1. © Peter Dicken 2015

2. The State Really Does Matter
Global Shift
Chapter 6

3. 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’

4. 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

5. 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?

6. 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

7. 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