The implication of economic globalization on political and economic sovereignty of states
Global economic integration is an ongoing journey. Economic globalization is bringing closer the distance of nations. At the same time, it is challenging the sovereignty of every nation crossing national boundaries. This essay will focus on the impact of globalization on political sovereignty –that is, policy options for states, and economic sovereignty –that is, the role of the state in national economies. Firstly, it will analyze the process of globalization and concepts of political and economic sovereignty. Following this, the essay will discuss whether the national sovereignty is enhanced or impaired in the process of globalization. It will be analyzed from the perspective of inside and outside the states, as well as the developed and developing. The case of EU would be studied as
Globalization has been shaping the world as an integration of economies, social relations, cultures and values. Especially, economic globalization is the most remarkable process, featuring the aspects of production, trade and capital flow. Kanter (1995) described globalization as ‘a growing shopping mall,’ Gilpin (2001) interpreted it as the integration of world economy. Scholte (2008) interpreted the essence of globalization in three dimensions: internationalization, liberalization and westernization. From empirical observations, the undergoing changes in the process of globalization are far more than that happening in economy. The era of globalization has been witnessing the profound change of human society, which evolves change of ideology, identity, differentiation and reorganization of interest, and levels of national economies and politics.
Early l990s has witnessed the rapid expansion of globalization. Entering the 21st century, the idea of globalization has been commonly recognized as the irreversible progress, with a New World Order coming into being that replaced the old one under Yalta System.
Global economic integration has cast profound influence on all aspects of nations. The trend of globalization has its merits and demerits. Globalization has affected the basic contents of national sovereignty –that is political sovereignty and economic sovereignty. Political sovereignty is similar to traditional contents of sovereignty, while economic sovereignty is a recent topic that is resultant of global economic integration. Discussion focuses on the question of whether globalization has enhanced or impaired national sovereignty. For optimists, they see globalization as a process that is promoted by nations, and globalization itself is a product of enforcement of national sovereignty. However, more studies focus on the fact that economic globalization impairs national sovereignty, regarding internal and international dimensions. The success of EU and the economic crisis within EU zone it faces nowadays seem to be paradoxical, which shows the both sides of the coin. In general, for the developed and the great powers, globalization has enhanced their capacity in gaining interests, while for the less developed, their sovereignty has been impaired to some extent, however a help in developing their economy. Therefore, there lies both the challenge and opportunities for both the developed and developing countries.