Globalization and its Impact on China and India in the Twenty First Century By Rana Eijaz Ahmad

253 Pages·2015·1.36 MB·English

by  Rana Eijaz Ahmad

Globalization and its Impact on China and India in the Twenty First Century

By

Rana Eijaz Ahmad

Supervisor: Dr. Rukhsana A. Siddiqui
Submitted at the School of Politics and International Relations
Quaid-i-Azam University
Islamabad
Declaration
I hereby declare that this thesis is the result of my individual research and that it has not been
submitted concurrently to any other university for any other degree.

Rana Eijaz Ahmad
QUAID-I-AZAM UNIVERSITY
School of Politics and International Relations

This thesis is submitted in partial fulfillment of the requirement of the degree of Doctoral of
Philosophy in International Relations by Rana Eijaz Ahmad (Ph.D scholar of International
Relations).

Professor Dr. Rukhsana A. Siddiqui
Supervisor
School of Politics and International Relations

Dr. Zafar Nawaz Jaspal
Director
School of Politics and International Relations

External Examiner
I dedicate this research work

to my parents and my beloved wife cum friend

Abida Eijaz
iii

Acknowledgements
I am grateful to Allah for giving me the strength to complete this long journey.
My deepest gratitude goes to my supervisor Professor Dr. Rukhsana A. Siddiqui for her
untiring support and meticulous readings of innumerable drafts of this thesis. Her support even
continued online during her annual summer visits to Yale University from where she would
electronically navigate me in this most arduous task. It tested her patience but being a thorough
professional she persevered. She also persuaded Prof. Dr. Hasan Askari Rizvi, Prof. Dr. Saeed
Sahfqat and Dr. Shabib Haider to give some comments on my draft. I am most grateful to these
scholars in my city, Lahore, for giving me their precious time.
A note of thanks to the Chinese scholars Mr. Luo Peisen, senior advisor at the China
Institute for International & Strategic Studies, Dr. Su Jingxiang, a research professor and vice
director at The Centre for Globalization Studies in China, The Institute of Contemporary
International Relations, Mr. Zhao Gancheng, Director at the Department of South Asia Studies.
All these esteemed Chinese colleagues who gave me their valuable time for in-depth interviews
regarding my research.
Mr. Shamshad Ahmad Khan former foreign secretary of Pakistan not only helped me in
obtaining a Chinese visa but also arranged my appointments with different Chinese think tanks.
I am really indebted to him.
I am most grateful to my elder brother Rana Niaz Ahmad who has always been with me and
provided me all relevant literature in the form of books, only available in America.
I am truly indebted to my wife who stood by my side and her kind support while I worked on this
thesis.
Table of Contents

Acknowledgements iii
Abstract 1
Introduction 2
Literature Review 12
Hypotheses 17
Methodology 18
Chapter 1 25
Globalization: A Historical Perspective 25
Globalization: Theoretical Perspective 28
Scope of Globalization 44
Economic Globalization 44
Political Globalization 46
Social /Cultural Globalization 50
Environmental Degradation Resulting from Globalization 54
Chapter 2 60
Globalization and its Impact on China 60
Globalization and Its Impact on China’s Politics 68
China’s Politics in the Pre-Globalization Era 69
Globalization and its Impact on China’s Politics at Present 73
Globalization and its Impact on China’s Future Politics 77
China’s Economy in the Pre-Globalization Era 84
Globalization and its Impact on China’s economy at Present 85
Globalization and its Impact on China’s Economy in Future 98
Globalization and its impact on Chinese Environment 109
Chapter 3. 119
India and Globalization: Attributes 119
Globalization and Its Impact on: 121
India’s political placement 121
India’s political placement in the Past 121
Socio-cultural effects 147
Globalization and Environmental Degradation in India 152
Chapter 4.
Evaluation, Comparison and Contrast between Chinese and Indian Globalization 156
Global Financial Crises and its Spill over upon China and India 156
Chapter 5. 182
Conclusion 182
Lessons for Pakistan and other Developing Countries 190
Appendices 193
Bibliography 240
1
Abstract

