Globalization and Public Policy

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Global Encyclopedia of Public Administration, Public Policy, and

Governance pp 2604–2609
Globalization and Public Policy

Sharon Andrews & John Whyte
Reference work entry First Online: 01 January 2018

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Definition
Globalization refers to the increased dynamics

and complex interdependencies among people,
governments, companies, and nongovernment
organizations across and between local,
national, and international levels. Globalization
infers an opening up of perspectives and fields
of action.
This Public
websitepolicy
sets only
cancookies which as
be defined arepurposive
necessary action
for it to function. They are used to enable core
functionality such as security, network management and accessibility. These cookies cannot be
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switched is in
ostensibly in the
our systems. Youpublic interest
may disable andbyhas
these changing your browser settings, but this may
been
affect legitimated
how the websiteby governments
functions. Please or quasi-
view our privacy policy for further details on how we
process your information. Dismiss
governmental organizations.
Introduction
Debates regarding the relationship between

globalization and public policy engage with the
question of how (to what extent/through what
means) has globalization impacted public policy and
the capacity of the nation-state to set and achieve its
policy goals.
More simplistic responses have used the language of

global forces and diagnosed a hollowing out of the
state marked by a significant diminution of power.
While it is clear that the economic, social, and
political arrangements and relations that are shaping
domestic conditions and outcomes are increasingly
supranational, this does not mean that globalization
has left the nation-state hamstrung. This
misconception is too all encompassing,
undifferentiated, and deterministic.
Kennett (2008) notes that states are differently

positioned in regard to their capacity to exercise
power – both internally and externally – cautioning
that even those states able to exercise significant
political and economic power are not unchallenged
masters of their own and other domains. The global
arrangements and relations that shape national and
This website sets
supranational only goals
policy cookies which
and are necessary
outcomes for it to function. They are used to enable core
are not
static or uncontested nor are they undifferentiated.
switched off in our systems. You may disable these by changing your browser settings, but this may
affect how the website functions. Please view our privacy policy for further details on how we
Arguably, the most appropriate perspective to take
on the impact of globalization on public policy is that
it involves processes that are complex, contingent,
and ambiguous. Scholars and commentators may be
able to pinpoint common themes and pressures but
must also recognize that these do not always apply,
may have varied effects, and are subject to change.
The practices and outcomes of policy activity under
the conditions of globalization have to be
investigated rather than assumed.
Nonetheless, it is possible to identify a number of key

exemplar dimensions with respect to the relationship
between globalization and public policy. These
dimensions include:
1. Globalization as an imperative
2. Globalization as a source of policy problems
3. Globalization as policy rhetoric/legitimating
strategy
4. Globalization as policy opportunity
Globalization as Imperative
Public policy never occurs in a local vacuum.

However, the extent to which policy activity is shaped
by global factors depends, in part, on the nature of
This website sets only cookies which are necessary for it to function. They are used to enable core
the policy issue being addressed. Some policy
problems
switched offcan only
in our be understood
systems. and responded
You may disable to
these by changing your browser settings, but this may
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within how the website
a globalized frame.functions. Please some
For example, view our privacy policy for further details on how we
dimensions of corporate tax avoidance are enabled
by the capacity of multinational entities to “locate”
profits and expenses within those jurisdictions most
favorable to their tax minimization interests. In effect,
globalization and the more permeable global
economic order of contemporary times have
provided opportunities for multinational entities to
legally avoid paying tax in ways that negatively affect
the revenue bases of national governments across
the world.
The phenomenon of multinational tax avoidance

does not necessarily create a global imperative to act.
Some nation-states may be better positioned than
others to benefit from profit shifting and tax
minimization strategies. Where there is a will to act,
globalization becomes a policy imperative, precisely
because of the complex interdependencies
implicated across and between local, national, and
international levels. Multinational tax minimization is
an issue that cannot be addressed at the level of the
nation-state alone – it requires a global response.
There are numerous other policy issues for which it is

imperative that policy actors generate a global
response – including drug trafficking, human
trafficking,
This websiteterrorism, irregular
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which and for it to function. They are used to enable core
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refugees, health
functionality epidemics,
such as security,antibiotic resistance, and
network management and accessibility. These cookies cannot be
climate change, to name a few. The consideration
common to all such issues is that although
process the policyDismiss
your information.
responses to these issues are legislated within
national jurisdictions, they have to be developed and
implemented in concert with others from other policy
contexts and arenas in order to be effective.
The imperative to generate such supranational

