Because of globalization ULGs are facing following impact.
(a) Urban Local Governments have to maintain customer-supplier relationship.
(b) More autonomy is given to ULGs.
(c) People’s involvement in ULGs is increasing more.
(d) Bigger and more integrated world economy becomes, more important and powerful comes close to each other because of ULGs.
(e) Polarization of different class of people like rich and poor demands greater action by ULGs.
There are two intermediate concepts like Global and local to analyze Globalization and Localization, which shows that global and local are two sides at the same coin. Thus a balance can be struck, between them.
Global is a combination of two terms global and local which refers to the individual, group, division, unit organization and community.
Globalization is a continuous process and since its inception, there have been constructive discussions on the impact of globalization especially in developing nations.
The following are the major points of debate in the process of globalization
(1) For some people the process of globalization is inexorable integration of markets, nation states and technologies whereas some others argue that it is not an inexorable process but a deliberate ideal logical project to assert the supremacy of markets.
(2) Some argue that globalization would result in a new era of development, and global integration spells the end of nation state while some others would strongly contest this argument as they believe that globalisation is another form of capitalism.
(3) Globalization would result in integration of cultures by diminishing differences in various cultures. Global norms, ideas or practices overtake local cultures.
It would result in ‘cultural imperialism but some others point out that instead of creating homogeneous cultures globalisation would result in more heterogeneity.
Interaction between cultures would lead to formation of new cultures as global norms and practices are integrated differently according to local traditions.
Global vs Local debate has resulted in the emergence of glocalisation which is a mixture of Globalization and Localization.
The term global refers to individual, group, organization and community which is willing to think globally and act locally. The term has been used to show the human capacity to bridge the scale (from local to global) and to overcome traditional thinking processes.
Traditional views on Globalization always treated it as a major threat facing developing nations but could never recognize its positive aspects. The process of glocalisation helps in enhancing the capabilities of people at the ground level to maximise the benefits of Globalization.