Introduction
Dani Rodrik, an economist, came up with the concept of the political trilemma of the world economy to describe the hard choices governments had to make when formulating their responses to globalization. The premise of the trilemma states that democracy, national sovereignty, and global economic integration are incompatible and cannot coexist unrestrictedly (Aizenman & Ito, 2020). As a result, the challenges that have surfaced as a direct result of globalization can be conquered by combining any three characteristics. The trilemma identifies the significance of democracy in any state that ensures the right of the subjects is upheld. As a result, democratic institutions are put in place, all geared to ensure development within the state.
On the other hand, the state enjoys sovereignty and can regulate its territory independently while serving its subjects. Citizens empower the government with the responsibility of determining its engagement with friendly nations to attain development and achieve globalization. The trilemma helps recognize that the development and interaction within a country eventually lead to hyper-globalization. The country should therefore brace itself for the uncertainties resulting from globalization. However, it is impossible to have all three aspects simultaneously and fully. Rodrik makes a veiled reference to the reality that countries like Australia have accepted globalization while maintaining their national sovereignty, although at the expense of democratic decision-making. Therefore, for Australia to continue to reap the benefits of globalization, it should carefully consider setting restrictions on globalization while simultaneously expanding democratic institutions internationally.
An Evaluation of Australia’s Globalization Experience Through Rodrik’s Trilemma
Hyper-Globalization in Australia
Due to hyper-globalization, Australia’s natural resources demand is unusually high in the Asia-Pacific region. The region’s rapid economic development fuels this demand, and Australia’s contributions to the global economy help keep the country’s status as a land of plenty. Due to the additional strain that hyper-globalization places on the Australian government’s financial resources, the country cannot reach its full potential (Livock & Richmond, 2019). As a result, the country’s expenditure priorities have shifted away from fixed-asset investments to transfer payments and subsidies. Since the manufacturing process in Australia is highly labor-intensive, enterprises there rely on labor rather than capital. As a result, firms are forced to look for workers elsewhere.
National Sovereignty in Australia
The Australian government enjoys sovereign authority over its subjects. The country is free to make and enforce its laws, regulate how its territory is used, and do anything it wants with it. The people have democratic authority over the country. Citizens expect the government to control what happens and to decide what can and cannot cross its borders (Walter, 2020). On the other hand, globalization is weakening nation-states’ ability to govern the cross-border movement of people, ideas, goods, and capital, as well as pollution. Due to strong challenges, the state’s autonomy in the economy, humanitarian rights, and cultural heritage is expanding in Australia.
Democracy in Australia
Democratic globalization promotes the expansion of political democracy into economic and financial globalization. It is founded on the notion that public involvement in international trade helps society everywhere. Australia is a democracy, which implies that citizens have the right to vote in elections and participate in other elements of decision-making (Conley, 2020). Every democratic system is unique and operates uniquely. Australia’s population elects representatives to act and make decisions on their behalf. Australia’s political structure is a hybrid, combining features of constitutional monarchy and representative democracy.
Rodrik’s Trilemma Explaining Australia’s Globalization Experience
Australian government is increasingly concerned about the effects of globalization. It is due to oligarchies of financiers, economic decision-makers, and investors using globalization to exert their political goals over national sovereignties. Publics and governments throughout the world are arguing whether it is in their best interests to embrace policies that aim to keep economies open and reduce trade and investment obstacles. This situation has arisen as a result of globalization’s use becoming a tool for improving the political opportunities accessible to oligarchies while constraining governments’ actions, such as imposing taxes and regulations. As a direct result of this, Australia is under increasing pressure to protect some industries from the negative consequences of international competition.
Possible Policy Options to be Adopted by Australia
The globalization, national sovereignty, or democratic policies trilemma is analyzed through the lens of Rodrik’s trilemma, which postulates that nations can only select two of the three options. The system will become unstable if they attempt to select all three simultaneously. In light of this, Australia should devise a variety of political tactics that are based on the trilemma so that it can adjust to the globalized world. Globalization has not only brought significant consequences to Australia but also produced undesirable repercussions such as an economic crisis, migration, and delocalization. In other words, globalization has had a mixed impact on Australia. The country should take steps to ensure its survival as it is recovering from a prolonged international crisis. In conclusion, populism, xenophobic nationalism, or even authoritarian regimes need to be developed in Australia to escape globalization’s harmful effects and accomplish their objectives
Conclusion
Rodrik’s political trilemma is an essential guide that should be embraced in Australia. It will be instrumental in ensuring Australia continue to reap the benefits of globalization. The country should carefully consider setting restrictions on globalization while simultaneously expanding democratic institutions internationally. The Australian government should be mindful that maintaining public support for trade, investment, and skilled migration is critical to its continued economic success. As a result, it needs to work with the business community and other partners to explain why an open economy is critical for Australia’s future prosperity. To counter the adverse effects of globalization, the government should increase its lobbying efforts to support the trade and investment agenda it has built.
References
Aizenman, J., & Ito, H. (2020). The political-economy trilemma.Open Economies Review, 31(5), 945–975. Web.
Conley, T. (2020). Socially sustainable globalization? the domestic politics of globalization in Australia. Challenges of Globalization and Prospects for an Inter-Civilizational World Order, 531–547. Web.
Livock, C., & Richmond, Y. (2019). How has Australia significantly been affected by globalization? A critical realist explanatory analysis. Journal of Critical Realism, 18(3), 303–313. Web.
Walter, M. (2020). Indigenous sovereignty and the Australian state: Relations in a globalizing era. In Sovereign subjects (pp. 155-167). Routledge.