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The Nation-State and Globalisation


The Nation-State and Globalisation Objectives of Lecture Critically explore the relationship between the development of the nation-state and capitalism Assess ... – PowerPoint PPT presentation

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Title: The Nation-State and Globalisation

The Nation-State and Globalisation
Objectives of Lecture
  • Critically explore the relationship between the
    development of the nation-state and capitalism
  • Assess competing explanations of ways in which
    contemporary processes of globalization are
    impacting on states

Structure of Lecture
  • Section One Exploration of two approaches to
    understand relationship between Market and the
  • Section Two Analyzes of Contemporary Processes
    of State Restructuring

Section One Two Competing Accounts of Capitalism
and Nation-State
  • Liberal understanding of state and market of
    Cerny and Strange which understands these as
    distinct entities
  • Open Marxist account of state/market which
    understands the state as a regulatory agent and
    manifestation of wider social relations of

  • Liberal View
  • Relatively simple. State and Market as separate
    (potentially oppositional) entities.
  • If not a zero sum power game between the two than
    certainly a balance of power between the two

  • For Strange and Cerny Expansion of Markets,
    particularly transnational markets undermines the
    autonomy and/or effectiveness of national public
  • See also Michael Mann, Saskia Sassen, Popular
    policy discourse and oddly Hirst and Thompson

  • Clearest Statement is provided by Susan Strange
  • The impersonal forces of world markets,
    integrated over the postwar period more by
    private enterprise in finance, industry and trade
    than by the cooperative decisions of governments,
    are now more powerful than the states to whom
    political authority is supposed to belong

  • Cerny position is more complicated. For Cerny
    what is in decline is not so much state capacity
    as state autonomy
  • Increased openness forces shift from welfare to
    competition state
  • Shift from welfare to enterprise,
    self-sufficiency to flexible shift to market
    conditions and macroeconomic to the microeconomic

  • Historical Materialist Approach
  • Modern State is a product and reflection of
    capitalist relations of production
  • Modern State product of absolute property and the
    division of economic and political

  • The State is thus manifestation of wider set of
    social relations
  • It is a regulatory agency whose purpose is to
    insure the maintenance of capitalism (the
    completion of circuit)
  • Talk of autonomy is nonsense

  • There is difference between rather dismissive
    approach to globalization of Woods and other
    scholars who seriously consider the impact of
    changes in the composition of global markets on
    how state performs regulatory function.
  • For example Burnham and Depoliticisation

  • Although methods share little in common and
    critically influence understanding of
    contemporary processes there is a least a
    superficial similarities between the conclusions
    of certain Marxists and Cerny. But process and
    history are important.

Contemporary Processes of State Restructuring
  • In a sense we need to assess different theories
    of state transformation through a empirical
    analyses testing different theories
  • However, there are problems with seeking
    empirical answers to questions of state
    transformation through a simple analyse of

  • The same concrete phenomena can look very
    different depending on the analytical position
    you approach it from
  • For example, Strange/Harvey on failures of
    systems of financial regulation

  • Also question of establishing material/ideational
  • Finally, problem of an wealth of evidence. A
    accurate assessment of global state restructuring
    requires an impossibly broad knowledge of
    political economy

  • Nevertheless I would argue that we are witnessing
    a new dominant state form developing and that the
    composition of state can be understand as
    reflecting changes in composition of global
    markets. 7 policy areas.

  • Monetary policy Establishing of Independent
    Central Banks and rules based regimes which
    remove policy from political contestation

  • Financial regulation Market-based and Formal
    legal regulation

  • Corporate Governance Move to system based upon
    market/ shareholder discipline
  • German Corporate Sector Supervisory and
    Transparency Act in 1998
  • US 2002 SarbanesOxley Act

  • Industrial Policy Shift from securing
    competitiveness of particular national firms to
    meso-level competitiveness of the space

  • The organisation of public services
    Transformation of state itself into a sphere of

  • Labour Market Regulation Individualisation of
    Wage-Labour Relation. Flexibility. Welfare states
    become tools to promote competitiveness

  • Regulatory Reform
  • Independent regulatory agencies
  • Purpose of reform is correct market failures and
    enhance competition \
  • Market based regulation
  • Globally recognized regulatory standards

  • Serious Problems with attempting to attribute
    changes to either ideological mirage of
    Globalisation or domestic politics. However,
    there is no reason to necessarily privilege the
    spatial nor overstate previous autonomy

  • How we understand the basic relationship between
    state and market/capital is critical to how we
    understand globalisation
  • Our answers to the key questions concerning the
    state almost over determines our answer to
    subsequent questions concerning welfare etc
  • Difficult questions to reach definite conclusions

  • Have a good break!