TATES-MARKETS RELATIONS IN TODAY’S GLOBALIZED WORLD
Anthony Lake who was the national security advisor of Bill Clinton said: “Democracy and market economics are ascendant in this era.” Bill Clinton has been considered as the new international financial architecture after IMF-WB meetings. He wanted to support Clinton’s policy of democractic enlargement by giving respect to market economy with this sentence. Whether this statement is true or false, it is certain that there is a close link between democracy and market economy so that in general sense it refers to a close link between politics and economics.
In one hand, there are states which are pursuing power and on the other hand there are markets which are pursuing prosperity. There is a mutual interrelation between international economics, international politics, domestic economics and domestic politics. Markets are determining by relations between price and quantity, supply and demand of buyers and sellers. They are trying to balance these relations with exchange of goods, services, information and with competition, they are pursuing wealth and prosperity, and they are providing a system where buyers and sellers trying to maximize their benefits by making a surplus in their balance of payments account. Markets have market-based allocations. On the other side of the picture, there are states which make their own budgets, are pursuing power and have authoritative allocations, are imposing taxes and putting regulations and rules on markets. But they remain weak to control markets sometimes because of the change of attitude in today’s world. Today the world has become more integrated and more globalised than before.
Globalization and Global Economy
To understand the nature of the state-market relations and the factors determining these relations, it is necessary to understand the meaning and impact of globalization for existing international system in which states and markets are...