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Chapter 11: Globalization and the Future of Comparative Politics

What is Globalization?

Defining Globalization

  • Globalization: the process of expanding and intensifying linkages between states, societies, and economies

  • Long history of a globalized world

  • What makes this era different from previous globalized relations?

    • Entire societies are directly connected.

    • Relations in the past were “thinner” than they are now.

Globalization’s Implications for Comparative Politics

  • Breaks down the distinction between international relations and domestic politics

  • Two directions:

    • Global forces increasingly impact domestic politics.

    • Domestic issues and events become “internationalized.”

The International Becomes Domestic, and Vice Versa

  • Food security and food culture

    • Globalized supply chains increase availability of food and reduce poverty.

    • New food options change tastes and create new business.

  • Environmental impacts

    • Coal-fired factories in China produce acid rainfall in U.S. Pacific Northwest.

    • Australia’s 2020 wildfires caused air quality problems in Chile.

  • Conflict and refugees

    • Syrian Civil War was triggered by pro-democracy protests in Tunisia.

    • Syrian civil war created a dramatic increase in refugees through the Middle East and Europe.

Institutions and Globalization

Globalization’s Actors and Ideas

  • Major actors

    • Multinational corporations (MNCs)

    • Nongovernmental organizations (NGOs)

    • Intergovernmental organizations (IGOs)

  • Other institutions

    • International regimes

    • The Internet

Multinational Corporations

  • Multinational corporations (MNCs): firms that produce, distribute, and market goods or services in more than one country

    • Examples: Google, McDonald’s, Apple, Toyota, Walmart

Nongovernmental Organizations

  • Nongovernmental organizations (NGOs): a national or international group, independent of any state, that pursues policy objectives and fosters public participation

  • Form of a global civil society

    • Members are individuals, not states.

  • Examples

    • Greenpeace, Red Cross/Crescent, Catholic Church, Amnesty International

Intergovernmental Organizations

  • Intergovernmental organizations (IGOs): groups created by states to serve certain policy ends

  • Political institutions

    • Composed of member states, not private citizens

  • Examples

    • United Nations (UN), European Union (EU), World Trade Organization (WTO), the Organization of American States (OAS)

Wrapping It Up: Globalization’s Nonstate Actors

In Focus: Nonstate Organizations and Globalization

Organization

Definition

Example

Multinational Corporations (MNCs)

Firms that produce, distribute, and market their goods or services in more than one country

Apple, General Electric

Nongovernmental Organizations (NGOs)

National and international groups, independent of any state, that pursue policy objectives and foster public participation

Greenpeace, Red Cross

Intergovernmental Organizations (IGOs)

Groups created by states to serve particular policy ends

United Nations, European Union

International Regimes

  • International regime: fundamental rules and norms that link states together and shape their relationships

  • Focus on specific issue areas

  • Regime examples

    • Free trade

    • Nuclear nonproliferation

Is the Internet an Institution of Globalization?

  • Originally created by the U.S. government

  • Now a global means to exchange goods and information

    • Much of this exchange beyond the control of any one state or regulatory authority.

  • However, the Internet has no single location or common voice.

    • May be comparable to international regimes, though it lacks norms on how to address specific issues or meet goals.

Political Globalization

What is Political Globalization?

  • Political globalization: trend whereby political institutions, decision-making, and political identity shift to the international level

  • Patterns in political globalization

    • International organizations and agreements can create laws that override national governments.

    • NGOs, MNCs, and other global actors operate in areas outside of traditional state government control.

Some Examples of Political Globalization

  • Nuclear Non-Proliferation Treaty limits the spread of nuclear weapons.

  • The EU sets economic regulations that override rules set by member states.

  • Climate change agreements request countries reduce greenhouse gas emissions.

The Debate: Will Globalization Impact State Autonomy and Capacity?

  • Pooling resources through international actors may increase state capacity.

    • Example: World Health Organization and Doctors without Borders may improve state response to health crises.

  • IGOs, treaties, and international law may constrain state actions and weaken autonomy/sovereignty.

    • Example: International Monetary Fund and EU (partially) controlled Greece’s budget decisions following the euro crisis.

The Debate: Is There a “Democratic Deficit” in Global Governance?

  • Yes:

    • IGOs make critical decisions on many issues but most are not directly elected by voters.

    • Governments may use IGOs to avoid accountability, blaming on unpopular policies on outside pressure.

