State-Building: Governance and World Order in the 21st Century
Weak and failed states have always been a feature of the modern state system, but the West has typically either ignored them or engaged them as humanitarian crises. In a globalized age in which terrorism, crime, and disease know no boundaries, they have become a first-order international issue. In this short, sobering book, Fukuyama provides the most succinct and lucid consideration of this challenge yet to appear, and his message is not optimistic. Policy experts have vigorously debated the proper scope of the state, but there has been much less attention to the strength or capacity of the state-the government's ability to maintain law and order and protect property rights. Fukuyama thus notes the missteps and misunderstandings of the international development community, which has only recently embraced the obvious: that stable and well-functioning political institutions are a precondition for economic advancement. His more important argument, however, is that outside actors have little ability to help countries strengthen their state capacity-and often pursue policies that actually weaken political institutions. On the other hand, he suggests that, in some of the most severe cases, the only option is a return to a neocolonial or mandate system, but such steps clash with current global norms of sovereignty.
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After being shackled by the government for decades, India's economy has become one of the world's strongest. The country's unique development model -- relying on domestic consumption and high-tech services -- has brought a quarter century of record growth despite an incompetent and heavy-handed state. But for that growth to continue, the state must start modernizing along with Indian society.
Doubters dating back to Immanuel Kant have predicted the demise of the nation-state. And globalization has staged an assault on state sovereignty, exploiting its vulnerabilities in financial markets and elsewhere. But the nation-state has shown amazing resilience. It will persist, albeit in a greatly changed form, especially in its control of domestic fiscal and monetary policies, foreign economic polices, international business, and war.
Why has the developing world become poorer as the industrialized nations have grown richer? Robust growth depends on a strong state that can enforce laws, yet many impoverished countries lack effective governance. And by strictly limiting immigration, rich countries deny the world's poor a chance to vote with their feet.

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