Globalization in Question: The International Economy and the Possibilities of Governance

This is a book about globalization that has a simple and well-defended thesis: that the debate about the extent of globalization in the world economy is polarized between those who say it is already globalized and those who say globalization is nonexistent or irrelevant. They argue that the truth (as usual) lies somewhere in between.-- there is a vast difference between a strictly global economy and a highly internationalized economy in which most companies trade from their bases in distinct national economies. In the former national policies are futile, since economic outcomes are determined wholly by world market forces and by the internal decisions of transnational companies. In the latter national policies remain viable, indeed they are essential in order to preserve the distinct styles and strengths of the national economic base and the companies that trade from it (p. 185). Because the academic debate is between polarized positions, it has been less than helpful as a guide to political actors. The myth of extreme globalization, in the author's view, "exaggerates the degree of our helplessness in the face of contemporary economic forces," (p. 6) while the denial of globalization makes it difficult to address the very real problems of governance posed by an "internationalized" world economy. Governance is defined here (somewhat vaguely) as the "control of an activity by some means such that a range desired outcomes is attained..." (p. 184). It is meant to represent activities carried out not just by governments of nation-states but also by supranational organizations like the European Union, transnational actors like the multinational corporations, and subnational actors like the regional and provincial governments of federal national systems. While internationalization of the world economy creates incentives and opportunities for international governance that bypasses or transcends national governments, national governments will still have a role, say the authors, in assuring that the new governance structures are coherent and (if coherent) democratic. The book contains some interesting arguments about the changing nature of governance in Europe, especially since the formation of the European Union. In Chapter 7, the authors assert that responsibility for governance in Europe has shifted to some extent toward the Union level, but also to some extent toward the local and regional (provincial) level, in order to compensate for the inability of national governments to address certain problems. According to the authors, "Regions are small enough to possess 'intimate knowledge' and yet sufficiently large to aid and regulate local economies through a significant revenue base." [p. 167] However, the authors also assert that the national level will remain significant because the "Union could not conceivably create central institutions fast enough and with enough legitimacy to achieve an effective federal-regional division of labor, marginali

The authors make this "Globalization In Question" a great antidote for people (especially in the Business and Administration area) that can't stop repeating that "the world is globalized, the world is globalized" like parrots. It's very pleasing to have some kind of skepticism about this whole discussion. In countries of the Third World, this talk about globalization is particularly dangerous since glued to it comes the neoliberal talk. And don't be scared by all the "economics". After reading this one, I can garantee that you will pay more attention to the books you're buying about the "global world".