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ABSTRACT After reviewing the historically specific characteristics of the modern nation state, this essay discusses both supranational and infranational forces which now work to undermine some of the powers and functions of even the oldest and most firmly established states. Two popular visions of alternative arrangements, associated with free‐market ultra‐liberalism and the philosophy of ‘small is beautiful’, are rejected, since neither the market nor the decentralization or breakup of existing states can provide adequate solutions to their problems. As trends in economic development increase the likelihood that wealth will be generated by a smaller proportion of total populations, the redistributive function of the public sector is likely to become more important than ever.
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