1. Prof. Dominic Power Uppsala University dominic.power@kultgeog.uu.se The state and governance in the global economy – ’reactions’ to globalization Ekonomisk geografi

2. Reading: 6. ‘The State is Dead…Long Live the State’ 7. ‘Doing it Their Way’: Variations in State Economic policies 8. Dynamics of Conflict and Collaboration: The Uneasy Relationship Between TNCs and States

3. CH 6. ‘The State is Dead…Long Live the State’ Dicken suggests that against the background of economic globalization and technological advance states still have a significant role and influence But that their roles and functions have changed BUT we should ask ourselves whether we think states are largely being changed by globalization or whether they are the cause of globalization… which is the chicken which is the egg?

4. Some preliminary definitions State Nation Nation-State

5. States as ‘containers’ (of culture, institutions, praxis etc) States as regulators (trade-, business- and investment- policy/politics) States as competitors (Porter and most governments) States as collaborators (regional blocks: EU, NAFTA...) State functions/roles

6. States as containers. National cultural/business differences mapped by: power distance; risk profile; level of individualism; masculinity.

7. States as containers: ”Varieties of capitalism”

8. States as regulators: trade policy is usually ’mercantilist’ (now called multilateral, kap 18). Mercantilist: nation's prosperity depends upon its supply of capital and the total volume of trade is unchangeable. Implication is that nations are in a direct zero sum competition with each other for wealth. Quantitative Technical Subsidies Value

9. States as regulators: Policies to attract FDI common and highly contested Policies to limit outgoing FDI less common (now) in advanced countries

10. States as regulators: These tend to be general or selective → Policies to stimulate… regulate

11. States as competitors

12. Is it true that states are competitors? This is perhaps wrong and dangerous (Paul Krugman) Countries are not firms: Pepsi loses when Coke wins; its not like this with countries; trade is not zero-sum game Competitiveness is a problematic concept to apply to states A countries welfare has less than we think to do the development of other countries In general it is good for countries when it is good for their trade partners: all boats ride the same wave Thinking in terms of competition can lead to bad policies: trade wars; backing only certain sectors/branches

13. States as collaborators: Types of regional integration

19. 7. ‘Doing it Their Way’: Variations in State Economic policies Goes into detail on certain countries Interesting stuff but too detailed for the purposes of course: have a look if you have time

20. How do we balance all Dicken’s forces? 8. Dynamics of Conflict and Collaboration: The Uneasy Relationship Between TNCs and States  If we look at the different forces behind globalisation we see that they often have their own different logics and interests…  Our job as social scientists (etc) is to work out whose interests are in the balance (and perhaps whose interests we think should given priority

21. Different interests

22. Conclusion States still have a significant role and influence…But that their roles and functions have changed The interesting question is whether states are largely being changed by globalization or whether they are the cause of globalization… which is the chicken which is the egg? Hard to answer However it is true that most now accept and do not question the march of globalization: and their policies reflect this idea that they must be open and flexible BUT at what cost? At what gain?