This chapter discusses globalization's impact on states. There is no topic more controversial in the field of global political economy than the impact of globalization on the accountability, autonomy, capacity, and sovereignty of the nation state; and the controversy has only intensified since the onset of the global financial crisis. Arguably, the democratic character of governance in contemporary societies is at stake in such debates. The chapter reviews the extensive controversy that surrounds such questions, focusing attention on the principal mechanisms in and through which globalization is seen to impact upon the nation state and the empirical evidence that might either substantiate or question the existence of such mechanisms. It also provides a detailed assessment of the case for and against the globalization thesis, examining the extent to which global economic integration might be seen to restrict the parameters of domestic political autonomy. Moreover, the chapter differentiates between the politics of globalization and the globalization of politics. It concludes by considering the complex and sometimes paradoxical relationship between globalization, democracy, and the nation state.
Chapter
Eric Thun
This chapter addresses the globalization of production. Although companies have been investing abroad for centuries, the most recent era of globalization has created an unprecedented range of possibilities for global firms to reorganize and relocate their activities. The chapter analyses how advances in transportation and technology allow a firm to divide up a global value chain — the sequence of activities that lead to the production of a particular good or service — and how these decisions create new opportunities and challenges for both companies and the societies within which they operate. It first reviews the rise of global production and the forces that have led to dramatic increases in foreign direct investment (FDI) and outsourcing. The central questions for any firm involved in global production involves how to govern the value chain and where to locate different activities. The chapter then provides a framework for understanding these issues and the implications of the various choices. It also applies these concepts to the case of East Asia, particularly China.
Chapter
Nicola Phillips
This chapter examines the political economy of development. Despite the many accomplishments since the end of the Second World War, the problems of development in the contemporary global political economy are still of arresting proportions, and the various incarnations of a ‘global development agenda’ to deal with these problems have had a very mixed record. In fact, there is still little consensus on what development actually is, let alone how it might be achieved, in either academic debates or public discourse. One of the most disputed questions in this context relates to the relationship between globalization and development, and how people should understand the impact of globalization on development across the world. The chapter explores these debates. It starts by reviewing the different ways of thinking about development that have emerged since the end of the Second World War, and demonstrating how particular understandings of development have given rise to particular kinds of development strategies, at both the national and global levels. The chapter then considers the impacts and consequences of these strategies for development, and shows on this basis that many of the problems and failures of development have not only persisted but also worsened in the contemporary period.
Chapter
William Abel, Elizabeth Kahn, Tom Parr, and Andrew Walton
This chapter examines whether affluent states should commit significant funds to alleviate poverty abroad. It argues not only that they should, but also that their duties to those who live in poverty go far beyond this. This argument in favour of development aid is based on the idea that an individual has a duty to prevent something very bad from happening when they can do so at little cost to themselves. The chapter then highlights that the global order plays a significant role in the persistence of global poverty, and this further supports the case for development aid. It also considers the claim that states should prioritize meeting the claims of their own members ahead of the claims of those who live abroad. The chapter shows that, even if this is true, it does not undermine the case for committing significant funds to alleviate global poverty.
Chapter
This introductory chapter provides an overview of global politics, starting with an account of the global political sphere as a specialized area of study—more conventionally known as the discipline of International Relations (IR)—and including an explanation of the distinction between the ‘global’ and the ‘international’. It also addresses the extent to which the world is ‘globalized’, even as some pundits herald a halt to globalization and a return to the closed politics of nationalism. The chapter then explores the history of globalization, which provides an essential backdrop to the understanding of the phenomenon in the present, and the challenges to it. This includes attention to the interweaving of globalization’s political, economic, social, and cultural dimensions and some of the implications for the current state-based world order. Finally, the chapter considers the role of theory and method, including concerns raised by the notion of a ‘post-truth’ world.
Chapter
This concluding chapter summarizes the key aspects of international political economy (IPE). IPE can be described as the study of global systems of production, exchange, and distribution, with a view to understanding what these mean for the basic values of wealth, security, freedom, and justice. This book connects this academic field and its animating questions to everyday life. Alongside states and markets, it looks at households as important sites of power. Alongside production, exchange, and distribution, it also considers the contested economic sphere of consumption. Using the I-PEEL approach, the book takes everyday objects and economic practices as both entry points into IPE and things to be studied in themselves. The chapter then demonstrates the process of creating I-PEEL tiles, highlighting the merits of the I-PEEL approach in studying global capitalism.
