Globalization and Integration: The Contemporary Relationship Between the Mordern State and the Economy

Globalization from a purely economic perspective, it's the result of human innovation and technological progress. It refers to the increasing integration of  economies around the world, particularly through  the movement of goods, services, and capital across  borders. The term sometimes also refers to the  movement of people (labor) and knowledge (technology) across international borders. ((IMF, 2008).

Developing world economic relations on the basis of the international division of labor is becoming increasingly significant for many national economies. The convergence and  intensification of the interdependencies of states and their economic entities is the main trend of  the world economy. The processes taking place in the economies of individual states and their integration groupings can not be considered without taking into account external factors conditioned by the globalization of the world economy. Increasing economic interdependencies between the economic units are clearly being manifested through the pace and duration of the world economic crises. Manifestations and consequences of the global financial-economic crises differ and mainly depend on the country and its role in the world economic system. The stability reserve of the national economy in the controversial circumstances of globalization is conditioned by the weighted combination of the governmental policy of protectionism and gaining an advantage on the international division of economic factors. A system approach is needed for the purposeful quality change of the position of the individual state in the changing architecture of the global economy.

Integration has command a significant increase in scientific and practical interest in international economic integration  of the world economy since the late 19th century are associated with internationalization. Its main subjects are all nation states, their unions, transnational corporations, transnational banks, international economic organizations, and world financial centers.Characteristic features of internationalization are increasinginternational interconnections and interdependencies of different countries, regions and business entities at various levels. 

The Thin Relationship Mordern State and the Economy

In the contemporary world both state and Economy are both variable that depends on each other, The relation between the state and the economy is the central issue for all who try to understand the upheavals of the past decade and a half.

Several theories have been developed to explain and address the problematic issues of state and Economy. Interestingly, karl Marx did not only develop an analysis of the relationship, in either  direction, between the state and the economy. On the one hand, he did not present a developed theory of the manner in which capital accumulation affects the form of the state. Instead, in key passages he established a general framework for treating the issue in terms of a relation between the superstructure and an ultimately determinant base, but the enigmatic nature of these passages has stimulated a modern controversy which has revealed precisely that because the concept of that relation is undeveloped it is far from robust. 

Welfarism State 

Inline with the orthodox and non-classical ideology about state and economy traditionally assumed that in Britain which are primarily balancer world politics before outbreak of 2nd Worldwar  are broadly concerned with the non-marketed services provided to individuals by institutions of the state since World War II. They include services produced by the state such as education, social work and health care and also redistribution of income through mechanisms like pensions and supplementary benefits. They did not arise from nowhere after the war, but the post-war government did systematise the state, charitable, and friendly-society provision of such services that had existed, thereby creating the coherent whole that we understand as the welfare state. In explaining it Marxists have to answer two distinct questions: why have such services been expanded, systematised and entrenched since the war, and why have they been provided through the state rather than the private sector. The answers that Marxist theory so far provides for the first question are now commonplace but, nevertheless, problematic; the second question, however, is virtually unanswered.

References 

The State And The Economy:  Some Theoretical Problems

IMF reports 2018

LIBERALISM AT THE 21ST CENTURY

Since  the  late  twentieth  century  a  series  of  political,  social  and  cultural  upheavals  has refashioned  the  world  in  which  we  live, creating  the impression  that  history  is  ‘speeding  up’. With hindsight, the two hundred  years from the  Fall of the Bastillein 1789 to the Fall of the Berlin Wall in 1989, or, more briefly, the period from the outbreak of the First World War in 1914 to the terrorist  attacks on New York and  Washington on September  11, 2001, appear to have  been  characterized  by  continuity  and  relative  stability,  at least  by  comparison  with  the uncertainty,  even  shapelessness,  of  the  contemporary  world.  Marx's comment that ‘All that is solid melts into air’, made in 1848, has come to have an eerie but unmistakable relevance. For some, these developments mark the passing of the ‘age of ideologies’, implying that the major ideologies  are  now,  effectively,  disengaged  from  the  political  world they  once  interpreted  and helped to shape. Such arguments are the  major  ideological  traditions  are  having  to  adjust  to,  and  are  in  some  cases  are  being  redefined by, a series of new and often interlinked challenges. The most significant of these are the following: 

