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The State, Citizenship, and The Economy - A Path To Neoliberal Isolation
The State, Citizenship, and The Economy - A Path To Neoliberal Isolation
Neoliberal logic reconfigures and reorients every field it touches towards connection to,
and reliance upon, the economy and economic growth. The result of this neoliberal reorientation
is a profound change in the scope and direction of state sovereignty and state activity. By
connecting all things to the economy, neoliberalism severs the relationships between citizenship
and the state, isolating both. Through their respective research, Wendy Brown and Aihwa Ong
both explore the effects of neoliberalism on the state, focusing on different geographic regions.
Both researchers trace the loss of the connective relationship between the state and the citizenry
as the neoliberal ideas of self-responsibilization and unfettered entrepreneurialism cut the ties of
reciprocal responsibility between the state and the citizen. Brown, in her book ‘Undoing the
Demos’ traces the uncoupling of the rights of political citizenship from the state in the Euro-
Atlantic. Ong traces a similar story of the decoupling of state sovereignty from jurisdiction over
the wellbeing of the citizenry within national borders throughout Asia in her work
‘Neoliberalism as Exception.’ Both of these facets of state reconfiguration isolate the state from
the citizenry which should sustain and motivate it, connecting both state and citizenship instead
solely to the economy, and ultimately placing the survival and wellbeing of both upon their
In her book ‘Undoing the Demos,’ Brown traces the way in which the pervasive
economization of neoliberalism weakens and destroys collective political action and the political
nature of individuals and their relations to the state. Neoliberal logic dictates the minimization of
state involvement in social infrastructure and the reduction of all state expenses, at the same time
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Freedom Sorbara Student #: 260612710 Date Due: 12/04/2018
Although the political apparatus of the state still exists, the connections and infrastructure that
allow citizenship to produce political participation are lost. Citizen actions can no longer be
coordinated and political and can no longer be animated by the reciprocal responsibility once
present in the relationship between citizen and state. The self-reliant message of the neoliberal
state serves to sever this relationship made up on the one hand of the bestowal and protection of
individual civil rights and social benefits, and on the other hand of investment in, and allegiance
to, the larger state entity. When states and individuals both take on the neoliberal logic of
competitive self-reliance and its moral imperative not to become an economic burden, there is no
longer a space, or even a language, for equal and mutually beneficial exchange. All interactions
of the state and citizen become necessarily mediated through the market economy with its
associated narrow focus on competition for profit. State expectations of the citizenry, now seen
through an economic lens become expectations of human capital; individuals must constantly be
accruing value to remain competitive and be seen as worthy of access to social benefits and of
Additionally, citizen expectations of the state now seen through the same economic lens, become
equally economic; state actions, mechanisms, and policies not seen to be of direct economic
benefit to the individual can only be seen as wasteful actions of an ineffective government. The
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Freedom Sorbara Student #: 260612710 Date Due: 12/04/2018
government is tied to the economy as an administrator and caretaker just as the individual is tied
to the economy as a disposable unit of human capital. Neither fully retain their traditional roles
and relationships in more than name. Both sides of the citizen-state relationship become severed
and reconnected via the intermediary of the economy. This new network isolates both citizenship
and the state from their mutual interactions and subjugates and taxes both for the benefit of the
economy to which they are connected. This pattern of economization and isolation outlined in
the Euro-Atlantic case by Brown is not unique to this region; similar consequences of
‘Neoliberalism as Exception’ how the actions of a neoliberally motivated state, allow its practical
decide,’ to create exceptions to a normative rule or practice within a territory. When used for
political purposes, this use of exception as exercise of sovereign power cements the power of the
state over its citizenry and territory. However, Ong shows how the use of exceptions, both
inclusive and exclusive in their nature, made by the state for the benefit of the economy, deliver
sovereignty over territory and populations to economic forces. The removal of state sovereignty
for economic sovereignty disenfranchises all those who do not control capital or directly serve to
increase capital within the economic sphere. These exceptions allow non-nation sovereignties to
control the dispersal of the rights and benefits normally associated with citizenship within a state.
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not to have such tradable competence or potential become devalued and thus vulnerable
to exclusionary practices. (Ong 6-7)
Often the root of these new sovereignties is explicitly economic in nature, with corporations or
multinational economic partnerships controlling what are ostensibly national territories and
populations. Within these zones of graduated sovereignty, the state can experiment with
graduated decreases in the level of state protection and control of populations, in many cases
letting economic and market powers fully dictate which rights and benefits accrue to which
individuals or populations. By handing over sovereignty within its borders, the state cuts ties
with those individuals now under new rule. This disconnection means that even the minority
granted benefits and rights usually associated with the state often get them from non-
governmental entities or via criteria not associated with state citizenship. In this way Ong shows
how the components of sovereignty and citizenship become disarticulated from one another and
rearticulated in a different configuration, leaving connective gaps between state and citizenship
While the state retains formal sovereignty, corporations and multilateral agencies
frequently exert de facto control over the conditions of living, laboring, and migration of
populations in special zones. (Ong 19)
No longer does the state exercise sovereignty over citizenry, but for the benefit of, and in
tandem with, economic forces. No longer does the citizenry gain rights and social benefits
associated with citizenship from the state, but from economic sovereignties allowed to flourish
by the state. This disconnect, though most obvious in the Chinese Special Economic Zones
(SEZs) discussed by Ong, is present in many modern contexts where neoliberalism inserts
In both the Euro-Atlantic and Asian instances, the neoliberal argument for this separation
of citizen and state with the intermediary of economy is ostensibly that it will yield benefits for
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both sides. States often implement these economy-centric policies in order to extend the reach of
their economic and political power and to create opportunities for individual economic
advancement. However, the benefits that may or may not occur are obscured by the necessity of
passing through the omnipresent middle player: the economy. In neoliberal situations, all actions,
state and individual alike, are measured by their ability to benefit the market economy, which, by
merit of its internal mechanisms will, by some oblique method, return the benefits of those
investments to the state and citizenry which provide for it. This is the logic of neoliberalism.
However, the cost of making the economy the center of every network, both the beneficiary and
benefactor in all interactions, is that neoliberal ideology severs and erases previous societal ties
between the citizens and the state. Some states may increase their global influence and some
individuals may accrue substantial, and even excessive, civil rights and benefits, but statehood
and citizenship are both transformed in the process. The reconfiguring ideology of neoliberalism,
much like any abusive, isolating relationship, forces all those entities now linked only to the
economy to be completely at the whim of variable economic stability and dangerous market
vagaries.
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References Cited:
Brown, Wendy
2015 Undoing the Demos: Neoliberalism’s Stealth Revolution. Brooklyn, NY: Zone Books.
Ong, Aihwa
Press.