The erosion of the nation-state in the wake of globalisation

It is perhaps a good idea to begin with a pertinent definition of globalisation. Held (1991) claims that globalisation is, ' a set of forces which combine to restrict the freedom of movement of action of governments and states by blurring the boundaries of domestic policies, altering the legal framework and administrative practices of governments and obscuring the lines of responsibility and accountability themselves.' ( Held, 1991, p.222). Clearly, the power of governments in individual nation - states is now being restricted by international and global activity. The globalisation of economic and political processes means that the nation-state is increasingly unable to maintain direct control of policy formation. There are now numerous international organisations which have a significant impact including: the International Monetary Fund ( IMF); the G8 summits of major economic powers; the European Union ( EU); the European Court of Human Rights ( ECHR); the International Energy Agency ( IEA) and World Health Organisation (WTO).

In recent times, nation -states have had to adhere to the demands of Intergovernmental Organisations (IGOs), such as the aforementioned IMF, and the World Bank when requiring external financial assistance. Moreover, a number of states have a declining capacity to determine their own military strategies and foreign policies. The reason for this, is that security arrangements , weaponry and national defence organisations have become integral to joint alliances and power blocs are controlled by unified command structures such as NATO. Nevertheless, the extent of these demands vary from nation to nation. A contrary view suggests that there is still evidence in many societies of the continuation of state power. Some claim that it tends to be the case that an individual nation- state's power, ' to determine its own defence, welfare and policing policies has remained. Supportive, state-controlled welfare systems are essential for social stability, a key factor in attracting foreign investment, and democratically controlled welfare systems remain part of the legitimation process in capitalist societies.'( Oxford Department for Continuing Education, 2020, 10.5).

Seemingly a growing body of international law is now ' infringing' on state autonomy. Generally speaking, compliance often rests on the goodwill of the states themselves. Nevertheless, there are significant exceptions to this: including several rulings of the European Court of Human Rights on the questions of equal pay and sexual discrimination. According to Held ( 1989, pp. 199 -200), a number of these rules have forced member states to alter their national laws. In the U.K, a sufficient majority of the population ( 17.4 million), in a controversial, and widely debated referendum, recently voted in favour of Brexit i.e. to leave the EU ostensibly to reject policies implemented in Brussels by unelected bureaucrats. Moreover, there is pressure applied to governments, in individual nation - states, to reduce public spending, ' It should not be forgotten that European Union member states are also subject to pressure from the European Commission and Parliament to adhere to their directives and laws.' ( Oxford Department for Continuing Education, 2020, 10.5 ) Due to this, 'ever more complex international system' ( Held, 1991, p.222) the autonomy of nation states are increasingly limited, 'Any conception of sovereignty which interprets it as an illimitable and indivisible form of public power is undermined. Sovereignty itself has to be conceived today as already divided among a number of agencies, national, regional and international, and limited by the very nature of the plurality. ' ( Held, 1991, p. 222)

It has been suggested that, the impact of globalisation, and in particular, the pressure to apply neo-liberal principles to public policy, have eroded the power of governments' decision making. Given the current pandemic, and numerous nation -states' failure to deal with it effectively; ' notions of market efficiency determining public provision' ( Oxford Department for Continuing Education, 2020, 10.5). have been severely criticised. Indeed, the trends of globalisation and privatisation, have played a significant part, in what has been termed the ' hollowing out' of the state. In the U.K, for example, major public utilities such as gas, water, electricity and telecommunications have now been privatised as have parts of the NHS:' One idea that suggests there is a growing limitation to political power is that of ' hollowing out'. Rhodes ( 1994) argued that power is being given away from the power of government, so the capacity of the centre is reduced.'( Jackson and Tansey, 2015, p.51) Apposite to this approach, recent events have highlighted the way that privatisation has led to a serious underinvestment in essential public services. According to Noam Chomsky ( 2020), the U.S has enthusiastically embraced privatisation, and turned away from state intervention for many decades now; allowing support for key public services to be dictated by the whims of the financial sector:

'“Government is the problem,” Reagan told us with his sunny smile, meaning that decision-making has to be handed over even more fully to the business world, which is devoted to private profit and is free from influence by those who might be concerned with the common good. The years that followed injected a dose of neoliberal brutality to the unconstrained capitalist order and the twisted form of markets it constructs. ' ( Chomsky, cited in Polynchroniou, 2020)

With the declining political authority of nation - states, there has, 'been an increase in the number of international organisations operating across national borders during the twenty-first century. ' ( Oxford Department for Continuing Education, 2020, 10.5). Consequently, there are now many opportunities for transnational organisations to shape events around the globe. Although globalisation has certainly paved the way for conscientious, civic transnational organisations to make a significant impact on world affairs there is a marked dichotomy/ inequality, 'in terms of resources, influence and access to centres of power' ( McGrew, 2010, p. 170) between these organisations and more hawkish multinational corporations, '... like Murdoch's News International,' (McGrew, 2010, p. 170) which unfortunately clearly have, ' have much greater access to centres of power and the capacity to shape the global agenda than do organizations such as the Rainforest Action Network. Many of the poorest and most vulnerable members of the world community have no effective voice.' (McGrew, 2010, p. 170)

