GLOBAL POLITICS

ASSIGNMENT

THE IMPACT OF GLOBALIZATION ON NATION-STATES

INTRODUCTION

The term globalization is a familiar term for most of us, though its meanings may differ. The process of
globalization does not have any explicit demarcations. In an attempt to define it, we can say that
globalization connects the world on a larger platform. Some scholars have defined it as ‘The
intensification of worldwide social relations which link distant localities in such a way that local
happenings are shaped by events occurring many miles away and vice versa.’ (Giddens 1990:21)
For some, it is only the integration of world economies but it is extremely important to look at it from
another lens as globalization is also altering the political, social and cultural dynamics between states.
The extensity, intensity and velocity of global interactions make it evident that globalization is much
more than mere interconnectedness. There are three perspectives on globalization:
 The hyperglobalists—argue that it is bringing about the demise of the sovereign nation-state as
global forces undermine the ability of governments to control their own economies and
societies (Ohmae 1995; Scholte 2000). They view globalization as a historic and irrepressible
process which leads to a world order based on market and supranational institutions. (Held,
McGraw, 2007).
 The sceptics have contradicting views to that of hyperglobalists, they opine that the states and
geopolitics is still relevant and remain the principal forces shaping the world order.
 The transformationalists opine that the indisputable fundamental changes in the organization
of society that globalization brings are the growing overall integration and acceleration of
socioeconomic dynamics through "compression" of space and time. However, their approach is
multidimensional, taking into account mechanisms of globalization other than economic ones.

Economic, social, demographic and technological forces are dramatically altering relationships among
nations as well as the nature of politics, public policy, administration, institutional relations within the
nation-states (Jun & Wright, 1996, p. 1). Nation is a cultural entity and state is a political entity, when
the political entity of a state is amalgamated with that of the cultural entity of the nation, it becomes a
nation state. To have a comprehensive view, let us delve into the impacts of globalization on nation
states.

ECONOMIC IMPACT

The class capitalist society which is dominated by the transnational corporations of the Global North has
monopolized the economic frontiers which are pushing the Global South into economic distress. The
rules of the game are set by the capitalists and the nation states have to accept the rules without any
say. Their power is being sidelined by the corporate giants. The pro-globalists argue that globalization
has helped nation states to alleviate poverty and has raised living standards but on the other hand, it
has also created meager working conditions and low wages for the workers of Global South. The nation
state is compelled to organize its domestic agendas to fit the political, social and economic global scope.
This shifts the priority of the government and neglects its social issues; nation states do not meet their
potential to formulate developmental policies for its people. The liberalization and homogenization of
the free market economy have swiftly and gradually taken away the national government’s powers, thus
reducing them to a platform, whereby the nation-state becomes more of a passive recipient. Today,
even the IMF (International Monetary Fund) agrees that it has pushed the liberalization agenda too far
and the pronounced liberalization of the capital and financial markets contributed largely to the
financial crises that rocked the world in the early 1990s, causing a lot of harm to young and emerging
economies (Stiglitz, 2003).

POLITICAL IMPACT

Political interdependency has become common due to globalization which challenges the sovereignty of
the nation states. Global changes dictate the terms under which the national government would
function. Neoliberalism has smashed and snatched the nation-states’ models of development and
replaced them with models, which embrace the needs and demands of the supranational organizations.
Hyperglobalists argue that nation-states have already lost their dominant role in the global economy. As
territorial divisions are becoming increasingly irrelevant, states are even less capable of determining the
direction of social life within their borders. Nation states have lost their control over exchange rates and
have to accept economic choices made elsewhere (Steger, 2003). Sceptics argue that liberalized
economy emerged only when the political decision of governments lifted the international restrictions
on trade. So, clearly it implies that territory still matters. It further implies that nation states are not
mere bystanders and have retained their control over infrastructure, education and migration of people.
Hence, the political impact of globalization has both favorable and unfavorable views for nation states.

CULTURAL IMPACT

We are witnessing a clash of cultures in the era of globalization. The powerful ones establish their
hegemony on the less powerful cultures. Although globalization is supposed to promote the emergence
of pluralistic societies, the contrary is the reality on the ground where there is more of cultural
assimilation than cultural pluralism. As globalization diffuses cultures and makes other cultures
accessible, it also implies that local cultures get lost in the inevitable process of westernization which
creates a complex problem of who should shape the global cultural map.

CONCLUSION

As it is aforementioned that globalization has much more to it than mere interconnectedness, some
opine that the nation state is more important and some argue in the favor of the market. Time and
again, it has been argued that nation states are losing their sovereignty because of globalization; the
autonomous nation state is weakened due to transnational processes that facilitate pervious open
borders. On the contrary, some schools of thought argue that globalization has been an integrative
economic, political and cultural process as it has involved the nation states through the process of
liberalization and has harmonized its trade. Hence, on a concluding note, Globalization has
multidimensional impact on the nation states which undermines the state at times but also proves to be
in favor of the nation states on the other hand.