• The changing world order 

• Post modernity and ‘post-isms’ 

• Globalization 

World order has been significantly changed as a result of the end of the Cold War, brought about by  the  collapse  of  communism  in  the  eastern  European  revolutions  of  1989–91,  and,  more recently,  by  the  advent  of  global  terrorism .  The  ‘long’  Cold  War  –  or  what Hobsbawm  (1994)  referred  to  as  the  ‘short’  twentieth  century,  1914–91  –  was  marked  by  an ideological battle between capitalism and communism, which was significantly intensified by the emergence of the USA and the Soviet Union as rival super powers in the post-Second World War period.  The  ideological  ramifications  of  the  collapse  of  communism have  been  profound  and wide-ranging,  but  remain  the  subject  of  debate.  The  earliest  and  initially  most  influential interpretation  was  that  the  demise  of  communism  had  left  western-style  liberal  democracy, particularly  in  its  US  form, as  the  sole  viable  ideological  model  worldwide. This  view  was advanced  though  the  so-called ‘end  of  history’ thesis, Such developments  have  certainly  had  a  profound  effect  upon  socialism. Revolutionary socialism, especially in its Soviet-style, Marxist-Leninist guise, appears to be a spent force, both in the developing world and in post communist states. Democratic socialism has nevertheless also been affected; some argue that it has been fatally compromised. In particular, the failure of central planning has weakened faith even in more modest versions of ‘top-down’ state control, forcing democratic socialists to accept the market as the only reliable means of generating wealth. The ramifications of the end of the Cold War have not been confined to socialist ideology, however. For example, far from bringing about the victory of universal liberalism, the collapse of communism has resulted in the emergence of a range of ideological forces. Chief amongst these have been nationalism, particularly ethnic nationalism, which has displaced Marxism-Leninism as the leading ideology in many post-communist states, and religious fundamentalism, which, in its various forms, has had growing influence in the developing world. Moreover, even ideologies that were meant to profit from the ‘death of socialism’, notably liberalism and conservatism have been affected in sometimes odd ways. To some extent, the strength and coherence of liberalism and conservatism in the twentieth century had derived from the fact that they were defined in opposition to a socialist or communist ‘enemy’. For instance, the new right emerged in the late twentieth century to express general antipathy towards ‘creeping socialism’, and particular hostility towards Soviet communism. The collapse or retrenchment of their traditional enemy means that in the twenty-first century liberalism and conservatism are each becoming more shapeless and differentiated. September 11, 2001, the date of the devastating terrorist attacks on New York and Washington,

Has widely been interpreted as ‘the day the world changed’. However, it is less clear how it has changed and what its implications are, or might be, for the major ideologies. The advent of global terrorism has undoubtedly had major international and national consequences. 

Internationally, under the auspices of George W. Bush's ‘war on terror’, the USA has adopted an increasingly forward and, in some respects, unilateralist foreign policy. Examples of this include the overthrow of the Taliban regime in Afghanistan and the war against Saddam Hussein's Iraq. Nevertheless, the ideological consequences of such actions are difficult to predict. On the one hand, if the ‘war on terror’ succeeds in constraining or destroying anti-western religious militancy and in toppling those who give it support, it may, in the long term, help to universalize liberal-democratic values and institutions. On the other hand, in line with Samuel Huntington's (1993) ‘clash of civilizations’ thesis, it may provoke a still more bitter anti-American and anti western backlash and further strengthen fundamentalist religion. At a national level, global terrorism has served to bolster the state generally and, in particular, to ground state authority more firmly in its capacity to protect citizens and maintain security. In The Shield of Achilles (2002), Philip Bobbitt thus argued that the state is essentially a ‘war making institution’. To the extent that the terrorist threat establishes the primacy of order and state security over a concern with civil liberties and individual rights it may be associated with a drift towards conservatism and the erosion of liberal sensibilities.