    • Political globalization empowers violent international actors and movements.

  • No:

    • IGOs are accountable to governments; governments are accountable to voters.

    • IGOs and NGOs can act as “watchdogs” and increase the transparency of state action.

Economic Globalization

What is Economic Globalization?

  • Economic globalization: Markets, businesses, and services increasingly cross borders and merge into one large (global) market.

  • Emerging trends

    • Increased trade in goods and services

    • Economic migration

    • Foreign direct investment (FDI)

    • Offshore outsourcing

The Origins of the Modern Free Trade Regime

  • Following WWII, Western allies sought to create a system that would prevent the economic problems that fueled this crisis.

    • 1944: Meeting in Bretton Woods, New Hampshire

  • The Bretton Woods system: an economic regime that manages international economic relations; this includes the:

    • International Monetary Fund (IMF)

    • World Bank group

    • World Trade Organization (WTO)

The Consequences of Bretton Woods

  • The United States used Bretton Woods institutions to promote market integration.

    • Gave rise to Washington Consensus.

  • Since 1945:

    • Trade expansion; many national economies deeply integrated in global networks and supply chains.

    • Firms trade services, not just goods.

    • Investors more free to invest globally.

    • Deeper connections between workers, goods, and wealth

The (Potential) Advantages of Economic Globalization

  • More and cheaper products

    • Access to world markets means people can sell their services to more consumers.

    • People can purchase from whomever they want.

    • Businesses can produce products more efficiently.

  • Reduced global poverty

    • Cheaper products improve spending power for the poor.

    • Investors increasingly invest in places where their assets will produce the largest net gains—poor countries.

    • Offshoring gives more people chances to work at jobs previously reserved for First World citizens.

The (Potential) Disadvantages of Economic Globalization

  • Increasing inequality

    • Offshore outsourcing: a process by which a firm moves some of its work to a secondary business outside the home country that can do the work more efficiently or cheaply.

    • The “race to the bottom” drives down wages and decreases regulations.

    • Harms labor rights and environment

  • Increased economic uncertainty and risk

    • Increased trade risks dependence, which can expose businesses to greater shocks.

    • The free movement of capital can trigger busts and booms.

  • Undermined state capacity and democratic accountability

    • Businesses are able to avoid taxation, oversight, and public accountability.

Societal Globalization

What is Societal Globalization?

  • Societal globalization: Individual and collective identities are increasingly shaped by international influences.

  • Peer groups and civil society membership increasingly cross borders.

    • Human migration at highest level this century

  • Fueled by technological innovations

    • Internet and cell phones

How Will Social Globalization Shape Institutions and Identities?

  • Optimists: rising global multiculturalism and globalized democracy

    • Multiple and diverse values bind populations together.

    • NGOs and global civil society create new forms of public participation.

  • Pessimists: political alienation, backlash, and the “globalization of nothing”

    • Overwhelming choices

    • Promotion of crass consumerism

Taking Stock of Globalization

Is Globalization New?

  • Long history of a globalized world

  • Previous periods of interconnection

    • Silk road: trade between ancient empires

    • Medieval Europe highly interconnected

    • Rising integration under imperialism

    • Late nineteenth through early twentieth centuries see the rise of NGOs and IGOs.

Is Globalization Exaggerated?

  • Overall, the evidence is mixed.

  • Political globalization

    • Increasing involvement of nonstate actors

    • State sovereignty remains a central focus of international politics.

  • Economic globalization

    • Trade and international investment is increasing.

    • “Home bias”: Most economics is still domestic.

  • Societal globalization (from World Values Survey)

    • Younger people are increasingly seeing themselves as world citizens.

    • But distrust of other nationalities remains high.

Globalization and the Future of Iran

  • 2019 Index of Globalization from Swiss Federal Institute of Technology ranks Iran 131 of 197 countries.

  • Iran’s authoritarian and theocratic regime built on values critical of globalization.

    • Western imperialism led regime to limit contact with the outside world with censorship and restrictions on foreign investment.

  • Internet, smartphones, and satellite television allow Iranians to consume international information, despite the regime’s censorship.

    • 2019 Green Wave demonstrations relied on videos, cell phones, and Twitter to mobilize the public and attract international attention.

      • However, the regime used violence to suppress this opposition, and the protests made little impact.

Is Globalization Inevitable?

  • History says no.

