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GLOBALISATION

AND
PSYCHOLOGY

OINDRILA PAUL
RUCHIRA GANGOPADHYAY

MAITRI SENGUPTA

NILAKSHI SINHA
WHAT IS GLOBALISATION
Globalization is the free movement of goods, services and people across the
world in a seamless and integrated manner. Globalization represents the
global integration of international trade, investment, information
technology and cultures. Through globalization, corporations can
gain a competitive advantage from lower operating costs, and access to new
raw materials and additional markets. In addition, multinational
corporations can manufacture, buy and sell goods worldwide. For example,
a Japan-based car manufacturer like Suzuki, Toyota, Nissan, Honda, etc.
can manufacture auto parts in several developing countries, ship the parts
to another country for assembly and sell the finished cars to any nation.
BROADER MEANING
Globalization is also a social, cultural, political and legal phenomenon.
 In social terms, globalization represents greater interconnectedness
among global populations.
 Culturally, globalization represents the exchange of ideas and values
among cultures, and even a trend toward the development of a single
world culture.
 Politically, globalization has shifted countries' political activities to
the global level through intergovernmental organizations like
the United Nations and the World Trade Organization.
 With regard to law, globalization has altered how international law is
created and enforced.
TYPES OF GLOBALISATION

FINANCIAL

POLITICAL ECOLOGICAL

ECONOMIC CULTURAL

SOCIOLOGICAL
TYPES OF TECHNOLOGICAL
GLOBALISATION
TYPES OF GLOBALISATION
SOCIOLOGICAL ECONOMIC
GLOBALISATION GLOBALISATION
A growing belief that we are all A worldwide economic system
global citizens and should all be that permits easy movement of
held to the same standards – goods, production, capital, and
and have the same rights. resources (free trade facilitates
Example: the growing this).
international ideas that capital Example: NAFTA, EU,
punishment is immoral and that Multinational corporations.
women should have all the same
rights as men. That is
sociological globalization.
TYPES OF GLOBALISATION
POLITICAL FINANCIAL
GLOBALISATION GLOBALISATION

Countries are attempting to Interconnection of the world’s


adopt similar political policies financial systems e.g. stock
and styles of government in markets. More of a connection
order to facilitate other forms of between large cities than of
globalization. nations.
Example: move to secular Example: What happens in
governments, free trade Asian markets affects the North
agreements, etc. American markets.
TYPES OF GLOBALISATION
ECOLOGICAL CULTURAL
GLOBALISATION GLOBALISATION

Seeing the earth as a single Merging or “watering down” of


ecosystem rather than a the world’s cultures, including
collection of separate ecological food, entertainment, language,
systems because so many etc. This aspect is heavily
problems are global in nature criticized as destructive of local
Example: international treaties culture.
to deal with environmental Example: The Simpsons is
issues like biodiversity, climate shown in over 200 countries in
change or the ozone layer, the world.
wildlife reserves that span
several countries.
TYPES OF GLOBALISATION

