Why the Digital Age Demands Decision Makers to be Like Elite Marines and Zen Monks
February 7, 2025
Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]
What is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]
How Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]
Geopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]
In the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]
The previous articles discussed the basic concepts of political science including how the concepts of nation states and sovereignty came into being. This article takes the discussion further by examining how states have formed and developed over the decades as well as the changes occurring in the way states are governed and managed.
The first aspect of state formation relates to the unitary concept of sovereignty wherein nations exist as entities that are autonomous and independent. For instance, the British and French colonial powers ceded independence to their erstwhile client states in the aftermath of the Second World War. Next, many countries came into existence because of historical and geographical realities. Hence, the formation of states has happened either due to fights for independence or because of the redrawing of the maps due to geopolitical considerations. This is the case with Iraq and other countries in the erstwhile Soviet Bloc that were amalgamated with the larger Soviet Union because of contiguities and the need for expansion.
The development of states has happened after these countries gained independence and this was accompanied by a concomitant move to develop their economies and strengthen the institutions of governance. For instance, India adopted a new constitution and embarked on state building, which is now yielding results in terms of improved living conditions for the people when compared with those under British rule.
Further, states like those that became independent after the collapse of the communist regimes are now establishing themselves as strong states with flourishing economies mainly due to concerted efforts at state building and state development.
The third aspect of changes in the ways and means of how the states go about their activities is to do with how the political economy evolves over a period of time. For instance, Pakistan has experimented with both democracy and military rule without success in either whereas Egypt has made the transition from autocratic rule to democratic rule successfully.
The point here is that the key factor for states to change over time is the resilience of the institutions of governance as well as the ability of the people to effect change. Hence, states that have stronger institutions and less internal fissures have changed for the good whereas states that are weak in the center or are pulled apart due to centripetal forces have become failed states. Finally, the processes of state formation, development, and change can happen through revolutions as was seen recently during the Arab Spring of 2011.
Before concluding this article, it needs to be mentioned that this brief introduction is just an overview and the themes introduced in this article would be explored in detail in subsequent articles. The key point to be noted is that we live in an era that is marked by rapid and unprecedented change and hence, those states that have succeeded in establishing structures of governance are the ones that would ultimately succeed and thrive in this environment.
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