The Paradoxical Relationship of Globalization and the State - Coursework Example

The Paradoxical Relationship of Globalisation and the State Outline Introduction Background of the Study Statement of the Problem Objectives of the Study Significance of the Study Review of Related Literatures a) An Understanding of the Phenomenon of Globalisation b) An Interpretation of the Power of the State c) The State as an Advocate of Globalisation d) The Impacts of Globalisation on the State Power Conclusion Introduction Background of the Study Globalisation is an extensively used concept to provide a description and explanation of the so many existing occurrences in the world. Given this, it is referred to as the master concept of this period in time. In its most simplistic definition, globalisation is the process that accounts to the becoming more interconnected of the world despite the existing national borders of different countries. One of its impacts can be further witnessed and experienced in the economic realm. Castells (2001: 52) suggested that with globalisation, the fundamental economic activities have gone global and similarly, it serves as doors for exposing numerous chances for economic advancement. Meanwhile, the national government has the power to govern its territorial boundaries. The state functions as a source of institutions which set up the rules of the game or even offer a playing field for that particular game. It likewise provides the distribution of income. Most especially, the state is an advocate of national economic growth. In this manner, the state is involved in a more active role in economic development as it governs the market (Reinert, 1999: 279 - 284). Because of the probable positive effects of the globalisation on economy and the state as an agent of economy, the state functions a role of being a key advocate of globalisation. Nonetheless, in the process, the effect is that the power of the state weakens. Statement of the Problem With the contextualisation of the background of this research investigation, basically, the key question that frames this study is why would the state function the role of being key advocate of globalisation if one among the impact of globalisation to the state is that it erodes its power. Given this problem, this paradoxical relationship of how the state function as key advocates of globalisation and how globalisation erodes the power of the state must be critically reviewed, analysed, understood and explained. Objectives of the Study This research mainly aims to provide an explanation of the existing paradoxical relationship between globalisation and the power of the state. In order to further understand the focus of this study, this research intends to specifically obtain the following information. First, it points towards understanding globalisation as a phenomenon. Second, it seeks to define the state and its power. Third, it wants to critically determine how the state plays the function of being the key advocate of globalisation. Fourth, it endeavours to find out how the phenomenon of globalisation erodes the power of the state. Significance of the Study It is the case that there have been so many attempts in defining, explaining and at the same time, delimiting the impacts of globalisation. It is in this regard why this research is of significance. The necessity to have this research is backed up by the point that globalisation is the principal concept in this day and age. With the given totalising effects of globalisation, the field of politics, especially the function of the state and its power, is also affected. In addition to that, it is earlier situated that there exists a paradoxical relationship between globalisation and the state. With such, it is of importance to critically review and analyse this contradictory relationship as to gauge an understanding of such definite ambivalence. Such paradox is in need of understanding through a social, political and historical approach. With the conduct of this research, understanding and explaining that particular paradoxical relationship can be contributed to the academic field. Review of Related Literatures This part of the paper will first present a general idea of the available literatures about sociology and the power of state. This review aims to offer a cursory outlook at how the range of presented data is sought to address the problem of this paper. In order to grasp an understanding of the existing paradox on the relationship of the state, power and globalisation, this section is categorised into the following segments namely: a) An Understanding of the Phenomenon of Globalisation, b) An Interpretation of the Power of the State, c) The State as an Advocate of Globalisation, and d) The Impacts of Globalisation on the State Power. Meanwhile, it is crucial to note that the reviewed books, articles and other materials presented in this paper is not an account of the entire array of the information regarding the topic under study. However, these literatures are reviewed, scrutinised and presented in order to help in grasping a social, political and historical outlook on how to understand this contradictory issue being analysed. a) An Understanding of the Phenomenon of Globalisation Given that it is a concept that is widely utilised as to provide a description and explanation of the so many existing worldwide occurrences, globalisation happens to be the master notion of this period in time. As a concept, the simplest explanation of the globalisation is the process that accounts to the becoming more interconnected and more integrated of the world despite the existing national borders. Globalisation is referred by Anthony McGrew (1992: 23) as the diversity of connections as well as interconnections among different societies and states that forms the structure of the modern world system. Given the interconnectedness, even the significant consequences in one part of the world can be felt to a certain extent by the individuals as well as communities in the distant parts of the world (McGrew, 1992: 23). According to Anthony Giddens (1990: 64), how geography is understood and how localness is experienced are changed because globalisation makes the world seem to be borderless through intensifying