Globalization and South Asia: A Perspective

Abstract

This article is about the contribution of increased international trade to the growth of international inequality and disparities between the developed and developing worlds. The central argument is that globalization in the nineteenth century created the present-day Third World, and contemporary globalization perpetuates this marginalization of the developing world. The difference lies in the fact that global disparities and inequities are far more transparent in our virtually uncensored information age. Throughout this article, I mainly refer to the ‘increased trade’ aspect of globalization, particularly the policy imperative to engineer increased trade, which is so keenly advocated by economic development specialists from both the North and the South. I also stress the hegemonistic and coercive aspect of globalization, which governs the asymmetric and unequal interaction between the North and the South. The processes of marginalization of the Third World during the two historical phases of globalization have certain striking historical similarities. I discuss mechanisms through which the growth of international trade may not promote convergence in incomes between North and South, utilizing in particular the new theories of international trade. I describe the nature of international inequality in our age of globalization. The article also traces the relative success of the South Asian region during the post-1980 period of rapid globalization. Finally, the article concludes by reviewing the backlash to globalization in our digital age, along with historical parallels.