Critically discuss about‘The economic globalization has reduced the role of the national state.’?
To explain and justify different phenomenon of the world globalization is a common used term. Globalization has been accepted by those that gave positive remarks by advocating the fact that it integrated the national borders and is rejected by those that posed globalization as a threat to social solidarity. Globalization is multifaceted, it has a prismatic nature. There are several question related to the phenomena globalization. First what is globalization? What is the relationship between globalization and the role of state? Before we start analyzing the impact of globalization on the role of state we need to understand what exactly globalization is.
The process of integrating cross border economic, social and cultural activities by increasing the flow or exchanging the flow of goods, services, capital, ideas, information and people is called the globalization. Globalization has both positive and negative impact on the economy. Hence globalization can neither be treated as solution to any problems prevailing in an economy, nor its presence be always detrimental. (Hering, 2007)Basically, there are four forces that thrive to the concept of interdependence between nations. They are:
- Liberalization of trade and investment.
- Technological innovation and communication cost reduction.
- Entrepreneurship and
- Global social networks.
It is most commonly believed that the main forces that drive globalization is trade liberalization and technological innovation. But these may not be considered as the sole factors behind the concept of economic integration. The role of the government here is important who has taken up market-oriented policies and regulations to allow greater interdependence and economic integration of certain activities, done both at the national and international level. When the government adopted economic liberalization by deregulation in the financial sector, removing the control over foreign exchange and installation of free trade, there was increased global integration in several economic areas in the year 1908s. (Kalekin-Fishman, 2011)
Some of the market oriented policies taken by the government included removal of trade barriers, world capital market liberalization and technological advancements in the field of information technology, transportation and telecommunications. These accelerated the exchange and movement of people, ideas, information, goods, services and capitals across boundaries. (Mehlika, 2015)
Considering our ever changing and modernizing world, globalization has successfully compressed the boundaries by bringing about changes in the structural organization of social relations and establishing transaction creating cross-regional flows and networks. Some believe that globalization has transformed the state extravagantly while others believe that globalization would be hogwash. The reality is that globalization has change or suppressed the role of state. The role of the state was initially created from Westphalian Model, depicting that the state must have the highest power along with complete sovereignty. The state is believed to serve dual role, internal role which was to govern for the people within the state and the external role of an impersonator in world politics. But the present role of the state is different for different field like political, social, technological and economical. The role of the state has definitely changed and there is high dependence of states on others. Britain and other western states, since the Second World War, rely structurally, financially, and militarily on the most powerful leader of the world, the USA. Since the 1945, the USA had been seen as the sole conveyor of capacity and determination to render leadership and control most of the state. This has resulted in a situation where Britain and other states could not really act autonomously. The major decision for the state relied upon the USA and their allies. Thus the change in the role of the state from an autocratic figure to a dependent state strengthened from the emergence of globalization. (Basu, 2008) (Stiglitz, 2003)
As already mentioned that the globalization is multidimensional causing integration of the world but this integration has also proved to be fatal for the states as they are more subject to risk now. Terrorism is one of the negative impacts of globalization. Terrorism is posed as the new power and control within its own system which resulted in the reduction of the role of the state. Basically terrorism aims at forming a new world of their own where they could control their own set of people and take over the role of the state completely. After the 9/11 terrorist attacks, US started to focus on states being more sovereign which helped in reversing the effect of terrorism and restoring back the role of the state. But this is a debatable ploy. The idea of not separating and isolating states is supported by the European Security Strategy by saying “no single country is able to tackle today’s complex problems on its own”, illuminating that the role, power and effectiveness of the state has decreased due to globalization problems. (Hashimov, n.d.)
Through technological advancement, the barriers between the different states have been removed. The media is one of the major forms of technological globalization. The sources of the media, newspapers and televisions put the impression that the world is one state and all the events across the world is just a touch away for nations and people faraway. A famous media centre in Britain is the BBC Worldwide, whose objective is to maximize profit by forming, creating, collecting, developing and exploiting media brands across the globe. (Bbcworldwide.com, 2015) This has weakened the role of the state because media is sharing information across the globe rather than the state. (Bertucci and Alberti, 2015)
The state control over rendering education has reduced due to global mass media. Also the internet became a forum of exchanging information between nations without the interference of the state. People or citizens now do not need to completely rely on the state for the purpose of education.
The globalized financial structure like online banking, stock markets etc also impacted the role of the state.
The advent of globalization can be viewed positive as trade has enhanced between states and also interstate relations improved. But it cannot be ignored that the overpowering role of America on other states who are unable to control their own global economy. The role of the state had changed because of globalization. The state has now transformed into a protector from a controller, from an authoritative figure to a dependent figure. So, globalization has been believed to reduce the role of the state but it is those that will stand up in the stream of globalization would be the on es who would successfully adapt the changed role of the state. (E-International Relations, 2015) (Wolf, 2001)
Basu, R. (2008). Globalisation & the changing role of the state. Elgin, IL: New Dawn Press Inc.
Bbcworldwide.com, (2015). UK & ANZ. [online] Available at: https://www.bbcworldwide.com/uk--anz.aspx [Accessed 14 Feb. 2015].
Bertucci, G. and Alberti, A. (2015). Globalization and the Role of the State: Challenges and Perspectives. [online] https://unpan1.un.org. Available at: https://unpan1.un.org/intradoc/groups/public/documents/un/unpan006225.pdf [Accessed 14 Feb. 2015].
E-International Relations, (2015). Has Globalisation Altered the Role of the State?. [online] Available at: https://www.e-ir.info/2012/11/24/has-globalisation-altered-the-role-of-states/ [Accessed 14 Feb. 2015].
Hashimov, I. (n.d.). Economic Globalization and the Role of Nation-State in Economy: The Case of EU. SSRN Journal.
Hering, M. (2007). Globalization and the Future of the Welfare State. PPS, 5(03), p.659.
Kalekin-Fishman, D. (2011). Andrew Jones, Globalization: Key Thinkers, Polity: Cambridge, UK and Malden, MA, 2010; 260 pp.: ISBN 9780745643212, 50.00 (hbk), ISBN 9780745643229, 15.99 (pbk). International Sociology, 26(2), pp.279-279.
Mehlika, f. (2015). GLOBALIZATION AND ITS SOCIAL-CULTURAL-POLITICAL AND ECONOMIC IMPACTS. [online] Academia.edu. Available at: https://www.academia.edu/4668865/GLOBALIZATION_AND_ITS_SOCIAL-CULTURAL-POLITICAL_AND_ECONOMIC_IMPACTS [Accessed 14 Feb. 2015].
Stiglitz, J. (2003). Globalization and the economic role of the state in the new millennium. Industrial and Corporate Change, 12(1), pp.3-26.
Tabb, W. (2004). Economic governance in the age of globalization. New York: Columbia University Press.
Wolf, M. (2001). Will the Nation-State Survive Globalization? | Foreign Affairs. [online] Foreignaffairs.com. Available at: https://www.foreignaffairs.com/articles/56665/martin-wolf/will-the-nation-state-survive-globalization [Accessed 14 Feb. 2015].