickeymouse,theywillrecogniseit.Thisishomogenisationofacertainthoughtprocessandhomogenisationofcertain
symbols.Homogenisationofsymbolsrequiresculturalproductstobeproducedonmassscale.Oneimmediateimpactisthatalltherichvariationsintheculturallegacieswillbe
eliminatedinordertocreatethehomogenisedproduct.Thisistheessenceofcultureofglobalisationhomogenisationofculturalproductsandsymbols.
InIndia,thecommunalforcesandcommunalisminawayalsorequiresthehomogenisationofculture.Forthem,thisisessentialtoportraythattheentireculturalheritageof
thiscountryisamonolithicheritagethatisderivedonlyfromtheHindureligion.Thepluralityandthediversityandallthatvarietythatwehaveisactuallysoughttobeerased
bygivingacommunalinterpretationofculture.Theimpactyouwillfindalsoineducationandintheentireareaofknowledge.Therefore,tohomogenisethisculturerequires
effortstoactuallyrewriteorredefineourowndiverseculturalheritageandputitintoonesingularmonolith.Thisistheideologicalprojectofthecommunalforces.
Soglobalisation'sneedforhomogenisationofculturalproductsgloballydovetailswiththecommunalforcesneedtohomogeniseculturalproductsdomestically.Saffronisation
ofeducation,rewritingofIndianhistory,orthesymbolismthatisconstantlybeingshownorassimilationofnonHindureligionsintotheHindufold,thisentireprocessthatis
takingplaceattheideologicalsubterrianisdirectedtowardsthisprojectofcreatingahomogenisedculturewhichactuallysuitstheagendaofcommunalism.Thisishavinga
verydeepimpactonIndiaandIndiansociety.RamjanmaBhoomimovementthatistakingplaceinUPtodayorinwhathappenedtotheTajMahaltheotherdaywhentheBJP
youthwentandattackedit.Imean,TalibanattackstheBamianBuddha'sinAfghanistantheBJPattackstheTajMahalinAgra.Whattypeofdifferencedoyoufindbetweenthe
two?Theyaretwosidesofthesamecoin.Mr.V.P.Singh,theotherday,calledBalThackeray,theOsamabinLadenofIndia.Theculturethatisparadedbyglobalisation
actuallyfindsaverystrongallyinfundamentalistsofallhue'sandcriestheworldover.Incidentallyitisanironyofhistorythattodaythecountrythatisbeingbombed,
Afghanistan,itspeopleareprobablytheonlypeopleintheworldwhohavenotseenthedestructionofWTConthetelevisionbecausetheTalibanbannedTVsomeyearsago
sayingitisantiIslam!SoInAfghanistannobodysawtheterroristattacks.ThepoorAfghanwhoisbeingattackedbybombsdoesnotevenknowwhathappened.
GlobalisationofIndiansociety,takenonthewhole,weseethedirectimpactthatistakingplaceontheeconomywhichisleading,ononehand,totheruinationofmillionsof
peopleand,ontheotherhand,toseverelymortgagingourcountry.TheComptrollerandAuditorGeneralofIndia,reviewingtheaccountsforlastyearhasshownthatIndia,a)is
alreadyinaforeigndebttrap,b)theoutstandingdebtandliabilitiesofgovernmentofIndiatodaystandatmorethan16lakhcroresofrupeesandtheinterestbeingpaidisone
and half lakh crore rupees annually. The country is being mortgaged, millions of people being ruined, the economic fundamentals in terms of infrastructure, the countries
economicwealthbeingruinedandtheassetsandwealthofthepeopleofthecountrybeinglooted.Publicsectorisbeingsoldforasong.Inotherwords,bolsteringtheprivate
capitalistclassandtheirprofitmakingcapacitiesattheexpenseofthecountryandthepeople.Thisistheimpactintheeconomicsphere.
