Chapter 14. International Relations Theory and Globalization by Colin Hay

1. International Relations Theories: Discipline and Diversity Chapter 14. International Relations Theory and Globalization by Colin Hay

2. Learning outcomes After this lecture you should be able to: Appreciate what is at stake in the globalisation debate for IR theory Understand the debates over the notion of globalisation Appreciate some of the empirical evidence regarding globalisation Gain an understand of the role of welfare state in relation to globalisation

3. What is the globalisation debate? • Globalization debate in IR has essentially been a dispute between state-centric and non-state-centric (ontological) approaches State-centric vs Non-state-centric • In IR, the dominant perspectives such as realism and neorealism, as state-centric perspectives, have the most to lose in the globalization debate

4. Globalist challenge to realism • Sovereignty is compromised by cross-order flows • Globalization raises new issues of a global scale • Transnational institutions of global governance are emerging • Non-state actors influence politics • High politics issues have been relegated in relation to a series of low politics issues • Economic globalization is escaping national jurisdiction • Globalization overall constitutes the passing of the era of the nation-state

5. Problems of the traditional debate • It is unfortunate that the debate has focused on the realist claim of centrality of states. • Neither realism nor globalism capture the entirety of the complex picture of globalization

6. Problems of definition • Globalization can mean a variety of things: cross-border flows or interdependence or transnationalisation of governance • Definitions vary between theorists: Sceptics tend to adopt rather strictly defined conceptions of what globalization consists of, whereas globalists tend to accept less discriminating definitional standards

7. How to define globalization? • Globalization is a multifaceted process necessitating a multi-dimensional conceptualisation • We can try to define globalization by considering what it is not (beyond states, not inter-national, not regionalization, opposed to protectionism) • Here globalization is defined as ‘a process (or set of processes) that embodies a transformation in the spatial organisation of social relations and transactions, generating trans-continental and inter-regional flows and networks of activity, interaction and power’ (Held, 1999: 16)

8. Empirics of globalization • Almost every empirical claim is contested in the globalization literature but balance of opinion has shifted towards a more sceptical position • Empirical record relations to two aspects of globalization: 1) its extent 2) its consequences

9. Extent of globalization Evidence suggests that the extent of globalization is not unprecedented What is often called globalization is actually better described through notions of regionalization and triadiazation Evidence does not support economists’ predictions e.g. on interest rate convergence Consequences of globalization Evidence does not support the implication that states’ internal spending would lessen International investors do not seem to be as mobile as predicted Welfare states continue to attract investment Sceptic’s case

10. Case study: from welfare state to competition state • Philip G. Cerny argues that globalization is transforming welfare states to competition states. Investment and trade flows increase national economies pitted against each other states scale back their internal regulations and levels of taxation welfare state becomes impracticable for public finances • Problems with this argument are: • Cost is not necessarily the only determinant of consumer choice • Investors continue to be interested in welfare spenders • Welfare states can also be economically open • We should not attribute causal force to a fully integrated economy or to globalization on the basis of theoretical presumption.

11. Conclusion Globalization is often presented as a challenge to the very field of IR Yet, empirical evidence suggests that globalization is not necessarily an accurate term to describe the current political processes There is still much to be gained from focusing on state as a key if not the only actor