State Transformation and the Global Political Economy

Abstract

Central to the issue of subsidy disputes discussed in this book is the question ‘Who makes the decision about the appropriate realm of government expenditure in advanced industrialized economies?’ The traditional notion that national governments make that decision is now only partially correct. In the EU, North America and multilaterally under the GATT and the WTO new structures have been developed to provide stricter disciplines for state spending. Institutions above states are participating in the governing of even the most powerful societies. This final chapter reviews the findings of the present study and attempts to draw out some of their implications. Following an analysis of the relationship between subsidies, liberalization and globalization, attention turns to the transformation of the state and implications for world order.