The hyperglobalist thesis
The hyperglobalist thesis is the original and most famous position in the globalization debate. It is associated with a range of highly influential authors such as Robert Reich (1991) and Kenichi Ohmae (1996).
For these authors, the world we now live in is dramatically different from twenty or thirty years ago. Whereas nation-states once dominated the global economic map, the world is now ‘borderless’ in character. This is particularly so in economic terms. Heightened flows of goods, capital, labour and information are believed to move effortlessly across national borders. For example, inflows of foreign direct investment (i.e. investment by firms in other countries) have risen dramatically in recent years (from $59 billion in 1982 to $651 billion in 2002) (UNCTAD 2003). These developments are believed to have ‘shrunk’ the world, so that it is a much smaller place in terms of geographical distance. For example, it is possible to send an email across the world in seconds or travel across the world physically in just a few hours. This means that investors can transfer vast amounts of money to other countries by simply clicking on a mouse. Indeed, for O’Brien (1992), we have witnessed the ‘end of geography’.For the hyperglobalists, this has profound implications for the role of nation-states (see for instance Gray 1998; Greider 1997; Ohmae 1996). The movement of goods, capital and labour across national borders is believed to undermine the role of national governance. For example, in a ‘borderless world’, companies can simply pick and choose where to invest, since they are no longer constrained by geography. Since companies are primarily interested in profits, they will be attracted to low-cost locations. This places pressure on governments to keep taxation costs as low as possible, so that firms are not tempted to move elsewhere, taking jobs and money with them. In turn, this has massive social and political implications. If governments face pressure to reduce taxation, this severely reduces their ability to fund ‘public goods’ such as health and education. Globalization is therefore associated with the growth of a truly free market. Governments should not try to interfere in the economy because the market will always win out. Indeed, Ohmae (1996) argues that globalization has led to the ‘end of the nation-state’.
More on the topic The hyperglobalist thesis:
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- Index of Subject
- Preface
- The Basic Positions
- The Observer's Perspective
- Do Judges have Discretion? Is there a Right Answer?
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