Introduction
In the past century, the world has experienced dynamisms in economic practices especially neo-liberalism. To elaborate on that, neo-Liberalism is an essential process in economic development which is attributed to a shift in the market economy and trade. The concept can be associated with the United States’ and Great Britain’s policies based on liberalization of trade and economic policies including deregulation, austerity, privatization, and free trade in the 1970s. Similarly, the ideology attributed to the emergence of free and social market economy incorporated with state intervention strategies. On the other hand, globalization refers to the increased interactions of people, states, and organizations regarding ideas, cultures, and monetary aspects. Likewise, the advancement of means of transport and communication has fostered interactions among different players in the international system. Globalization has resulted in the interdependence of states’ economic and cultural activities. The four basic components of globalization include capital and investment movements, trade and transactions, migration of people, and the sharing of knowledge. However, other issues associated with globalization may comprise of global warming, terrorism, and pollution. Neoliberalism can be viewed as influential to the globalization process and, globalization in itself can be understood to be both a result of and a move towards, global neoliberalism; a scenario which can be related to the increased power of non-state actors relative to the state in the international system.
The Relationship Between Neoliberalism and Globalization .
Markedly, neoliberalism pursues the reduction of government intervention in the market economies to the minimum to promote fiscal freedom for the entities. The economic ideology advocates for the lessening of the states’ influence on market dynamics through the gradual elimination of restrictions imposed by the government on the movement of goods across borders. In that case, neoliberalism promotes both international and domestic trade. However, reducing state-imposed restriction is an essential factor to the globalization process. Since globalization is characterized by increased interactions between international players, the reduction in state embargos is essential in promoting international relations. Therefore, neoliberalism advocates for the increased movement of people, goods, ideologies, cultures, and knowledge between states which is a key driver in the globalization process. In this century, international relations among state and non-state actors has increased as compared to the 20th century. The increase in relations can be attributed to the incorporation of neoliberal ideologies by the states when formulating trade policies and treaties. Furthermore, the privatization of key corporations in the transport, communication, and technological sectors of the economy has increased the movement of ideas, people, and cultures among nation-states which fosters globalization. Similarly, the increased globalization can be attributed to the fostered international trade.
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Notably, countries like the United States and the United Kingdom instigated the shifts from state interventionists to avert the economic crises of the late 20th century. The policies formulated to avert the predicament were spread to the other countries of the world globalization. In that case, globalization process is essential to the spread of neoliberal ideas in the international arena. Likewise, policies adopted by governments to reduce state protectionism on the economy are shared with other countries courtesy of globalization. Furthermore, the ideas were spread by the International Monetary Funds through the adoption of economic policies which were in line with the organization. Nevertheless, states can borrow policies when the successful implementation of the said policies averts a crisis in other countries. However, states can be forced to implement trade policies as provided in regional trade treaties aimed at fostering cross-border integration. The policies were based on freedom of market economies to provide reliable pricing strategies, to streamline the movement of goods and people across borders, and to ensure competitive economic mechanisms. The globalization process is associated with the emergence of neoliberal concepts in international trade. In this case, neoliberalism and globalization are interdependent such that globalization process has fostered the spread of neoliberal ideas while neoliberalism ideologies are effective in promoting trade among nation-states.
Neoliberalism, Globalization, and the Increasing Power of Non-State Actors
Remarkably, the emergence of neoliberalism and globalization has increased the role of non-state actors in international politics. Likewise, the dynamism in international politics can also be attributed to the rise of non-state actors as key players in the international system. The non-state actors may be classified as either intergovernmental organizations, non-governmental organizations, or multinational entities. First, states established Intergovernmental organizations especially the United Nations (UN) and the European Union (EU) to act on their behalf in international matters. Since the organizations are established through treaties, they are given the power to negotiate economic deals on behalf of the state. Second, the non-governmental organizations are established for non-profit and humanitarian purposes and are recognized as legitimate in the international arena in their advocacy for human rights and other social issues. Third, Multinational enterprises are business enterprises that operate in more than one state. In the majority of cases, they are headquartered in one state, but their operations extend beyond their borders. The enterprises have the power to act on economic matters in a foreign country affecting their business without the authority of the state. For instance, a multinational corporation has the authority to reject another states sanction when they have a negative impact on its business.
The dynamics of international politics show that the involvement of non-state actors in international affairs has increased over the years. The increase can be attributed to the recent wave of globalization and spread of neo-liberal ideologies in the international system. For instance, the advancement in technology, the international division of labor, the growth in international trade, and the increase in international organizations have influenced the international system. Likewise, the interaction of individuals and other entities in the international arena regarding military, economics, and politics affects the scope of the international system. In this scenario, the scope of international actors has expanded over the years which has influenced power dynamics on the globe. Likewise, individuals, groups, and entities that engage in military, economic, cultural, and political transactions have increased in recent years which reduces the power of state actors. As a result, the entities contest the notion that the states are the only actors in the international system. Similarly, the organizations influence the foreign policy making of state actors which can be attributed to the globalization process. Likewise, multinational corporations have the power to influence trade policies in countries they operate in. Despite the proliferation of non-state actors in the international system, the state has a majority of influence in international affairs. The state has the authority to reject the proliferation of a multinational company in its territory or establish guidelines under which the enterprise should operate. Therefore, the increasing number of organizations and enterprises in the international arena can be attributed to the spread of neoliberal ideologies and globalization. For instance, both the state and non-state actors should work together to avert an international crisis. In that case, issues of peace, conflicts, and terrorism on the globe require the dedication of both state and non-state actors.
Conclusion
Neo-liberalism influences globalization process through the formulation of trade policies that foster international trade. The emergence of neo-liberal ideologies in the late 20th century can be associated with the advancement of communication, technology, trade, and transports in the world. The policies are aimed at reducing government interventionism in international economics to foster trade. The period was marked by the reduction in state restrictions on trade and establishment of free market economies. On the other hand, globalization can be understood as either, a result or move towards global neoliberalism. In this case, globalization can be attributed to the numerous neoliberal policies in the 20th century aimed at averting the economic crisis in the U.S. and U.K. Similarly; other states formulated similar policies which resulted to shared ideologies in significant aspects of the economies. In another case, globalization advocates for global neoliberal concepts which promote economic freedom. However, neoliberalism and globalization process can be attributed to the increased number of non-state actors in the international arena. The non-state actors comprise of an international organization, non-governmental organizations, and multinational enterprise which influence the way the states formulate foreign policies.
