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.
 

The Nation-State 
 
    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:
 

    This reading challenges the concept of the nation-state as an independent state. Some of the questions raised are:
The Global Economy
 

    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.

    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:     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?"
      Do you agree with The Economist's position. If not, what evidence would you use against it? Other questions you should consider are:
      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.