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Edited by Andreas Georg Scherer and Guido Palazzo
Chapter 14: The Politicization of Economization? On the Current Relationship between Politics and Economics
14 The politicization of economization? On the current relationship between politics and economics Michael Zürn Introduction In the course of economic denationalization and in the speciﬁc context of post-industrial society, some of the standard instruments for political intervention in market processes by the hierarchically organized nation-state emerge as precarious. As a ﬁrst consequence of this, new regulatory instruments which are more compatible with the logic of markets have gained in signiﬁcance. These instruments include incentive systems created by the state, private-public partnerships and corporate social responsibility (CSR). Second, a strong trend can be observed that aspires to international regulations which, likewise, must largely renounce hierarchical implementation mechanisms, irrespective of whether such mechanisms are based on intergovernmental or transnational sponsorship. Thus hierarchically conceived control by the democratic nation-state is becoming less important, relatively speaking; conversely, market-compatible governance, frequently implemented by non-state actors, is becoming more prominent. This is not the end of the story, however. The outcome of this process leads neither to a powerless state nor to depoliticization. The state remains an integral and necessary component of almost all new arrangements. It no longer acts unilaterally, but nevertheless it remains central in its signiﬁcance. And – according to the central thesis of this chapter – this gradual replacement of hierarchical governance by market-compatible non-state governance does not lead to depoliticization, even in cases where the new regulatory instruments have largely replaced traditional and nation-state policies. On the contrary, both international institutions and the actions of large corporations are...
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