responses to shared global problems has given rise
to the concept and practice of global governance.
Evans (2009, p. 256) contends that “Global
governance refers to the process of political
interaction aimed at solving problems that affect
more than one state or region when there is no
authority structure that can enforce compliance.”
Viewed through a positive lens, such global

governance can be viewed as a means to provide a
negotiated convergence of policy, which allows for
ample regulation. Critics, however, contend that such
increased policy convergence at the supranational
level can result in a democratic deficit at best, or in
the worst case scenario, a race to the bottom
(Drezner 2001). This latter critique reflects concerns
about the outcomes of drastically reduced barriers to
economic, political, and cultural exchange that is
fundamental to globalization.
Globalization
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The consequences
switched of globalization
off in our systems. have been
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debated the website
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Supporters view have,
and critics our privacy policy for further details on how we
respectively, aligned themselves behind claims
relating to the positive and negative effects of
changing relations and arrangements within the
global sphere. Concerns about nation-states’
capacities to respond to policy problems have been
discussed in the previous section. This section reflects
more on the substantive nature of some of the
problems associated with globalization. These
problems may be economic, environmental, cultural,
or social.
Economic Effects
In economic terms, most of the debate has

concerned radical changes to life chances in terms of
income inequality and disparities in employment
opportunities. In effect, globalization can be broadly
understood as contributing to significant shifts in the
fate of communities within and across national
territories. More specifically, the transnational
mobilizations of capital, off shoring of employment
opportunities, and international migration of labor
have altered, and continue to alter, the distribution of
opportunities and rewards for work. The
distributional effects of globalization are not
universal but are heterogeneous: for some, the
effects constitute a change for the better, where
others lose what
This website theycookies
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which are necessary for it to function. They are used to enable core
Making sense of these varied distributional effects –
both theoretically and empirically – isyour
process an ongoing
information. Dismiss
challenge. Researchers have engaged the question of
distributional effects at different levels of analysis:
micro (kinds of firms/employees), meso (particular
sectors or occupations), and macro (kinds of
economies/economic blocks).
For example, an individual positioned within a

competitive firm (or one that is sheltered from
competition in a particular sector), who has highly
developed skills and is mobile, will be more likely to
experience globalization as a positive because of
their relative employment security, higher wages, and
potentially lower prices on the goods and services
they seek to purchase. In contrast, an individual
positioned within sectors of decline (or companies
who are unproductive) and who has less highly
developed skills levels may be detrimentally impacted
not only by these phenomena but also by
competition for jobs through the off shoring or the
migration of labor.
Whether such “adjustment” issues are seen as a

problem for policy makers depends, in part, on the
dominant discourses at play, including whether
unemployment is viewed as a temporary outcome.
The same is true with debates about rising inequality,
with
This many
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sets only poverty
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These discourses may seek to discourage an analysis
of the relative wins and losses that globalization
contributes to at subnational, national, or
supranational levels. Nonetheless, it is clear that
disparities in income, economic security, and power
are contributing to social unrest, dissent, and political
action.
Globalization, Social Cohesion, and Cultural Diversity
Issues of social cohesion have long accompanied the

changing nature of national and international
relations and arrangements associated with
globalization. Questions about globalization and
social cohesion are not limited to issues of justice
and fairness. For many, changing global relations also
put into question social bonds and the ways in which
people identify with themselves and others. Under
intense processes of globalization, national affinities
have given way to more hybrid and plural structures
of identity (Scholte 2005).
One example of the possible impact of such plural

structures of identify is put forward by Manual Castel
(1997), who argues that when the national border
loses its significance in terms of providing for
collective identification, and the diversity of group
identities grow
This website setsinonly
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prospects for trust, reciprocity, and solidarity. This
perspective is useful when viewing, foryour
process example, the Dismiss
information.
responses to the global financial crisis (GFC), which
has been something of a conceptual lightning rod for
social unrest as coalitions of fate and their supporters
react to the perceived causes of the crises and the
austerity measures imposed in many jurisdictions as a
policy response. Social unrest has taken various forms
“from riots, strikes and demonstrations, to the
‘Occupy Wall Street’ movement and its offshoots
around the world” (Westaway 2012, p. 136).
With respect to the possible cultural impacts of