TECHNOLOGICAL
GLOBALISATION
Connection between nations
through technology such as
television, radio, telephones,
internet, etc. These were
traditionally available only to
the rich but is now far more
available to the poor. Much less
infrastructure is needed now to
make them accessible to all
sections of the society.
CHARACTERISTICS OF
GLOBALIZATION
 Greater trade in goods and services, both between nations and within regions.
 An increase in transfers of capital including the expansion of foreign direct
investment (FDI) by trans-national companies (TNCs) and the rising influence of
sovereign wealth funds.
 The development of global brands that serve markets in higher and lower income
countries
 Spatial division of labour – for example out-sourcing and off shoring of production
and support services as production supply-chains has become more international.
 High levels of labour migration within and between countries.
 New nations joining the world trading system.
 A fast changing shift in the balance of economic and financial power from
developed to emerging economies and markets – i.e. A change in the centre of gravity
in the world economy
 Increasing spending on investment, innovation and infrastructure across large parts
of the world.
 It is a process of making the world economy more inter-dependent.
 Many of the industrializing countries are winning a rising share of world trade and
their economies are growing faster than in richer developed nations especially after the
global financial crisis (GFC).
CAUSES OF GLOBALIZATION
 Improved Communication: The development of communicational technologies
such as internet, mobile phone, email have been vital to the growth of globalization
as they help the multi national companies to communicate all over the world. The
development of satellite TV channels like CNN has also provided world wide
marketing avenues for the concept and products of globalization.
 Improved Transport: The development of refrigerated and container transport,
blue shipping and improved air transport has allowed the easy mass movement of
goods throughout the world.
 Free Trade Agreements: MNCs and rich capitalist countries have always
promoted global free trade as a way of increasing their own wealth and instruments.
 Global Banking: Modern communication technologies allow vast amount of capital
to flow freely and instantly throughout the world.
 The Growth Of MNCs: The rapid growth of MNCs like McDonalds, Nike ,
Microsoft is a cause as well as consequence of globalization. Globalization allows
MNCs to produce goods and services and to sell products on a massive scale
throughout the world.
 Economies Of Scale: Many economists believe that there has been an increase in
the minimum efficient scale (MES) associated with some industries. If MES is rising,
a domestic market may be regarded as too small to satisfy the selling needs of the
industries. Many emerging countries have their own transnational corporations.
 Less Protectionism: Old forms of non-tariff protection such as import licensing and
foreign exchange controls have gradually been dismantled. Borders have opened and
average import tariff levels have fallen.
ADVANTAGES OF GLOBALIZATION
 Globalization helps us fight illiteracy and promotes education. It gives us
clear knowledge of facts. It also helps us shed or combat the burning social
issues such as child labour, dowry etc.
 Globalization has helped the global community to fight against poverty.
Large non-profit and charitable organizations have launched massive
campaigns to fight hunger and poverty. They have successfully done huge
fund-raising in this regard.
 Closer contact with foreign people make us quite familiar with their
manners, habits and customs. The cultures become richer as they come in
contact with each other.
 The benefits of science and technology have reached every corner of the
world. People around the world are now connected through mobile phones
and internet technology.
 Globalization contributes in improving international relations among
different nations and has enhanced our knowledge of the world.
ADVANTAGES OF GLOBALIZATION
 A lot of companies are looking for to invest in energy productions
sectors. The investment of other companies in different sectors is
the positive impact of globalization, that helps the countries
growth in economic, development, infrastructure, information
technology etc. and many other department.
 Globalisation creates more chances for students to read in
internationally and read in high class universities. This will make
and produce high level professionals people in society of other
countries.
 Globalisation encourages producers and consumers to benefit
from deeper division of labour and economies of scale.
 Competitive markets reduce monopoly profits and incentivise
businesses to seek cost-reducing innovations.
 Increased awareness among consumers of challenges from climate
change and wealth/income inequality.
DISADVANTAGES OF GLOBALISATION

