Governance Has Emerged As Our Scarcist Resource

This article puts its finger on a problem that is under the surface in many of the issues that national governments face. We have a governance problem. The intersection of globalization, capitalism and democracy is changing the world in ways that national governments have not dealt with very well. Globalization has ceded power to multinational corporations which have built global supply chains and have been expanding their access to international markets. Those who own shares of these companies, and those who provide financial services to them, have prospered while the middle class has seen its income fall in many western economies. In Europe the eurozone is struggling to save its common currency in a political atmosphere of growing hostility and increasing nationalism. Europe is faced with the problems of dealing with a faltering union and the impacts from globalization. Meanwhile, China has been successful in developing a form of capitalism that is integrated with its government's industrial policies. The western democracies need to make investments in infrastructure, and maintain social welfare systems under conditions of declining tax revenues. The political tensions that result from this situation have increased polarization and have paralyzed once functioning democracies. The problems, and necessary adjustments that are required, have overcome the ability to govern as political interests overwhelm the national interest.