Summary The State and Globalisation Notes

The state and globalisation notes

Francis Fukuyama

 Prominent Japanese American academic
 Argued that war would become a thing of the past due to the rise of liberal democracies and
their unwillingness to engage in conflict with one another
 Indicated that close connectivity between democracies could evolve to change the importance
of state
- EU would provide a model for the future relationship between nations
 Sovereignty – the principle of absolute and unlimited power and the defining characteristic of a
state
 National sovereignty – a state has absolute authority over all its citizens within its borders
 Nation-state – an autonomous political organisation defined by the common ties of shared
nationality and based upon a recognisable culture.


Characteristics of a nation state and national sovereignty

 State has increasingly become the main player in global relations, providing the foundation for
domestic peace and international relations
 According to Dutch scholar Hugo Grotius, ‘the state is a complete association of free men joined
together for the enjoyment of rights and for their common interests’


Treaty of Westphalia

 Important in the development of the principle of state sovereignty
 No state has the legal right to intervene in the sovereign affairs of another state
 All states, whatever their size, possess the same legal right to independence.


The nation state in the 20th century

 Westphalian principles dominated the globe
 In his 14 points, US president Woodrow Wilson established the principle that nation-state
sovereignty should be founded upon the right of self-determination based on shared ethnic
heritage
 The Montevideo convention determined that a sovereign state must possess
- a defined territory
- a permanent population
- a viable government
- the capacity to enter into diplomatic relations with other states




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,The process of globalisation

 Globalisation – the process by which businesses or other organisations develop international
influence or start operating on a global scale
 Has had a dramatic impact on the influence of the state
 Had created a complex web of interconnectedness that challenges the states sole authority to
make decisions affecting the lives of its citizens
 Interconnectedness – the way in which states become more linked through their shared
membership of intergovernmental and regional organisations.
 Has created a world in which nation states cannot separate themselves from what is happening
globally


The significance of economic and financial globalisation

 Economic liberalism or the Washington consensus has led to the dominance of free trade
principles
- States need to establish the sort of conditions that global investors find attractive, which
includes policies of low corporate taxation and light regulation (too much
taxation/bureaucracy will repel investment)
- Example: Vietnam has corporate income tax of just 20%
- Any state that seeks to act in defiance of economic globalisation will risk loss of investment
 Economic globalisation – process by which states across the world become more closely
connected and interdependent according to the principles of free trade


The influence of non-state actors

 Non state actors – entities such as INGOs, IGOs, transnational corporations and even
criminal/terrorists networks that wield significant influence over global affairs.
 Global interconnectedness has been advanced due to non-state actors
 World problems are becoming more complex – international terrorism, climate change
- Collective security dilemma is created – cannot resolve on their own
- Work together in IGOs to solve problems
 Example: The Intergovernmental Panel on Climate Change provides an international forum in
which recommendations for action are agreed.




The influence of intergovernmental organisations

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, The Bretton Woods Institutions

1. World Bank
2. International Monetary Fund (IMF)
3. World Trade Organisation (WTO)
 All of them impact state sovereignty by advancing global free markets and free trade
 The programmes implemented by IMF and World Bank are founded on the core promise that
economic growth is maximised through free-market reforms and free trade.
 WTO is associated with globalisation
- Encourages free trade by persuading nations to reduce import tariffs
- Tries to resolve trade disputes
- Provides a forum for resolution of trade wars
 Economic globalisation has created a consensus that free trade creates greater wealth


The United Nations

 Most significant IGO that was established in 1945
 Based on the liberal principle that the international community needs to work together to solve
‘collective dilemmas’
 Nation states do not sacrifice their sovereignty by joining the UN
 Responsible for the Millennium and sustainable development goals – have helped reduce
poverty
 Includes the following:
- World Health Organisation (WHO): spearheads/coordinates global responses to epidemics
- United Nations International Children’s Fund (UNICEF): promotes children’s rights
- World Food Programme (WFP): provide food relief


Regional organisations

1. 1957: EEC (Now EU)
2. 1967: Association of Southeast Asian Nations (ASEAN)
3. 1991: Mercosur
 These regional IGOs function as mini-free trade areas, encouraging trade
 Cooperation provides these regions with greater influence in international trade
 There is protection from global competition


Influence of non-governmental organisations

1. Amnesty International
2. Greenpeace
3. Human Rights Watch
 Have incredible soft power influence on states by enriching political debate (pressure groups)

Internet’s impact


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