Relationship Between The Nation State And Global Market Economics Essay

This paper discusses the relationship between the nation point out and the global market. Gidden's Structuration theory is employed to conceptualise land state governments as 'providers' and the global market as the 'structure'. It really is argued that nation states may condition the global market according with their vested pursuits and needs and that power takes on an important role in this technique. A solid and effective express is therefore better in a position to use the opportunities offered by global market.

Globalisation and Developing CountriesThe term 'Globalisation' has been trusted in literature in a number of contexts. It has been viewed as the "global integration of financial market segments" (Walker and Fox, 1999:2), "interconnectedness of world market" (Neuland and Hough, 1999:1), "trans-border movements of capital and goods" (Gill, 2000:4) and "breakdown of national borders" (Redding, 1999:19). Braibant (2002) further includes the introduction of advanced method of communication, growing need for multinational corporations, people migrations and increased freedom of individuals, goods, capital, data, ideas, and even that of attacks, diseases and pollution in the process of globalisation. Taking care of that is common among these perspectives is the break down of edges between countries, governments, economies and communities that has given climb to the global marketplaces that aren't manipulated (but may be inspired) by an individual country. The usage of the word 'globalisation' for the intended purpose of this paper is bound compared to that of trade, fund and investment.

A variety of conditions are used to identify between developed and encouraging countries (for example north/south and rich/poor etc. ), nevertheless the books has come a long way since the times of using the terms such as 'first world' and 'third world' countries. This paper will adhere to the term 'growing countries', which is utilized to refer to lots of heterogeneous sets of countries. For example it may imply the swiftly growing economies in Asia, negative progress economies (in terms of GDP/capita) in Africa, middle income and incredibly poor countries, small and large, landlocked and ocean gain access to and heavily regulated and recently liberalised countries. This newspaper however, when referring to developing countries includes all low- and middle-income countries as defined by World Loan provider (2000). There is a growing body of literature on the influences of globalisation and the opportunities and problems it could cause to the developing countries.

The developing countries are characterised by weakened economical, legal and political establishments that lead to corruption, insecurity, discord and insufficient competitiveness in labour, technology and skills. The launch of trade liberalisation and increased international competition in such conditions can have serious repercussions for the infant establishments in the growing countries (Stiglitz, 2000). Nonetheless it is generally claimed that beginning to the global market segments increases the flow of foreign direct investment in to the expanding countries, allows them to meet up with the most advanced technology without need for sizeable investment or research, bring capital in to the country, build expertise, induce innovation, and therefore contribute to the overall economic progress. Francois and Schuknecht (2000) provide some empirical information that openness to global marketplaces contributes to GDP growth. These studies are of course challenged by others.

The Hegemony of Global Market StructureIn the sizable amount of literature, a form of structuralism can be observed that views the relationship between the global market and the nation express as a zero-sum game where in fact the development of globalisation sometimes appears as increased shrinking of sovereign express. Last two decades of 20th hundred years observed proliferation of the books that forecasted the 'eclipse', 'retreat', 'problems' and even the 'end' of the country states therefore of growing pushes of globalisation. The main premise of the viewpoints is the fact the nation areas have lost control over their territorial boundaries, nationwide economies, currencies and even their cultures and dialects as well and thus the "macroscopic form of power" has shifted from the nation-states to the global market displayed by global establishments and multinational firms (Barrow, 2005). For example Castells (1997:243) in his section called "A powerless point out?" argues that "State control over space and time is increasingly bypassed by global flows of capital, goods, services, technology, communication, and information. " Likewise Hardt and Negri (2000:xi) in their publication "Empire" claim that "along with the global market and global circuits of development has emerged a global order, a fresh logic and composition of rule-in short, a new form of sovereignty. Empire is the politics subject matter that effectively regulates these global exchanges, the sovereign ability that governs the planet. " Similar view is presented by Camilleri and Falk (1992:98) "global processes and corporations are invading the national state and [are] dismantling the conceptual and territorial limitations that have usually sustained the theory and practice of condition sovereignty". The writers concluded that the nation point out little choice other than delegating their expert to international and "supranational" organisations. Hence, it could be a bit exaggerating that the globalisation is the one reason that has resulted into the degradation of state authority but it appears from the books that it is seen by many as the central one (Evans, 1997).

