GLOBALISATION HAS MADE THE MODERN NATION STATE IRRELEVANT. EVALUATE THIS POINT.

Giddens (1985) supports the idea that nation states can no longer control their own economies and argues that political decisions are no longer taken by the state or governments but that decisions are made through global networks of information exchange, the world capitalist economy and world military order. David Held (1992) follows a Marxist perspective and argues that international bodies like the World Bank reduce the power of the nation states. Massey (1999) argues that multinational corporations have created the myth of globalisation in an attempt to legitimatise economic and social policies that serve in their interests rather than the country’s in which policies originate.

International organisations are often thought of as ‘supranational’ that transfer authority from nation states to international bodies above the nation. They do subject the nation state to some external regulation but this is negotiated by nation state representatives and operates through nation states. The UN is handed power by the supranational corporations and may only use this power when another nation states security is threatened. The UN accepts the sovereignty of the nation states; however, they are dependent on nation states when the military becomes involved.

International organisations are composed of nation states, whereas transnational organisations operate outside the nation states, the key feature of a transnational corporation is the movement of money, information, ideas, and people across national boarders. The movement of money seriously limits government policies because money can go anywhere if government policies threaten profits or weaken a currency. Gould (1993) argues that there has been a ‘Japanisation of welfare’ as European countries cut back on welfare states expenditure in order to compete with Japan, where welfare expenditure is much lower. This transnational migration of labour shows the widening gap between rich and poor countries, meaning that ethnic, cultural and religious diversity is created in the nation states. Naomi Klein argues that women and children living in third world countries and working in free trade zones are extremely exploited and are allowed to be paid less than the real cost of living. Large supranational corporations can turn over more money in one week than some nation states do in a year. For example, the American giant corporation, Wal-Mart, the parent company of ASDA has a weekly turnover of £4 billion.

For a Marxist, globalisation is an extension of capitalism and how capitalism has been promoted throughout the world. They would therefore agree that the nation state has become irrelevant because multinational corporations grow with capitalism and are taking over in every aspect of human life; culture, religion, ethnicity, gender, age and class. Marxists understand that world trade is important and that the division of labour can help every country to grow faster however; the division of labour is established under capitalism and therefore the division of labour is imposed upon the less developed countries. Marx and Engle’s claim in the Communist Manifesto “The bourgeoisie has through its exploitation of the world market given a cosmopolitan character to production and consumption in every country...All old-established national industries have been destroyed or are daily being destroyed.”

In conclusion, we now live in a multi level society that has a global level of organisation but also regional and national levels. Global international agencies reinforce the nation state; global movements only challenge the authority of the nation state and although nation states are loosing some of their autonomy and sovereignty, but that this has been lost because country’s are becoming more regionalised. Castells (1997) argues that subnationalisms and communal resistance by ethnic and religious groups have forced the nation state to decentralise authority and decision making to meet their demands.