Chapter
Matthew Watson
This chapter explores important issues in the conduct of global trade and global finance. In particular, it looks at how the Covid-19 pandemic has changed the experience of global trade and global finance in recent years. It asks why the global economy is so good at allowing some people to own untold riches while many others have too little money to meet basic subsistence needs, and whether the world would be better or worse off without the institutions of global economic governance. After discussing the globalization of trade and finance, the chapter considers the regulation of global trade and global finance. Two case studies are presented, one dealing with the Covid-19 vaccination programme and global economic recovery and another looking at US President Joe Biden's proposed global minimum corporate tax rate.
Chapter
Nicola Phillips
This chapter introduces the field of international political economy (IPE), the themes and insights of which are reflected in the global political economy (GPE), and what it offers in the study of contemporary globalization. It begins with three framing questions: How should we think about power in the contemporary global political economy? How does IPE help us to understand what drives globalization? What does IPE tell us about who wins and who loses from globalization? The chapter proceeds by discussing various approaches to IPE and the consequences of globalization, focusing on IPE debates about inequality, labour exploitation, and global migration. Two case studies are presented, the first looking at global value chains (GVCs) and global development and the second dealing with globalization and child labour.
Chapter
Tom Hewitt
This chapter is organized around the idea of development: what it has meant to whom and why. The colonial period at its end was the beginning of what has been termed the era of development and was the beginning of an unprecedented internationalization and the emergence of a global economy. By the end of the 1990s, there were few parts of the world left untouched by the process of globalization which occurred since World War II. The first two decades of the twenty-first century have witnessed splintering and fragmentation and what some would argue to be signs of the end of the development era. Meanwhile, 'intentional development' at global level has broadened to include goals to deal with almost all aspects of what some call 'global crisis'. Analysts of development have moved to examining politics, power, and institutions in order to understand the growing complexity of development.
Chapter
This concluding chapter outlines a number of factors that will potentially shape the future trajectory of democracy. It is impossible to forecast with any certainty democracy's future trajectory. The state of global democracy will be determined by a number of complex, dynamic, and inter-related factors. Based on current trends and future projections about the state of the global economy, levels of instability and conflict, technological change, and China's development, it appears that the risks of a widespread authoritarian resurgence have grown. Given these prospects, it is important to consider the implications of a rise in the number of autocracies worldwide. How would a widespread authoritarian resurgence affect today's global order? Policymakers, analysts, and academics widely agree that the norms, values, laws, and institutions that have undergirded the international system and governed relationships between nations are being stretched and strained. Widespread democratic decline would also accelerate changes in today's global order.
Chapter
Anthony McGrew
This chapter examines the characteristics of contemporary globalization and how they are reshaping world politics. It argues that both the Covid-19 pandemic and climate change are indicative of just how deeply enmeshed the fate of communities and societies across the world has become, not to mention how globalization simultaneously unifies and divides the world. It explains why globalization challenges some of our traditional ways of thinking and theorizing about world politics. It asks whether there are limits to globalization or whether it is inevitable. It also considers the extent to which globalization is responsible for the emerging shift in the structure of world power, namely the ‘decline of the West’ and the ‘rise of the rest’. Two case studies are presented: one is about global food security and the other is about multicentric globalization.
Chapter
Nicola Phillips
This chapter introduces the field of International Political Economy (IPE), the themes and insights of which are reflected in the Global Political Economy (GPE), and what it offers in the study of contemporary globalization. It begins with three framing questions: How should we think about power in the contemporary global political economy? How does IPE help us to understand what drives globalization? What does IPE tell us about who wins and who loses from globalization? The chapter proceeds by discussing various approaches to IPE and the consequences of globalization, focusing on IPE debates about inequality, labour exploitation, and global migration. Two case studies are presented, one dealing with the BRICs and the rise of China, and the other with slavery and forced labour in global production. There is also an Opposing Opinions box that asks whether national states are irrelevant in an era of economic globalization.
Chapter
This chapter offers an overview of the field of Global Political Economy (GPE)—also known as International Political Economy (IPE). It builds on themes introduced in previous chapters, including connections with theories of global politics. These are discussed from a historical perspective to enable a better appreciation of how ideas, practices, and institutions develop and interact over time. These theories arose substantially within a European context, although the extent to which these may be applied uncritically to issues of political economy in all parts of the globe must be questioned. Significant issues for GPE include trade, labour, the interaction of states and markets, the nexus between wealth and power, and the problems of development and underdevelopment in the global economy, taking particular account of the North–South gap. The chapter then discusses the twin phenomena of globalization and regionalization and the way in which these are shaping the global economy and challenging the traditional role of the state. An underlying theme of the chapter is the link between economic and political power.