globalization, the debate is still very much alive.
Some commentators argue that new technological
and communicative capacities enable cultural
differences to be shared, celebrated, and maintained;
others are concerned about cultural imperialism and
the impact of a Western consumerist culture. This
latter position suggests that the rise of the Internet
and the spread of cable television has paved the way
for the spread of values, norms, and cultural practices
that promote Western ideals – particularly those that
promote capitalism. Taken to its extreme, some
commentators see or predict a global culture
dominated primarily by a stereotypical “American”
culture.
This
This concern for cultural
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only cookies is critiqued
which are necessary for it to function. They are used to enable core
as functionality
a form of cultural
such as imperialism thatmanagement
security, network manifests inand accessibility. These cookies cannot be
neocolonialism. More recent scholarship (Nederveen
Pieterse 2015) argues for a paradigm of hybridity,
which would see the development of new mixed
forms of social cooperation and trans-local mélange
of cultures. This hybridity perspective challenges
supporters of the homogenization thesis and those
that would catastrophize the prospects for social
solidarity in the twenty-first century.
Environmental Impacts of Globalization
For the most part, environmental concerns have been

located within discussions of economic globalization
and therefore conceptualized as an outcome of
changing economic activity. This has been the site of
some of the most contentious debates of our time
with significant questions being asked about the
compatibility between our current organization and
ambitions of the global economy and the
sustainability/future of the planet. Questions have
also been raised about the efficacy of global
environmental governance regimes and their capacity
to engage with disparities of power in terms of
decision-making as well as injustice in the
distribution of benefits and harms associated with
different patterns of global resource use (Newell
2012).
The list of environmental problems confronting policy

actors at subnational,
This website national,
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entire species to rainforest depletion, degraded
farming land, and toxic levels of chemicals within
people, locales, and environments, to name a few.
Globalization as a Legitimating Strategy
Globalization is usually presented and analyzed as a

complex set of material practices and processes
across local, national, and international levels that
give rise to an epochal transformation of
contemporary capitalism (Rosamond and Hay 2002).
This perceptual approach underpins the examination
of globalization in terms of the imperatives it is seen
to generate and the outcomes identified as part of
the “reality” of a globalizing world.
Rosamond and Hay (2002) point to a discursive

element that needs to be addressed over and above
any “material reality.” Namely, that “it is the ideas
that actors hold about the context in which they find
themselves rather than the context itself which
informs the what in which actors behave” (Hay and
Rosamond 2002, p. 148).
In what can be seen as an example of “perception

shaping reality,” whether policy actors deem
globalization to constrain or determine policy
prescriptions will matter more than the “truth” or
otherwise of this discourse. Because of this, policy
makers
switchedcan find
off in ourthe discourse
systems. of globalization
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that arise inPlease view to
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prescriptions that have negative consequences for
constituents of a nation-state. Whether “real” or not,
the discourse of globalization may be a convenient
“truth” for policy actors seeking to exercise power
and maintain electoral support.
In effect, the discourse of globalization can serve as a

useful foil for criticism. In the current era in which
economic dimensions of globalization dominate,
policy makers can take up a Janus-faced positioning,
simultaneously arguing that they are subject to
external constraints while also claiming credentials as
good economic managers. These contrasting
positions enable political actors to shift the locus of
control for decision-making (and the responsibility
for its consequences) depending on the prospects for
political fallout or favor.
In this respect, the discourse of necessity associated

with globalization – and the way in which it is
contested – gives policy makers a forum and form of
“plausible deniability” when it comes to the degree of
authorship they hold over processes that are
reshaping the economic landscape within and
beyond their jurisdiction.
Herod (2009) identifies this as happening at the

supranational levelasunder
functionality such thenetwork
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management anda accessibility. These cookies cannot be
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and further disable
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that theby changing your browser settings, but this may
discourse of equality enables some nation-states to
plausibly deny power differentials and authorship of
globalizing processes. Herod associates “plausible
deniability” by policy makers at the supranational
level with neo-imperialism.
The debate on globalization itself can be viewed as

