Globalisation Of The Economy And The Nation State

9788 words - 39 pages

1. INTRODUCTIONThe international economic organisations (IMF, World Bank, OECD, WTO, etc.) and most economists hold the view that global economic integration represents a vehicle for significant welfare enhancement.[1] The political climate on the level of the nation states, however, does not reflect this optimism. On the contrary, the catchword 'globalisation' appears to acquire more and more a decidedly negative connotation. It has become popular among national politicians, the media and sometimes even members of the business community to blame anonymous and sinister global market forces for all kinds of political and economic problems. Above all, the so-called 'globalisation trap' is held responsible for unpleasant labour market conditions -- unemployment in Europe and real wage reductions of low and middle income families in the United States -- and for the alleged dismantling of the welfare state.The two views, in principle, need not be contradictory. The changes concomitant to global economic integration clearly do have distributional consequences. In other words, there are gainers and losers from globalisation. The opponents of economic integration may thus simply place more emphasis on questions of distribution than those who advocate globalisation without qualifications. In any case, in order to properly evaluate the situation at hand, the efficiency and distribution effects of global economic integration need to be analysed in detail -- a task that the economics profession has attended to with great zeal over the last few years.The literature on globalisation falls into two categories. The first strand deals with the effects of globalisation on the primary distribution of (labour and capital) income. This literature, which has its roots in the 'trade and wages debate' conducted mainly by economists, is discussed in two recent 'symposia' published by the Journal of Economic Perspectives (Vol. 9, No. 3, 1995) and by the Economic Journal (Vol. 108, September 1998). Economists as well as political scientists have contributed to the second strand which investigates the more indirect effects working through globalisation-induced changes in government activities. Though indirect, these effects seem to cause just as much, if not more, anxiety than the realignments in the labour markets. It has, for example, been claimed that capital mobility renders the tax basis increasingly footloose and thereby seriously reduces the nation states' ability to conduct redistribution policies. (Kurzer, 1993, for example, adopts this view. Claims about dire consequences of globalisation for the nation state are, however, nothing new. Garrett, 1998a, summarises the literature under the heading 'Deja vu all over again.') Moreover, capital-market integration, as a rule, takes place in conjunction with international trade integration, i.e. in a situation characterised by increased exposure to external risk. In such a situation -- as has been observed by a long line...

Find Another Essay On Globalisation of The Economy and The Nation State

The Characteristics of the Nation-State and Transnational Entities

1285 words - 5 pages Nation-states deal certain characteristics of self-rule, organized government, territory, and population. Self-rule implies that nation-states rule themselves. They are free and not colonies of some other country. For example, the U.S. was a colony of Great Britain until the American Revolution. As a consequence of the American Revolution, the United States formed a nation-state. Organized government is the manner in which nation-states rule

State Intervention and the Economy Essay

1251 words - 5 pages It is widely believed by scholars that many of the varying levels of economic development between states are the direct result of a negative correlation between the aforementioned and the varying degrees of state intervention. In most cases it is evident that the more a state intervenes in its economy, the less the country will develop. While, at the same time, a country whose intervention exists at a minimal level will tend to have a stronger

The State of France's Economy

2383 words - 10 pages largest economy. According to The Columbia Electronic Encyclopedia, “The government has since reduced its holdings in many companies, although it still controls energy production, public transportation, and defense industries” ( France is the wealthiest nation in Europe and fourth in the world, in terms of household wealth. The country is the most visited country in the world and is very famous for its culture and one-of-a-kind

The Expansion of the Nation-State System

1171 words - 5 pages interdependent upon one another, and the majority of the global economy’s goods follow the commodity chains throughout all of the different zones (Fincher 2014e). Works Cited Fincher, Warren. a. “A Community of States: The Expansion of the Nation-State System.” Class lecture, Global Cultures from Saginaw Valley State University, Saginaw, MI, January 30, 2014. b. “Capitalism and Corporations: The Division of Labor in the Modern World System

