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.
Table of Contents
- Introduction
- Susan Strange's Argument
- Non-State Actors
- Examples: The Financial Sector and Multinational Corporations
Objectives and Key Themes
This essay examines the relative significance of state and non-state actors in the international political economy (IPE), specifically addressing Susan Strange's assertion that non-state actors now hold more influence than states. The analysis explores power shifts in the global economy, defines non-state actors, and provides illustrative examples. The conclusion assesses whether the state's role has diminished in a globalized world.
- The relative power of states versus non-state actors in IPE.
- The erosion of state power in key sectors like finance and welfare.
- The role and influence of multinational corporations (MNCs).
- The impact of globalization on the balance of power in the international economy.
- The importance of regulatory frameworks in managing global economic crises.
Chapter Summaries
Introduction: This essay sets the stage by introducing Susan Strange's central argument regarding the declining power of states relative to non-state actors in the international political economy. It outlines the essay's structure, indicating the intention to examine Strange's argument, define non-state actors, provide illustrative examples (the financial sector and multinational corporations), and conclude with an assessment of the state's ongoing role in a globalizing world. The introduction establishes a clear framework for the analysis to follow, highlighting the central research question and methodological approach.
Susan Strange's Argument: This section delves into Susan Strange's perspective, focusing on her assertion that states have experienced an erosion of power in key sectors. Specific examples cited by Strange, such as the loss of state control over currencies in the finance sector and the inability to effectively provide welfare due to the disincentives created by costs associated with employer contributions, illustrate the limitations of state power in a globalized economy. This section establishes the groundwork for the following sections by providing a detailed understanding of the central argument being examined.
Non-State Actors: This section provides a comprehensive definition of non-state actors, differentiating them from state actors. It categorizes these actors – including international and supranational organizations (e.g., the UN and WTO), transnational organizations (TNCs or MNCs), environmental groups, civil society organizations, and even illegal actors such as terrorist groups. The inclusion of diverse examples helps establish the wide-ranging influence exerted by non-state actors in global affairs. The discussion of actors’ interdependence, even amidst conflicting interests, adds depth to the understanding of the complex dynamics within IPE.
Examples: The Financial Sector and Multinational Corporations: This section explores two specific examples to illustrate the shifting balance of power: the financial sector and multinational corporations. The impact of global capital markets and the volatility they create due to profit-driven investment are analyzed, emphasizing the limitations of state regulatory power. The example of the Cochabamba water privatization highlights how MNCs can gain significant leverage over weaker states, potentially to the detriment of citizens. The contrasting cases illuminate the complex interplay between state power, regulatory frameworks, and the potential for market forces to overshadow political influence, especially in developing countries facing weak governance.
Keywords
International Political Economy (IPE), State Actors, Non-State Actors, Multinational Corporations (MNCs), Globalization, Regulatory Frameworks, Financial Sector, Welfare State, Power Shifts, Global Governance, Casino Capitalism.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this essay?
The essay examines the relative significance of state and non-state actors in the international political economy (IPE), focusing on Susan Strange's argument that non-state actors now hold more influence than states. It analyzes power shifts in the global economy, defines non-state actors, and provides illustrative examples from the financial sector and multinational corporations. The conclusion assesses whether the state's role has diminished in a globalized world.
What are the key themes explored in the essay?
Key themes include the relative power of states versus non-state actors in IPE; the erosion of state power in sectors like finance and welfare; the role and influence of multinational corporations (MNCs); the impact of globalization on the balance of power in the international economy; and the importance of regulatory frameworks in managing global economic crises.
Who is Susan Strange and what is her central argument?
Susan Strange is a prominent scholar whose central argument, as discussed in this essay, posits that states have experienced a significant erosion of power in key sectors, particularly due to the rise of globalized markets and powerful non-state actors. Her argument highlights the limitations of state power in a globalized economy in areas such as currency control and welfare provision.
What are non-state actors, and what are some examples?
Non-state actors are entities that operate outside of formal state structures. Examples include international and supranational organizations (like the UN and WTO), transnational corporations (MNCs), environmental groups, civil society organizations, and even illegal actors such as terrorist groups. The essay emphasizes the diverse range and significant influence of these actors in global affairs.
What specific examples are used to illustrate the shifting balance of power?
The essay uses two main examples: the financial sector and multinational corporations. The volatility of global capital markets and limitations on state regulatory power are analyzed within the context of the financial sector. The case of Cochabamba water privatization illustrates how MNCs can exert significant leverage over weaker states, potentially to the detriment of citizens. These examples highlight the interplay between state power, market forces, and regulatory frameworks.
What is the overall conclusion of the essay?
The essay's conclusion assesses whether the state's role has diminished in a globalized world, considering the evidence presented on the rise of non-state actors and the challenges to state power in key sectors. While the specifics are not detailed here, the conclusion provides an evaluation of the balance of power in the international political economy considering the arguments and examples provided throughout the text.
What are the keywords associated with this essay?
Keywords include: International Political Economy (IPE), State Actors, Non-State Actors, Multinational Corporations (MNCs), Globalization, Regulatory Frameworks, Financial Sector, Welfare State, Power Shifts, Global Governance, Casino Capitalism.
What is the structure of the essay?
The essay is structured with an introduction, a section dedicated to Susan Strange's argument, a section defining non-state actors, a section providing examples from the financial sector and multinational corporations, and finally, a conclusion. Each section builds upon the previous one, progressively developing the argument regarding the shifting balance of power between state and non-state actors in IPE.
- Quote paper
- Iris Schoenauer-Alvaro (Author), 2002, International Political Economy: Susan Strange, Munich, GRIN Verlag, https://www.grin.com/document/112833
