International Influences on National Politics and Development

In an increasingly interconnected world, countries do not formulate domestic policy and pursue development in isolation. International influences pervade national politics and shape internal trajectories. This article analyzes major ways that the global environment and foreign actors impact politics, economics and society within nations through linkages like trade, investment, aid, norms diffusion, technology transfer and geopolitical pressures.

It assesses how positive international influences like economic integration or global development partnerships can assist national development. But negative externalities like global crises or foreign interference also frequently penetrate and distort domestic governance. The article examines how exogenous factors constrain policy autonomy, even for powerful states. Managing and selectively harnessing international influences remains imperative, albeit challenging, for national development.

Global Economic Integration

Deepening global economic integration is a prime conduit for international influences on domestic politics and development. Trade, multinational corporations, financial markets and cross-border production chains bind states tightly. This generates interdependence but also vulnerabilities.

Trade Linkages

Trade openness has exploded since the 1990s through liberalization and logistics advances. Exports and imports now comprise over 50% of GDP for most countries. [1] Specialization and foreign demand boost growth but also expose states to external shocks. Currency speculation can destabilize developing economies reliant on commodity exports in particular. [2]

Many governments face pressures to align investment laws, tariffs and regulations with international trade norms to attract foreign capital and export market access. This constrains domestic policy space. [3] Even major powers like the US or China confront retaliation risks if violating World Trade Organization (WTO) rules. Global trade disciplines significantly shape national regulation.

Multinational Corporations

入Multinational corporations (MNCs) wield substantial influence through their cross-border production networks and investment choices. Developing countries compete to attract MNC factories and technology by deregulating, offering tax incentives and suppressing wages, which affects politics and distribution. [4]

MNCs lobby aggressively to tilt national rules affecting foreign investors in their favor using leverage over employment and investor confidence. Corporate influence pushes convergence of business regulations worldwide towards neoliberal models. [5]

Global Production Chains

International fragmentation of production across borders via supply chains also fosters external dependencies. Countries become reliant on foreign partners for imports of components or capital goods essential for export-oriented domestic industries. Sudden supply shocks like disasters or supplier decisions can paralyze national economies. [6]

This interconnection requires coordination of standards, tariffs and regulations between states to enable cross-border production flows. It enhances efficiency but also curtails autonomy for setting policies tailored to domestic conditions rather than global network needs.

Financial Globalization

Financial globalization expands channels for international finance to shape national economies, often disruptively so in developing states. Capital flows mediated through banks or securities markets link fortunes worldwide. [7]

Speculation-driven volatility in currencies or securities frequently triggers national financial crises with severe political effects, as occurred across Asia, Latin America, and post-Soviet economies in the 1990s. [8] Governments face pressures to implement costly bailouts or austerity, while blame often falls on incumbent regimes.

Globalized finance compels states to attractively structure policies, regulations, and institutions for foreign investor perceptions. This narrows macroeconomic options, skewing towards investor-friendly low inflation targeting over developmental, employment or redistributive priorities. [9]

External Aid and Partnerships

Development assistance from multilateral institutions like the World Bank or bilateral programs likewise influences recipient country priorities. Aid usually comes with policy conditions or advice reflecting donors’ economic philosophies and geostrategic goals. [10]

Structural adjustment packages mandated by the IMF or World Bank have compelled African and Latin American nations to implement far-reaching free market, fiscal austerity and privatization reforms with major domestic political impacts since the 1980s. [11]

Even aid lacking formal conditions signals preferred approaches. US assistance emphasizes themes like democracy promotion, counternarcotics and neoliberal economics. Chinese projects support state-led infrastructure development models. Donor aid shapes national agendas. [12]

South-South development partnerships between developing countries are increasing. This provides alternative capacity support cushioning against traditional donor leverage. But Southern partners like China still attach their own worldviews and commercial interests. [13] External aid inevitably influences internal policies.

Technology Transfer
The international spread of innovations and technical knowledge fundamentally enables developmental catch up and productivity growth. But technology transfer has been uneven, advantaging some nations over others.

