Economic Integration and Statist Reach – Towards a Holistic Assessment

Abstract

This paper assesses the relationship between public governance and economic competitiveness in a globalized world. The extent of statist reach is often seen as being reduced by the integrated world economy. The present article argues that this is not necessarily so: economic development is not mutually exclusive with good governance. Although international economic actors often tend to use the ‘exit’ strategy, by choosing those markets that are least regulated, as the globalization process homogenizes further on the world markets, inter-state synchronization of environmental, labour or fiscal regulation must be achieved. As this article argues, such accountability mechanisms will not thwart economic prosperity, but rather secure its further development in a predictable and secure environment for both citizens and firms.

Keywords: globalization, economic development, statist power, markets, accountability

JEL Classification: H11, O10