Impacts of Globalisation

• Challenges to the State System

  It has become apparent that there are multiple actors within the global arena.

  NGOs, IGOs and even terrorist organisations all now have a role in global politics.

  Attempts at encouraging peace have resulted in higher institutions that erode the sovereignty of states.
• Case Study 2008 Financial Crisis

  Result of lenders giving mortgages to high risk individuals who ended up defaulting. The US banks sold CDO's to other global banks, who then lost money as a result of defaults.

  Led to unemployment and the collapse of international trade, political polarisation and declining birth rates.

  Countries (Portugal, Spain, Greece) enacted austerity and required bailouts from the IMF and EU.
• Loss of Sovereignty

  NGOs can pressure governments.

  States have to impress outside investors and are at the whim of external financial factors.

  The internet and flow of information makes it harder for states to control ideas and easier for other actors to influence ideas.
• Lack of loss of Sovereignty

  States are still the decision makers.

  States as the members of IGOs.

  Borders and national identity still significant.
• States retaining Sovereignty

  France 2019 - Introduced tech company tax despite threats from companies.

  Great Firewall of China - Highly censored internet in China.