Globalization and welfare Differing perspectives

1. Globalization and welfareDiffering perspectives Fly-In Session # 2: Part 1

2. What isGlobalization ? A group exercise

3. Thinking about Globalization • Write down the THREE things that first come into your mind when the term ‘globalization’ is used • Share these THREE things with your group partners – are they the same or different? • Make a list (say SIX topics) of what globalization means to the group and be prepared to share this with the whole class

4. What does Globalization DO? • Looking back at your list of things that Globalization means to you and your group, now think as a group what are the EFFECTS that Globalization has on our lives? • Try to distinguish between ECONOMIC, SOCIAL and POLITICAL effects • Make a list of these effects, but this time put them in order of their importance in terms of their impact on our lives

5. Globalization – good or bad? • Reflect on your thoughts about globalization, its forms and its effects – overall is globalization a force for ‘good’ or ‘bad’ in the modern world • Remember – think not only about effects on YOUR life and that of people like you, but also effects on OTHERS around the world

6. Globalization: phenomenon or process? • Two interconnected dimensions: a) what globalizationis & b) the processe(s) of globalization • Economic, political, and social dimensions to both a) and b)

7. Perspectives on Globalization:Economic • ‘Global’ trade both quantitatively and qualitatively (cf. past - international trade) • Globalized labour markets: NIDL • Dominant role of MNCs and TNCs • Flexible organisation - ‘Toyotism’ • Finance as ‘free-floating’

8. Perspectives on Globalization:Political • Increased economic and cultural connections make nation-state govt. ineffective re territorial power (cf. Weber) • State power usurped/superseded by TNCs • Shift of ‘national’ political decisions to international/intergovernmental basis • Sovereignty shifts to international units (EU, ASEAN), treaties (NATO, OPEC), organisations (UN, WTO, WHO)

9. Perspectives on Globalization:Social/Cultural • Overall theme of globalized culture as chaotic not orderly-cultural - components are all ‘relativised’ • Culture as ‘disembedded’- signs and symbols rather than ‘real’ experiences • Notion of ‘scapes’ as globalized mental pictures of the social world in a global ‘cultural economy’

10. Characterising globalization: key features re social policy • Quantitative and qualitative spread of capitalism over the whole world- a globalized economy • End of nation-state autonomy and end of inter-state and intra-state politics • Changed time-space distanciation-the ‘shrinking’ of space in time • Disembedding of the social and the cultural from local/national contexts

11. What are the links between globalization and welfare states? Three perspectives: • Globalization causes welfare retrenchment • Globalization has little effect on welfare states • Politics matters – globalization’s effects upon welfare states are mediated by national politics

12. 1: Globalization causes welfare retrenchment through capitalism’s dominance • internationalization of the world economy implies the demise of nation-state autonomy, a reduction of national governments’ policy options and a weakening of labour movements – i.e. main foundations of the national welfare state are fundamentally weakened • development of global capitalism responsible for unemployment and rising inequality, creating worsening problems for the welfare states • both international trade and technological change create a significant decline in demand for unskilled, semi-skilled and traditionally skilled workers • need for national economies to compete in world market exerts pressure for reduction in social expenditure by governments and private firms • all the above create pressures to shift from social-democratic and collectivist to neo-liberal and individualist welfare ideologies – overall retrenchment and declineof welfarestates

13. 2:Globalization has little effect upon welfare states • changes in the world economy are less widespread, smaller and more gradual than the full-blown globalization thesis suggests • even if globalization has occurred, welfare states remain compatible with this process - globalized economies need to provide some sort of social welfare and political counterbalance to the effects of economic change • ‘threat of globalization’ more an ideological ploy of national governments wishing to restructure welfare than an unchallengeable economic force • welfare states are changing, but due tofactors other than globalization (e.g. population ageing; technology, changes in family structures, new risks)

14. 3: Globalization’s effects on welfare states are mediated by national politics • external global forces are impacting upon national welfare state changes • certain types of welfare state are more compatible with economic competitiveness than others, and can adapt better than others to the new environment • world-wide competitive economic environment means that high wage national economies will lose jobs to low(er)-wage countries unless checked • particular character of the previous political and institutional arrangements (i.e. form of welfare state) in different countries will heavily affect responses to global challenges • thus, different welfare states will change in different ways in responding to globalization – not simple welfare retrenchment or decline – and the support of different constituencies (unions, politicians, voters etc.) will ensure continuation of welfare state in some form