Unit
2: The Nation-State within the Global Community
Background Information |
Our focus in Unit 1 was on community, citizenship,
and democracy in the U.S.; in this unit we turn to nation-states within
the global community. We concentrate on multinational corporations
(MNCs) and trade to develop an understanding of the nation-state in the
global context. The first part of this unit challenges the future
of the nation-state, portraying it as an archaic concept that is past its
prime. Provocatively we ask here, are the boundaries of the nation-state
stronger than the promises of profit in the international economic community?
The second part of this unit introduces the concept of the global economy
and explores the role of MNCs in establishing global linkages. The
readings upon which many of the activities are based are described briefly
below.
What exactly is a nation-state? To attempt a definition,
let’s look at both parts of the word. A nation is a group of people
who share a similar set of beliefs regarding political concepts, ideals,
and institutions. These people may also share a common language or
culture, but more importantly, they adhere to a general set of political
values. A state, on the other hand, is an entity that possesses certain
characteristics including land territory, a population, a government, an
organized economy, and a system of circulation (Glasner 1993). States
also have some form of sovereignty as well as recognition by a portion
of the international community. A nation-state, therefore, is a combination
of these two terms -- quite simply, a nation with a state wrapped around
it (Glasner 1993).
Nation-states are the basic members of international
political organizations such as the United Nations and are the major actors
in international military actions like the Gulf War. Many nation-states,
or would-be nation-states, command great loyalty from large numbers of
their inhabitants; thus, the nation-state is probably still the most important
form (or one of the most important forms) of community around the world.
It is what most of us know best. In fact, many of us probably think spontaneously
of our own community and of world affairs in terms of nations and nationalism.
Part of this unit examines the problems with localized nationalism, but
the larger purpose is to examine some global forms of community that are
alternatives and rivals to the nation-state. These alternatives may be
better or they may be worse. In any case, they may be the future.
The reading on the nation-state is:
Kennedy, Paul: “The Future of the Nation-State”
Paul Kennedy is an English-born historian, now teaching at Yale University.
This selection describes the nation "from above," from the perspective
of its centralized government and its role as an actor in international
affairs. Kennedy points out the current challenges to the nation from both
“transnational" and "sub-national” developments. His analysis prompts us
to ask at least two basic questions: First, is his assessment of the seriousness
of the challenges to the nation correct? And second, should we conclude
that the nation is outdated and needs to be replaced by other forms of
organization?
This reading challenges the concept of the nation-state
as an independent state. Some of the questions raised are:
-
Is the nation-state really a community?
-
Do you identify more closely with a nation-state community or with other
communities that transcend state boundaries, such as religion, culture,
politics, or environmentalism?
Global economic communities have grown rapidly in
recent years. This growth is in part a result of changes in technology,
communication, and human mobility. Global economic communities include
investors, bankers, and financiers, and increasingly managers, scientists,
engineers, educators, and other skilled professionals. These communities
may not always speak a common language -- although English gains ground
every day -- but they often possess a common style and an “economic culture”
that cuts across other and national boundaries. An increasingly important
component of these global economic communities is multinational corporations
(MNCs), corporations with sites of production in various countries around
the world.
There are several perspectives on the limits and
possibilities of the global economic community. The predominant view
suggests that countries are increasingly linked through global markets
to networks of trade, investment, and technology transfer and that such
networks are beneficial because they contribute to the overall efficiency
and growth of the world economy and therefore to the material welfare of
the world’s people. This view is sometimes referred to as the “liberal”
or “integrative” view of the world.
A second view suggests that economic globalization
is not necessarily good and that it could undermine values of democracy
if it is not accompanied by democratic political linkages among communities
and citizens of different countries. Whereas the first perspective emphasizes
values of efficiency and economic growth, the second view emphasizes values
of political participation and self-determination as the basis of global
community.
A third view is the “economic nationalist” perspective.
From this perspective, the world appears neither as a transnational collection
of investors and traders seeking wealth through efficiency nor as a society
of global citizens seeking to expand democracy, but instead as nation-states
competing for power and wealth. This view suggests that economic and industrial
development are important to a state’s power and status in the world and
that states can use their power to manipulate the economy and promote rapid
industrial development.
The issue of multinational corporations (MNCs) is
an important point upon which these three perspectives disagree.
-
Do MNCs promote efficiency, growth, and development or do they sustain
global inequalities of power and wealth, keeping the majority of the world’s
population poor and subordinate to the wealthier minority?
