Globalisation and Public Policy: How International Economic and Social Change Influences the Policy Space of National Governments

Abstract

This article examines the effects of globalisation on the policy space of national governments. It begins with the meaning and dimensions of globalisation and then reviews the main theoretical positions, namely hyperglobalist, sceptical and transformationalist accounts, together with the institutional and constructivist literatures that complicate them. Then it focuses on domestic policy autonomy, international institutions, economic and social globalisation, technology and migration. It then examines the public policy responses of states, the specific situation of developing countries and the current debate on policy convergence or divergence. I argue that the strong claim that globalisation has hollowed out the state finds little support. The weak claim that globalisation affects the costs, constraints and tools of governance is well supported. Outcomes are highly dependent on domestic institutions, on a country's place in the world economy, and on the policy area under consideration. The article concludes with reflections on critical perspectives that pose real concerns about inequality, democratic accountability and unequal bargaining power.