Rethinking the balance between public and private power (Great Britain, France)

This dissertation studies the impact of globalization on the independence of the State to formulate policy. It has been argued that globalization forces governments to adopt liberalization and deregulation programs, thus decreasing the power of the State to intervene through sectoral policy. This dissertation uses a least likely case, the military branch of the aerospace industry, to analyze this hypothesis. The criterion behind this selection is that this sector, because of its links to national security, international standing, and its strategic value as a generator of high technology that can be converted to civilian use, would be the least likely sector to have undergone liberalization and deregulation. This dissertation examines this industry in Great Britain and France and has found evidence that a significant redefinition of the role of the State in the managing of the sector has taken place after the end of the Cold War, thus leading to the adoption of deregulation and liberalization programs in the military aerospace industry. The State in these two countries, however, still maintains a high degree of discretionary power over industry, as the locus of State power has shifted from industrial policy or indicative planning, to trade protection, representation of domestic interests in intergovernmental trade negotiations and research and development funding.