  • Factors that may weaken globalization

    • Economic crises

    • National policies limiting immigration

    • Declining support for capitalism and free trade

Signs of Globalization in Decline

  • Rise of antiglobalization groups and attitudes

  • The United States is stepping back from encouraging trade liberalism.

    • Abandoned the Trans-Pacific Partnership (TPP): an agreement that sought to liberalize trade across a number of Asian and Latin American countries

    • Tensions surround the North American Free Trade Agreement (NAFTA): a free trade agreement liberalizing the economies of Canada, Mexico, and the United States

In Sum: The Future of Freedom and Equality

  • Globalization intensifies linkages between states and people.

  • Globalization has given rise to new actors and institutions who are increasingly playing a role in politics.

  • Political globalization has important consequences for state sovereignty, capacity, and global democracy.

  • Economic globalization has promoted both rising prosperity and rising inequality.

  • Societal globalization may, in the future, promote greater identity linkages or greater divides.

  • Scholars debate whether globalization is new or exaggerated, though most would stress that it is not inevitable. Recent years have seen a reverse in globalization trends.

Key Terms

  1. Bretton Woods System - an economic regime that manages international economic relations; includes IMF, World Bank, and WTO

  2. Economic globalization - increased trade between countries, ties between markets, producers, and labor

  3. Foreign direct investment - the purchase of assets in a country by a foreign firm

  4. Globalization - the process of expanding and intensifying linkages between states, societies, and economies

  5. Intergovernmental organizations (IGOs) - groups like the UN and EU; created by states to focus on certain policies

  6. International regime - the fundamental rules and norms of politics - a set of institutions that empower and constrain states and governments; the link states and shape their relationships with each other, usually with relation to some specific issue

  7. Multinational corporations (MNCs) - firms that produce market goods in more than one country

  8. Nongovernmental organizations (NGOs) - national and international groups, apart from any state, that focus on specific policy goals

  9. Offshore outsourcing - a process by which a firm moves some of its work to a secondary business outside of the home country that can do the work more efficiently or cheaply

  10. Political globalization - formation of international organizations like intergovernmental organizations, ties between different countries

  11. Social globalization - globalization can connect people through common interests

KP

Chapter 11: Globalization and the Future of Comparative Politics

What is Globalization?

Defining Globalization

  • Globalization: the process of expanding and intensifying linkages between states, societies, and economies

  • Long history of a globalized world

  • What makes this era different from previous globalized relations?

    • Entire societies are directly connected.

    • Relations in the past were “thinner” than they are now.

Globalization’s Implications for Comparative Politics

  • Breaks down the distinction between international relations and domestic politics

  • Two directions:

    • Global forces increasingly impact domestic politics.

    • Domestic issues and events become “internationalized.”

The International Becomes Domestic, and Vice Versa

  • Food security and food culture

    • Globalized supply chains increase availability of food and reduce poverty.

    • New food options change tastes and create new business.

  • Environmental impacts

    • Coal-fired factories in China produce acid rainfall in U.S. Pacific Northwest.

    • Australia’s 2020 wildfires caused air quality problems in Chile.

  • Conflict and refugees

    • Syrian Civil War was triggered by pro-democracy protests in Tunisia.

    • Syrian civil war created a dramatic increase in refugees through the Middle East and Europe.

Institutions and Globalization

Globalization’s Actors and Ideas

  • Major actors

    • Multinational corporations (MNCs)

    • Nongovernmental organizations (NGOs)

    • Intergovernmental organizations (IGOs)

  • Other institutions

    • International regimes

    • The Internet

Multinational Corporations

  • Multinational corporations (MNCs): firms that produce, distribute, and market goods or services in more than one country

    • Examples: Google, McDonald’s, Apple, Toyota, Walmart

Nongovernmental Organizations

  • Nongovernmental organizations (NGOs): a national or international group, independent of any state, that pursues policy objectives and fosters public participation

  • Form of a global civil society

    • Members are individuals, not states.