ENVIRONMENTAL CULTURAL
INEQUALITY
POLLUTION THREAT

UNFAIR WORKING DOWNFALL OF


UNEMPLOYMENT
CONDITIONS LOCAL MARKETS

THREAT TO
HEALTH HAZARDS
AGRICULTURE
1. INEQUALITY
In a way, globalisation has contributed towards increasing the gap
between the rich and the poor. Evidence for this is the growing rural-
urban divide in countries such as China, India and Brazil. This leads to
political and social tensions and financial instability that will constrain
growth. Many of the world’s poorest people do not have access to basic
technologies and public goods. They are excluded from the benefits. 86%
of the world’s resources are said to be consumed by the richest 20% of the
world population. This means that the poorer 80% only gets to consume
14% of the world’s resources. This is a direct result of globalization
according to some activists who believe that globalization only serves the
rich whereas the poor have to face its disadvantages.
2. ENVIRONMENTAL POLLUTION
The environment has suffered greatly due to globalization. The increase in
traffic between countries has polluted the tourist destinations. The poisonous
gases released into the air by large industries have caused environmental
pollution. Globalized business have exploited the natural resources of the
earth beyond the tolerable limit. Some places on earth, which were once rich
in minerals and forests can no longer claim their richness. Also, forests have
been cut down to set up large industries and industrial discharges have
widely contributed towards environmental degradation.
3. CULTURAL THREAT
Globalization tends to make the world a more homogenous place. As a result,
many communities failed to preserve their old tradition, customs and culture.
Being attracted by the culture of developed nations, many people in the under-
developed nations have shed their traditional dress, food and rituals. United
Nations Environment Programme (UNEP), states that nature’s secrets in songs,
stories, art and handicrafts of indigenous people may become extinct because of
growing globalization (Griswold, 2008). The threat of extinction to cultural
heritage is usually noticed in Asia, Africa, and in the Middle East. Study shows
that many indigenous languages and cultures are on the verge of becoming extinct
due to globalization. About 2500 indigenous languages are in danger of becoming
extinct, and many more are losing their link in the natural world. Papua New
Guinea constitutes the most spoken languages, about 847 different languages are
spoken. The main languages under threat of extinction are those spoken by 1000
people or less (Held & Anthony, 2004).
4. UNEMPLOYMENT
Globalisation has caused specialization of labour. On one hand,
there is an increase in demand for skilled labours. However, it has
caused enough disadvantages for the unskilled labour group. There
are few employment opportunities for unskilled labours in a global
environment. The biggest problem for developed countries is that
jobs are lost and transferred to lower cost countries. According to
conservative estimates by Robert Scott of the Economic Policy
Institute, granting China most favoured nation status drained away
3.2 million jobs, including 2.4 million manufacturing jobs. He pegs
the net losses due to our trade deficit with Japan ($78.3 billion in
2013) at 896,000 jobs, as well as an additional 682,900 jobs from the
Mexico –U.S. trade-deficit run-up from 1994 through 2010.
5. UNFAIR WORKING CONDITIONS
Many multinationals have been accused of social injustice by exploiting
labour in underdeveloped countries in order to cut costs. Labourers are
provided unhealthy working conditions leading to health hazards. Many
large companies have also been accused of using child labour in their
factories in underdeveloped countries. Prisoners and child workers are
used to work in inhumane conditions. Safety standards are ignored to
produce cheap goods. There is also an increase in human trafficking.
Nike’s much publicized use of child labour along with poor working
conditions and low wages in its factories in Indonesia is a well-
documented example.
6. DOWNFALL OF LOCAL MARKETS

Local businesses, handloom industries, cottage and small-scale


industries have suffered a lot due to globalisation. The highly
specialized and efficient multi-national companies take advantages
of large-scale production and put products at throwaway prices. The
local industries could not compete with their global counterpart.
Also, the global economy is now interconnected. The economic
downfall of one major economic nation adversely affects the entire
global community.
7. HEALTH HAZARDS

Deadly diseases such as AIDS or other communicable diseases can


spread at very fast pace via travellers or due to other means as a direct
consequence of globalization. Besides, various health hazards related to
pollution like asthma, lung cancer, water borne diseases, etc. are also
rampant nowadays, due to globalization. The current lifestyle also
leads to a lot of stress and affects the mental health. Psychological
illness like anxiety, depression, internet addiction, voyeurism, suicidal
tendencies, etc. are also indirectly related to globalisation.
8. THREAT TO AGRICULTURE
Globalisation is also posing as a threat to agriculture in developing
and underdeveloped countries of the world. As with the WTO
trading provisions, agricultural commodities market of poor and
developing countries will be flooded farm goods from countries at a
rate much lower than that indigenous farm products leading to a
death-blow to many farmers.
IMPACTS OF GLOBALISATION IN INDIA

