How does globalization shape the perception of governance and decentralization?
Globalization refers to the unrestricted movement of commodities, services, and people worldwide in a smooth and interconnected way. In shaping governance’s perception and decentralization, globalization may be considered to be the consequence of the opening up of the international economy and the associated growth in commerce between economies (Voronkova et al., 2020). In other words, when nations that were formerly closed to trade and international investments open up their markets and go international, the outcome is a rising interconnection and interdependence of the globe's economies.
In the previous decades, two parallel processes have taken place that has transformed the nature of the nation-state, particularly internationalization and decentralization. Power has moved from national authorities upward, with the implementation of multinational agencies, and nations have opened up their economies to increased global interconnectedness and involvement in world markets, restricting the space to maneuver state governments (Rondinelli, 2017). At the same time, there is considerable evidence demonstrating that authorities have moved considerably from central authority downstream.
Globalization may result in increased degrees of decentralization. It may also occur through several processes: technical effectiveness, economic competitiveness, and desires for self-determination. Decentralization may offer a more institutional arrangements environment to cope with the growth of competitiveness for investment and global markets from global trade. Yet globalization may also boost calls for self-determination by altering the actual value and advantages for some geographical entities to continue adhering to world power (Jurado & Leon,, 2020). In this setting, decentralization may develop as an institutional change adopted to placate separatist aspirations.
Globalization affects governance in various forms, and decentralization can emerge as a structural adjustment that enables governments to meet new governance issues. In context, globalization raises the expense to sub-national authorities of being part of a more significant state; decentralization is also the third point. Some researchers have suggested that the optimal size of the state falls amid globalization because integration efficiency advantages are dwindling (Voronkova et al., 2020). Traditionally, large governments have achieved efficiencies in terms of market and defense integration while including costs connected to the homogeneous of a centralized government to heterogeneous people.
In addition, global governance has lately shown a movement towards unilateralism from a political perspective and in the framework of globalization. This paradigm significantly undermines the essential multilateralism for globalization to function. Although nation nations are still much needed as they are the only connection between the national and the supranational levels and are offline actors, they are indeed the primary players in international cooperation (Mingqi & Yikang2020). Therefore, this latter function has shifted as national states are increasingly dismissed as direct issue solutions in a direct perspective.
Globalization is affected strongly by global governance. In addition, globalization has sadly generated victors and losers. The countries of the globe have been incorporated into a new world economy. Some have been too early and have produced huge differences between affluent exploiters of the current economic environment and poorly exploited by the system owing to the drive of globalization (Voronkova et al., 2020). Multinational companies in nations specially built for exploitation and realize the future benefits of globalization saw a new method to produce commodities at meager costs.
Jurado, I., & León, S. (2020). Economic globalization and decentralization: A centrifugal or
centripetal relationship?. Governance. <span style="font-size:12.0pt;line-height:200%;font-family:"Times New Roman",serif; background:white">https://onlinelibrary.wiley.com/doi/abs/10.1111/gove.12496</span>
Mingqi, X., & Yikang, W. (2001, August). Globalization and Global Governance in 2020--Our
Vision on International Organizations in 2020. In 2020 Global Architecture Conference (p. 94). <span style="font-size:12.0pt;line-height:200%;font-family:"Times New Roman",serif; background:white">https://www.academia.edu/download/4343199/72.pdf#page=95</span>
Rondinelli, D. A. (2017). Decentralization and development. In International development
governance (pp. 391-404). Routledge. <span style="font-size:12.0pt;line-height:200%;font-family:"Times New Roman",serif; background:white">https://www.taylorfrancis.com/chapters/edit/10.4324/9781315092577-21/decentralization-development-dennis-rondinelli</span>
Voronkova, V., Punchenko, O., & Azhazha, M. (2020). Globalization and global governance in
the fourth industrial revolution (industry 4.0). Humanities Studies, (4 (81)). <span style="font-size: 12.0pt;line-height:200%;font-family:"Times New Roman",serif;background:white">http://humstudies.com.ua/article/view/209402</span>
Zürn, M. (2013). Globalization and global governance. Handbook of international relations, 2, 401-425. <span style="font-size:12.0pt;line-height:200%;font-family:"Times New Roman",serif; background:white">http://ndl.ethernet.edu.et/bitstream/123456789/43164/1/47.Walter%20Carlsnaes%2C%20Thomas%20Risse%2C.pdf#page=426</span>