Instructor: Dr. Truong Thi Kim Chuyen Weblog:

World Economic Geography Paul Knox (2008),The geography of the world economy, Routledge; 5th edition Neil M.Coe, Phillip F Kelly, Henry W.C. Yeung (2007), Economic Geography, Blackwell Publishing Readings: Fellmann – Getis - Getis (1998). Human Geography: Landscapes of Human Activities. Brown & Benchmark.

Course Outline The geography of the world economy Economic Geography Conceptual foundations 01/ Conceptual foundations Page 1-25 Dynamics of economic space 02/ The changing world economy 04/ Patterns of Development and Change 05/ Services going global 03/ Commodity chains Page ’/ Technology and agglomeration Actors in economic space 10/ International and supranational institutionalized integration 06/ The state Page / The transnational corporation Page / Labour power Page / Consumption

06/ The state – who controls the economy: firms or governments? Aims: To understand how state and supra-national institutions shape economic process To recognize the different kinds of states within the global economy To appreciate the changing role of the state in an era of globalization To demonstrate why geographical scales matter in the reconfiguration of the state.

OUTLINE Introduction The “Globalization Excuse” and the End of the Nation – State? Functions of the State (in Relation to the Economy): Long live the State Types of states today Reconfiguring the State Beyond the State? Summary

I NTRODUCTION Key actors in economic space and role they play in creating economic geographies: the state, TNCs, workers, consumers. These actors are interconnected and interdependent. Focus on each actor individually in order to explore their importance and influence in more detail. Explore the extent to which the state remains a power full shaper of economic geographies. This integral role of the nation-state in the modern economy highlights an important point: politics, geographical scales, inter-national, macro regional, intra- national.

T HE “G LOBALIZATION E XCUSE ” AND THE E ND OF THE N ATION – S TATE ? the end of the nation-state Globalization: borderless, “global village”, new global systems  the end of the nation-state? The nation-state is deemed powerless in its capacity to control its national economic affairs and its own corporations.

F UNCTIONS OF THE S TATE ( IN R ELATION TO THE E CONOMY ): L ONG LIVE THE S TATE ! Political-economic geographies Reject the ultra-globalist position that polarizes the nation-state and the global firm. The ultra-globalist story depicting the nation-state as being the same everywhere is clearly a gross oversimplification of reality.  Indeed, the nation-state comes in diferent shapes and sizes; there are many different varieties of nation-state and they cannot all be described as “powerless”. Subscribe to a more measured view of the nation-state that understands it as always remaking itself and undertaking necessary adjustments to new global realities.

F UNCTIONS OF THE S TATE ( IN R ELATION TO THE E CONOMY ): L ONG LIVE THE S TATE ! Five important state functions in managing the national economy: - Ultimate guarantor and institution of last resort; - Regulator economic activities; - Architect of the national economy; - Owner of public enterprises; - Provider of public goods and services.

U LTIMATE GUARANTOR Dealing with finalcial crises Fuaranteeing national economic instruments Securing international economic treaties Property rights and the rule of law

R EGULATOR Market regulation Regulating economic flows

A RCHITECT OF THE NATIONAL ECONOMY Figure 7.2. Major types of economic policies pursued by nation-states

F IGURE 7.2. M AJOR TYPES OF ECONOMIC POLICIES PURSUED BY NATION - STATES ( CONT )

A RCHITECT OF THE NATIONAL ECONOMY The relevant economic policies can be termed strategic economic policies: - Strategic industrial policies - Strategic trade policies - Attracting foreign investment - Regional development policies

Owner of public enterprises Nation-states directly engage in owning and managing economic activities. “visible hand”

Provider of public goods and services Transport services Health and education services Infrastructure services

T YPES OF STATES TODAY The different historical-geographical circumstances from which each nation-state emerged have produced a variety of different states rather than a homogeneous group of similar states.

To distinguish these varieties of states, we use two broad criteria: - Political governance systems - Organization of economic institutions Neoliberal states Welfare states Developmental states Transitional states Weak and dependent states Failed states

R ECONFIGURING THE S TATE Te rescaling of economic governance - International organizations - Macro-regional groupings Hollowing out the state

Figure 7.5. The expansion of the EU since 1957

B EYOND THE S TATE ? State control is both socially and spatially uneven in its operation and effectiveness.

Summary Nation-states continue to profoundly shape the economic activity within, and across, their borders in a wide range of ways These different states in turn, have widely differing abilities both to control their economies, and to exert influence on international institutions In short, nation-states remain critical institutions through with international, regional and local economics issues are evaluated and acted upon.