State, Welfare & Society Lecture 3:The State in Question: or, The State of the State Prof. Majid Yar

The Modern National State Last lecture, modern nation state based on: –Territoriality – clearly bounded/delimited area –Sovereignty – state as ultimate authority with power to make decisions Basis of state’s ability to regulation society, including economic, social and cultural measure for welfare BUT, recent decades – developments that undermine state’s ability regulate life-conditions of its citizens?

‘Crisis’ of the National State? Bob Jessop – ‘hollowing out of the national state’ State deprived of its core functions and capacities Displacement of functions elsewhere – supra-state and sub-state levels Globalisation is key in this debate Widely used term – how can we define it?

Defining Globalisation (1) ‘Globalisation is the widening, deepening and speeding up of worldwide interconnectedness in all aspects of contemporary life, from the cultural to the criminal, the financial to the spiritual’ Held et al, 1999: 14-16

Defining Globalisation (2) ‘The process of increasing interconnectedness between societies such that events in one part of the world more and more have effects on peoples and societies far way’ Baylis & Smith, 1997: 7

Defining Globalisation (2) ‘Globalisation denotes the processes through which sovereign national states are crisscrossed and undermined by transnational actors…’ Beck, 2000: 11

Dimensions of Globalisation –Interconnection –Global scale –Transcends nation –Influence Dimensions: 1.Economic 2.Political 3.Cultural

Economic Globalisation Economic activity on global scale, in terms of: –Resource extraction –Manufacture –Assembly –Marketing –Distribution –Consumption An everyday example – the PC

Global Product

Economic Globalisation Another example: the ‘call centre’ –‘Off-shoring’ of services – India, Philippines, South Africa, Bulgaria, Belarus. –Enabled by inexpensive satellite communication –Economic advantages – labour costs –Poor working conditions and customer resistance –Result – further mobility of labour, as young Britons migrate to India!

Global Mobility of Labour: the UK In-migration: –From new EU member states, especially Eastern & Central Europe –2004-7, 1 million –Supply (skilled educated labour) and demand (vacant positions) Out-migration: –At least 14 M live overseas part of year – ,000 Britons left to live elsewhere –13% say ‘hoping to emigrate in near future’

Economic Globalisation Globally integrated financial markets: –Stocks and shares –Bonds and futures –Currency trading –Financial services (banking, insurance) Impact on economic conditions and welfare Example – UK housing and the ‘credit crunch’ 2008

Globalisation and TNCs Trans-National Corporations –Companies that own or control profit-making assets across multiple countries, and whose economic activities and interests span territories. –Extremely large in terms of their level of employment, financial turnover, and ownership of assets –By mid-1990s, c. 45,000 TNCs (UN) –Walmart: world’s largest corporation and the biggest private employer on the planet: 2,100,000 employees. –operates in the USA, UK, Mexico, Japan, Argentina, Brazil, Puerto Rico, Canada, China –2006: total sales revenues of $340 billion.

TNCs and Welfare Impact on welfare of millions: –Walmart – union-busting, worker exploitation, gender discrimination. –Power over government policies – planning, development, etc –Lobbying to shape welfare policies (wages, benefits, health, environmental protection, etc) –Mobility of capital as ‘lever’ over governments

Implications for National State ‘Decentres’ state, depriving capacity to regulate society and manage welfare issues National fortunes dictated by global processes – ‘passenger’ not ‘rower’ Undermining of welfare provisions in-line with demands of global competitive market

Political Globalisation Reorganisation of ‘governance’ from national to trans- national scale ‘Governance’ - manifold organised attempts to regulate and order various spheres of social activity Governance previously followed principle of sovereignty Shifting power: –Trans-national security – NATO, SCO, UN etc –Regional economies – NAFTA, MERCOSUR, ASEAN, AU, etc –Global economy – WTO, IMF etc

Post-State Sovereignty: the EU European Union (previously CM, EEC, EC): –‘Pooling’ of sovereignty, surrendering decision-making powers ‘upwards’ to trans-national level –27 member states –Over 500 million citizens –Decision-making powers: movement of labour, goods, capital; trade, agriculture and fishing; regional development; monetary policy –Case of European Central Bank and impact on welfare issues

Cultural Globalisation Recap: legitimacy and authority of state needs identification with ‘nation’ Identification under question through cultural shifts Undermining of national cultures and traditions, local customs, languages and preferences Global culture – ideas, images, lifestyles, values Internet and new media – communities and connections with ‘distant others’ Mobility of persons, multiple citizenships and affiliations