Globalisation,Neoliberalism and the Transformation of the Australian State

A review of the literature is used to construct a model of economic 'globalisation' and its implications for the state. Three theses are derived from this exercise: the 'economic globalisation thesis', the 'loss of state sovereignty thesis' and the 'neoliberal convergence thesis'. These theses are assessed empirically, the latter two against Australian evidence. The paper argues that while the Australian state has lost considerable sovereignty, this effect is more pronounced at the macroeconomic level than at the microeconomic level. And though it can be argued that Australia broadly conforms to the pattern of 'neoliberal policy convergence', the paper argues that 'externalist' explanatory accounts of the type offered by the globalisation thesis overlook important domestic pressures for neoliberal policies.