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6. Political outcomes
- Loss of sovereignty: Discuss the links between the diminishing effectiveness of political borders and the flow of goods, capital, labour and ideas, and the role of one multi-governmental organisation such as the European Union... Discuss the shift in power from nation state to TNCs as a result of their economic size and dominance. Compare the wealth of TNCs with that of nation states.
- Discuss the attempts to control migration into one country.
what is a 'nation state'?
The concept of the nation state is best exemplified using western European nations formed over hundreds of years. For example, France fulfills many of the aspects even today. Nation states are generally held to include:
Examples of nation states might include:
A major concept for the nation state is that of sovereignty: "The exclusive right to exercise, within a specific territory, the functions of a nation-state and be answerable to no higher authority." In short, it means that a person, or a group of people, within a territory can make entirely independent decisions about the activities of and within that territory. In some countries sovereignty is derived from an individual such as a monarch; in some countries, it is from the people; and in some countries, it is from a government body e.g. parliament.
- a homogenous group of people
- self governing
- cultural united
- a shared history
- ethnically similar (though ethnic diversity is a modern challenge to this)
Examples of nation states might include:
- France (nation of the French)
- Greece (nation of the Greeks)
- Spain (nation of the Spanish)
- China (nation of the Chinese)
A major concept for the nation state is that of sovereignty: "The exclusive right to exercise, within a specific territory, the functions of a nation-state and be answerable to no higher authority." In short, it means that a person, or a group of people, within a territory can make entirely independent decisions about the activities of and within that territory. In some countries sovereignty is derived from an individual such as a monarch; in some countries, it is from the people; and in some countries, it is from a government body e.g. parliament.
the end of the nation state?
In practice, these 'nations' are rarely entirely united. Most 'nations' include a variety of people who may be linked only in one aspect - the geographical location where they live. There are several challenges to the concept of a nation state:
- Most are the result of relatively recent changes in territory
- Significant migration has occurred in most countries in the past
- Within borders, migrants frequently practise different customs
- A nation may include regional variations, so the division between 'nations' can be considered an arbitrary human construct
- Today, global interactions mean people are able to forge stronger ties with others outside their own nation...
- ...and the increasing diversity within countries (due to migration) may weaken ties within their own nation
the nation state is dead: the growth of multi-governmental organisations
Multi-governmental organisations may be economic, political, or a mixture of other issues (e.g. defence and social development). The European Union is the world's largest and most advanced MGO and also the most advanced trade bloc. The EU is therefore a prime example of an organisation that has taken some power away from the member nation-states, and suggests that increasing global and regional interaction may be more important than the role of the nation state.
The European Union members
The EU is the largest trade bloc with over 400 million people. It is continuing to grow. The map to the right shows the extent of current membership and those countries which have stated a desire to join. The United Kingdom joined in 1973. There are currently 28 countries in the EU. Membership of the EU means that countries must sign up to a single economic area, thus losing import and export controls. |
Map source: http://www.spiegel.de/international/europe/membership-for-the-balkans-brussels-paves-way-for-next-eu-expansion-a-665948.html
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The Eurozone: Currency union in the European Union
The shift within the European Union towards a currency union (called the Eurozone) was made real in 2000 when the currencies of some major European countries were fixed in value and prepared for the introduction of the Euro in 2002.
The United Kingdom did not enter the Eurozone. The lack of individual government control over the currency was seen as reducing the autonomy and sovereignty of the UK.
The Euro suffered in the 2008 financial crisis as some members, notably Ireland, Spain, Portugal, Italy and Greece, had over-borrowed in their own right, so other Eurozone countries (notably Germany) were faced with bailing them out (through massive loans) or a crisis in their own economies. The video (top right) explains very briefly how compound interest makes debt bigger for countries.
The video (below, bottom) how this crisis occurred. It is also useful for the financial flows section of the course.
The shift within the European Union towards a currency union (called the Eurozone) was made real in 2000 when the currencies of some major European countries were fixed in value and prepared for the introduction of the Euro in 2002.
The United Kingdom did not enter the Eurozone. The lack of individual government control over the currency was seen as reducing the autonomy and sovereignty of the UK.
The Euro suffered in the 2008 financial crisis as some members, notably Ireland, Spain, Portugal, Italy and Greece, had over-borrowed in their own right, so other Eurozone countries (notably Germany) were faced with bailing them out (through massive loans) or a crisis in their own economies. The video (top right) explains very briefly how compound interest makes debt bigger for countries.
The video (below, bottom) how this crisis occurred. It is also useful for the financial flows section of the course.
Source: http://www.polgeonow.com/2015/01/eurozone-gains-new-member-country.html
The video below relates this to the wider financial crisis of 2008, which was the world's most severe financial crisis since the 1930s.
