The New Terrain of State Autonomy Regulatory Independence from Globalization
INTRODUCTION
This book seeks to move beyond our superficial conversations and knowledge about the economic effects of globalization. For those of us interested in the relations between globalization and increasing inequality in the world, the picture can look alternately bright or very grim, depending on whether we believe free markets lead to equitable growth. We color in and create shape for the black-and-white cartoon of this academic and policy conversation by using a multilevel description and analysis of SoCo energy markets. By Southern Cone (SoCo) we refer to the countries of the MERCOSUR, namely Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay. We first describe the context of the problem of how developing country states can create independent policies in a period of seemingly overwhelming external and internal pressures. We then tackle the question of how to evaluate deregulation, privatization, and integration, the main components of globalization in terms of economic policy. We evaluate the dynamics and outcomes of globalization by using regulatory policy as our lens. To get to a real evaluation of the effects of globalization on the states, consumers, and corporations, we need a micro level comparison of national case studies. Thus, the ultimate foundation of our enquiry is a detailed political economy study and evaluation of the energy sector in the Southern Cone. In the process, we will shed light on energy issues as well as on globalization. The differences in energy policy outcomes will reveal the myriad ways that developing countries can respond to globalization forces. As Karl Polanyi pointed out many years ago in The Great Transformation, economic policies are a reflection not only of national and international interests, but also of social consensus, or lack thereof, on the principles, norms, and values of market exchange. State autonomy is the key concept that should be considered in terms of the polemic about globalization and how a national consensus can be achieved.
Developing countries seem to find themselves mired in a cycle of debt, which seems to constrain their possibilities for deviating from the macroeconomic and free trade norms that constitute the key parts of the hegemonic neoliberal discourse. In other words, their state autonomy seems almost nil at times. Moreover, neoliberalism in Latin America has brought not only a control of inflation, but also an extremely volatile growth rate and a growing relative inequality, both of which beg for an alternative paradigm. In a sense, the answer to this question seems almost moot, since there is no alternative prescription as of yet to basic neoliberal policies. Indeed, both the consensus on those policies and the internal and external conditions that support movement toward freer markets seem stronger than ever among decision makers and the policy networks behind them. This has led some observers to applaud and others to decry the end of a government role in the economy internationally, including the protection of industries and key jobs and the demise of the social welfare state.
In this book, we will move beyond these false prophesies and look more carefully at what is happening in the newly liberalized economies of the developing world. We find that instead of a world of uniformity and overall weakness, there is an incredible richness of variety in the….[DOWNLOAD]
