Our world is undeniably interconnected in ways we sometimes fail to comprehend or dimension. It seems we have created this global network, dominated by a world market, but have failed to envision and understand the implications it is bringing and will continue to do so. TNCs, IGOs and organized crime have already taken advantage of the channels of interconnectedness and exist within what Susan Strange calls a “yawning hole of non-authority, of ungovernance” (225). We created a giant web and are still trying to figure out how it works out…
In the meantime, the political implications have been felt worldwide. As the world moves towards a homogenous congregation of nation-states, many pre-existing powerful states are facing the loss of authority, as argued by Strange. Porous borders, complex technological instruments, an increasingly powerful world financial structure, and the fact that there is no over-arching authority have lead to an exacerbation of competition among States and corporations, a competition that prioritizes capital as the element that guarantees success and innovation. At the same time, this drive to be competitive and not lag behind, along with capital’s ability to move easily across border, has created a scenario in which corporations can move to more ‘competitive’ locations where labor is cheap. In doing so, many TNC avoid taxes in their respective countries of origin and perpetuate the host country’s need to welcome them (it’s in their economic interest to do so, at some level).
When so called ‘sovereign’ states are influence by fluctuating international capital, they lose their ability to control their own economy. Not even world powers have total control; the market economy is an entity in and of itself. Although the crisis is global, is it ‘western-centric’, as Strange suggests? Why is it that East Asian countries have managed to ripe the benefits of the global economy and still appear to be strong nations with strong governments? Is this actually true, or is it a perceived appearance?Watch movie online Logan (2017)