The concept of globalisation can be broken down into distinct phases, each characterised by specific features that have shaped the global economic and social landscape. Below is a summary of the key points relevant to UPSC Mains:
Globalisation 1.0 (Pre-World War I Era: 19th century to 1914)
Trade and Economic Growth:Significant trade expansion was driven by technological innovations such as steamships, railways, and the opening of the Suez Canal in 1869. These advancements shortened trade routes, boosting global commerce, particularly between Europe and Asia.
Minimal Government Involvement:Laissez-faire policies prevailed, with limited government intervention in economic affairs.
Lack of Global Governance:Trade was largely bilateral and informal, with no formal international governance structures in place.
Globalization 2.0 (Post-World War II: Mid-20th century to late 1980s)
Increased Goods Trade:Trade expansion was driven by post-war reconstruction efforts, notably the Marshall Plan, and the revitalization of European economies.
Supportive Domestic Policies:Governments reduced tariffs and invested in infrastructure to support international trade.
Introduction of Rule-Based Governance:International institutions like the UN (1945), IMF, World Bank, GATT (precursor to the WTO), and ILO were established to promote global cooperation and set standards.
Economic Role Division:Markets focused on efficiency, while governments ensured equitable distribution of resources, as exemplified by the Bretton Woods System.
Globalization 3.0 (Late 20th Century to Early 21st Century)
Manufacturing Transformation:The integration of high-tech processes with low-wage labor, particularly in countries like China, characterized this phase. "Made in China" products became synonymous with this era.
Global Supply Chains:Complex supply chains emerged, with production spread across multiple countries, such as in smartphone production.
Expansion Across Borders:Companies expanded operations globally, benefiting from economies of scale and lower production costs.
Globalisation 4.0 (Current and Ongoing Era)
Intensified Competition:Service-oriented professionals, such as IT workers, now face global competition for jobs, reflecting deeper market integration.
Technological Revolution:Technologies like AI, IoT, big data, and cyber-physical systems are revolutionizing industries, including telemedicine and automated trading.
Shift in Work Dynamics:Remote work has become widespread, especially post-COVID-19, altering traditional work patterns and migration trends. Platforms like Upwork and tools like Zoom facilitate global collaboration without physical relocation.
Each wave of globalisation has uniquely influenced societal and economic structures worldwide. Understanding these phases is crucial for analyzing current global trends, such as technological advancements, market integration, and shifts in work dynamics. This knowledge is essential for comprehensive UPSC preparation.