Globalization and its Critics International Political Economy Series General Editor: Timothy M. Shaw, Professor of Political Science and International Development Studies, and Director of the Centre for Foreign Policy Studies, Dalhousie University, Halifax, Nova Scotia Titles include: Francis Adams, Satya Dev Gupta and Kidane Mengisteab (editor) GLOBALIZATION AND THE DILEMMAS OF THE STATE IN THE SOUTH Edward A. Comor (editor) THE GLOBAL POLITICAL ECONOMY OF COMMUNICATION Barry K. Gills (editor) GLOBALIZATION AND THE POLITICS OF RESISTANCE Stephen D. McDowell GLOBALIZATION, LIBERALIZATION AND POLICY CHANGE A Political Economy of India's Communications Sector Ronalda Munck and Peter Waterman (editors) LABOUR WORLDWIDE IN THE ERA OF GLOBALIZATION Alternative Union Models in the New World Order Ted Schrecker (editor) SURVIVING GLOBALISM The Social and Environmental Challenges Caroline Thomas and Peter Wilkin (editors) GLOBALIZATION AND THE SOUTH Kenneth P. Thomas CAPITAL BEYOND BORDERS States and Firms in the Auto Industry, 1960-94 Geoffrey R. D. Underhill (editor) THE NEW WORLD ORDER IN INTERNATIONAL FINANCE Amy Verdun EUROPEAN RESPONSES TO GLOBALIZATION AND FINANCIAL MARKET INTEGRATION Perceptions of Economic and Monetary Union in Britain, France and Germany ----- - --··- ·-· ----- -··--··--- International Political Economy Series Series Standing Order ISBN 978-0-333-71708-0 hardcover Series Standing Order ISBN 978-0-333-71110-I paperback (outside North America only) You can receive future titles in this series as they are published by placing a standing order. Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and one of the JSBNs quoted above. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England Globalization and its Critics Perspectives from Political Economy Edited by Randall D. Germain Senior Lecturer in Politics University of Newcastle upon Tyne Foreword by Anthony Payne in association with POLITICAL ECONOMY RESEARCH CENTRE UNIVERSITY OF SHEFFIELD First published in Great Britain 2000 by MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 6XS and London Companies and representatives throughout the world A catalogue record for this book is available from the British Library. ISBN 978-1-349-62345-7 ISBN 978-1-137-07588-8 (eBook) DOI 10.1007/978-1-137-07588-8 ISBN 978-0-333-68212-8 paperback First published in the United States of America 2000 by ST. MARTIN'S PRESS, INC., Scholarly and Reference Division, 175 Fifth Avenue, New York, N.Y. 10010 Library of Congress Cataloging-in-Publication Data Globalization and its critics : perspectives from political economy I edited by Randall D. Germain. p. em. - (International political economy series) Includes bibliographical references and index. 1. International economic relations. I. Germain, Randall D., 1961- . II. Series. HF1359.G5828 1999 337-dc21 99-18535 CIP Selection, editorial matter, Introduction and Chapter 2 © Randall D. Germain 2000 Foreword © Anthony Payne 2000 Chapters 1, 3-10 © Macmillan Press Ltd 2000 Softcover reprint of the hardcover 1st edition 2000 978-0-312-22414-1 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London WlP OLP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. 10 9 8 7 6 5 4 3 2 1 09 08 07 06 05 04 03 02 01 00 Contents List of Figures and Tables vii Foreword viii Acknowledgements ix Notes on the Contributors X List ofAbbreviations xii Introduction: Globalization and its Critics xiii Part I Contextualizing Globalization: Philosophy, History, Culture 1 Philosophical Roots of Globalization and Philosophical Routes to Globalization 3 John MacLean 2 Globalization in Historical Perspective 67 Randall D. Germain 3 Globalization and Cultural Political Economy 91 Nick Stevenson Part II Exploring Globalization: Beyond State and Market 4 Restructuring the Political Arena: Globalization and the Paradoxes of the Competition State 117 Philip G. Cerny 5 Recasting Political Authority: Globalization and the State 139 Ronen Palan 6 What are Global Markets: The Significance of Networks of Trade? 