Globalization and Policy Convergence: Symposium Overview

Abstract

One of the great questions of our time is the capacity of nation states to maintain distinctive policies in the face of globalization. To many, the intensification of international trade, the mobility of capital, and the circulation of ideas has put immense pressure on governments to reduce taxes, relax business regulations, and generally conform policies to international standards. A growing body of scholarship, however, emphasizes the continued flexibility of nations to tailor domestic policies to suit their own needs. At the outset, it is important to differentiate policy convergence—the process of policies across countries becoming increasingly alike—from the effects of international economic integration. Banting, Hoberg, and Simeon (1997) have developed a framework that distinguishes the variety of forces at work. They emphasize four major forces behind convergence: