Economic Markets and State Governments: Adversaries or Symbiotic in their Relationship

Economic Markets and State Governments: Adversaries or Symbiotic in their Relationship

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Do economic markets and state governments share an adversarial or symbiotic relationship? Scholars of International Political Economics have been at odds over what role, if any, the state should have in the International Economy. Despite such disagreements, most scholars can concur that IPE is ultimately concerned with the ways in which states shape the systems through which economic interactions are expressed, and conversely the results that economic interactions (including the power of collective markets and individuals acting both within and outside them) have upon political structures and outcomes. The relation between states and markets in the international scene, and whether, the relationship at home affects relationships abroad, is of great importance. One contemporary in particular Ian Bremmer has attempted to explain this relationship in light of the latest economic recession, and what impact the state should have in the future. In his book titled The End of the Free Market Bremmer believes that the Free Market Capitalism which has been a staple of American Economic prosperity is still the system that will provide for innovation and the free flow of ideas, information, people, money, goods, and services (Bremmer,183-184). Countries like China, Russia, Brazil, Mexico, and regions like Southeast Asia and Africa have all converted from command economies to a degree into state capitalist countries. These countries have all experienced the positives of the free market system, but are just now seeing the results of unregulated US domestic bubbles. Globalization, therefore, has created a system that requires government regulation of domestic products and services to ensure that a symbiotic relationship between governments cont...

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...elationships between states roar back the world will continue down the current recessionary path which quite possibly could lead to war on a truly global scale. The best way to ensure soverignty for all is with the free-market system which Adam Smith made so famous. As long as nation-states continue to exist (and it appears that they always will) their will be a temptation to revert back into protectionist ways. This I feel is only normal as it bolsters the national scene at home. If America and the rest of the world wants to continue to thrive and expand the pie much needed investment is necessary but maybe we should seek foreign investment help/advice when it is offered. One thing is for certain regulation domestically would go far in instilling the confidence foreign governments had in the United States to not only police the world but also police itself.

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