the social relations of the whole world in such a manner that it still integrates the so many distant localities. Croucher (2004: 10) suggested that the developed and developing countries are integrated via the intensification of specialisation for the purpose of economic growth, hence, economic integration despite the national boundaries. On the one hand, it is stated by Castells (2001: 52) that since the central economic activities have gone global with globalisation, it can be observed how different firms in various countries have become so competitive and productive. Meanwhile, the phenomenon of globalisation has likewise enabled the previously done only through face – to – face or local interactions, relationships and activities to be even made at a greater distance (Gray, 1999: 57). Henceforth, there is a de – localisation in the exchanges in both the social as well as economic aspects (Gray, 1999: 57). Without a doubt, this particular phenomenon of globalisation serves as a door for exposing numerous chances for economic advancement. Nonetheless, despite the positive impacts it serves for the economy, globalisation is not free from any negative risks. Ulrick Beck (1992: 13) reasoned that the probable risks and harms of globalisation are brought by the economic as well as technological transformations. This is for the reason that the power of technology and economy is intensified, have gone global and have immersed under the borders. On the one hand, the more particular description of globalisation is more inclined to focus on the economic aspect. With globalisation, it is possible for the firms are getting bigger internationally (OECD, 1996: 9). This definition is agreed by the Economist (Sept. 19, 1992: 5). For the Economist (Sept. 19, 1992: 5), globalisation has a totalising impact of being able to adapt all ways of things such as the growth of international joint ventures, the expansion of trade at the international level, the advancement of multinational businesses and others. In addition to that, given the capital flows, the growing interdependence is also an impact of this particular phenomenon (Economist, Sept. 19, 1992: 5). Meanwhile, it is of importance to note that this particular phenomenon is not as plain and simple as modernisation and westernisation, or not even as fixed as liberalisation of markets but something larger than the ways of internationalisation as well as universalisation. b) An Interpretation of the Power of the State The simplest and most obvious interpretation of the power of the state is that it has the ability to govern people as well as impose order within its territorial boundaries. According to Reinert (1999: 279 - 284), there are three broad roles that the State is functioning. First, the state plays its role as a source of institutions. It is given the power to set up the rules of the games or even to offer a playing field of such particular game. The state sets up the most important institutions of the society, including the civil or legal state. With the secondary demands, the state has also the power to extend a culture state to its people. By this means, the national government offers its people different institutions for education, health, sanitation, charity, science, justice and others. Second, the state serves a function of providing the distribution of income. However, there is a dilemma with this second role since the state has also the power to distribute this income equally or unequally depending on its level of priority. Third, the state is an advocate of national economic growth. Without a doubt, the state is engaged in a more active role in economic development since it governs the market. It grows the country into the right business and builds strategies on how to successfully catch up with the more advanced nations, hence comparative advantage in the right business. Likewise, the state provides the infrastructures as an element of economy in extending the markets. Apart from those, the state has a really crucial role of setting the standards, may it be legally or other aspects, from lowering transaction costs to creating grounds for uniform and harmonised mass production. The state is also accountable to supply the needs for skilled labour and entrepreneurship if needed. It is also the case that the state functions a role of building its own demand. In addition to that, it serves a function of pushing the technological frontier. On the one hand, the state recognises the significance of legal system in the strengthening and supporting the aims for having a competitive national economy. Lastly, it is of importance to note that the state is also an entrepreneur as well as a capitalist in itself. This is because the state is an economic agent. c) The State as an Advocate of Globalisation It is indeed the case that the state has a big role to play to its nation as well as its people. It has so many roles to perform to its country in which one of the most important areas it serves is its role to the national economy. The state plays a role of being an economic agent that governs the market and drives the national economy towards growth and development. On the one hand, globalisation as a phenomenon has been earlier contextualised in which its more specific definition is more inclined towards the economic aspect. Globalisation has an impact to the economy of being able to adapt all ways of things such as the growth of international joint ventures, the expansion of trade at the international level, the advancement of multinational businesses and others. In addition to that, given the capital flows, the growing interdependence is also an impact of this particular phenomenon (Economist, Sept. 19, 1992: 5). Given the possible positive impacts of globalisation on the national economy, the state supports this phenomenon. The state has the power to create conditions as well as make policies that are proficient for the international governance (Hirst & Thompson, 1996: 170). With this power, Hirst and Thompson (1996: 170) argued that the state or the national government still remains to play the role of the key advocate of globalisation. The state is influenced to support globalisation because of the possibly positive consequences it can offer to