OLAYEMI EBUNOLUWA DAMILOLA 1

SOCIETY AND POLITICS:GLOBALISATION

“Globalisation is the system of interaction among the countries of the world in order to
develop the global economy. Globalisation refers to the integration of economics and societies
all over the world. It involves technological, economic, political and cultural exchanges made
possible largely by advances in communication, transportation and infrastructure”. (HubPages
[online]: 2011) “The fact that we all gradually live in a unified world, so that individuals, groups
and nations become ever more dependent; is referred to as globalisation”. (Giddens. A.: 2009)
Globalisation is a growing phenomenon whose impacts are widely felt and cannot be
undermined, as a result of the evident impact of globalisation, the extent to which its power
undermines the internal governments has for a very long time been a contentious issue, as a
result of this disagreement a number of scholars came together to form the globalisation
debate to express their own different opinions on the extent to which they think globalisation
affects the powers of internal governments.

In this debate there are three schools of thought, the hyperglobalisers- who are of the stand
that the impact of globalisation is borderless and unprecedented, and undermines the powers
of internal governments, the sceptics- they are of the strong opinion that the influence of
globalisation is determined by internal markets and governments, and lastly, the
transformationalists- they take a stand in between the other two schools. According to
Giddens. A. (2009) the transformationalists see this phenomenon as the central force behind a
broad spectrum of changes that are currently shaping the modern societies, but in the midst of
this transformation, some things remain unchanged, like the sovereign powers of internal
governments. For the purpose of this essay only the hyperglobalisers and sceptics school’s
arguments would be considered.

The hyperglobalisers view globalization as a process that is cuts across national borders,
leading to a new global order, swept along very strong flows of inter-border trade and
production, which has walled up the political authority of internal government. In the light of
the above assertion they believe that the impact of globalisation over rides the sovereignty of
different countries. In essence, this school puts forward the argument that globalisation cannot
be controlled by national government. Kenichi Ohmae, a hyperglobalists, sees that the end of
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this growing phenomenon would be a world without borders, where the powers of market
forces will surpass that of national governments; he says that global capitalism will be the world
order. In addition, he says that globalisation also promotes world governance. The
truthfulness of this assertion is seen in the growing power the United Nations has in making
decisions that are not refutable by state governments. (Giddens. A.: 2009.) According to
Goldstein. J. et al (2010) the United Nations is the closest institution to a world government
that has ever existed. The General Assembly which is an organ of the United Nations has passed
some decisions that states gave no choice but to obey, the existence of such an organ and its
ability to undermine state sovereignty, in that states do not have a say on decrees they make
does not only prove Ohmae assertion of world governance, but also the fact that the impact of
globalisation surpasses the control of internal governments.

Aside the United Nations the impact of the European Union on countries in Europe is another
point to buttress the point that globalisation leads to world governance and undermines the
power of internal governments. In Europe, the European Union has the power to make decrees
that the independent states do not have any power to refute; they have no choice but to obey
such decrees. One of such is the common currency policy implemented since February 2009,
and the European Union has with its powers gotten most European countries to change to the
use of the common currency, the Euro(€). The union also put forward a general standardisation
of goods and services in Europe, where specifications of quality standards are set. Both the
United Nations and the European Union impose sanctions on states that are compulsorily
obeyed.

As globalisation is also a technological phenomenon, it further declines the power of internal

government. The power of technology has surpassed the control of internal government, as
state government cannot, no matter how they try, control the flow of information in and out of
their country. The growing capability of the internet is an off spring of globalisation, and this
growing capability is the reason why top state secrets can be accessed on the internet and
terrorists attacks can be planned miles away by terrorist networks located all over the world,
and internal governments will still remain clueless. The possibility of this kind of operation
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within states without the consent of the internal government, and the possibility, also, of
information to go in and out of a state, even top government secrets, comes to prove that the
impact of globalisation side lines the powers of internal governments.

Technology as paved way for the creation of internet banking whose connectivity is
unchallengeable by internal governments; this internet banking system has even allowed
money to be wired in and out of countries without the knowledge of internal governments.

