IS THE STATE BEING ECLIPSED BY THE FORCES OF GLOBALIZATION AND GLOBAL GOVERNANCE?

By, Melville Robertson Roberts
University of Oxford.

Melville Robertson Roberts


Introduction

The International platform today is constantly debating the issue of State sovereignty againstGlobalization and Global Governance. This is particularly evident due to the worldwide crusade in the direction of economic, financial, trade and communications integration and the fact that the term “globalization” is very wide-ranging and rather subjective. The topic will best be approached looking at what we mean by state and its sovereign power, what globalization and global governance is all about and the different schools of thought as to the effects of globalization and global governance on the State.There are two distinct arguments.

State Sovereignty

Sovereignty is the power of a state to do everything necessary to govern itself, such as making, executing, and applying laws; imposing and collecting taxes; making war and peace; and forming treaties or engaging in commerce with foreign nations. In Thomas Hobbes “Leviathan” the state was envisaged as a supreme, absolute and uncontrollable power by which independent states are governed and from which all powers are derived. The state must have the power and right to regulate its internal affairs without foreign interference. This can be inferred in Hobbes own words where he stated

When the representative is one man, or more: and if more, then it is the assembly of all, or but of a part. When the representative is one man, then is the commonwealth a monarchy: when an assembly of all that will come together, then it is a democracy, or popular commonwealth… Other kind of commonwealth there can be none: for either one, or more, or all, must have the sovereign power [indivisible] entire.”

Hobbes assumes that if the sovereign is removed,society falls apart. Thus, in addressing the eclipse of the state by globalization and global governance one will be inclined to see the effects that these two concepts have on the sovereignty of state ad whether society will indeed fall apart due to the rapid influence of Globalization and Global governance in the modern state.

Globalization and Global governance

Globalization is a term which has been used to describe and explain many worldwide phenomena. It has been given positive connotations by those who advocate greater economic integration across national borders, while it has been fiercely criticized by those who perceive it as a threat to social cohesion and as the advancement of unfettered capitalism, which undermines the Welfare State.

The animosity surrounding the debate on globalization requires that a holistic approach be adopted when analyzing this issue. Globalization is a prismatic phenomenon, which should be looked at in all its manifestations and from different angles. What is globalization? What accounts for the unequal distribution of globalization effects around the world? What is the impact of globalization on the nation-State? What is the relationship between globalization and inequality? How should we redesign the State so that people can benefit from globalization? What State capacities are most needed to respond to the challenges of globalization? These are all crucial questions, which will be addressed in this paper whose main objective is to explore what factors contribute to the successful integration of a country into the world economy.

Globalization and Global governance and the State

The lifting of trade barriers, liberalization of world capital markets, and rapid technological progress, especially in the fields of information technology, transportation and telecommunications, have immeasurably amplified and enhanced the movement of people, information, commodities and capital. Correspondingly, they have also broadened the range of issues which spill over the borders of nation-States requiring international norm setting and regulation and, therefore, consultation and formal negotiations on a global or regional scale. Many of the problems afflicting the world today – such as poverty, environmental pollution, economic crises, organized crime and terrorism – are increasingly transnational in nature and cannot be dealt with only at the national level, nor by State to State negotiations.  

Greater economic and social interdependence seems to affect national decision-making processes in two fundamental ways. It calls for a transfer of decisions to the international level and, due to an increase in the demand for participation it also requires many decisions to be transferred to local levels of government. This implies that “public policies are undertaken at different levels” Thereby, globalization entails complex decision-making processes, which take place at different levels, namely sub-national, national and global, paving the way to a growing multilayered system of governance.  

The fact that cooperation and regulation are required on many levels because of the complexities and transnational nature of present world issues has led several scholars to predict the “end” of national state power. Some argue that the State may only adjust to globalization, but not have an active role in it. Some believe that the State will become obsolete.

Despite the many concerns about the loss of sovereignty, the State remains the key actor in the domestic as well as international arenas. The popular assumption that the emergence of global civil society, and increasing levels of cross-border trade, finance and investment flows turns the nation-State into an anachronism is wrong. In the international arena, closer cooperation and concerted action among States represent an exercise of State sovereignty. Such concerted action does not necessarily weaken States; rather, it can strengthen them by creating a more stable international environment and by giving them greater scope to expand their exchanges in a variety of fields. Moreover, globalization without effective and robust multilateralism is bound to lead to crisis because markets are neither inherently stable nor equitable.

The many challenges that we confront today are beyond the reach of any State to meet on its own. At the national level we must govern better, and at the international level we must learn to govern better together. Effective States are essential for both tasks, and their capacity for both needs strengthening”. We should not overlook the fact that the entire edifice set up for global governance is currently designed by nation-States and driven by the initiatives which they undertake.

Since its inception, the nation-State has guaranteed internal and external security; underpinned the law; funded national welfare systems; provided the structures for popular representation; instituted public accountability; and built the framework for economic and social activities. During the last century, the responsibilities of the State have expanded in all these areas. “The need to supply collective public goods, to manage externalities and to provide for minority needs will persist even in a world of expanded globalization”. There is no evidence that globalization will reduce the relevance of such functions. If anything, it makes them even more necessary.  

Thus, the image of a borderless world in which the nation-state has little, or no relevance is in many ways misleading. As a matter of fact, two realities co-exist. One is the so-called borderless virtual world where geography does not count, and communication and business transactions can occur in a matter of seconds.

The State will persist because the need for the State has grown, but also because the local resource pools and socioeconomic problems on which States are based are undiminished Only the State can guarantee, through independent courts, the respect of human rights and justice; promote – together with other actors – the national welfare and protect the general interest. Its role is also fundamental in operating the intricate web of multi-lateral arrangements and inter-governmental regimes. It is still States, collectively or singly, that set the rules of the game, that enter into agreements with other States, and that make policies which shape national and global activities, and the agenda of integration; though this is true in principle, the problem of capacity inadequacy of individual States has become clearly pronounced. This means that some States have more political leverage in shaping the international agenda whereas others have a less active role, as is the case for many developing countries.  

Conclusion

It is progressively being recognized that good governance is a crucial component in the development process of any country, and in ensuring that globalization benefits all in society. The State, in partnership with civil society and the private sector, has a major role to play in the quest for peace, greater freedom, social equity and sustainable development Improving and reforming public administration and governance systems is critical in addressing a number of issues, including making globalization work for all; alleviating poverty and income inequality; advancing human rights and democracy; protecting the environment and promoting sustainable development; and managing violent conflict and combating international crime.

In brief, to label globalization in absolute terms as either a totally positive or negative phenomenon that is eclipsing the state is a simplistic approach that is neither here or there. Ultimately, globalization benefits society at large in countries that enjoy some degree of political stability, that have in place adequate infrastructure, equitable social safety nets and in general strong democratic institutions.

Experience has shown that globalization requires strong, not weak States. Thus, one of the main preconditions to ensure that the benefits of globalization are evenly spread throughout the developed and the developing world and within a given country is good governance, including an efficient and effective public administration.

BIBLIOGRAPHY

UN, 2000, Millennium Report, A/54/2000, para. 15)24.

United Kingdom (2000). Second White Paper on International Development.

Eliminating World Poverty: Making Globalization Work for the Poor”.

De Soto, Hernando (2000). The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, Basic Books, New York

Giddens, Anthony (2000). The Third Way and its Critics, Polity Press, Cambridge, UK

United Nations (2000). “Institutional response to globalization”, report prepared by the Secretariat for the Group of Experts on the United Nations Program in Public Administration and Finance at its Fifteenth Meeting, ST/SG/AC.6/L.6

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