  • Examples

    • Greenpeace, Red Cross/Crescent, Catholic Church, Amnesty International

Intergovernmental Organizations

  • Intergovernmental organizations (IGOs): groups created by states to serve certain policy ends

  • Political institutions

    • Composed of member states, not private citizens

  • Examples

    • United Nations (UN), European Union (EU), World Trade Organization (WTO), the Organization of American States (OAS)

Wrapping It Up: Globalization’s Nonstate Actors

In Focus: Nonstate Organizations and Globalization

Organization

Definition

Example

Multinational Corporations (MNCs)

Firms that produce, distribute, and market their goods or services in more than one country

Apple, General Electric

Nongovernmental Organizations (NGOs)

National and international groups, independent of any state, that pursue policy objectives and foster public participation

Greenpeace, Red Cross

Intergovernmental Organizations (IGOs)

Groups created by states to serve particular policy ends

United Nations, European Union

International Regimes

  • International regime: fundamental rules and norms that link states together and shape their relationships

  • Focus on specific issue areas

  • Regime examples

    • Free trade

    • Nuclear nonproliferation

Is the Internet an Institution of Globalization?

  • Originally created by the U.S. government

  • Now a global means to exchange goods and information

    • Much of this exchange beyond the control of any one state or regulatory authority.

  • However, the Internet has no single location or common voice.

    • May be comparable to international regimes, though it lacks norms on how to address specific issues or meet goals.

Political Globalization

What is Political Globalization?

  • Political globalization: trend whereby political institutions, decision-making, and political identity shift to the international level

  • Patterns in political globalization

    • International organizations and agreements can create laws that override national governments.

    • NGOs, MNCs, and other global actors operate in areas outside of traditional state government control.

Some Examples of Political Globalization

  • Nuclear Non-Proliferation Treaty limits the spread of nuclear weapons.

  • The EU sets economic regulations that override rules set by member states.

  • Climate change agreements request countries reduce greenhouse gas emissions.

The Debate: Will Globalization Impact State Autonomy and Capacity?

  • Pooling resources through international actors may increase state capacity.

    • Example: World Health Organization and Doctors without Borders may improve state response to health crises.

  • IGOs, treaties, and international law may constrain state actions and weaken autonomy/sovereignty.

    • Example: International Monetary Fund and EU (partially) controlled Greece’s budget decisions following the euro crisis.

The Debate: Is There a “Democratic Deficit” in Global Governance?

  • Yes:

    • IGOs make critical decisions on many issues but most are not directly elected by voters.

    • Governments may use IGOs to avoid accountability, blaming on unpopular policies on outside pressure.

    • Political globalization empowers violent international actors and movements.

  • No:

    • IGOs are accountable to governments; governments are accountable to voters.

    • IGOs and NGOs can act as “watchdogs” and increase the transparency of state action.

Economic Globalization

What is Economic Globalization?

  • Economic globalization: Markets, businesses, and services increasingly cross borders and merge into one large (global) market.

  • Emerging trends

    • Increased trade in goods and services

    • Economic migration

    • Foreign direct investment (FDI)

    • Offshore outsourcing

The Origins of the Modern Free Trade Regime

  • Following WWII, Western allies sought to create a system that would prevent the economic problems that fueled this crisis.

    • 1944: Meeting in Bretton Woods, New Hampshire

  • The Bretton Woods system: an economic regime that manages international economic relations; this includes the:

    • International Monetary Fund (IMF)

    • World Bank group

    • World Trade Organization (WTO)

The Consequences of Bretton Woods

  • The United States used Bretton Woods institutions to promote market integration.

    • Gave rise to Washington Consensus.

  • Since 1945:

    • Trade expansion; many national economies deeply integrated in global networks and supply chains.

    • Firms trade services, not just goods.

    • Investors more free to invest globally.

    • Deeper connections between workers, goods, and wealth

The (Potential) Advantages of Economic Globalization

  • More and cheaper products

    • Access to world markets means people can sell their services to more consumers.

    • People can purchase from whomever they want.

    • Businesses can produce products more efficiently.

  • Reduced global poverty

    • Cheaper products improve spending power for the poor.

    • Investors increasingly invest in places where their assets will produce the largest net gains—poor countries.

    • Offshoring gives more people chances to work at jobs previously reserved for First World citizens.

The (Potential) Disadvantages of Economic Globalization

  • Increasing inequality

    • Offshore outsourcing: a process by which a firm moves some of its work to a secondary business outside the home country that can do the work more efficiently or cheaply.

    • The “race to the bottom” drives down wages and decreases regulations.

    • Harms labor rights and environment

  • Increased economic uncertainty and risk

    • Increased trade risks dependence, which can expose businesses to greater shocks.

    • The free movement of capital can trigger busts and booms.