Inthesphereofpolity,wehavesituationswherepoliticalalignmentsaredecidedbywhichtypeofeconomicpolicieswillbepursued.Thenatureofpoliticalcultureisdefined
onthebasisofyourcommitmenttowardsliberalisationandtothatextentthefallinpoliticalmoralityalsotakesplacecorrespondinglywithahigherdosageofliberalisationand
globalisationthattakesplace.ThelatestexampleofthisisthereinductionofMr.GeorgeFernandezintothecabinet.Todaynoquestionsareasked,exceptbypeoplelikeus
whokeeponshouting.Thegovernmentsaysgotohell.Aslongasbigbusinessandcapitalistsaresupportingthisgovernmentbecauseofthereformsthatarebeingimplemented
theydonotcaretoomuchforpeoplesopinion.Threemoreyearsaretherewhentheelectionsaredue.Maybethatyear,theywillconsidertheviewsofthepeoplebutotherwise
satisfyingcorporatesectorandthecapitalistworldandforeigncapitalhasbecomethedefiningyardstickofpoliticalculturetoday.
Thethirdareaofthisimpactwehavetotakeitintoaccountisinthesphereofculture.ItishavingaveryverydeepimpactinIndiaandisablyaidedandassistedbythe
communalforcesinthecountry.Theyalsoseekthesameobjectiveofhomogenisingtheculturalproductorhomogenisingtheculturalmilieuthatisthereinourcountrywhich
thecommunalforcesseektoutilisefortheiragenda.Globalisationusesitforitsagendaofmassproductionofculturalproducts.TogethertheyarewreakinghavocwithIndian
society.ItisaseriousdangerforIndia'sunityandintegrity.
Regarding globalisation, in that sense, there are various other aspects that we can talk about. How it is impacting the State how it is eroding the national sovereignty of
independentcountrieswhetherthe`nationstate'itselfisaviableconceptunderglobalisationornot.TheseareissueswhichyouwillbediscussinginyourpapersandIhavenot
goneintoit.Broadlyspeaking,thesearethethreemainareasofimpactofGlobalisation,thatIwantedtosharewithallofyou,ofcourse,inthebackgroundoftheindependent
processofthedynamicsofworldcapitalistsystemitselfwhichisbeingutilisedinthepresentphasebytheadvancedcapitalistcountriesparticularlytheU.S.Atostrengthenits
hegemonyovertheworldandextractthemaximumexploitationofthethirdworldcountries.Isaidearlierthatwhattheyseekisactuallyablueprintforeconomicrecolonisation
ofthedevelopingworld.ThatistheactualpurposeandintentofthepresentphaseofGlobalisation.
Inthislight,ourstrugglesagainstthiswillhavetobedefined.Sofinally,Iwouldendbytalkingabouthowdoyoustruggleagainstthis?Oneaspectistoresistthegovernmental
policiesandopposethisgovernment'ssuccumbingtotheinterestofforeigncapitalandtopreventthegovernmentfromgoingthewholehogthatitwantstogoinmortgaging
ourcountryandputtingtheburdensonthepeople.Yes,wehaveourtraditionalformsofstruggleandthesearegrowingbothinternationallyandnationally,asyouallknow.
However,Iwouldliketorefertowhatmanypeoplearesayingthatintodaysworldofmoderninformationtechnologywhereyouhavenow,6.1billionemailsbeingsentevery
day,yourenemyalsoappearsillusionary.Itdoesntappeartangible.Imeanhowareyougoingtodetermineagainstwhomtohaveademonstration.Atapointoftime,agood
friendofours,Mr.GeorgeFernandez,thatswhyIsaidatonepointoftimehewasagoodfriendandnotatthemoment.Inthosedays,weusedtogoforjointconventions.
Whenevertheorganisersusedtobringcooldrinks,hewouldalwayslookforthumsuporsomethingdomestic,pickitupandshowmeandsayyouMarxistswilldrinkCoca
ColabutIwilldrinkonlyCampaCola,Iamnationalist!ThenIusedtotellhim,youmaybedrinkingCampaCola,buttellmewhereistheprofitgoing.CocaColahasbought
upCampaCola!Youcanhaveyoursymbolofbeingnationalisticbutbasicallytheprofithasgonetothesamemultinationalbecausehehasalreadyboughtuptheother
company.

