Transnational State Formation and the Global Politics of Austerity

Abstract

A perennial concern among scholars of globalization is the relationship between global social formations and national and subnational political and economic developments. While sociological understanding of “the global” has become increasingly rich, stressing the complex relationship between material and cultural pressures, an undertheorized nation state often sits on the receiving end of the sociologist’s model of globalization. The goal of this article is to help move the sociology of globalization out of the analytical trap of global-national dualism by developing an account of the transnationalization of political authority. Building on neo-Marxist and Weberian theories of the transnational, or global state, which explicate the macro-structural dynamics that have led to the transnationalization of the state as such, I look at the process of the transnationalization of political authority from an institutional perspective, one that focuses on processes of transnationalization within, and across, specific state agencies. These theoretical points are empirically motivated through an historical investigation of the transnationalization of monetary authority and its relationship to the international diffusion of policies of austerity from the era of the classical gold standard through the economic crisis of 2008.