A global marketplace has brought growth and prosperity to countries. Traditional states have
become superseded as economic units as a result of this economic process. Authority of
internal governments has been countermanded by the presence of supranational institutions
like the International Monetary Fund (IMF), Economic Community of West African States
(ECOWAS) and transnational actors like MNCs and NGOs as well. The prices of some goods are
internationally fixed, undermining internal governments; the value of a nations currency can be
internationally determined. The presence of the Organisation of Petroleum Exporting Countries
(OPEC) is another proof. OPEC determines internationally the price of crude oil without the
consent of internal governments.

The hyperglobalisers believe that the regional and geographical distinction such as the North-
South gap are closing up and making way for a global economy.

Hyperglobalisers also believe that cultural integration has surpassed the control of any
internal government. They assert that the world is assuming a homogenous culture and
countries are adapting other countries cultures and fast loosing theirs faster than internal
governments can control. The western culture is spreading so fast, its affecting the way of life,
dressing, communicating, eating, and even the meals eaten around the world at a rate that in
no time the whole world would soon have completely inculcated the western culture leaving at
the only existing culture.

Even globalisation as a social phenomenon in respect to sports has in some challenged the
power of state governments. International sports organisations like the Olympics,
Commonwealth (Commonwealth Games) and FIFA (World Cup) have in times past placed some
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sanctions on states that could not be challenged by internal governments, and their guiding
rules have to be obeyed by all participating states strictly.

Hyperglobalisers believe that the driving force of globalisation centres on laissez faire
capitalism and technology. “Taken together these shifts signal to the hyperglobalisers the
dawning of a global age in which national governments decline in importance and influence”
(Giddens. A.: 2009)

In this light, the hyperglobalisers firmly take their stand on the opinion that the powers of
globalisation are uncontrollable by state governments and that the extent to which
globalisation influences a state is far beyond the control of national government. The
hyperglobalisers say that the powers of globalisation cut across borders indiscriminately. That
is, globalisation is unprecedented and borderless.

The sceptics on the other hand, are of the opinion that the driving force behind globalisation
is the internal government and the market, they argue that the impact of globalisation is not
unprecedented or borderless. In essence, they argue that globalisation is controllable by
national government. The hyperglobalisers assumptions of globalisation have been attacked by
sceptically oriented theoreticians who see globalisation not as “an epochal transformation of
world affairs” rather a myth that “conceals the reality of an international economy increasingly
segmented into three major regional blocs in which national governments remain very
powerful” (Doiserbnia [online]: n.d)

In a bid to counter the core of the hyperglobalists’ argument, careful experimental examining of
the hyperglobalisers thesis is carried out by the sceptics.

Two renowned sceptics, Thompson and Hirst, put forward their argument using the Weber
Ian mode of analysis; from constructing two ideal types. They start by drawing a clear line
between international economy and global economy. They say that whilst an international
economy is one where there exist exchanges between relatively distinct national economies, a
global economy is a perfectly integrated world economy in which “the law of one price” in
predominant. They conclude that if the hyperglobalisers thesis of the existence of a global
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economy that undermines the power of internal government is true then the world would be
experiencing a totally new economic structure and not just speculative modifications toward a
growing international trade and investments. They finally say that if the hyperglobalisers
postulation concerning economic globalisation is accepted, then the other assertions
concerning global culture and global policy will be disproved. (Doiserbnia [online]: n.d)

These sceptics claim that world economies are not more integrated now than they were before
the World War I, when the hegemonic power of Britain provided a commons set of
expectations and institutions. They also doubt that the regional blocs are gapping up as a result
of the emergence of a global economy; rather they believe that globalisation has come to
widen this gap. The hyperglobalisers postulation of world civilisation is refuted by the
fragmenting of larger units into smaller ones along lines of language, religion, and other such
cultural factors. (Goldstein. J. et al: 2010)

Simply put, if it has been extensively established that, in all honesty, there is no such thing as a
global economy in practice, how then can one say that the powers of internal governments are
been undermined by an inexistent global economy.

The truthfulness of the sceptic assertion that globalisation is controllable by national

government is seen in the prerogative power of states to come up with policies governing their
territory. In as much as the hyperglobalists postulation that international organisations have
binding powers to make irrefutable decrees on states that must be obeyed, the sceptics make it
clear that the states have the prerogative to decide whether or not to join this organisations.
And can even to a large extent decide whether or not to comply with some of their policies, the
United Kingdom for example has even up till date refused to obey the European Union on its
common currency policy and still spends its own Pounds sterling (£). The United States also
undermined the power of the United Nations general assembly when they invaded Iraq in 2003,
after the United Nations ordered it not to.