Multinational firms and foreign direct investment (FDI) have been primary conduits for international technology diffusion to emerging economies like China. However, technology spillovers are not automatic. Absorptive capacities in workforce skills, research systems and local suppliers drive benefit realization. [14]

Stronger intellectual property protections since the 1990s have increased costs of technology access. This has slowed technological convergence and shifts value realization from developing country users to multinational patent owners. [15]

Global innovation hubs and collaboration networks are gaining importance for technology access and exchange. But integration into research communities requires investments many poorer nations struggle to undertake without external support. [16]

Overall, international technology flows crucially assist national development but on terms often skewed to advantage leading states and multinationals. Enhancing national absorptive capacities, South-South collaboration and pro-development IP reforms could improve distribution.

Norms Diffusion

International norms and developmental models also diffuse transnationally between states through mechanisms like emulation, socialization and social movement activism. [17]

Democratic transitions cascade in waves like Latin America in the 1980s and the post-Soviet Color Revolutions using neighboring countries as models. Activists apply norms like human rights locally. [18]

Policy approaches similarly spread. Chile’s pension privatization inspired imitation across Latin America. Malaysia’s affirmative action policies informed South Africa’s post-apartheid reforms. [19]

Diffusion is not automatic; local leaders selectively adapt. But global development discourses shape national agendas and elite preferences. [20] Norms do not simply radiate unidirectionally from rich nations; South-South diffusion and indigenous innovation matter. [21] But international experiences provide toolkitsnational leaders utilize.

Foreign Interests and Pressure

More directly, foreign governments lobby, coerce, or intervene in weaker states to shape policies and politics. Major powers like the US and China actively cultivate dependent international partnerships advancing strategic interests. [22] Even small nations leverage tools from investment to moral pressure.

Alliances and diplomatic relations entail reciprocal obligations and concessions between partners that necessarily influence domestic priorities to some degree. Military basing rights expand foreign leverage, as Okinawa in Japan hosting US troops demonstrates. [23]

Foreign actors like China or the EU use trade and investment incentives to penalize or reward other states’ behavior. Access to markets, finance and infrastructure spending gives leverage to mold partners’ foreign policy and internal conduct. [24]

Overt threats and coercion also occur, flouting sovereignty. US and Soviet interventions during the Cold War to install friendly regimes represent an extreme historical example. Today, cyber attacks and disinformation campaigns by major powers like Russia also disrupt politics abroad. [25]

Even fellow developing countries will pressure each other to protect expatriate populations or for perceived cultural affronts, using trade, aid and diplomatic relations as sticks and carrots. Defiance of apartheid by newly independent African states imposed costs on South Africa, for instance. [26] States are enmeshed in webs of external influence.

How International Influences Shape Domestic Politics

The penetration of international factors shapes national political dynamics in diverse ways:

  • Global crises like financial meltdowns, pandemics, or conflicts create societal insecurity that benefits nationalist, populist and authoritarian politicians by undermining incumbents.
  • Governments face public discontent when adhering to painful policy conditions or unpopular reforms mandated by international financial institutions or major power patrons. This causes protest waves against neoliberalism or Westernization.
  • Ruling parties gain credibility and public support by securing international agreements, whether diplomatic accords, major investments like Chinese infrastructure deals, or aid programs signaling external approval.
  • Opposition movements strategically utilize international linkages, from diaspora support to partnerships with INGOs and foreign governments to gain resources and platforms applying external pressure on regimes.
  • Politicians scapegoat foreign influences, investment and minority immigrant populations to deflect blame for national problems like inequality, crime and job losses rather than tackling thorny structural reforms.
  • Politicians and social movements reference transnational norms like human rights or climate justice to morally frame domestic causes, leveraging international perceptions for national advantage.

Thus global forces create both threats to regimes but also opportunities to harness for political gain. Incumbents and oppositions finely navigate these tradeoffs.

Constraints on Policy Autonomy

The above influences collectively curtail national policy autonomy even for powerful states. But the range narrows most severely for poor nations dependent on foreign aid, investment and trade access. Some patterns of reduced sovereignty include:

Trade Dependence: Participation in free trade deals substantially limits abilities to support domestic industries with tools like tariffs or subsidies due to treaty prohibitions. Agricultural policy and industrialization strategies get restricted.

