This essay will discuss the importance of state and non-state actors in the realms of the international political economy (IPE). In this context, I will explain whether I agree with Susan Strange’s statement of “non-state actors being now more significant than states themselves”. In order to do so, I will briefly look at Susan Strange’s underlying arguments focussing, however, on power shifts in general. A succinct definition of what non-state actors are will also be included in this analysis as well as some examples which illustrate changes that have taken place in the world economy. Finally, I will give a conclusive statement as to whether I consider the state to play a less crucial role in today’s globalising world. However, I can already mention at this point that I believe that the increasing interconnectedness has had a strong impact on its actors. Notwithstanding, I am convinced that the state is still a vital player whose position is merely being reorganised.
Susan Strange argues in her book “The Erosion of the State” that the state’s power has been eroded for example in the following key areas: Firstly, in the finance sector, states no longer have the power to control their own currencies. Secondly, in the welfare sector, states can no longer provide welfare as the burden of additional costs in form of employers’ contributions discourages multinational corporations from investing in the economy.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Susan Strange’s Argument
- Non-State Actors
- Two Examples
- The Financial Sector
- Multinational Corporations
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay aims to analyze the relative significance of state and non-state actors in the realm of international political economy (IPE). It explores Susan Strange’s argument that non-state actors have surpassed states in importance, examining the power shifts and underlying arguments in the globalizing world.- The changing role of states in the international political economy.
- The rise of non-state actors, such as transnational corporations, and their growing influence.
- The impact of globalization on power dynamics and the relationship between states and non-state actors.
- The challenges of regulating global markets and ensuring a fair balance of power in the face of increasing economic interdependence.
- The need for effective governance mechanisms to address the potential downsides of globalization and protect the interests of individuals and states.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The essay introduces Susan Strange’s argument regarding the significance of non-state actors in the international political economy and outlines the key points that will be discussed.
- Susan Strange’s Argument: This section delves into Susan Strange’s analysis in "The Erosion of the State," highlighting her view that states have lost power in areas like finance and welfare due to the influence of non-state actors.
- Non-State Actors: This section defines non-state actors and provides examples, exploring how they have become increasingly important in the global economy. It discusses the various types of non-state actors, from international organizations like the UN to transnational corporations and civil society groups.
- The Financial Sector: This section examines the impact of global capital markets and the rise of "casino capitalism," arguing that states have not effectively managed these markets, leading to financial crises.
- Multinational Corporations: This section analyzes the growing power of multinational corporations (MNCs), highlighting their influence on economies and their potential to overpower states. It uses the Cochabamba water privatization case as an example.
Schlüsselwörter (Keywords)
This essay centers on the interplay of state and non-state actors in the international political economy. Key concepts include globalization, power shifts, international organizations, transnational corporations, financial markets, and the erosion of state power. The analysis focuses on the impact of globalization on the relative importance of states and non-state actors, considering the challenges of regulation and governance in an increasingly interconnected world.- Quote paper
- Iris Schoenauer-Alvaro (Author), 2002, International Political Economy: Susan Strange, Munich, GRIN Verlag, https://www.grin.com/document/112833