providing a repertoire of legitimating discourses for
policy makers in warranting their decision-making
power. Three dominant discourses have been
identified in the literature. The first is a hyper-
globalist account that posits that nation-states have
“lost power and influence – even ‘sovereignty’
because they have to (or choose to) tailor their
policies to the needs of mobile capital” (Martell 2007,
p. 174).
The second is a more skeptical discourse that has

responded to the hyper-globalist thesis with more
sober accounts which suggest that globalization is
not all that new or truly global. Focusing on empirical
evidence rather than abstract theorizing, the skeptics
see confirmation of the continuing role of the state
within and across national boundaries. Nation-states
have gained as well as lost power (Martell 2007).
However, this is uneven. As Martell (2007, p. 175)
argues, “nation-states retain autonomy and
sovereignty
This website in many
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has positioned itself somewhere in between the
hyper-globalists and the skeptics. Globalization is not
all encompassing nor is it a myth (as some skeptics
would suggest). Rather, globalization is an uncertain,
uneven, and open-ended phenomenon. Nation-
states both contribute to and experience the impact
of significant change in the globalizing landscape.
The outcome of these changes is not inevitable,
predictable, simple, even, or deterministic.
This level of complexity and uncertainty highlights

the challenge of making sense of the impact of
globalization. It also points to the array of accounts
available to policy makers when they seek to
articulate and warrant the degree of power they have
and their complicity in policy decisions that risk
political backlash.
Globalization as Policy Opportunity
As can be seen in the preceding discussion, the

relationship between globalization and public policy
can be in a number of ways: as an imperative, source
of problems or legitimizing strategy. In addition to
these, globalization can also be viewed as creating
policy opportunities in terms of policy lessons.
The transfer of policy from one context to another

has been conceptualized along a continuum, which
places vicarious
switched off in ourlearning
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thewebsite functions. Please
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2000). In policy for further details on how we
other words, some transfers are more voluntary than
others.
At the one end of this continuum, the imposition of

policy initiatives may be an outcome of globalized
power relations and the practices of supranational
organizations such as the International Monetary
Fund.
Moving along the continuum, more voluntary

elements are captured by the concept of “lesson
drawing.” Lesson drawing means learning from the
experience of others. This is a form of vicarious
learning that has the potential to inform decision-
making across national borders. Policy makers may
make use of powerful insights gained by others in
terms of “the problems others face, the objectives
they seek, the routes they try, the results they arrive
at and the unintended results they produce” (Schwille
et al. 2007, p. 10).
In effect, the opening up of national borders and the

development of global policy networks provide
opportunities for policy makers to learn from the
lived experience of others. Lesson drawing in a policy
sense has the potential to support the diffusion of
promising initiatives and reduce the risks of negative
unforeseen and
functionality unintended
such as security,consequences.
network management and accessibility. These cookies cannot be
In practice, however, lesson drawing is complex, often
partial, politically invested and no panacea to the
challenges of implementing policy that delivers on its
intent. Even when not ideologically driven, identifying
the potential and limitations of a policy “lesson” can
be difficult, as can the enabling conditions that
supported success.
In terms of global policy networks, some of their key

value lies in their opportunistic nature. Global policy
networks tend to arise around areas of shared
interest and can address knowledge, capacity, or will
issues that may limit the effectiveness of national
governments. Streck (2002) identifies a number of
key functions of global policy networks:
The capacity to set agendas by bringing new

issues to light or increasing the prominence of
an existing policy problem
Standard setting through the development of
“soft” or nonbinding agreements that support
transparency and accountability
Generating and disseminating data and
information in a timely manner to support good
decision-making
Boosting the effectiveness and legitimacy of key
This policy
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sets onlybodies
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organizations
Global policy networks can also bring together
key stakeholders and broker agreements and
negotiated outcomes to mediate potential
stalemates thus supporting the development
and implementation of important policy
rationales.
Conclusion
Making sense of the relationship between

globalization and public policy is a challenging
endeavor and will continue to be so. The global
arrangements and relations that shape policy goals
and outcomes both within the nation-state and
beyond are not static, uncontested, or singular. In
some circumstances, globalization represents a
source of policy problems. In other instances,
globalization manifests an opportunity to harness
collective will, share information or data, and
coordinate intervention strategies.
Not all policy actors or institutions are equally