Characteristics of the Modern Nation-State

1503 words - 6 pages the east. Egypt's economy depends mainly on agriculture, media, energy, and tourism as stated by an online article from the Full Wiki ("The full wiki," 2010). The United States fits the criteria of and functions as a modern nation-state due to many reasons; one of which is the constitution, which states, “…for the people by the people”. The U.S. government has an organized government; they are separated into three branches: executive

Migration from the Nation-State of Singapore

573 words - 2 pages Singapore as a nation-state enmeshed in the globalizing circuits of capital, information, ideas and human flows (Ho, 2006) represent a unique case in the study of migration, where migration can significantly affect the nation’s total population and its make-up more than natural increase. Recent concerns over Singapore’s falling birth rates and the need to inject the economy with foreign labor has sparked discussions over issues of


1733 words - 7 pages 1. Introduction Globalisation, the process of integration and interconnectedness at and across all levels, especially through the economy, has resulted in the transformation of the traditional state. Power is shifting away from the state towards global markets and transnational corporations. However, this does not mean the complete end of the traditional state and its sovereignty. In order to compete in the globalised world, states have

The Current State of the U.S. Economy

632 words - 3 pages The Current State of the U.S. Economy The United States economy is racing ahead at dangerous speeds, and it may be too late to prevent the return of widespread inflation. Ideally the economy should move ahead gradually and grow at a steady manageable rate. Mae West once stated “Too much of a good thing can be wonderful” and it seems the U.S. Treasury Secretary agrees. The Secretary announced that due to our increasing surplus and booming

The Overall State of the Economy

787 words - 3 pages The overall state of the economy M r. President! It is with due respect that I would like to express my gratitude for the invitation. Owing to the major issue at hand, we are aware that most countries are still grappling as a result of the after effects of the Economic crunch that has been taking place. The meltdown has mainly been triggered by our banking system liquidity crises which resulted to the collapse of large financial institutes in a

What is the impact of globalization on the sovereignty and autonomy of the nation-state?

1527 words - 6 pages intend to briefly define globalization, explain the term nation state, describe how globalization is manifesting itself and discuss from three differing standpoints the impact that globalization is having in relation to the autonomy and sovereignty of the nation state.Although globalization can be perceived in many different ways, it is essentially the term used to describe the way in which all manner of people's lives are crossing national

Globalisation - "Describe the main features of the global economy and examine the nature and extent of interdependence between economies."

2246 words - 9 pages , when the world's largest economy dubbed the "growth engine" United States experienced a downturn in their levels of economic activity. Due to this close linkage between economies, any changes to one economy may have a ripple effect on others, demonstrating this synchronization. The US's downturn in 2000-01 has affected many other large economies such as Japan, China and many European countries to have the same effect. Recently in late October 2003

Similar Essays

Globalisation And The Indonesian Economy Essay

1626 words - 7 pages Globalisation refers to the increasing economic integration between countries leading to the emergence of a global market place and customisation of goods, services and technology. Indonesia is the world's fourth most populous nation and the anchor of Southeast Asia politically and economically. The country has a strategic location, a large labor force earning relatively low wages, and abundant natural resources.Globalisation has introduced a

Treaty Of Westalphia And The Nation State

2008 words - 8 pages national interests (Moeller 1986, p78).A State is defined, inter alia, as a politically organized body of people under a single government. This definition is institutionally oriented. A geographically oriented definition states that a "State" is a territory occupied by a nation. It can be seen that the term "State" can be defined in conjunction and reference to a range of different things. Thus in understanding this term and its complexities in

Viability Of The Nation State Essay

2541 words - 10 pages The uncertainty of the nation-state's continued viability in light of the many effects of globalization has led to a large amount of dialogue on the subject. In particular, aspects of the global economy are frequently referenced to when discussing possible decreases in power. Some of the primary trends are increased levels of FDI, the growing amount of production lines that cross borders, influences of technology and the internet, and

Globalisation & The Global Economy Essay

1176 words - 5 pages •Globalisation the process of increased integration between different economies and the increased impact of intnl influences on economic activity and all areas of life•Global economy the situation where the economies of the world are increasing linked to each other, and changes in one economy have ripple effects on other economiesI) INDICATORS OF GLOBALISATION•Economic integration can be seen inoIntnl trade flows- growing at 2