Globalization and national policy formation: an exploratory analysis

Abstract

PurposeEven though the promise of globalization has faded and it is no longer the fashionable topic it once was, national policy‐makers must still deal with its widespread economic, political and social effects. The purpose of this paper is to investigate the relationship between, on the one hand, differing levels of human development between countries, and, on the other, the extent to which countries pursue national policy objectives disciplined by what has been described as the “universal values” underlying the globalization process.Design/methodology/approachThe concepts of globalization and world society values are first defined and discussed in a policy‐related context. The relationship between globalization values, national policy settings and human welfare and freedom is explored by means of a simple SEM model.FindingsThe results of the SEM model indicate that there is a clear link between higher levels of human development where countries' normative policy settings concord with world society values. A more important outcome is greater insight into the critical role that social connectedness plays in explaining differences in levels of human development.Originality/valueThe paper presents an exploratory analysis of globalization and national policy formation.