29 March - 4 April 2001
Issue No.527
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Al-Ahram Weekly On-line 29 March - 4 April 2001 Issue No.527 |
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In a vice
The state is being squeezed, from above by the forces of globalisation, and from below by sub-nationalist and ethnic politics. On the one hand, due to the increase in the mobility of goods and services and of capital assets in general, globalisation has resulted in an erosion of the state's ability to manage its domestic economy. Tremendous resources are crossing borders outside the control of governments. The US, for instance, cannot regulate acid rain falling on its lakes or rivers, nor the flow of illegal labour, which is high and rising.
Keith Griffin
On the other, sub-nationalist and ethnic politics (are also working to erode the state's sovereignty), as witnessed in the separation of Bangladesh from Pakistan, or of Eritrea from Ethiopia.
We are seeing the rapid growth of smaller political unions and large states being threatened by sub-national forces. This raises the question of whether there is a conflict between economic efficiency and small-scale political unions. I believe there is not. Economic globalisation, in fact, makes it easier for small states to survive and flourish. This is because the liberalisation of trade and of capital accounts enables small political units to explore economies of scale through trade and investment. So, if people wish to live in small political units, the economic price today would be lower than it was in the past.
The response to this erosion (of the state) should be global governments. But we have yet to face the fact that globalisation increases the need for such institutions. The finances of our global institutions are very insecure and regressive; the rich countries pay proportionally less than the poor, violating the principle of equity. Serious consideration should be given to the proposal made by (former) UN secretary-general, Boutros Boutros Ghali, to create a small UN peacemaking force.
Globalisation is affecting our economies and politics in profound ways and is raising the important question: how, as a global community, may we govern ourselves to achieve stability, prosperity and equity.
* Keith Griffin, a University of California distinguished visiting professor, speaking at the American University in Cairo on "Globalisation and the Developing World."
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