It appears that it's becoming increasingly problematic for governments to protect their national economies. It could be claimed, that an individual nation-state's loss of power over its own decisions, '... depends to an extent on its dependence on the global economy and its vulnerability to the decisions of the institutions of global governance. ( Oxford Department for Continuing Education, 2020, 10.5) Political processes within states are becoming more responsive to the global economy, ' Multinational corporations are freer to move in and out of countries. The economies of many countries are dependent on foreign direct investment by these companies for economic growth and stability.( Oxford Department for Continuing Education, 2020, 10.5) The value of a nation's currency and its government's ability to determine interest rates were once important economic tools. Currently, with the deregulation of the banks, the growth of 24-hour currency markets and the development in communications technology, the transnational economy is dominated by often uncontrollable money flows, 'The most momentous development of our era, precisely, is the waning of the nation state: its inability to withstand countervailing 21st-century forces, and its calamitous loss of influence over human circumstance.' ( Dasgupta, 2018) Furthermore, the endlessly speculative and uncertain nature of market economies created a kind of ' casino capitalism' ( Strange, 1986). All this renders the essential tools of a government' s political and economic power increasingly ineffective: ' Today’s failure of national political authority, after all, derives in large part from the loss of control over money flows. At the most obvious level, money is being transferred out of national space altogether, into a booming “offshore” zone. These fleeing trillions undermine national communities in real and symbolic ways.' ( Dasgupta, 2018).

The increasing proliferation of Transnational Corporations, a major aspect of globalisation, has undoubtedly made capital far more mobile. TNCs can decide where to deploy their various plants across the globe in the most profitable way, what forms of employment policy they want to adopt ( often they exploit cheap labour) and where to deposit their liquid assets. Clearly, this can erode the power of national governments and often does: ' Today's great engines of wealth creation are distributed in such a way as to elude national taxation systems (94% of Apple’s cash reserves are held offshore; this $250bn is greater than the combined foreign reserves of the British government and the Bank of England), which is diminishing all nation states, materially and symbolically.' ( Dasgupta, 2018)

To conclude, due to decades of globalisation, it seems that there has been a marked erosion in the power of governments in individual nation- states as, ' economics and information have successfully grown beyond the authority of national governments. Today, the distribution of planetary wealth and resources is largely uncontested by any political mechanism.' ( Dasgupta, 2018). Nevertheless, the current world wide pandemic caused by the outbreak of the deadly coronavirus, has meant that individual nation - states have been forced to intervene robustly to help public services and businesses via substantial economic intervention. While this could be only a temporary measure in a moment of crisis, it could lead to significant change. Clearly, there is now much criticism levelled at neo-liberal policies that seem to work in tandem with the more egregious aspects of globalisation Perhaps, current events will provide a much needed wakeup call to the government here in the U.K and other, similarly ill prepared governments, across the world. Perhaps, we're now entering a new era where the power of governments within nation-states will be re-energised, and once again play an important role in terms of effective, independent policy making; yet still still seeking to engage constructively with the wider world; only time will tell.

Bibliography;references:

1.) Dasgupta, R.( 2018) 'The demise of the nation-state', [ online] The Guardian. Available at https://www.theguardian.com/news/2018/apr/05/demise-of-the-nation-state-rana-dasgupta.( Accessed 27th March 2020).

2.) Held, D. ( 1989) ' The decline of the nation-state', in Hall, S and Jacques, M. ( eds) New Times, London: Lawrence & Wishart, pp. 191 - 204.

3.) Held , D. ( 1991) 'Democracy, the Nation-State and the Global System', in Held D (ed) Political Theory Today (1991), Cambridge: Polity Press.

4.) Jackson, N. and Tansey, S. D.(2015) Politics: the basics, 5th edn. Abingdon: Routledge.

5.)McGrew, A.( 2010) ' Politics as Distorted Global Politics', in Leftwich, A. (ed) What Is Politics? ( 2010), Cambridge: Polity Press.

6.)Oxford Department of Continuing Education (2020) 'Introduction to Politics,' Globalisation, international institutions and the idea of global governance,10.5 Globalisation and the nation-state.[online].Available at

https://hilary2020.conted.ox.ac.uk/mod/book/view.php?id=2530&chapterid=4096, ( Accessed 31st March 2020).

7.) Polynchroniou, C.J. ( 2020) Chomsky: 'Ventilator Shortage Exposes the Cruelty of Neoliberal Capitalism', [ online] Truth Out. Available at https://truthout.org/articles/chomsky-ventilator-shortage-exposes-the-cruelty-of-neoliberal-capitalism/?utm_campaign=Truthout+Share+Buttons ( Accessed 4th April 2020).

8.) Strange,S. ( 1986) Casino Capitalism, Oxford: Basil Blackwell.