globalist argument - created from Mind Map

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what they believe

other belief

my belief

evidence of belief

produces both winners and losers: social inequality

talk about Eurocentric belief

problems it has bought about

[Mishra 1999, Beck 2000, Taylor-Gooby 1997, Deacon, Jessop

BUT: no evidence to prove that social spending has decreased

globalisation is the cause of crisis

economic issues

global poverty

global north v global south

poorest 40% of the world's population accounts for 5% of the global income

access to water becoming a crucial global agenda

see europe as the superior

deterritorialisation, unregulated economic flows, weak political legitimacy

globalisation erodes state capacities

weakens democracy

downward pressure on spending, taxes and wages

labour market consequences

over economy

shift in economy: from Keynesian policies of full employment, progressive taxation, high social spending to supply side liberal policies: spending cuts, privatisation

neoliberalism increased privatisation and marketisation

foreign direct investment :the least developed countries have only attracted 1% of recent world FDI flow

issues with global trade regime

deep ethical and moral questions around corruption and political pressures, systematic deploiticisation of its own operations

unemployment

adapting to global competition leads to reduction in costly welfare system productions

subjects the economy to danger

undermines macroeconomic control

internationalisation of capital

as capital decreases you can't regulate it as easily

less control over interest rates

reduces fiscal policy autnomy

there is increasing internationalisation of the production/exchange of goods/services

technological revolution

increased migration and human mobilites

SCEPTICS

PRAGMATISTS

BUT technical inequalities between global south and north

Pierson 1998, Leibfried 1998, 2003

globalisation has little impact on welfare states

it is not the cause of tension btwn democracy and capitalism

domestic factors are the most influential

Yeates, N., Holden, C. (2009)

evidence: welfare spending remained stable in the 1980s/1990s

pressures on welfare states are unrelated to globalisation

jobless growth: from manufacturing to service economy

extended welfare state: policy inflexibility and budgetary pressures

demographic changes: ageing- impact on pension and health and social care costs

power of globalisation has been exaggerated

ideology impacts the way a welfare state is viewed with regards to globalisation

Rhodes 1996, Swank 2002, Esping-Andersen 1996, Jessop, Palier 2001

globalisation is very important but differentiated impact

critique of globalists: 1) overestimate the effect of globalisation, neglect domestic factors 2) it has a differentiated effect on different welfare states

critique of sceptics :they miss important points eg how globalisation is an ideological and political project

consequence rather than a cause

pressure points in liberal regimes: low wages, poverty, low welfare spending, poverty trap

corporatist: insurance based, high wage flooring, high unemployment, service issues

scandinavian: large public sector, need for increased flexibility, generous benefits, activation policies for full employment

welfare states are self inflicting

can see the most evidence in this argument

welfare state exposed to economic forces

if you focus on the global south, this argument is clear: globalisation has had dire impacts on these countries, perhaps less so in western countries

race to bottom

eg 1970s oil crisis: reliance on russia's resources caused huge issues for europe

inflation crisis has had a world wide effect

we rely on resources, so their is less control over economy when things go wrong

TNCS/NGOs

unequal trade rules

privatisation

world bank/ IMF

politically

spread of global brands

ecologically

oil crisis 1970s: reliance on Russian gas

conditionality

very powerful, major players in global public policy making

they shape the development assistance flow to the global south

debt crisis in developing countries

world bank: focuses on poverty reduction, economic development

IMF: monetary and fiscal policies, monitors deficits

geopolitical integration

shock therapy

washington consensus

sudden social reforms eg in eastern europe and latin america: need to shift to a free market quickly without public opposition

'mcdonalisation'

companies ship out the profits and tax, pay under minimum wage, Africa looses out

race to the bottom

big countries target smaller countries, cheap labour= labour standards decreased, ge Nike, reebok

caused by globalisation economic competition, drive for profit

deforestation

famine/war

2006: average of 37 conditions per loan

contributed to debt crisis

corruption issues