The Global Polity

Over the past years there has been a dramatic increase in terrorism all over the world. At the same time, many governments are at a loss on how to combat terrorism. Despite massive counter-terrorist activities, terrorist attacks in weak states such as Afghanistan and Iraq have continued and the threat of attacks in developed countries remains strong.

Rich countries tend to be more democratic than poor countries. Understanding the link between democracy and development could be crucial for policy making at the national and international level. In addition to giving citizens more political freedoms, democracies are on average less likely to be at war with each other than dictatorships.

In response to the worldwide financial crisis, governments have bailed out their large banks and some of their large companies, thereby earning equity stakes in these enterprises.

In the process, these governments have accumulated massive deficits.

Poorer countries are clearly more corrupt than richer countries. While this is a matter of fact, the debate about causality is still open. Is corruption the single most important reason why many sensible reforms essential for economic development fail in developing economies or does economic development raise demand for fighting corruption?

Globalization has made the world interconnected as it has never been heretofore. The dangers of this interconnectedness are becoming increasingly obvious in the face of the financial crisis of 2008, the dangers of climate change, the breakdown of the Doha Round on international trade, the threat of nuclear proliferation, the multifaceted risks of terrorism, the looming ethnic and religious conflicts, and more.

Does the new wave of globalization require a reconstruction of welfare state provision and financing? How does globalization affect the welfare state? Does it reduce governments’ ability to impose taxes, while simultaneously creating more need for welfare state protection?

In a number of territories primarily situated in the poorer parts of the world, the state no longer performs its basic security and development functions. Beyond causing hardship for their own citizens, failed states provide breeding grounds of organized crime and terrorism.

In their “Declaration on Strengthening the Financial System” the leaders of the G 20 Summit which was held in London on April 2, 2009, have provided the foundations for a reform of the Global Financial System.

Global trade flourishes, while rule making on global trade stagnates. This is a serious problem, since without rule setting, monitoring and enforcement, we risk a return of protectionism and economic fragmentation.