Globalization and the Changing Role of the State
Lecturer: Anna Leander
office 801, ext. 3086, e-mail: leandera.staff
office hrs. Tuesday and Friday 14.00-16.00
Class time: Tuesday and Friday 10.50-12.30
This course focuses on the extent to which globalization imposes changes the role of the state in the economy. This is a question both in political science and in everyday politics. The press abounds with references to competitive pressures, international markets, and institutions (the IMF, the World Bank, EBRD, private banks etc.) which make certain state policies impossible and other policies necessary. Similarly, political leaders of all persuasions refer to globalization to justify policies or non-action. In political science it has been at the heart of international political economy. Interest has focused notably on the explanation of globalization, the study of its effects on national sovereignty, and the debate about what this entails for power and for stability in the international political economy. The question has also been central to comparative politics/political economy. Here it has been framed around the role of globalization (as compared to other factors) in explaining changes in the role of the state and on the more general question if globalization spells the end of national diversity by imposing growing convergence on state policies and institutional structures, and in that case what this entails for the organization of national politics and economies.
The aim of the course is to overview the key arguments on the evolving role of the state and in particular to join the discussions in international political economy and in comparative politics. In a first section it reviews the key arguments in the general debate. The bulk of the course is, however, concerned with how this debate has been practically applied to different cases. It reviews the debate about the changing role of the state in three contexts: the West-European welfare state (illustrated by the Scandinavian welfare state), the develomentalist East-Asian State (illustrated mainly by the Korean case) and the role of the state in the transition economies of East Central Europe.
Course Requirements:
Participants will be assessed on the basis of their in-class participation (40%), a presentation (30%) and a take home exam (30%).
Course Outline
Week 1. Globalization an economic phenomenon
Ruggie, J. G. (1995). "At Home Abroad, Abroad at Home: International Liberalisation and Domestic Stability in the New World Economy." Millennum 24(3): 507-527.
Strange, Susan (1988) States and Markets. An introduction to International Political Economy, Oxford, New York: Basil Blackwell.
Jones, R.J. Barry (1995) Globalisation and Interdependence in the International Political Economy: Rhetoric and Reality, London & New York: Pinter, section 3.
Reich, Robert B. (1992) The Work of Nations. Preparing Ourselves for 21st Century Capitalism, New York: Vintage Books.
Strange, Susan (1998) Mad Money, Manchester: Manchester University Press.
Ruigorok, W. and R. van Tulder (1995) The Logic of International Restructuring, London: Routledge.
Shaw, Martin (1997) 'The State of Globalization: Towards a Theory of State Transformation', Review of international Political Economy 4, 3, pp. 497-513.
John Ruggie (Spring 1982), International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order, International Organisation, vol.36, no.2
Phillip Cerny (1994), "Embedded Financial Orthodoxy"' in Ronen Palan and Barry Gills, Transcending the State Global Divide, Boulder, CO.: Lynne Rienner.
Questions for the weekly seminar
- What does economic regionalism (cross or sub-national) tell us about globalization?
- Do financial integration reduce policy autonomy?
Week 2.: Globalization as a social phenomenon
Bauman, Zygmunt (1998) Globalization: The Human Consequences, Oxford: Polity Press, Chap. 3
Giddens, Anthony BBC lecture (Mimeo)
Harmes, A. (1998). "Institutional Investors and the Reproduction of Neoliberalism." Review of International Political Economy 5(1): 92-121.
Altvater, Elmar and Birgit Mahnkopf (1997) 'The World Market Unbound', Review of International Political Economy 4, 3, pp. 448-471.
Beck, Ulrich (1986) Risiko Gesellscaft: Auf dem Weg in eine andere Moderne, Frankfurt: Suhrkamp.
Dezalay, Yves and Bryant Gart (1998) 'Le "Washington Consensus"', Actes de la Recherche en Sciences Sociales, Mars, 121/122, pp. 3-21.
Bourdieu, Pierre and Loic Wacquant (1998) 'Sur Les Ruses de la Raison Impérialiste', Actes de la Recherche en Sciences Sociales, Mars, 121/122, pp. 109-119.
Fligstein, Neil (1997) 'Rhétorique et Réalités de la "Mondialisation"', Actes de la Recherche en Sciences Sociales 119, pp. 36-48.
Hans-Henrik Holm and Georg Sørensen eds (1995), Whose World Order? Uneven Globalization and the End of the Cold War Boulder, Westview.