164 Jonathan Perraton v vi Contents Part III Problematizing Globalization: Knowledge and Technology 7 Deficit Discourse: The Social Construction of Fiscal Rectitude 185 Timothy J. Sinclair 8 Technology and Globalization: Assessing Patterns of Interaction 204 Michael Talalay 9 Beyond 'Techno-globalism' and 'Techno-nationalism': Rearticulating the Sites and Stakes of Technological Competitiveness in East Asia 223 Ngai-Ling Sum 10 Globalization in Perspective 245 R. f. Barry Jones References 26 7 Index 289 List of Figures and Tables Figures 1.1 International relations as a totality 29 10.1 Lineages of the globalization debate 253 Tables 6.1 Density of trade links as percentage of maximum possible 168 6.2 Trade: GDP ratios for developed countries in constant prices 169 8.1 Levels of world economic performance, 1500-1992 212 8.2 Per capita levels of industrialization 213 8.3 Geographic location of large firms' patenting, 1981-88 218 vii Foreword This book is the latest of a number of books produced by research groups convened under the auspices of the Political Economy Research Centre (PERC) of the University of Sheffield. PERC itself was created in late 1993 in the belief that the perspectives of the past cannot address the problems posed by the world-wide economic and political transfor­ mation of the last decade or so. Its mission has thus been to explore the new issues in political economy from an interdisciplinary stand­ point. For a new research centre committed to such an intellectual project, the very concept of globalization itself was manifestly ripe for critical interrogation for, as is well known, the term has quickly gener­ ated as many critics as advocates. Randall Germain, as PERC's first Assistant Director, saw the need to both contextualize and problema­ tize the concept of globalization from a political economy perspective, and accordingly organized the workshop from which this book subse­ quently emerged. For all that 'globalization studies' has now become a markedly crowded, and somewhat disorganized, field of study, this book contributes significantly to the debate, not least by setting out its main contours in signally clear fashion. It also stands as a tangible reflection of the much wider contribution which Randall, better known to us of course as Randy, made to the work of PERC in its first few years of existence. ANTHONY PAYNE Director of PERC viii Acknowledgements This volume has been a long time in the making. It was originally conceived during the summer of 1995, when I was Assistant Director of (PERC) at the University of Sheffield. After the initial preparations were completed a workshop was organized by PERC and convened at the University of Sheffield in June 1996. Funding for that event, for which most of these contributions were first written, came from a number of sources associated with PERC. In particular, I wish to thank the follow­ ing people for their encouragement and financial support: David Marquand (then the Director of PERC), Tony Payne (Head of the Politics Department at the University of Sheffield), John Bird (Head of the Law Department at the University of Sheffield) and Antony Fretwell-Downing (then Head of the Management School at the University of Sheffield). Sylvia McColm organized the workshop with her characteristic efficiency and charm and Susanne Presland acted as rapporteur. Although they did not contribute written chapters to this project, Ankie Hoogvelt and Hugo Radice certainly enriched the work­ shop discussions with their usual energy and insight. The authors are grateful for the hard work, support and encouragement offered by all of the above. Tim Shaw has shown remarkable support for the time and effort required to produce this collection of essays for his series. At the University of Newcastle upon Tyne, where the task of editing the chapters has been undertaken, I would like to thank Tim Gray for pro­ viding the resources to compile the references and index, and Bertrem Welker and Guy Scuffham for efficiently carrying out those tasks. RANDALL D. GERMAIN The editor and publishers would like to thank the following for per­ mission to reprint copyright material: Table 8.1 (Levels of world eco­ nomic performance, 1500-1992), reprinted by permission of the OECD; Table 8.2 (Per capita levels of industrialization), reprinted by permission of the Banca di Roma; and Table 8.3 (Geographic location of large firms' patenting, 1981-88), reprinted by permission of Taylor & Francis Books Ltd. ix Notes on the Contributors Philip G. Cerny is Professor of International Political Economy at the University of Leeds. His work has been published in journals