This thesis examines the impact of globalization on China and India, specifically
focusing on economic, political and social domains and environmental issues. The method
adopted for studying the impact of globalization is primarily descriptive and based on qualitative
analysis. Since a visit to India could not be undertaken because of visa restrictions. The empirical
analysis is confined to China only. The past, present and future of the socio-political and
economic domains’ of the two countries under discussion are studied in depth to assess the
impact of globalization in the twenty first century. The impact is determined in the first thirty to
fifty years of the century and prediction is made for the whole century. The findings of the thesis
are that it is generally believed by the political scientists, journalists, and analysts that China is
emerging as an economic giant and India is following suit. The only disadvantage of
globalization can be seen, to be the threat posed to their social systems. At the end it is suggested
that the lessons of the impact of globalization on China and India should be learnt by the
neighbouring states including Pakistan.
The thesis also studies the utility of ‘system capabilities’ in a political system employed
by the leadership, as the efficiency level of the system capabilities determines the level of
development of a country. The status of ‘system capabilities’ is more important in the socio-
political and economic growth of a country rather than the form of government. In China the
leadership is utilizing the ‘system capabilities’ more efficiently as compared to India. This is
explained by the difference in the nature of governance in the two entities.
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Introduction
This thesis explores the impact of globalization on China and India in three areas of
human activity, economic, political, and social along with environmental concerns.
The thesis revolves around the main hypothesis; globalization is making an impact on
China and India but these countries also affect the globalization process. It is a two way process.
First, it shows two causal relationships between globalization and China and India. Second, the
response of a political system (in the case of China and India) is shaped primarily by its ‘system
capabilities.’ This attribute determines the nature of the impact of globalization on a country and
how the latter affects the globalization in return.
After undertaking the review of major literature on the subject, outlining the
methodologies adopted for the study, generalizes the statements on the nature and direction of
the present work, the first chapter examines the theoretical dimensions of globalization its scope,
different tools and models. The secondary sources are used to see the impact of globalization on
the socio-political and economic domains of China and India. It gives us valuable information
regarding the impact of globalization in the countries under discussion and vice versa.
In the second chapter, China is taken up as a case study. This research is based on
ethnography that deals with the established phenomenon of society and attempts to unearth
relationships of different variables. These belong to economic, political, cultural, and
environmental domains.
India is a case study in the third chapter. The researcher met a number of Indian scholars
and researchers during international conferences in America and Pakistan and discussed with
them the impact of globalization on India. The inferences drawn from these discussions have
been included in the study as a primary source.
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China and India are compared in the fourth chapter through qualitative analysis relying
on the material in the previous chapters. Primary and secondary sources are combined with
archival sources used for supporting the arguments regarding the impact of globalization on
China and India.
The fifth chapter presents the conclusions of the study and offers suggestions, and draws
lessons that can be useful for other countries coping with different impacts of globalization.
In Pakistan, this research is important, as no significant research has been done so far to
measure the impact of globalization on China and India in the twenty first century. Therefore, it
is the researcher’s original contribution in social sciences. It will help the students of political
science, economics, and international relations for further research.
Across the territorial boundaries of states, globalization is an increased
interconnectedness of the goods, services and peoples in economic, political, and social domains.
Globalization is a set of interconnected phenomena, which deal with economic, political, social
and environmental aspects of human life. There are varying tools of economic globalization such
as MNCs, IFIs, WTO, marketing and advertisement, which have been working in increased
interconnectedness owing to the communication revolution, which occurred after the Second
World War. The tools of political globalization are authority1 and legitimacy2 of the government.
The tools of social globalization are health, education, cultural values, family ties etc. The
communication revolution has charged the phenomenon of globalization in the twenty first
century. In its theoretical framework, globalization holds great promise for the developing
countries; although everything may not be viable for everyone. A detailed discussion on
suitability of globalization for the South3 will follow later.