Very Important Final Paper-7pages

THE  STATE

4.2  INTS  2370

Agenda

• Definition  of  the  state  and  aspects  of  culture • Varieties  of  capitalism • Role  of  the  state • The  state  in  the  global  system

The  State  and  Culture

• State,  nation,  and  nation-­‐state • State  as  a  ‘container’  – set  of  qualities for  classification • Aspects  of  culture: – Schwartz  – conservatism,  intellectual  autonomy,  affective  autonomy,   hierarchy,  egalitarian  commitment,  mastery  and  harmony

– Hofstede  – individualism,  power  distance,  uncertainty  avoidance,   ‘masculinity’

• Typologies  that  get  at  something  but  are  debatable

Varieties  of  Capitalism

• Liberal  market  economy  (LME) • Coordinated  market  economy  (CME)

• Neo-­‐liberal  market  capitalism • Social  market  capitalism

• Developmental  capitalism • Authoritarian  capitalism • Neo-­‐authoritarian  capitalism

Varieties  of  Capitalism

• Liberal  market  economy  (LME) • Coordinated  market  economy  (CME)

Industrial   relations

Vocational   training  and   education

Corporate   governance

Inter-­‐firm   relations

Employee   coordination

Engines   Transport   Machinery

Biotech   Semiconductors  

Telecom

An  integrated  set   of  organizational   dillemmas...

are  resolved   through  domestic   institutions...

and  are  most   effective  when  

complementary...

resulting  in   distinct  patterns   of  innovation...

favoring  specific   sectoral  

development.

CME  

LME  

Incremental   innovation  

Radical   innovation  

Varieties  of  Capitalism

• Neo-­‐liberal  market  capitalism • Social  market  capitalism  

Varieties  of  Capitalism

• Developmental  capitalism • Authoritarian  capitalism • Neo-­‐authoritarian  capitalism

Role  of  the  State

• Support  markets • Provide  physical  &  human  infrastructure • Use  globalization  to  increase  state  power • Engage  in  fiscal  and  monetary  policy

The  State  in  the  Global  System

• Most  states  are  mixed  economies;  certain  sectors  nationalized,   others  private

• In  1980s–2000s:  deregulation,  privatization • Post-­‐2008:  government  intervention • Trade  regulation:  WTO  vs.  PTAs • NIE  strategies: ISI,  EOI,  and  EPZs

Interstate  Strategies

• States  as  competitors:  locational  tournaments,  competitive   bidding,  race  to  the  bottom  on  corporate  taxation

• States  as  collaborators: – Shared economic  and  welfare  goals – Regional  trade  agreements  (FTA,  customs  union,  common  market,   economic  union)

– Greater  alignment  in  other  economic  and  political  issues  (e.g.  EU) • Concentrated  in  key  regions:  North  America,  Europe  and  East   Asia  (aka  the  Triad)