Chapter
This chapter addresses the intersection of international law and international politics as it relates to global trade. To study global economic governance is to study international law, international relations, and international political economy (IPE) all at once. The chapter begins with a brief introduction to IPE, a discipline which seeks to understand the workings of the global economy in its political context. It examines the relationship between economic globalization and state sovereignty, before turning to the construction of the postwar global economic order, with a focus on the Bretton Woods institutions. The postwar global economic order has often been described as ‘liberal’ by virtue of its underlying assumptions and the ideological convictions of its framers. Importantly, the postwar liberal order was built by, and for, the developed countries of the Global North-a fact that has informed critiques emanating from the developing countries of the Global South. The chapter then assesses global trade governance, analysing the structure, powers, and role of the World Trade Organization.
Chapter
Matthew Watson
This chapter explores important issues in the conduct of global trade and global finance. It asks why the global economy is so good at allowing some people to own untold riches while many others have too little money to meet basic subsistence needs, and whether the world would be better or worse off without the institutions of global economic governance. After discussing the globalization of trade and finance, the chapter considers the regulation of global trade and global finance. Two case studies are presented, one dealing with the ongoing trade war between the US and China and the other with the effect of tax havens on overseas aid budgets. There is also an Opposing Opinions box that addresses the question of how far the institutions of global economic governance currently go to work specifically to the benefit of developing countries.
Book
Edited by John Baylis, Steve Smith, and Patricia Owens
The Globalization of World Politics is an introduction to international relations (IR) and offers comprehensive coverage of key theories and global issues. The eighth edition features several new chapters that reflect on the latest developments in the field, including postcolonial and decolonial approaches, and refugees and forced migration. Pedagogical features—such as case studies and questions, a debating feature, and end-of-chapter questions—help readers to evaluate key IR debates and apply theory and IR concepts to real world events.
Chapter
Peter Dauvergne
This chapter assesses the global political economy of the environment. The growth of the world economy is transforming the Earth's environment. Nothing is particularly controversial about this statement. Yet, sharp disagreements arise over the nature of this transformation. Is the globalization of capitalism a force of progress and environmental solutions? Or is it a cause of the current global environmental crisis? The chapter addresses these questions by examining the debates around some of the most contentious issues at the core of economic globalization and the environment: economic growth, production, and consumption; trade; and transnational investment. It begins with a glance at the general arguments about how the global political economy affects the global environment. The chapter then traces the history of global environmentalism — in particular, the emergence of international environmental institutions with the norm of sustainable development. It also evaluates the effectiveness of North–South environmental financing and international environmental regimes.
Chapter
Stephanie Lawson
This chapter discusses global politics in relation to the phenomenon of globalization. ‘Global politics’ as a field of study encompasses the traditional concerns of International Relations with how states interact under conditions of anarchy, but lays greater emphasis on the role of non-state actors and processes in a globalizing world. The chapter first provides an overview of politics in a globalizing world before explaining the basic distinctions between ‘state’ and ‘nation’ in the context of contemporary global politics. It then considers the variation in state forms and the phenomenon of empire throughout history as well as the historical emergence of the modern state and state system in Europe along with ideas about sovereignty and nationalism against the background of ‘modernity’. It also examines the effective globalization of the European state system through modern imperialism and colonialism and the extent to which these have been productive of contemporary global order.
Chapter
This concluding chapter draws together some of the themes running throughout this book to address some key issues of justice and the future of global politics. In addition to outlining the concept of global justice, it deals with two contrasting normative approaches to issues in global politics, namely, cosmopolitanism and communitarianism, taking particular note of the debates that emerged in the post-Cold War period and which have been especially important for the analysis of human rights. The chapter looks at how these approaches map onto opposing strands of thought within the English school, namely, solidarism and pluralism. It then moves on to some specific issues in contemporary global politics involving the application of normative theory—citizenship, migration, and refugees. Finally, the chapter considers issues of intergenerational justice with respect to the normative links between past, present, and future and the responsibilities these entail.
Chapter
This chapter investigates critical approaches to global politics. While liberal and realist theorists probe each other’s ideas for faults and weaknesses, neither have challenged capitalism and its implications for social, economic, and political order. Marxism, on the other hand, which developed around the mid-nineteenth century, has provided very different perspectives and presents a significant challenge for mainstream approaches to global order in both theory and practice. Post-Marxist Critical Theory, along with historical sociology and world-systems theory, emerged in the twentieth century, giving rise to schools of thought which continue the critique of capitalism and the social and political forces underpinning it. Meanwhile, ideas arising from social theory, such as the extent to which perceptions of reality are socially conditioned and indeed ‘constructed’, achieved greater prominence following the end of the Cold War, an event which prompted many scholars to start asking new questions about global politics and the assumptions on which traditional theories rested. Constructivism, postmodernism, and poststructuralism remain concerned with issues of power and justice but provide different lenses through which these issues may be viewed in the sphere of global politics.
