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Market Forces Can Destroy States

Amongst dilemmas facing developing countries especially those embroiled in conflict like the Democratic Republic of Congo (DRC) is the fact that ‘global markets work to fracture societies and weaken states; it takes countries with highly competent and strong governments, resilient cultures to have a margin of freedom within which they can act to maintain social cohesion. In Gray’s in 1998 argument, “where these resources are lacking, states have collapsed or ceased to be effective and societies have been desolated by market forces over which they have no control.” Writing in 2001, Bertucci opined that “the popular assumption that the emergence of global civil society, and increasing levels of cross-border trade, finance and investment flows turns the nation-state into an anachronism is wrong.” I am in agreement. Markets do not always build; in fact, they can destroy. Actually in situations of state fragility markets remain a huge threat to state formation and even survival. States must be able to create resilience that can ensure their survival in the face of stiff market competition especially in the age of globalization. The argument here is that despite complex global economic and financial challenges due to increased interconnectedness, any developing country should position itself to benefit from the great potentials of globalization, because as Yeung, 2000 argues “globalization does not have a life of its own without the role of nation-states as its constituency and supporter.” The state still remains a major actor at the global level. To perform this changed role, state managers have to reconfigure the power structures of government, by adjusting the domestic economy to the requirement of the global political economy and within the current seamless markets for their own survival otherwise they risk destruction.  
Market Forces Can Destroy States Market Forces Can Destroy States Reviewed by Ibrahim Magara on June 23, 2016 Rating: 5

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