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Manymaysaynowcomradesinthispresentnewworldhowareyougoingtostruggleagainsttheintangibleforms.Thatiswrong.Imeantosaythattheenemiesarevery
tangible,theyareactualclassforcesthatwillhavetobefoughtandtheclassbattlewillhavetobesharpened.Thatisoneaspect.However,asthesituationdevelops,newforms
ofstruggleswillalsodevelop.Allthoseofyouwhoarefamiliarwithcomputertechnologyanduseyouremailswillknowabigmovementisgrowingtodayandhasmillionsof
followersworldwidecalledthefreesoftwaremovementtheLinnux/GNUmovement.Whatisthat?Itisarevolttakingplaceatonelevel.Wehavetorecognisethatthisisa
revoltthatistakingplaceagainstnewmanifestationofcapitalisticexploitation.ThisistellingMicrosoftthatwewillnotgiveyousuperprofitsforyourcontrolofyourcopy
rightofthesoftware.Wewillhaveouralternativeandmillionsofpeoplearedoingthisallovertheworldvoluntarily,notreallyconnectedwitheachotherthroughanypartyor
throughanymassorganisation.Buttheirvoluntaryresponse,thatistheessenceofwhatMarxsaid,capitalistexploitationbyitselfgeneratestherebellionagainstexploitation
andthatiswhathastobeorganisedinordertooverthrowcapitalism.Butthefactthatitistriggeringarebellionissomethingwewillhavetounderstand.Whatisittheother
newareawherethestrugglesareemerging?IamsuremanyofyouarefamiliarwithabookcalledNOLOGObyapersoncalledNaomiKlien.Ifyouarenot,Iseriouslysuggest
youprocureacopyandreadit.Twoweeksago,theLondonEconomist,oneofthemostrespectedbutrightwingjournalsoftheworld,hadacoverstoryonthisNOLOGO
callingitPROLOGO.Thebookisagainstcorporatebrandsandthemainpointitmakesisthatmoderndaycapitalismisnolongerinterestedinproducingproducts,asItoldyou
earlier.ItisinterestedinfamiliarisingbrandslikeNike,CocaColaetc.Wheretheproductisproducedisnotimportant.TheproductmightbeproducedinThailandoritmaybe
producedinMalaysiaorproducedanywherebutitisthebrandthatisimportantbecauseitisthebrandthatsells.Asaresult,intheadvancedcountries,millionsofpeopleare
loosingjobs.Sheexplainsthewholesituationandthenshenotestheproteststhatareemergingintheuniversitiesofthewest.Howaretheseprotestsemerging?Suddenlyinthe
night,shesays,inTorontoagroupofyoungstersdecidedtogoandblackenallthelogos,allthemajoradvertisementsanddestroytheirNeonsigns.Whoaretheseyoungsters?
Whyaretheydoingthis?Behindthisistheexpressionofrevoltagainstcapitalistexploitationundernewconditions.Itisfindingnewerforms.
Peoplethroughtheirownexperiencewillfindthesenewerformsandthesenewerformsareemerginganditisthroughthisnewerforms,Ithink,thestruggleagainstthisentire
processofglobalisationwillstrengthen.FromSeattletoGenoa,ifyousee,whoarethesepeoplepeopleofthefirstworld.Wehavenotbeenthere.Theyalwaysinviteus
sayingwhydontyoucome.Wecantakeevenlakhsofpeoplefromherebuthowdoyoureachthesecountrieswithsuchexpensivetravelcosts!Ticketlesstravelisnotpossible
onplanes!NowtheyareforcingtheG8countriestogounderground!ThenextsummitofG7andG8wassupposedtobeheldinTorontoinCanada.Theyhavenowdecidedto
holditatahillresortwherethekingsusedtomeetearlierwherenobodycanreach.Onewillhavetobedroppedbyhelicopterorsomethingsothatpeoplecannotreachthere.So
theleadersofthecapitalisticworldiftheyhavetomeet,theyhavetomeetinisolation.Theycannotmeetamongstthepeople.Suchasituationisalsocomingwherethis
struggleagainstthesepoliciesisontherise.Thisiswhatwewillhavetonoteandworkouthowweinourcountry,Iamsurethatyouwilldiscussinnexttwodays,howwewill
beabletopromotethesestrugglesintogrowingstrugglesworldwideagainsttheprocessofGlobalisation.
TheseweresomeofthethoughtswhichIwantedtosharewithyouandIamsurethatinthenexttwodaysyouwilldiscussmanyoftheseissuesingreaterdepthandcometo
someconclusions.
Withthis,Iformallyinauguratethisseminar.
Thankyouforyourattention.

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