This article examines the impact of globalisation on welfare states, with some specifiC reference to the Australian situation. The argument advanced is broadly commensurate with that of Ramesh Mishra, who argues that globalisation is as much a political and ideological phenomenon as it is economic. Whilst Mishra acknowledges that economic globalisation suggests a consistent international downward trend in social expenditure, he also documents the considerable differences between the English speaking countries, and other OECD states. I argue that the influence of globalisation on individual nation states can best be understood by exploring those political and ideological forces locally and internationally which are respectively seeking either to retrench or retain the welfare state.