Williamson, J. (1993). "Democracy and the Washington Consensus." World Development 21(8): 1329-1336.
Questions for the weekly seminar
- Does the "Washington consensus" exist and does it matter for policy-making?
- Does nationalism and the growth of nationalist movements and calls for national self determination disprove globalization?
Week 3. The Retreat of the state and evolving strate strategies
Evans, Peter (1997) The Eclipse of the State, World Politics vol.50, pp. 62-87.
Pierson, C. (1998). "Contemporary Challenges to Welfare State Development." Political Studies XLVI.
Strange, Susan (1996) The Retreat of the State: The Diffusion of Power in the World Economy, Cambridge: Cambridge University Press., chaps. 1 and 13.
Palan, Ronen, Jason Abbott and Phil Deans (1996) State Strategies in the Global Political Economy, London: Pinter.
Gosta Esping Andersen ed., (1996) Welfare States in Transition National Adaptations in Global Economies London: Sage, intro. and conclusion.
Ronald Dore, "Convergence in Whose Interest", (1996) in Suzanne Berger and Rondald Dore eds, National Diversity and Global Capitalism Cornell UP, pp. 366-75.
Robert Boyer, (1996) The Convergence Hypothesis Revisited, Globalization but Still the Century of Nations?, in Suzanne Berger and Rondald Dore eds, National Diversity and Global Capitalism Cornell UP, pp. 29-60.
Nikolas Rose, (1996), The Death of the Social? Re-figuring the territory of government, Economy and Society, vol 25 no. 3, pp. 327-357.
Alain Lipietz (1993), Towards a New Economic Order:Postfordism, ecology and democracy, Cambridge: Polity Press.
Rogers J. Hollingsworth (1998), New Perspectives on the Spatial Dimensions of Economic Coordination: Tensions between Globalisation and Social System of Production, RIPE, vol 5, no.3, pp: 482-502.
Daedalus, Issue on The Future of the State, spring 1995.
Richard Rosecrance (1996), The Virtual State, Foreign Affairs vol 75.
Questions for the weekly seminar
- Is it adequate to talk about a "diffusion of power" in the realm of the international economy and what does this power entail for states?
- Is the effect of globalization equal for all states?
Week 4. The Anti Globalization Arguments: Globalization under scrutiny
Robert Wade (1996), Globalization and Its Limits. Reports of the Death of the national Economy are Greatly Exaggerated, in Suzanne Berger and Rondald Dore eds, National Diversity and Global Capitalism , Cornell UP, pp. 60-89.
Strange, S. (1998). "Globaloney? (Review Essay)." Review of International Political Economy 5(4, winter): 704-720.
Reich, R. B. (1992). The Work of Nations. Preparing Ourselves for 21st Century Capitalism. New York, Vintage Books.
Hirst, Paul Q. and Grahame Thompson (1996) Globalization in Question: The international economy and the possibilities of governance, Cambridge: Blackwell.
D. Gordon, "The global economy: new edifice or crumbling foundations." New Left Review, vol. 168, 1988,
Krugman, Paul (1997) Pop Internationalism, Cambridge et. al.: MIT Press, chaps. 1 and 13 in particular.
Questions for the weekly seminar
- Is statistical evidence against globalization conclusive?
- What kind of quantitative evidence would be needed to "prove" the existence of globalization? Where could it be gathered?
Week 5. The Effects of globalisation on the state revisited
Mann, Michael (1997) 'Has Globalization Ended the Rise and Rise of the Nation-State?', Review of international Political Economy 4, 3, pp. 472-496.
Keil, Roger (1998) 'Globalization Makes States: Perspectives of Local Governance in the Age of the World City', Review of International Political Economy 5, 4, Winter, pp. 616-646.
Garrett, Geoffrey (1998) 'Global Markets and national Politics: Collision Course or Virtuous Circle?', International Organization 52, 4, Autumn, pp. 787-824.
Mann, Michael (1993) 'Nation-States in Europe and Other Continents: Diversifying, Developing, Not Dying', Deadalous, Summer, 122/3, pp. 115-140.
Linda Weiss (1998), The Myth of the Powerless State Cornell UP, preface, chap. 1-2 and 6-7.
Phillips, N. (1998). "Globalisation and the "Paradox of State Power": Perpectives from Latin America." CSGR Working Paper(16).
Finnemore, M. and K. Sikkink (1998). "International Norm Dynamics and Political Change." International Organization 52(4, Autumn): 887-917.