-
Can nation-states design policies that will allow them to benefit from
operations of global firms?
-
Can MNCs serve as vehicles for economic integration and cultural learning?
The readings for this section were selected to provide
a range of perspectives on the global economic community including a critical
analysis as well as a positive endorsement. The readings for the
remainder of Unit 2 are summarized below:
Greider, William: The Global Marketplace: A Closet Dictator
William Greider is a journalist and author whose recent books include
Secrets of the Temple, about the Federal Reserve, and Who Will Tell the
People?, which deals with the corruption of American democracy. The previous
reading described a world that is increasingly integrated by trade, investment,
and technology -- in short, a kind of global community based on norms of
private profit, economic efficiency, and growth. In this article, journalist
William Greider presents an alternative view of the global community. If
economic globalization occurs without a corresponding globalization of
political democracy, Greider sees a threat to democratic self-determination.
In a world where the bargaining power of MNCs and the competitive pressures
of the market determine what, where, how, and by whom products are produced
and consumed, the ability of citizens to democratically determine their
own conditions of work and life will be undermined, thus weakening democracy
through unrestrained economic globalization. Greider suggest that we ought
to think about the possibilities of a global community based on values
of democratic self-determination. How would our thoughts and actions have
to change for Greider's vision of global community to be possible?
This reading may trigger some debate among your classmates.
The article calls for a world democracy in response to the hegemonic policies
of nations like the United States in areas such as free trade. Do
you agree with the article or do you feel it is heavy handed and "unpatriotic?"
The Economist, “Everybody's Favorite Monsters: A Survey of Multinationals”
The Economist is an informative, conservative weekly magazine on economic
and political affairs. MNCs are often thought to be the chief agents of
economic globalization. This article argues that they may not be the monsters
they are sometimes perceived to be. The Economist article also claims
that there are additional disparities between perception and reality. Some
MNCs are new; many are small. MNCs are more regional than global in orientation.
Their ownership is far more spread across nation-states than believed,
and alliances among them make it increasingly inaccurate to speak of "U.S.
MNCs" or "industrialized-world MNCs." Some are even publicly owned.
Do you agree with The Economist's position. If
not, what evidence would you use against it? Other questions you should
consider are:
-
Would life be somehow "better" (and for whom?) with some other channel
for global integration, e.g., with less MNC activity but more trade or
more migration?
-
What about privatization of state-owned firms?
-
Can MNCs and other buyers improve on the economic performance of such firms?
-
If a main reason for the existence of MNCs is the high pre-production cost
of research and development that leads to technological progress, then
is a region that constrains MNC’s going to sacrifice economic gain?
-
What other institutions could better bear the costs and risks of research
and development?
Mies, Maria: "Housewifization International: Women and the New International
Division of Labor"
Maria Mies is a sociologist and author of several books, including
Indian Women and Patriarchy (1980) and The Lace Makers of Narsapur
(1982). She is currently active in the women's and environmental movements
in Germany. Her most recent book is Women, the Last Colony (1988),
written in collaboration with Claudia von Werlhof and Veronika Bennholdt-Thomsen.
In this article, Mies argues that "housewifization" -- the notion that
women worldwide are supported primarily by a husband (male breadwinner)
while their job is to reproduce the family unit -- is a strategy by capitalists
to blur the role of women in order to maximize profits. She asserts that
poor women in Third World countries perform "informal" and thus invisible
labor to make cheap items for First World women. This link allows capitalists
(i.e., MNCs) to reduce labor costs and gain huge profits. Mies suggests
there is a capitalist conspiracy of "blaming the victim" that sees Third
World women as responsible for their own poverty when they over-reproduce
instead of produce for the world marketplace. In this view, women are breeders
of "human resources" who if "underutilized" (i.e., if they are but surplus,
unemployed labor) are inefficient consumers (extra mouths to feed but not
contributing to international capitalism).
As you read this article, consider the following questions:
-
Do you agree with the author?
-
Are women more important as producers in the world economy or as reproducers
of cheap labor?
-
To what is Mies referring when she writes, "the enslavement and exploitation
of one set of women is the foundation of a qualitatively different type
of enslavement of another set of women?"
As an alternative, less dense, less ideological piece,
you might choose to read the pamphlet entitled Women in the Global Factory
(Fuentes and Ehrenreich 1983), which does not discuss the issue of the
exploitation of First World women but does a good job in presenting both
Asian and Mexican case studies of the working conditions for women in multinational
factories.