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© Peter Dicken 2015

The State Really Does Matter Global Shift Chapter 6

Review Concepts to Review Key Words Globalization Geographical embeddedness GPNs and TNCs Impact of 2008 financial crisis Convergence and divergence Key Words Nation-state in globalization, varieties of capitalism, GATT/WTO, development, national culture, borders and ‘borderlessness’

Definition of the State State, nation, nation-state and nation without state Hofstede four dimensions: individualism, power distance, uncertainty avoidance, ‘masculinity’ Schwartz seven-dimension scale: conservatism, intellectual autonomy, affective autonomy, hierarchy, egalitarian commitment, mastery and harmony Both studies have in common the (debatable) idea that there are identifiable traits which vary across cultures Role of the state Support markets Provide physical and human infrastructure Use globalization as means of increasing power Two types of macroeconomic policies fiscal and monetary

Varieties of Capitalism Liberal market economy Coordinated market economy Neo-liberal market capitalism Social market capitalism Developmental capitalism Authoritarian capitalism Neo-authoritarian capitalism Are institutions and history inherent obstacles to convergence or will there be convergence to best practice in economic governance?

The State in the Global System Most states are mixed economies; certain sectors nationalized, others private In 1980s–2000s: deregulation/reregulation and privatization Post-2008 government intervention begins again to stimulate growth Trade regulation GATT/WTO Strategies of newly industrialized states ISI EOI EPZ

Strategies of States States as competitors States as collaborators Locational tournaments, competitive bidding Porter’s argument Rivalries between domestic firms create pressures on firms to innovate Role of chance and of government States as collaborators To achieve specific economic and welfare goals Regional trade agreements Have a number of motivations, e.g. defensive, influencing investment Types include free trade area, customs union, common market, economic union (give examples of each) Global activity is concentrated in mega-regions: North America, Europe and East Asia