the national economy (Leys, 2001: 1). In order for the national economy to survive, the state should manage and rule politics that are being accustomed with forces, demands as well as pressures of the transnational market forces (Leys, 2001: 1). However, on the sad note, there remains a problem of how the national government frames how they think in the creation of such policies. d) The Impacts of Globalisation on the State Power Globalisation is indeed so much a big phenomenon that includes a wide range of processes. The probable positive consequences of the globalisation on the national economy are previously specified. While it may possibly strengthen the national economy, on the sad note, globalisation weakens the power of national government though. Indeed, the state is an economic agent that governs the market but once the effects of globalisation have taken its place, the national government no longer has the power to control and shape their economies. The national government does not hold the power to control and shape their economies despite the case that the national government is the key institution in making the conditions and policies that are deemed efficient for internal governance (Hirst & Thompson, 1996: 170). When the state creates policies in order for the national economy to survive, what are adapted are the pressures and demands of the transnational market forces (Leys, 2001: 1). In this regard, globalisation weakens the control of the state. While it is the case that as the integration and interconnectedness of the world economy progress, the consequences on the national government are serious. According to Weiss (2000: 1), the importance of the national government is turning out to be reduced. The power of the state is eradicated to shape its effects on the macroeconomic level and also to carry out its social agendas (Weiss, 2000: 1). True enough, while the integration of world economy further develops, the state power to determine what strategies are to be made to govern the industrial economy is eroded as well. According to Strange (1995: 294), the economic integration brought by globalisation impacts the national government to obliterate the national systems of financial regulations. Meanwhile, Weiss (2000: 6 - 7) stated that the actual existent issue of the state in this phenomenon is the sort of world economy it creates. Through the making of a transnational world economy, the national as well as international networks of integration are happened to be displaced. Given this influence of the globalisation process, the nation state is nothing but a hostage of the global market. It is in this manner that the emergence of the global economy is an indication of a world in which the national territorial space has been transcended by the exchanges of economy. Moreover, as an agent of economy, it is indeed the case that the state is much more inclined towards openness in terms of trade, investment and finance which evidences a new global rationale of capitalism. Given this global logic of capitalism, now, the state happens to be a virtually powerless agent in establishing genuine policy options as it is just obliged to embrace the offered monetary, economic as well as social policy rules. Conclusion The key question that frames this study is why would the state function the role of being key advocate of globalisation if one among the impact of globalisation to the state is that it erodes its power. Basically, the explanation on this paradoxical relationship is grounded on the economic aspect. The state is tasked a role to govern the national economic growth. In this case, the national government should develop and build its strategies on how it can successfully catch up with the more advanced nations. In the process of comparing with the developed nations, it is clearly the case how these countries have adapted this globalisation in which the effects on their economies are advantageous. Given the hopes of positive effects on the economy, in particular, that the national economy will progress, the states are influenced or forced to promote, support and strengthen globalisation. Nonetheless, once the effects of transnational economic integration have taken its place, the power of the state weakens and the state no longer has the power to control and shape their economies. Indeed, the state has the control to create policies though it is the case that the national government is trapped in the invisible hands of global markets in which it just tends to adapt the pressures and demands of the transnational forces. In this regard, the national government happens to be less relevant since its power to shape the macroeconomic aspects is lessened and likewise, its capacity to implement social agendas is decreased. Because the world economy happens to more and more integrated, the state loses its power to determine what strategies are to be made to govern the industrial economy. References: Beck, U. 1992. Risk society, London: Sage. Castells, M. 2001. Information technology and global capitalism. In W. Hutton and A. Giddens. (eds.) On the Edge. living with global capitalism, London: Vintage.  Croucher, S.L. 2004. Globalization and belonging: The politics of identity in a changing world. Rowman & Littlefield. Giddens, A. 1990. The consequences of modernity. Stanford: Stanford University Press. Gray, J. 1999. False dawn:the delusions of global capitalism. London: Granta. Hirst, P. and Thompson, G. 2nd eds., 1996. Globalization in Question: The International Economy and the Possibilities of Governance. Polity Press Leys, C. 2001. Market-driven politics: Neoliberal democracy and the public interest., London: Verso Books. McGrew, Anthony. 1992. “Conceptualizing Global Politics.” A. McGrew, P.G. Lewis, et al., eds., Global Politics: Globalization and the Nation-State. Cambridge: 14 DEVELOPMENT AND SOCIETY Polity Press. OECD. 1996. “Overview and Sector Reports.” Globalisation of Industry. Paris: OECD. Reinert, E.S. 1999. “The Role of State in Economic Growth.” Journal of Economic Studies I26 (4/5): 268-326. Strange, S. 1995. “The Limits of Politics.” Government and Opposition 30 (3): 291-311. Weiss, L. 2000. “Globalization and the State Power.” Development and Society 29 (1): 1-15. Read More