The Demise of the Nation State?

IMF Working Papers, August 1, 1998

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The Demise of the Nation State?

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Bibliographic details

• Authors: Vito Tanzi
• Published: August 1, 1998
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451854244.001

Summary

• The globalization of economic activities that is characterizing many economies raises questions about the future of the nation state.
• This paper discusses this trend and shows that cross-frontiers spillovers have become more frequent and have increased the need for international agreements and international organizations to deal with them.
• It concludes that a continuation of current trends would increase the importance of subnational government while reducing (in the economic sphere) the importance of national governments.
• Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Findings on globalization and spillovers

• Cross-frontiers spillovers have become more frequent.
• Increased frequency of spillovers has raised the need for:
  • international agreements
  • international organizations
• The trend implies shifting loci of economic authority and policy coordination beyond national boundaries.

Conclusions and implications for levels of government

• Continuation of current globalization trends would:
  • increase the importance of subnational government
  • reduce (in the economic sphere) the importance of national governments
• Implicit policy implication: greater emphasis on international cooperation and on empowering subnational institutions to manage localized effects of transboundary economic activity.

Subject areas and keywords

• Subject: Environment, Expenditure, Globalization, Revenue administration, Social security contributions, Spillovers, Taxes
• Keywords: border authorities, country, East Asia, fiscal federalism, Global, globalization, government, government failure, government role, government's action, local government, national government, Social security contributions, spillovers, world government, WP

Content in this bundle

• The Demise of the Nation State? - WP/98/120
  • The Demise of the Nation State? - WP/98/120 (Markdown version)
  • The Demise of the Nation State? - WP/98/120 (PDF)