positioned to influence or resist policy agendas that
have been initiated in transnational settings, and
caution needs to be exercised when determining the
extent to which a particular policy prescription
represents a genuine imperative rather than one that
hasfunctionality
been named suchasassuch in order
security, to garner
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legitimacy.
An increased desire for political legitimacy on the
part of national policy makers is understandable in
the context of backlash against economic
liberalization and some of the social and cultural
change that has been associated with globalization.
An added difficulty of untangling whether policy
initiatives are a genuine imperative rather than a
means of foreclosing debate and the prospects of
contestation is the self-referential nature of many
supranational policy organizations. In many instances,
policy makers are party to discussions and decision-
making at the supranational level and then
responsible for that policy portfolio at the domestic
policy level. This dual positioning allows policy actors
to manage their proximity to the exercise of political
power in terms of the setting of policy agendas.
Cross-References
Economic Liberalization and Governance

Global Governance
Policy Failure
Politics and Collaboration
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Author information
Authors and Affiliations
School of Global, Urban and Social Studies, RMIT

University, 124 La Trobe Street, Melbourne, VIC,
3000, Australia
Sharon
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Correspondence to John Whyte .
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Editors and Affiliations
Florida Atlantic University, Boca Raton, FL, USA

Ali Farazmand
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Andrews, S., Whyte, J. (2018). Globalization and Public
Policy. In: Farazmand, A. (eds) Global Encyclopedia of Public
Administration, Public Policy, and Governance. Springer,
Cham. https://doi-
org.bdbib.javerianacali.edu.co/10.1007/978-3-319-20928-
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Global Encyclopedia of Public Administration, Public Policy, and

Reference work entry First Online: 01 January 2018

Access provided by Pontificia Universidad Javeriana

Globalization refers to the increased dynamics

Debates regarding the relationship between

More simplistic responses have used the language of

Kennett (2008) notes that states are differently

Nonetheless, it is possible to identify a number of key

Public policy never occurs in a local vacuum.

The phenomenon of multinational tax avoidance

There are numerous other policy issues for which it is

The imperative to generate such supranational

Viewed through a positive lens, such global

In economic terms, most of the debate has

For example, an individual positioned within a

Whether such “adjustment” issues are seen as a

Globalization, Social Cohesion, and Cultural Diversity

Issues of social cohesion have long accompanied the

One example of the possible impact of such plural

With respect to the possible cultural impacts of

Environmental Impacts of Globalization

For the most part, environmental concerns have been

The list of environmental problems confronting policy

Globalization as a Legitimating Strategy

Globalization is usually presented and analyzed as a

Rosamond and Hay (2002) point to a discursive

In what can be seen as an example of “perception

In effect, the discourse of globalization can serve as a

In this respect, the discourse of necessity associated

Herod (2009) identifies this as happening at the

The debate on globalization itself can be viewed as

The second is a more skeptical discourse that has

This level of complexity and uncertainty highlights

Globalization as Policy Opportunity

As can be seen in the preceding discussion, the

The transfer of policy from one context to another

At the one end of this continuum, the imposition of

Moving along the continuum, more voluntary

In effect, the opening up of national borders and the

In terms of global policy networks, some of their key

The capacity to set agendas by bringing new

Making sense of the relationship between

Not all policy actors or institutions are equally

Economic Liberalization and Governance

Castells M (1997) The power of identity, the

Drezner DW (2001) Globalization and policy

Evans M (2009) Policy transfer in critical perspective.

Herod A (2009) Geographies of globalization: a

Kennett P (2008) Governance, globalization and

Martell L (2007) The third wave in globalization

Nederveen Pieterse J (2015) Globalization and

Newell P (2012) Globalization and the environment:

Scholte JA (2005) Globalization: a critical

Schwille J, Dembélé M, Schubert J (2007) Global

Streck C (2002) Global public policy networks as

Westaway J (2012) Globalization, sovereignty and

Authors and Affiliations

School of Global, Urban and Social Studies, RMIT

Editors and Affiliations

Florida Atlantic University, Boca Raton, FL, USA

Rights and permissions