Nation states are still very important, but rescaling
Upscaling: WTO, IMF, EU. How can we take advantages from the expansion.
Downscaling: subnational, local power also becomes more important
Rescaling of global economy is also the rescaling of the government.
NAFATA: Beyond individual countries.
Why would states want to integrate?
1. larger markets: make more money
2. trade creation: free trade with other countries
3. strategic and security benefits: Mexico, Ex, is more smaller than US and Canada,
to make itself safe
Why would states not wan to integrate?
Belongs to a larger group, Loss of cultural traditions
Inequalities: Ex, Mexico, smaller, US is producing at a larger scale, US benefit more
Many cities get stronger, even than the nationals
Governments at 300 cities have gain a lot of power.
Global city – regions, more competent, very little limitations from the nations, but
more rely on themselves and become independent.
Whither the Global Economy?
Is the capitalist system sustainable?
It is not sustainable.
1. Inherent tensions in capitalist system itself:
How that wealth is being distributed.
Inherent problem: profit is central theme of capitalism, but if you stop produce stuff,
it’s the end. You have to invest in more and more capitals to make profits.
A healthy capitalist economy: if below 3 percent,
for capitalist to sust