A hybrid public-private, domestic-foreign nexus lies beneath the miracle: Should they be 50% each? Any restrictions should be imposed?

14 Oct

– The End of the Nation-State? – NYTimes.com –

A quick scan across the world reveals that where growth and innovation have been most successful, a hybrid public-private, domestic-foreign nexus lies beneath the miracle. These aren’t states; they’re “para-states” — or, in one common parlance, “special economic zones.”

Across Africa, the Middle East and Asia, hundreds of such zones have sprung up in recent decades. In 1980, Shenzhen became China’s first; now they blanket China, which has become the world’s second largest economy.

The Arab world has more than 300 of them, though more than half are concentrated in one city: Dubai. Beginning with Jebel Ali Free Zone, which is today one of the world’s largest and most efficient ports, and now encompasses finance, media, education, health care and logistics, Dubai is as much a dense set of internationally regulated commercial hubs as it is the most populous emirate of a sovereign Arab federation.

This complex layering of territorial, legal and commercial authority goes hand in hand with the second great political trend of the age: devolution.

In the face of rapid urbanization, every city, state or province wants to call its own shots. And they can, as nations depend on their largest cities more than the reverse.

Mayor Michael R. Bloomberg of New York City is fond of saying, “I don’t listen to Washington much.” But it’s clear that Washington listens to him. The same is true for mayors elsewhere in the world, which is why at least eight former mayors are now heads of state.

Scotland and Wales in Britain, the Basque Country and Catalonia in Spain, British Columbia in Canada, Western Australia and just about every Indian state — all are places seeking maximum fiscal and policy autonomy from their national capitals.

Devolution is even happening in China. Cities have been given a long leash to develop innovative economic models, and Beijing depends on their growth. One of the most popular adages among China watchers today is: “The hills are high, and the emperor is far away.” Our maps show a world of about 200 countries, but the number of effective authorities is hundreds more.

The broader consequence of these phenomena is that we should think beyond clearly defined nations and “nation building” toward integrating a rapidly urbanizing world population directly into regional and international markets. That, rather than going through the mediating level of central governments, is the surest path to improving access to basic goods and services, reducing poverty, stimulating growth and raising the overall quality of life.

Connected societies are better off than isolated ones. As the incidence of international conflict diminishes, ever more countries are building roads, railways, pipelines, bridges and Internet cables across borders, forging networks of urban centers that depend on one another for trade, investment and job creation.

Burundi, Kenya, Rwanda, Tanzania and Uganda have formed the East African Community to coordinate everything from customs to investment promotion to peacekeeping. If they can leverage Chinese-built infrastructure to overcome arbitrary political borders, (the ubiquitous and suspicious straight lines on the map), they could become a nascent European Union for Africa.

NOWHERE is a rethinking of “the state” more necessary than in the Middle East. There is a sad futility to the reams of daily analysis on Syria and Iraq that fail to grasp that no state has a divine right to exist. A century after British and French diplomats divided the Ottoman Empire’s eastern territories into feeble (and ultimately short-lived) mandates, the resulting states are crumbling beyond repair.

The Arab world will not be resurrected to its old glory until its map is redrawn to resemble a collection of autonomous national oases linked by Silk Roads of commerce. Ethnic, linguistic and sectarian communities may continue to press for independence, and no doubt the Palestinians and Kurds deserve it.

And yet more fragmentation and division, even new sovereign states, are a crucial step in a longer process toward building transnational stability among neighbors.

 

Parag Khanna is a senior research fellow at the New America Foundation and the author of “The Second World: How Emerging Powers Are Redefining Global Competition in the 21st Century” and “How to Run the World: Charting a Course to the Next Renaissance.”

 

via The End of the Nation-State? – NYTimes.com.

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