5.2.7 Reflection

Consider one or more of the following questions to reflect on at the end of Subtopic 5.2. Discuss with another student or in a small group, or record (written, audio, video) your response.

• Section 5.2.1 shows that austerity is often described as a financial necessity, but is usually a political choice. Think of a recent example of austerity in a country you know. Who decided what to cut, and who was protected? What does this tell you about power in that economy?

• Economist Clara Mattei argues that austerity weakens countervailing power by raising unemployment, reducing wages, and cutting social welfare, making it easier for businesses to resist workers' demands. Do you think this is an intended consequence of austerity, or an accidental one? Does the distinction matter?

• Section 5.2.2 asks which goods and services states should provide. Think about water, healthcare, education, and energy. What do these have in common? Are there any goods or services on that list that you think could work better under private ownership than public ownership? What conditions would need to be in place for that to be true?

• The subtopic describes a recurring pattern: states face financial pressure, adopt austerity or privatisation, public services weaken, trust in the state falls, and demands for further cuts grow. Using what you know about reinforcing feedback loops, draw or describe this cycle. Where do you think the most effective leverage points are for breaking it?

• Section 5.2.3 distinguishes between corruption, which breaks existing rules, and state capture, which reshapes the rules themselves. Which do you think is harder to stop? Which is more damaging in the long run, and why?

• The section on globalisation shows that some international rules, like ISDS, weaken state sovereignty, while others, like the Paris Agreement or the OECD minimum tax deal, can strengthen it. What does this suggest about the difference between globalisation as a process and the specific rules that govern it? Is the problem globalisation itself, or the power relations embedded in its rules?