SOCIOCULTURAL

ECONOMIC PSYCHOLOGICAL

IMPACTS
ECONOMIC IMPACT
 Greater Number Of Jobs: The advent of foreign companies and growth in
economy has led to job creation. However, these jobs are concentrated more in the
services sector and this has led to rapid growth of service sector creating problems
for individuals with low level of education. The last decade came to be known for
its jobless growth as job creation was not proportionate to the level of economic
growth.
 More Choice To Consumers: Globalisation has led to a boom in consumer
products market. We have a range of choice in selecting goods unlike the times
where there were just a couple of manufacturers.
 Higher Disposable Incomes: People in cities working in high paying jobs have
greater income to spend on lifestyle goods. There has been an increase in the
demand of products like meat, egg, pulses, organic food as a result. It has also led
to protein inflation.
 Shrinking Agricultural Sector: Agriculture now contributes only about 15% to
GDP. The international norms imposed by WTO and other multilateral
organizations have reduced government support to agriculture. Greater
integration of global commodities markets leads to constant fluctuation in prices.
 Increasing Health-care Costs: Greater interconnections of the world has also
led to the increasing susceptibility to diseases. Whether it is the bird-flu virus or
Ebola, the diseases have taken a global turn, spreading far and wide. This results
in greater investment in healthcare system to fight such diseases.
 Child Labour: Despite prohibition of child labour by the Indian constitution,
over 60 to a 115 million children in India work. While most rural child workers
are agricultural labourers, urban children work in manufacturing, processing,
servicing and repairs. Globalization most directly exploits an estimated 300,000
Indian children who work in India’s hand-knotted carpet industry, which exports
over $300 million worth of goods a year.
SOCIOCULTURAL IMPACT
 Access To Education: On one hand globalisation has aided in the explosion of
information on the web that has helped in greater awareness among people. It
has also led to greater need for specialisation and promotion of higher
education in the country. On the flip side the advent of private education,
coaching classes and paid study material has created a gap between the haves
and have-nots. It has become increasingly difficult for an individual to obtain
higher education.
 Growth Of Cities: It has been estimated that by 2050 more than 50% of
India’s population will live in cities. The boom of services sector and city centric
job creation has led to increasing rural to urban migration.
 Indian Cuisine: is one of the most popular cuisines across the globe.
Historically, Indian spices and herbs were one of the most sought after trade
commodities. Pizzas, burgers, Chinese foods and other Western foods have
become quite popular.
 Clothing: Traditional Indian clothes for women are the saris, suits, etc. and
for men, traditional clothes are the dhoti, kurta. Hindu married women also
adorned the red bindi and sindur, but now, it is no more a compulsion. Rather,
Indo-western clothing, the fusion of Western and Sub continental fashion is in
trend. Wearing jeans, t-shirts, mini skirts have become common among Indian
girls.
 Indian Performing Arts: The Indian Classical music has gained worldwide
recognition but recently, western music is too becoming very popular in our
country. Fusing Indian music along with western music is encouraged among
musicians. More Indian dance shows are held globally. The number of
foreigners who are eager to learn Bharatanatyam is rising. Western dance
forms such as Jazz, Hip hop, Salsa, Ballet have become common among Indian
youngsters.
SOCIOCULTURAL IMPACT
 Nuclear Families: The increasing migration coupled with financial
independence has led to the breaking of joint families into nuclear ones. The
western influence of individualism has led to an aspirational generation of
youth. Concepts of national identity, family, job and tradition are changing
rapidly and significantly.
 Old Age Vulnerability: The rise of nuclear families has reduced the social
security that the joint family provided. This has led to greater economic, health
and emotional vulnerability of old age individuals.
 Pervasive Media: There is greater access to news, music, movies, videos from
around the world. Foreign media houses have increased their presence in
India. India is part of the global launch of Hollywood movies which is very well
received here. It has a psychological, social and cultural influence on our
society.
 McDonaldization: A term denoting the increasing rationalization of the
routine tasks of everyday life. It becomes manifested when a culture adopts the
characteristics of a fast-food restaurant. McDonaldization is a
reconceptualization of rationalization, or moving from traditional to rational
modes of thought, and scientific management.
 Walmartization: A term referring to profound transformations in regional
and global economies through the sheer size, influence, and power of the big-
box department store Walmart. It can be seen with the rise of big businesses
which have nearly killed the small traditional businesses in our society.
PSYCHOLOGICAL IMPACT
 Development of Bicultural Identity: The first is the development of a bicultural identity
or perhaps a hybrid identity, which means that part of one’s identity is rooted in the local
culture while another part stems from an awareness of one’s relation to the global world. The