Policy Harmonization: International regulatory harmonization or standard setting bodies like WIPO and WHO embed external norms and interests reducing flexibility to tailor regulations locally.

Foreign Ownership: Large foreign ownership presence across sectors like banking (European firms dominate Eastern European systems) or agribusiness can lobby against reforms threatening investor interests.

Aid Reliance: Donor conditions mandating policy and institutional reforms accompany most multilateral development aid. Even “untied” bilateral aid comes with implied agendas.

Patron-Client Ties: Powerful patron states can impose significant military, economic and diplomatic costs on smaller clients resisting desired actions on issues like security policy or human rights.

Debt Vulnerability: Major creditors like China holding substantial shares of developing country debt gain leverage to extract economic and political concessions. Debtors face restructuring risks.

Restricted participation in global governance institutions like the UN Security Council, G20 or international legal bodies also limits developing countries’ ability to shape rules affecting their interests relative to Western powers and rising states like China.

But astute leaders even of weak states creatively adapt to expand autonomy. They forum shop between competing international partners to gain wiggle room. But overarching constraints persist.

Global Crises and Contagion

Given the breadth of international connections, crises and risks readily spread across borders impacting domestic politics worldwide even absent overt pressure. Contagion channels include:

Finance: Bank failures, asset bubbles and currency collapses in one nation easily trigger regional even global financial crises as occurred in 1997-98 and 2008-09 with severe domestic political impacts.

Commodities: Globally traded commodities like oil and food mean price fluctuations directly affect national economies and mass welfare. Price spikes in staples spark unrest and empower opposition groups.

Conflicts: Wars and regional instability prompt refugee flows, spread insurgencies across borders as wavering states are destabilized and allow illicit trafficking in arms or minerals that funds violence.

Ideologies: Extremist ideologies disseminate digitally across borders, as with radical Islamism or white nationalism inspiring terrorists, enabling recruitment and spreading violence.

Pandemics: Infectious diseases obviously ignore borders. But containment also requires collective action given mobility. In COVID-19, choices like lockdowns had immense domestic political effects everywhere.

No country is fully insulated from global economic, health and geopolitical crises that shape national fortunes and thus politically salient public sentiments. Their inherent unpredictability and contagion confound autonomy.

Managing External Influences

How should states navigate international influences pervading domestic affairs given frequent negative effects compounding global crises or foreign coercion? Some policy implications include:

  • Invest in capacities like education that increase absorptive abilities and resilience to external shocks. Prioritize diffuse growth rather than concentrated commodities or MNC-dependent industries.
  • Negotiate international commitments carefully to preserve flexibility for future leaders rather than overly restrictive treaties. Clauses allowing withdrawal if vital national interests emerge provide wiggle room.
  • Maintain diverse international linkages to maximize bargaining leverage rather than overdependence on a single foreign power. Multi-vector foreign policies preserve autonomy.
  • Deploy activist industrial, technology and social policies to better capture gains from globalization, shaping rather than just responding to external forces.
  • Reform global institutions like the UN, WTO and World Bank to enable developing countries greater voice over international rules and norms.
  • Construct regional coalitions among smaller states to consolidate influence in international negotiations and rule-setting. Pooling countervailing power increases agency.
  • Support South-South venues for solidarity, knowledge exchange and self-defined development models with greater sensitivity to local priorities.

Given deep interdependence, some external influences impacting national development are unavoidable and bring benefits. But policies to selectively mediate global pressures and empower domestic institutions and grassroots communities to steer change enhance autonomy and benefits.

Conclusion

In an interconnected world, international influences inevitably permeate and reshape national politics and development trajectories through avenues like economic integration, geopolitics, norms diffusion and crises. Global forces PROVIDE both constraints on autonomy and opportunities for growth IF selectively harnessed. But negative externalities frequently overshadow positive aspects. Building national resilience, rebalancing global rules, and investing in citizens’ capabilities help populations shape their own futures with greater self-determination. In navigating globalization’s tightrope, balancing openness and autonomy remains imperative for just societies in coming decades.

References

[1] World Bank. “Trade Overview.” https://www.worldbank.org/en/topic/trade/overview 2021.

[2] Rodrik, Dani. The Globalization Paradox: Democracy and the Future of the World Economy. W.W. Norton & Co., 2011.

