Mini-Essay: Module 3: Part A

The competition state has altered the relationship between the state and citizens in a few
ways, but I will focus on one of them. There are less public services being provided by the state
and there is more of a focus on international competitiveness. The welfare state has been
replaced in order to compete in international markets after companies began to move to avoid
regulations and high taxes. (Uluorta, Oct 14, 2015). Countries began to lessen restrictions and
taxes for companies to promote them to stay and to be a force to strengthen their countrys
economy in the expanding global market.
In order the keep the welfare state going taxes had to be kept high to pay for public and
social services. However once the taxes and company regulations were too much they found a
new way. By moving on to other countries, companies and banks began to shift the focus from a
national to a global scale as seen in South America in the 1980s. (Conway, 49). Countries still
needed to be able to hold their own financially and needed to find a way around this shift of
money to foreign soil. The answer was the creation of the competition state.
Globalization involves state actors changing political practices and structures to
reconcile the perceived problems of the current nation-state. (Cerny, 253). This involved
allowing some public services to be provided by private companies and paying less attention to
social rights than the welfare state did. In the Conway reading we see that neoliberalism is the
underlying force behind new forms of globalization. (56). Neoliberalism is a combination of
liberal politics and neoclassical economics, a move away from the Keynesian state. (Uluorta, Oct
14).

This laissez-faire attitude to economics led to the crisis that birthed the welfare state in
the first place so well see if this leads to problems down the line. Many believe it already has.
In fact, Conway had some very powerful words to say on this and so I will quote him in full.
Neoliberalisms ascendency and globalizations emergence and consolidation
was, and is, the sociohistorical path that has led us to our present state of global
crisis; its unacceptable levels of social inequality, of poverty and social
insecurity, and its lack of comprehensive healthcare delivery systems, its lack of
gainful employment opportunities, and its lack of social responsibility for the
powerless, the needy the losers. (Conway, 57-58).
In this way I must be affected by this as a student, however I tend to be one of those few
that still see Canada as a welfare state. Yes, it is more competitive but if people on welfare can
afford big screen TVs and Playstation systems while someone with a job cannot, there is a
problem. We still have a healthcare system in place that we have to pay taxes for even if we
never visit the hospital after all. I can see on a theoretical level that this would affect me,
perhaps I would get more financial assistance for my schooling if it was still a full welfare state.
But on a practical level, with the exception of the lack of employment opportunities, I have a
hard time seeing it, but this may be because I was not alive during the time we were still
considered a welfare state.
On a political level the competition state can definitely have some setbacks. The central
paradox of globalization is that rather than creating one big economy or one big polity, it also
divides, fragments and polarizes. (Cerny, 273). In trying to globalize we have given over more
control to private companies and as such there is much more of a divide than there was before
globalization. I can see this as being a problem in the long run and we can already see some of

its fruits now. Our politicians are being pulled in every direction trying to balance everything to
stay in the global race and as such they are losing some of their integrity. In addition to this,
globalization also has problems just based on the cultural divide between some of the countries
trying to form or maintain a global economy.
In conclusion, while I dont fully agree with Conways criticisms about the lack of social
rights in a competition state, I do agree with Cernys idea that it is not really a stable system in
the long run and is filled with contradictions and difficulties.