An assessment on the changing role of state in globalizing world economy

Abstract

This study aims at assessing the transformation undergone within the framework of globalization in terms of the tasks assumed by the state in the economy. This study, which provides a theoretical framework, discusses the roles the global economy assigns to the state and how the state changes the governing and financial tools. In this study, the transformation process concerning the role of the state in economic life is taken up as of the 1980s and the aftermath, which is named as the neoliberal globalization period. Initially, conceptual information is introduced, with the importance of the nation and welfare state put forth and the approaches recognized in literature are assessed. Then, the roles assigned to the state are explained in the transformation of the state with policies suggested for the solution of problems arising in 1970s and the problems attributed to the state caused by the failures of international entities undergone in the 2000s. Starting with the overall judgment that globalization wears the welfare and nation state out, it is possible to set forth that the state's political, governmental and economic role and effectiveness vary at a certain level and especially the nation state is one of the most important actors of globalization and also one of the modest contributions of the study. © 2014 Springer International Publishing Switzerland. All rights reserved.