Chapter 6 - Interest Group Politics

Abstract

The impact of financial globalization has been dramatic, connecting wider swathes of countries and individuals, generating employment, and raising incomes around the world. Nevertheless, the process of financial globalization is almost never uniform in its impact on the various stakeholders in an economy. This chapter discusses the theoretical models that underpin predictions about financial globalization, introduces the critical interest groups in society, and explores the key findings of the extant literature, paying special attention to how the impact of globalization is often not direct, but depends on political institutions and endowments, even in nondemocratic societies. Finally, the piece highlights the unique role played by multinational corporations (MNCs) as additional actors in the policy process and consequently ‘agents of change.’