The growing interconnectedness of national economies and an expanding awareness of global interdependence in the 1990s have generated lively debate over the future of national governance. In a world of mobile capital, are states vital to the social and economic wellbeing of their citizens? A number of changes in the state's domestic and international environment - ranging from regulatory reforms and welfare state restructuring to the proliferation of intergovernmental agreements - have promoted the view that globalisation has a negative impact, compromising state capacities to govern domestically. This book challenges the 'constraints thesis'. Covering vital areas of state activity (welfare, taxation, industrial strategy, and regulatory reform), the contributors focus on a range of issues (finance, trade, technology) faced by both developed and developing countries. The contributors argue that globalisation can enable as well as constrain, and they seek to specify the institutional conditions which sharpen or neutralise the pressures of interdependence.
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