  • Undermined state capacity and democratic accountability

    • Businesses are able to avoid taxation, oversight, and public accountability.

Societal Globalization

What is Societal Globalization?

  • Societal globalization: Individual and collective identities are increasingly shaped by international influences.

  • Peer groups and civil society membership increasingly cross borders.

    • Human migration at highest level this century

  • Fueled by technological innovations

    • Internet and cell phones

How Will Social Globalization Shape Institutions and Identities?

  • Optimists: rising global multiculturalism and globalized democracy

    • Multiple and diverse values bind populations together.

    • NGOs and global civil society create new forms of public participation.

  • Pessimists: political alienation, backlash, and the “globalization of nothing”

    • Overwhelming choices

    • Promotion of crass consumerism

Taking Stock of Globalization

Is Globalization New?

  • Long history of a globalized world

  • Previous periods of interconnection

    • Silk road: trade between ancient empires

    • Medieval Europe highly interconnected

    • Rising integration under imperialism

    • Late nineteenth through early twentieth centuries see the rise of NGOs and IGOs.

Is Globalization Exaggerated?

  • Overall, the evidence is mixed.

  • Political globalization

    • Increasing involvement of nonstate actors

    • State sovereignty remains a central focus of international politics.

  • Economic globalization

    • Trade and international investment is increasing.

    • “Home bias”: Most economics is still domestic.

  • Societal globalization (from World Values Survey)

    • Younger people are increasingly seeing themselves as world citizens.

    • But distrust of other nationalities remains high.

Globalization and the Future of Iran

  • 2019 Index of Globalization from Swiss Federal Institute of Technology ranks Iran 131 of 197 countries.

  • Iran’s authoritarian and theocratic regime built on values critical of globalization.

    • Western imperialism led regime to limit contact with the outside world with censorship and restrictions on foreign investment.

  • Internet, smartphones, and satellite television allow Iranians to consume international information, despite the regime’s censorship.

    • 2019 Green Wave demonstrations relied on videos, cell phones, and Twitter to mobilize the public and attract international attention.

      • However, the regime used violence to suppress this opposition, and the protests made little impact.

Is Globalization Inevitable?

  • History says no.

  • Factors that may weaken globalization

    • Economic crises

    • National policies limiting immigration

    • Declining support for capitalism and free trade

Signs of Globalization in Decline

  • Rise of antiglobalization groups and attitudes

  • The United States is stepping back from encouraging trade liberalism.

    • Abandoned the Trans-Pacific Partnership (TPP): an agreement that sought to liberalize trade across a number of Asian and Latin American countries

    • Tensions surround the North American Free Trade Agreement (NAFTA): a free trade agreement liberalizing the economies of Canada, Mexico, and the United States

In Sum: The Future of Freedom and Equality

  • Globalization intensifies linkages between states and people.

  • Globalization has given rise to new actors and institutions who are increasingly playing a role in politics.

  • Political globalization has important consequences for state sovereignty, capacity, and global democracy.

  • Economic globalization has promoted both rising prosperity and rising inequality.

  • Societal globalization may, in the future, promote greater identity linkages or greater divides.

  • Scholars debate whether globalization is new or exaggerated, though most would stress that it is not inevitable. Recent years have seen a reverse in globalization trends.

Key Terms

  1. Bretton Woods System - an economic regime that manages international economic relations; includes IMF, World Bank, and WTO

  2. Economic globalization - increased trade between countries, ties between markets, producers, and labor

  3. Foreign direct investment - the purchase of assets in a country by a foreign firm

  4. Globalization - the process of expanding and intensifying linkages between states, societies, and economies

  5. Intergovernmental organizations (IGOs) - groups like the UN and EU; created by states to focus on certain policies

  6. International regime - the fundamental rules and norms of politics - a set of institutions that empower and constrain states and governments; the link states and shape their relationships with each other, usually with relation to some specific issue

  7. Multinational corporations (MNCs) - firms that produce market goods in more than one country

  8. Nongovernmental organizations (NGOs) - national and international groups, apart from any state, that focus on specific policy goals

  9. Offshore outsourcing - a process by which a firm moves some of its work to a secondary business outside of the home country that can do the work more efficiently or cheaply

  10. Political globalization - formation of international organizations like intergovernmental organizations, ties between different countries

  11. Social globalization - globalization can connect people through common interests

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