Keck, M. E. and K. Sikkink (1998). Activists Beyond Borders: Advocacy Networks in International Politics, Cornell University Press.
Devetak, R. and R. Higgot (1999). "Justice Unboud? Globalization, States and the Transformation of the Social Bond." CSGR Working Paper(29).0
Questions for the weekly seminar
- Can states be strengthened though globalization?
- Is globalization an opportunity or a threat for democracy?
The Debate in Context
Week 6. The Crisis of the Scandinavian Welfare State (i)
Linda Weiss (1998), The Myth of the Powerless State Cornell UP, chap. 4.
Pierson, C. (1998). "Contemporary Challenges to Welfare State Development." Political Studies XLVI.
Clayton, Richard and Jonas Pontusson (1998) 'Welfare-State Retrenchment Revisited. Entitlement Cuts, Public Sector Restructuring, and Inegalitarian Trends in Advanced Capitalist Societies', World Politics, October, pp. 67-98.
Garrett, Geoffrey and Peter Lange (1991) 'Political Responses to Interdependence: What is "Left" for the Left?', International Organisation 45(4), Autumn, pp. 537-564.
Jonas Pontusson, (1992) "The End of the Third Road: Swedish Social Democracy in Crisis," Politics and Society, vol. 20, no. 3.
Peter Katzenstein (1985), Small States in World Markets, Cornell Up.
John D. Stephens (1996), "The Scandinavian Welfare States: Achievements, Crisis and Prospects", in Gosta Esping Andersen ed., Welfare States in Transition National Adaptations in Global Economies London: Sage, pp. 32-65.
Schwartz, Herman (1994), "Small States in Big Trouble: State reorganization in Australia, Denmark, New Zealand, and Sweden in the 1980s", World Politics, vol. 46.
Questions for the weekly seminar
- Has there been a welfare state retrenchment in Sweden?
- Discuss the role of long term trends in the Swedish economy in bringing about the recent changes.
Week 7. The Crisis of the Scandinavian Welfare State (i)
Huber and Stephens (1998), Internationalization and the Social Democratic Model, Comparative Political Studies, vol.31, no.3, pp: 353-397.
Ton Notermans (1993), "The Abdication from National Policy Autonomy: Why the Macroeconomic Policy Regime Has Become So Unfavourable to Labour," Politics and Society, vol. 21, no. 2, pp. 133-167.
Wolfgang Streeck & Phillippe C. Schmitter (1991), "From National Corporatism to Transnational Pluralism: Organized Interests in the Single European Market," Politics and Society, vol. 19, no. 2, pp. 133-165.
Stephan Leibfried and Paul Pierson (1995), "Europe's Semi Sovereign Welfare States: Social Policy in an Emerging Multi-tiered System," in S. Leibfried, European Social Policy: Between Fragmentation and Integration Washington DC: Brookings.
Questions for the weekly seminar
- Could Sweden have chosen not to open up its financial markets?
- Could the Rehn-Meidner model have been salvaged?
Week 8. The Crisis of the Korean "Model"(i)
Linda Weiss (1998), The Myth of the Powerless State Cornell UP, preface and chap. 3.
Bello, Walden and Stephanie Rosenfeld (1992), "Dragons in Distress" World Policy Journal vol vii, pp. 431-68.
Moon, Chung-in (1994) 'Changing Patterns of Business-Governemtn Relations in South Korea', in Andrew MacIntyre, ed., Business and Government in Industrializing Asia, Ithaca: Cornell University Press, pp. 142-167.
Alice Amsden & Yoon-Dae Euh (1993), "South Korea's Financial Reforms", World Development, vol.21, no.3, pp: 379-390.
Kang, Davi (1995), "South Korean and Taiwanese development and the new institutional economics" International Organisation vol 49 pp. 555-87.
Koo, Hagen, and Eun Mee Kim, The developmental state and capital accumulation in South Korea in Appelbaum and Henderson (eds) (ask me for a copy).
Russell Mardon (1990), "The State and the Effective Control of Foreign Capital, World Politics, vol.43, no.1 .
Questions for the weekly seminar
- Is "crony capitalism" a good description of the Korean development model?
- Could the "Korean model" have been sustained were it not for the opening up to international financial markets?
Week 9. The Crisis of the Korean "Model"(ii)
Robert Wade & Frank Veneroso (1998), "The East Asian Crash and the Wall Street-IMF Complex", New Left Review, no.228.
RIPE issue vol. 5, no. 3 autumn 1998 has a special section on the topic.