[3] Correa, Carlos M., and Nagesh Kumar. Protecting Foreign Investment: Implications of a WTO Regime and Policy Options. Zed Books, 2003.

[4] Jensen, Nathan M., and Edmund J. Malesky. Incentives to Pander: How Politicians Use Corporate Welfare for Political Gain. Cambridge University Press, 2018.

[5] Strange, Susan. The Retreat of the State: The Diffusion of Power in the World Economy. Cambridge University Press, 1996.

[6] Baldwin, Richard. “Global Supply Chains: Why They Emerged, Why They Matter, and Where They Are Going.” CTEI Papers 13, 2012, pp. 1-81.

[7] Kabir, Rezaul. “Globalisation, Growth and Financial Crisis: Lessons from the South East Asia.” African and Asian Studies, vol. 21, no. 1-2, 2019, pp. 64-84.

[8] Harvey, David. A Brief History of Neoliberalism. Oxford University Press, 2007.

[9] Rodrik, Dani. The Globalization Paradox: Democracy and the Future of the World Economy. W.W. Norton & Co., 2011.

[10] Huguet, Montserrat, and Rosa Cañadas. “The Aid Effectiveness Agenda and the Paris Declaration.” Screens and Veils (2014): 95-115.

[11] Stiglitz, Joseph E. Globalization and its Discontents Revisited: Anti-Globalization in the Era of Trump. W.W. Norton & Company, 2018.

[12] Tan-Mullins, May, Giles Mohan, and Marcus Power. “Redefining ‘Aid’ in the China–Africa Context.” Development and Change 41.5 (2010): 857-881.

[13] Chaturvedi, Sachin, Thomas Fues, and Elizabeth Sidiropoulos, eds. Development Cooperation and Emerging Powers: New Partners or Old Patterns? Zed Books Ltd., 2012.

[14] Fu, Xielin. “Foreign Direct Investment and Technology Spillovers in China’s Manufacturing Sector.” The Chinese Economy, vol. 40, no. 2, 2007, pp. 25–42.

[15] Rodrik, Dani. The Globalization Paradox: Democracy and the Future of the World Economy. W.W. Norton & Co., 2011.

[16] Archibugi, Daniele, and Andrea Filippetti. “The technological capabilities of nations: The state of the art of synthetic indicators.” Technological Forecasting and Social Change 80.7 (2013): 1229-1231.

[17] Finnemore, Martha, and Kathryn Sikkink. “International norm dynamics and political change.” International organization 52.4 (1998): 887-917.

[18] Gleditsch, Kristian Skrede, and Michael D. Ward. “Diffusion and the international context of democratization.” International organization 60.4 (2006): 911-933.

[19] Henisz, Witold J., Bennet A. Zelner, and Mauro F. Guillén. “International coercion, emotions, and legitimate authority.” Academy of Management Journal 48.1 (2005): 17-31.

[20] Meyer, John W., et al. “World society and the nation‐state.” American Journal of sociology 103.1 (1997): 144-181.

[21] Acharya, Amitav. “How ideas spread: Whose norms matter? Norm localization and institutional change in Asian regionalism.” International organization 58.2 (2004): 239-275.

[22] Nye, Joseph S. Bound to Lead: The Changing Nature of American Power. Basic Books, 1990.

[23] Calder, Kent. “Securing Security Through Prosperity: The San Francisco System in Comparative Perspective.” The Long Shadow: Nuclear Weapons and Security in 21st Century Asia, Stanford University Press, 2008, pp. 137–172.

[24] Kastner, Scott L. “Buying influence? Assessing the political effects of China’s international trade.” Journal of Conflict Resolution (2021): 00220027211043300.

[25] Polyakova, Alina, and Chris Meserole. “Exporting digital authoritarianism.” Brookings Institute (2019).

[26] Seidman, Gay W. “Gendered citizenship: South Africa’s democratic transition and

SAKHRI Mohamed
SAKHRI Mohamed

I hold a bachelor's degree in political science and international relations as well as a Master's degree in international security studies, alongside a passion for web development. During my studies, I gained a strong understanding of key political concepts, theories in international relations, security and strategic studies, as well as the tools and research methods used in these fields.

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