Globalisation and the Sovereignty of the Nation – State

Abstract

Three main schools of thought dominate the debate on the effects of globalisation on states. Hyperglobalists predict their dissolution into the “one world” market; sceptics believe that national governments still largely manage the globalisation process while transformationalists see states dynamically evolving to respond to the transnational socio-economic and technological trends and factors. Advanced industrial democratic governments and some emerging powers like China have so far been the main beneficiaries of globalisation because of their greater ability to erect and maintain safety nets against the risks of the international environment. However, all states in the end lose much of their ability to control capital forces, economic flows and even shape their domestic public opinion as they are under pressure from above (supra-national institutions and MNCs) and from below (local bodies NGOs and minority groups). The author argues for the need to strengthen governance and social welfare institutions in order to mitigate the negative effects of economic globalisation that tends to increase inequalities and penalise the poorer nations and weaker sections of society in all regions.