Martin Feldstein (1998), "Refocusing The IMF", Foreign Affairs, vol.77, no.2, pp.20-33
Krugman, Paul (1999) 'The Return of Depression Economics', Foreign Affairs 78, 1, pp. 75-88.
Questions for the weekly seminar
- Was financial speculation responsible for the 1997 financial crash?
- Was the IMF response to the crisis adequate and justified?
Week 10. The State in Transition (i)
Bohle, D. (2000, forthcoming). Internationalisation: An Issue Neglected in the Path-Dependency Approach to Post-Communist Transformations. Democratic and Capitalist Transitions in Eastern Europe: Lessons for Social Sciences. M. Dobry. Dordrecht, Kluwer.
Questions for the weekly seminar
- "Path dependency is shaped by globalization". Discuss with reference to the role of the state in the eonomy of Poland or of Hungary.
- Is the state weakened when a sector is largely foreign owned? Answer with reference to the transport industry in Poland or the auto industry in Hungary?
Week 11. The State in Transition (ii)
Barteltt, David and Anna Seleny (1998) 'The Political Enforcement of Liberalism: Bargaining, Institutions, and Auto Multinationals in Hungary', International Studies Quarterly 42, pp. 319-338.
Questions for the weekly seminar
- Do interantional actors shape policies in transition economies and if yes how? Discuss with reference to one kind of policy in either Poland or Hungary.
- Do globalization and the legacy of state socialism make the withdrawal of the state from the economy an imperative?
(Both 10 and 11)
bela (mimeo)
nelson (wp collegium budapest, 1998)
Pickel, A. and J. True (1999). Global Forces, Transnational Linkages and Local Actors: Towards a New Political Economy of Post-Socialist Transformation. Annual Conference on Socio-Economics, University of Wisconsin-Madison.
Deacon, B (1995), "Global social policy actors and the shaping of post-Communist social policy." International journal of Sociology, vol. 25, no. 1.
Roman Frydman, Kenneth Murphy, and Andrzej Rapaczinski (1998), Capitalism with a Comrades Face CEU Press, chap. 7.
Molyneux, Maxine (1994), "Women's Rights and the International Context: Some reflections on the post-communist states", Millenium vol. 94, no. 2, pp. 287-313.
Jerzy Hausner, Bob Jessop and Klaus Nielsen (1995), Strategic Choice and Path Dependency in Post-Socialism Institutional Dynamics in the Transformation Process, Aldershot: Edward Elgar, chp.1,2,3.
Jacques Hersh eds., (1996), The Aftermath of 'Real Existing Socialism' in Eastern Europe' London: Macmillan, chap. 17.
Charles F. Sabel and Jane E. Prokop (1996), "Stablization through Reorganization. Some Preliminary Implications of Russia's Entry into World Markets in the Age of Discursive Quality Standards, in Roman Frydman, Cheryl W. Gray and Andrzej Rapaczynski eds, Corporate Governance in Central Europe and Russia CEU Press.
Herbert L. Baer and Cheryl W. Gray, "Debt as a Control Device in Transitional Economies: The Experience of of Hungary and Poland", in ibid.
Alice Amsden, Jacek, Kochanowicz, and Lance Taylor (1995), The Market Meets its Match: Resturcturing the Economies of Eastern Europe Harvard UP, chap. 5 (on the world bank)
Bob Jessop, International Competitiveness, Regional Economic Strategies and the Post-Socialist Economies: Constraints, Dilemmas and Prospects, Cracow Academy of Economics, 1993.
Scmid Schönbein, Determinants of Privatization Strategies: Thee Hungarian and German Experiences in Herr eds. Macroeconomic Problems of Transformation, Aldershot: Edward Elgar.
Ferge, Zs (1998b) The Vision of Supranational Agencies about Social Security. Paper prepared for the EISS (European Institute of Social Security) Conference, 9-12 September 1998, Balatonfüred (mimeo)
Week 12: Take home essay and concluding disucssion
Questions for the take home exam will be sent out by e-mail on Monday 13.Dec. at 17.00 the replies should be sent back (by e-mail attachment) by Tuesday 14.12 at 17.00. Class on Tuesday is cancelled.
The essays will be discussed in the last class on Friday .
Journals
Comparative Politics, Economy and Society, International Organization, Millennium, New Left Review, Politics and Society, Review of International Political Economy, Review of International Relations, World Politics; Working paper series by CSGR (http://www.warwick.ac.uk/fac/soc/CSGR)