development of global identities is no longer just a part of immigrants and ethnic minorities.
People today especially the young develop an identity that gives them a sense of belonging to
a worldwide culture, which includes an awareness of events, practices, styles and information
that are a part of the global culture. Media such as television and especially the Internet,
which allows for instant communication with any place in the world, play an important part
in developing a global identity. A good example of bicultural identity is among the educated
youth in India who despite being integrated into the global fast paced technological world,
may continue to have deep rooted traditional Indian values with respect to their personal
lives and choices such as preference for an arranged marriage, caring for parents in their old
age. Second, the pervasiveness of Identity Confusion may be increasing among young
people in non-western cultures. As local cultures change in response to globalization, some
young people find themselves at home neither the local culture nor the global culture. Thus
this results in problems like depression, suicide and substance use.
PSYCHOLOGICAL IMPACT
 Growth of Self-Selected Culture: It means people choose to form
groups with like-minded persons who wish to have an identity that is
untainted by the global culture and its values. The values of the global
culture, which are based on individualism, free market economics, and
democracy and include freedom, of choice, individual rights, openness to
change, and tolerance of differences are part of western values. For most
people worldwide, what the global culture has to offer is appealing. One of
the most vehement criticisms of globalization is that it threatens to create
one homogeneous worldwide culture in which all children grow up
wanting to be like the latest pop music star, eat Big Macs, vacation at
Disney World, and wear blue jeans and Nikes.
PSYCHOLOGICAL IMPACT
 Emerging Adulthood: The timing of transitions to adult roles such as work,
marriage and parenthood are occurring at later stages in most parts of the world as
the need for preparing for jobs in an economy that is highly technological and
information based is slowly extending from the late teens to the mid-twenties.
Additionally, as the traditional hierarchies of authority weaken and break down
under the pressure of globalization, the youth are forced to develop control over their
own lives including marriage and parenthood. The spread of emerging adulthood is
related to issues of identity.
 Consumerism: Consumerism has permeated and changed the fabric of
contemporary Indian society. Western fashions are coming to India: the traditional
Indian dress is increasingly being displaced by western dresses especially in urban
areas. Media- movies and serials- set a stage for patterns of behaviour, dress codes
and jargon. There is a changing need to consume more and more of everything.
GLOBALIZATION OF MENTAL HEALTH:
AN UNMET CHALLENGE
Mental health is a state of well-being whereby individuals recognize their
abilities, are able to cope with normal stresses of life, work productively and
fruitfully and make a contribution to their communities. The prevalence of
mental disorders is closely related to social, economic and cultural conditions.
Mental ill health is occupying an increasingly larger space within the world
disease burden. Saraceno has shown that poverty and mental disorders feed
into each other, one leading to another in a vicious circle that has to be broken
by either the eradication of poverty or adequate intervention with patients
with mental disorders or preferably both. More alarmingly, he showed that
the gap between the treated and untreated is higher for child and adolescent
disorders than for major depression or schizophrenia (i.e., the coming
generations which will hold the responsibility of the world are the ones which
are the most marginalized in the provision of mental health care).
EFFECT OF GLOBALIZATION ON
PSYCHIATRIC CLINICAL PRACTICE
In psychiatry, the most important aspect of globalization is delivering mental
health services in an equitable pattern, providing equal treatment and
establishing equal outcome to our patient population, no matter which part of the
world they come from. So far, globalization has affected psychiatric clinical
practice in a multitude of ways, which unfortunately do not include a worldwide
provision or access to mental health care services.
 Increased ethnic and cultural diversity of service users has led to a wider range
of attitudes and beliefs in relation to mental illness.
 Increased ethnic and cultural diversity of service providers has led to a wider
range of approaches and beliefs in relation to mental health care.
 In developed countries, increased rates of inward migration have led to
increases of migration-associated mental disorders. In rapidly developing
countries, socioeconomic changes and life events have led to increases in rates
of mental disorders.
 In all countries, the development of technology has led to increased information
on a range of health care services, resulting in increased demand.
 Finally, globalization has contributed to an increased emphasis on the
implementation of international protocols in psychiatric training, mental
health policy and the protection of human rights of mental patients. It has also
resulted into a thorough examination of the concept of social capital and its
influence on the mental health of populations.

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