I understand that there has been a decline in the power of national governments to direct and influence their economies (especially with regard to macroeconomic management). Shifts in economic activity in say, Japan or the United States, are felt in countries all over the globe. The internationalization of financial markets, of technology and of some manufacturing and services bring with them a new set of limitations upon the freedom of action of nation states. In addition, the emergence of institutions such as the World Bank, the European Union and the European Central Bank, involve new constraints and imperatives. Yet while the influence of nation states may have shrunk as part of the process of globalization it has not disappeared. Indeed, they remain, in Hirst and Thompson's (1996: 170) words, 'pivotal' institutions, 'especially in terms of creating the conditions for effective international governance'. However, we need to examine the way in which national governments frame their thinking about policy. There is a strong argument that the impact of globalization is most felt through the extent to which politics everywhere are now essentially market-driven. 'It is not just that governments can no longer "manage" their national economies', Colin Leys (2001: 1) comments, 'to survive in office they must increasingly "manage" national politics in such a ways as to adapt them to the pressures of trans-national market forces'.