The State and Globalisation Flashcards
What was the beginning of the state?
The Peace of Westphalia (1648) ended the Holy Roman Empire’s supposed claim over omdependent German states and established the principle of the sovereign equality of all states.
What was the development of the nation state in the 20th century?
President Wilson established that state sovereignty is founded upon the right of self determination based on shared ethnic heritage in his Fourteen Points (1918), creating Austria, Hungary and more after WWI.
What did the Montevido Conference (1933) declare a sovereign state needed?
- Defined territory
- Permenant poulation
- Viable government
- Capacity for diplomatic relations
How did Weber argue a state requires?
“A monopoly on the legitimate use of violence in an area”
How did the end of WWII promote and harm state sovereignty?
- Many new independent states were established due to deals made by Colonial England and France, such as India
- The Cold War meant the the US and USSR often intervened in other states for their own benefit, e.g. Cuba or Hungary
How did the creation of the UN in 1945 affect state sovereignty?
Article 2 of the UN charter says the UN is based on “sovereign equality of all its Members.”
It also argued that state sovereignty requires the acceptance of other states: Paletinians, Kurds, and Catalans are all denied such.
What is the ‘Washington Consensus’?
States need to conform to economic liberalism to prosper in the international market:
- States need to attract global investors via low corporation tax and regulation
- States that defy economic globalisation risk capital flight
Give an example of the Washington Consensus:
Ireland drastically lowered its corporation tax to 12.5% to attract foreign companies and caused Apple to move its European, Middle Eastern and African centres to Dublin. Ireland saw consistent real GDP growth since 1996 (the beginning of the phase in) till 2008
What is the the negative effect of globalised markets?
Greater interconnectedness means that recession and ecenomic downturn can spred very quickly:
- Due to the US housing bubble and the bankruptcy of US bank Lehmann Brothers, the 2008 recession caused UK unemployment to go up 50%
- COVID caused UK GDP to fall by a record 20%
How has globalisation affected non-state actors?
Non-state actors have increased as a tool for negotiation, resolution and coopeartion. The UNFCCC organises yearly COP meetings to discuss climate change and the ICJ acts as an impartial judge of inter-state disputes.
Give three arguments and countergumant for whether economic globalisation has reduced poverty.
- Foreign investment in developing nations V Race to the Bottom
- Cost of consumer goods V Greater Inequality
- Convergence between the Global North and South V World Systems Theory
How does economic globalisation increase foreign development in developing nations?
Countries in the Global South are able to utilise their young virile workforce (70% of Africa is under 30) as well as low regulation (Bangladeshi corporate Impunity for workplace deaths) to attract foreign investors, offering jobs and bringing many out of absolute poverty. Kinsey (2017) found that there are >10,000 Chinese companie operating in Africa, with one in Ethiopia employing 30,000 people.
How is economic globalisation a ‘race to the bottom’.
States compete to attract businesses by keeping their taxation and regulation as low as possible, causing serious human rights abuse and political unrest. Since 1990, 400 have died and thousands more injured from fires in Bengali sweatshops that could have been prevented with better regulation. However, income that could positively affect their lives has still increased: GDP in Bangladesh has gone up by 100x since 1960.
How does economic globalisation affect the cost of consumer goods?
IGOs like the WTO that discourage tarrifs and the globalisation of cheaper manufacturing techniques such as the product line have decreased how expensive goods are to make and sell. The world’s cheapest smartphone launched in 2016 for less than $3.50 and the GSMA estimates 54% of people now own smartphones.
How has economic globalisation led to greater inequality?
The wealth that is created by cheaper goods is conentrated into the hands of a very small group of people, keeping many others still poor, the top 10% of Americans holds 70% of the wealth whereas the bottom 50% only has 6%. Additionally, Bill Gates became the first centibillionaire in 1999.
