TRANSFORMATIONS OF

THE STATE – FROM

MONOPOLIST TO MANAGER

OF POLITICAL AUTHORITY

Presented by Manish Parashar

A State is defined as an organization specialized in exercising political authority within a given territory and over the people in that territory.

Decision-making competence, organizational competence and legitimatory power

The State

Instrumental nationalization: extending from political, social, economic to cultural factors

Examples: separation of Church & State, welfare programs; education, regulatory market, arts & public museums, etc.

Nationalization of the State

Legitamatory Nationalization: Establishment of Rule of Law, Democracy

Spurred by the Bill of Rights in England; American & French Revolutions

Rule of Law is to an independent Judiciary whereas Democracy is to universal suffrage, equal opportunities to all citizens

STATE

CITIZENS

Constitutionalization of the State

Rise of non-state actors in OECD countries c. 1970

International actors (UNO, EU), Private actors (Federations, guilds), Transnational actors (NGO, Red Cross, IOC)

Denationalization of the State

Decision-making Organizational

Competence Competence

International Actors Increasing Decreasing

Private Actors Decreasing Increasing

Transnational Actors Increasing Increasing

UNO, ICC, WTO, EU (decision-making autonomy)

World Bank, IMF, NATO; organizational incompetence (in OECD countries)

Internationalization

Public utilities; airlines, banks, gas, electricity, private security agencies, insurance & banking system (organizational competence)

Great Britain (state regulation on capital markets), Germany (insurance regulation), Netherlands (exclusion of corporates from socio-political decision making)

Privatization

Decision-making: ISO, S&P’s, Moody’s credit ratings, International sports rules

Organizational: IOA’s Olympic Games, Gates Foundation, Doctors without Borders

Transnationalization

Democratic Principles Rule of Law Principles

International Actors Partially Increasing Partially Increasing

Private Actors Decreasing Decreasing

Transnational Actors Partially Increasing Partially Increasing

Legitamatory Powers

Democratic principles: only through State diplomatic exchanges; European Parliament, civil society groups on the say of landmines, climate change are exceptions

Rule of Law: citizens can’t address grievances to WTO, anti-whaling, etc,; arbitration in international trade, ECHR & UNHCR are exceptions

Internationalization

Democratic principles: increasing public involvement in deciding codes of conduct; however, decision-making process still centralized

Rule of Law: judicial bodies (ICAS) have increased; however, individual participation & awareness remain weak

Transnationalization

Democratic principles: citizens being replaced with ‘clients’; commodification

Rule of Law: no internal judicial review, market competition reduces legitimacy of elections

Privatization

Organizational: all directives of WTO, EU, UNO, etc. have to be implemented by the member states

Decision-making: to Private players, regulatory frameworks in order to prevent monopolization of market

Complementary role of the State

International actors: State acts as intermediary; can be held accountable for its actions

Transnational actors: State’s representatives in NGO’s

Private actors: State provides judicial remedies, market regulations for privatization

Legitamatory Complementarity

Ultimate manager of political authority: even as more & more functions are drawn away from the State, it is being held responsible for all of its actions

Against a complimentary State role, a general perception is that of States holding an ultimate responsibility

Dangers of “ultimate” State control: Soviet Communism, German National Socialism, World Wars

Manager of Political Authority

Can there be a reversal of Denationalization of the State’s political authority?

Is legitamatory deficiency of Private actors a concern? If so, how can they be brought about?

Discussion questions