The global economy—myths and realities

This article stresses the dangers of the widespread current belief that the global economy is now ungovernable, and argues for the need for, and the feasibility of, extended public governance at both national and international levels. Only thus can economic growth and trade openness be combined with fairness within and between nations. The extent to which capital is footloose’, embodied in homeless transnational corporations, has been exaggerated, and the potential for concerted action to control the financial markets has been underestimated. The case for regulation and stabilization of the financial markets is a strong one, but it will only work if the major states impose common rules on the system. Such concerted action will strengthen rather than weaken states. The scope for national policy remains large, if electorates are willing.