The United Nations in as much as it is the closest to a global government is not one. The
members of the United Nation are independent nations who have not given the United Nation
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the go ahead to infringe on their sovereignty; it is not empowered to enforce decrees within
state borders without the authorisation of internal governments. In essence, the powers of the
United Nations in a state are determined by the state government. A fresh instance to buttress
this point is the current crises in Libya, in as much as the United Nations general assembly as
decided to assist Libya and remove Ghadafi, they cannot because they have not been invited by
the government of Libya. (Goldstein. J. et al: 2010)

Looking beyond this, one cannot deny the fact that the United Nations has strengthen its
member states politically, both developed and developing now have a voice through the forum
of the United Nations. Therefore, the fact that globalisation has given states more voice and
power, one cannot say that the powers of globalisation is the name of the international
organisations like the United Nations, are challenging national government, it is in fact largely
beneficial to national governments.

States also have prerogative to make economic policies such as tariffs, excise duty and import
duty, which go a long way in determining the extent to which international corporations can
function within their borders. These economic policies can even deter this multinational
corporations from coming into their territory if the internal governments so please. High tariffs
discourage foreign investors from coming into a country and excise duties control the rate of
international trade.

“Sceptics argue that national states (especially powerful ones) are their main agents and
architects. The market, goes the argument, cannot or will never be able to replace the
functions of national governments because without their controlling, protecting and managing
role there are no prerequisites for successful integration. The main conclusion related to the
previous point is that contemporary trends of internationalization have not changed the basic
postulates of managing the international economy”. (Doiserbnia [online]: n.d)

The truthfulness of sceptic assertion can also be seen in the issuance of license to
multinational companies operating within a nation. Every internal government reserve the
right to issue licence to any company operating within the nation. The government also
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reserves the right to invoke the licence. This goes to show the extent to which the internal
government has strong influence and power on the extent to which globalisation affects its
territories.

The sceptics believe that the power of the national governments are reinforced and
enhanced by globalisation, that is, the powers of the internal government are further
empowered and reformed by globalisation. They emphasise that the dominant feature of
globalisation is world less interdependence. According to Thompson, the world is divided into
regionalised blocs, that is, regional global bodies whose influence on member nations are more
than global bodies. The African Union and European Union determine the affairs of Africa and
Europe respectively.

With the different arguments, the sceptics dare to say that the powers or influence of
globalisation are binding and controlled by national government, and that national
governments have the autonomous power to control the extent to which the impact of
globalisation is felt within their borders. That is, globalisation is not unprecedented and
borderless.

In summary, the table below shows the views of the hyperglobalisers and sceptics.

HYPERGLOBALISERS SCEPTICS
I. Conceptualisation A new era Nothing new;
ideology and myth
II. Main Causes Laissez faire Project of the West
capitalism and
technology
III. Main consequences
a) economic New global economy Internalisation of
economy
b) political The end of state; States are more
global government powerful than ever
c) cultural Homogenization Fragmentation
IV. Future prediction The end of history, Clash of civilisations
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global civilisation

In conclusion, the stand of the transformationalists will reflect. The influence of globalisation
is not negligible but the authority of internal government cannot be denied. It is put forward
that in as much as globalisation has transformed the world, it has also transformed the powers
of national governments. The transformative power of globalisation is dominant in the political
domain and this transformation is based on the mixture of global culture and internal culture.
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BIBLIOGRAPHY

BOOKS

Giddens. A. (2009) Sociology (6th Edition) Italy: Polity Press

Goldstein. J. et al (2011) International Relations (9th Edition) USA: Pearson

WEBSITES

Doiserbnia (n.d) [online] Sceptics Argument Available at:

http://www.doiserbia.nb.rs/img/doi/1452-595X/2006/1452-595X0602179T.pdf Accessed on 6th March

HubPages (2011) [online] Definition of Globalisation Available at: http://hubpages.com/hub/Definition-

of-Globalization Accessed on 5th March