Global governance, national strategies: how industrialized states make room to move under the WTO

Abstract

ABSTRACT Global and national governance are sometimes seen to stand in a zero-sum relationship, particularly in the post-GATT era of multilateral trade. A more nuanced view expects states to seek the benefits of multilateralism whilst finding convenient loopholes and escape routes from its policy constraints. This paper steers a different course, focusing on the overt (‘legitimate’) measures industrialized states are undertaking to succeed in the international arena. Rich nations as a group have carved out a multilateral order which best suits their current developmental trajectory – one that diminishes space for promoting industries critical to their climb up the development ladder, while increasing scope for sponsoring the technology-intensive sectors now critical to securing national prosperity. State activism continues and in some respects has taken on a more strategic and collaborative quality. This paper discusses several forms of ‘strategic activism’ in trade, technology, and finance and considers why it has emerged in the context of increased multilateral discipline.