Freedom of movement within the EU
The right to move between countries within the EU is a fundamental element of the EU. More than 14 million EU citizens are resident in another member state - 2.8% of the total EU population. (Source: http://www.bbc.com/news/world-europe-25237742). All members of the EU must sign up to the right to allow the citizens of other member states to enter. However, countries may retain passport and border checks if they wish. This allows stop-and-search, and passport checks, to occur on borders. "The UK and Republic of Ireland have opted out. The UK wants to maintain its own borders, and Dublin prefers to preserve its free movement arrangement with the UK - called the Common Travel Area - rather than join Schengen." (Source: http://www.bbc.com/news/world-europe-13194723) |
Map source: http://www.bbc.com/news/world-europe-13194723
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the nation state is dead: the power of tncs
Transnational Corporations (TNCs) have operations in more than one country. The head offices are usually located in a high income country while the manufacturing and assembly of products occurs in low and middle income countries. This has strong links to the global core and periphery model.
TNCs are extremely large and control huge sections of the world economy. The graphic below demonstrates how just a few companies can control virtually all the global food supply of branded products.
Graphic source: http://www.forbes.com/sites/bethhoffman/2013/02/26/who-owns-your-favorite-food-brands/ Note: This graphic is from 2013.
What makes TNCs important?
Because they are so large, TNCs control large sections of the world economy. The following information is from the Oxford Course Companion for Geography (1st ed. 2011):
Because they are so large, TNCs control large sections of the world economy. The following information is from the Oxford Course Companion for Geography (1st ed. 2011):
- 33% of world trade is from internal transfers by TNCs
- TNCs own assets in various countries
- Over 50m people are directly employed by TNCs, plus millions more indirectly
- TNCs control the marketing and production of goods, thus have power over nation states by choosing where to locate in a global marketplace
The power of TNCs versus nation states
TNCs exert power through:
TNCs exert power through:
- Threatening to withdraw from a country, in order to receive tax breaks
- Insisting on infrastructure development, paid for by nation states
- Creating conditions in which local (national) regulation is dwarfed by the need for international standardisation
- Controlling the supply chain, which may stretch across several countries
- Contributing significant amounts to political campaigns and lobbying governments
The wealth of TNCs versus nation states
Some TNCs are very large. Their wealth can be measured by their turnover - the amount of money they receive each year. A country may measure it's wealth by the GDP - the amount of money spent in a country per year. The graphic to the right shows this in the case of Apple Inc., which has an income equivelant to the entire population of New Zealand. However, it must be remembered that this is a 'headline' figure and bears no real relation to the actual activities undertaken. The graphics below show other methods of measuring the power of TNCs over countries. |
Source: http://www.imore.com/rich-apple-infographic
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long live the nation state: controlling migration
Controlling migration is one way of asserting a sovereign right; that is, to decide who is allowed to enter your country. Immigration control is not the same as border checks (passport checks) - immigration control means whether an individual has the right to enter a country.
For the UK, citizens of member states of the European Economic Area (similar to the EU, but including Norway, Switzerland and Iceland) do not need a visa and are not subject to immigration control. The video below outlines the status of migration in the UK in 2014.
For the UK, citizens of member states of the European Economic Area (similar to the EU, but including Norway, Switzerland and Iceland) do not need a visa and are not subject to immigration control. The video below outlines the status of migration in the UK in 2014.
The following controls on migration into the UK are taken directly from Oxford University's Migration Observatory website and refer to the period 2011-2013:
This demonstrates that although the UK is a member of the EU, they are still able to reduce migration from outside the European Union. There are other ways in which the UK tries to stop in migration. For example r educing the rights of EU citizens to benefits, to prevent 'benefit tourism'.The policy of the United Kingdom Independence Party is outlined here.
An excellent summary of the pro-migration argument can be found here.
- Controls on labour migration including: the closure of the Tier 1 general route, which had allowed 'highly skilled' non-EU migrants to enter the UK without a job offer; the introduction of a cap on skilled labour migration from outside the EU (though this has never yet been filled, so has not in itself reduced immigration); and changes to the shortage occupation list limiting it to graduate level occupations.
- A series of changes to student migration policy such as: ending the blanket post-study work route; increasing financial and language requirements; and increasing restrictions on some international students’ rights to work or bring dependent relatives.
- Increasing the financial requirements for those wishing to bring family members to the UK.
- Introducing financial requirements for those wishing to settle in the UK.
This demonstrates that although the UK is a member of the EU, they are still able to reduce migration from outside the European Union. There are other ways in which the UK tries to stop in migration. For example r educing the rights of EU citizens to benefits, to prevent 'benefit tourism'.The policy of the United Kingdom Independence Party is outlined here.
An excellent summary of the pro-migration argument can be found here.