Various examples are given to support this aspect of view. The power of World Trade Organisation (WTO) to enforce sanctions and punish specific countries are cited as one of the ways that the global capitalist system coercively looks for conformity. It is argued that individual countries have little influence on the creation and enforcement of rules in the machine and even on the level of their own integration into the world economy. A proper cited exemplory case of this is the try out of Indonesian administration to safeguard its domestic car industry by giving facilities such as taxes holidays, lower transfer duties for free parts and incredibly low interest loans. These actions and their positive effect on Indonesian automobile industry didn't match the global car exporters who saw their market talk about potentially in danger. An instance was therefore increased up against the Indonesian federal at the WTO where it was defeated and so forced to either move back the procedures it had taken up to protect and promote one of its nascent companies or risk severe sanctions (Hartungi, 2006). Another adverse aftereffect of growing electricity of global capitalist system is that the expanding countries have to more and more compete within one another to appeal to the FDI which is termed by some as a "race to bottom level" (Chau and Kanbur, 2006). In order to prove them more appealing to the MNC's, growing countries are required to deregulate hastily and keep the wages and taxes low. Any try out by these countries to improve the minimum basic wage, labour protection standards or restrictions on capital may bring about relocation of MNC's from the country. This exposes the task force to further exploitation in countries where union representation, legal protections and access to basic facilities such as health insurance and education and almost any social safety net has already been limited. Labour exploitations therefore have been reported in Bangladesh, Indonesia, Sri Lanka, Kenya and the Dominican Republic where federal government is obligated to keep the wages low credited to for example competition from countries like India and China where the garment giants Levi-Strauss and Gap have been considering to relocate due to option of recycleables as well as packed services such as slicing, sewing and presentation etc (Hartungi, 2006).

Similarly growing countries are coerced into various agreements (such as Trade Related Contracts on Intellectual Property Protection under the law, Journeys) under the auspices of WTO that are unreasonably costly for these countries to put into practice. It cost Mexico for example US$30 million to up grade and enforce intellectual property laws and regulations (Finger and Schuler, 1999). Some developing countries such as Nigeria, Uganda, Morocco and Cambodia are forced by the US government to enforce patent coverage mechanisms for pharmaceuticals that go way beyond the typical TRIPS contract and are known as TRIPS Plus. One of the many additional commitments forced on expanding countries under Journeys Plus is the expansion of patent terms beyond the twenty years required by standard TRIPS arrangement and used commonly by most countries on earth.

The Almighty StateThis strand of books focuses on the role of individual nation-states in enacting and reifying the global market composition. It views these as the principal real estate agents of globalisation and the patrons of the politics and material conditions required for its sustainability and influence. Its main idea is that the country states are going through a changeover in order to adapt to the new global political current economic climate and balance the contradictory stresses of global requirements and national interests, hence there is certainly considerable realignment occurring within the state of hawaii apparatuses which many scholars improperly interpret as a drop of nation point out. It really is argued that with no intervention of their state, the life and the reproduction of global capitalist market is extremely hard. The process of creation and conditioning of this system therefore requires lively role of the country says (Aglietta, 2000). However, the procedures, attitude and companies that must condition the capitalist composition of global size take time to develop and so the expanding countries must deal with the turmoil between domestic and global pursuits until such establishments take root in the modern culture (ibid. ). This aspect of view is partly based on the task by Robert Cox (1987) published as a e book titled 'Production, Vitality and World Order' in which he challenged the idea that state is in decline and instead suggested the idea of 'internationalisation' of their state. He argues that internationalisation of status is the transformation of "state into an agency for adjusting national economic methods and regulations to the recognized exigencies of the global economy. The state of hawaii becomes a transmission belt from the global to the national overall economy, where heretofore it experienced acted as the bulwark defending home welfare from external disturbances. " (Cox, 1987:254) Similar views have been portrayed by Panitch (1993) who believes that "definately not witnessing a by-passing of their state by a worldwide capitalism, what we should see are extremely active state governments and highly politicised packages of capitalist classes" (p63). He adds that the global capitalist framework as it stands today has been "authored" by the state governments and it has primarily "rearranged" alternatively than by transferred states. The level of influence that individual claims have on global markets may vary but in the end the imperial economical and political connections aren't organised by the multinational and transnational businesses, but by a system of states that have unequal influence throughout the world. Aglietta (2000) therefore identifies 'imperialism' as a system of hegemony through which expresses are coerced by other status/s to adopt a set of rules that favour the balance of global system that may be inclined heavily towards promoting the great things about stronger expresses. Thus the existing form of globalisation has been constituted by a number of says with unequal inter-state relations and talents.

The role of state's power/power in benefiting from the global capitalist system is substantiated empirically by the work of Weiss (2005) by examining the evidence from Japan and East Asian NICs (Recently Industrialised Countries). The writer concluded that the claims with strong hold on the socio-economic goal setting and strong relationship with domestic audience were better in a position to adapt to the procedure of globalisation and crucially, were also better able to promote the internationalisation strategies of their businesses. Thus the dissimilarities between the state's capacity (durability) directly affect its potential to exploit the opportunities of international economic change.

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