Political science Essay Example | Topics and Well Written Essays - 1500 words - 2

Political science - Essay Example In fact, national democracy is one of the key sources of such transactional cost, since it provides sovereign risk and regulates rules at the border. In addition, national democracy reduces chances of global risks by providing regulations and supervision of financial intermediaries (Rodrik, 212). Therefore, it is important that global federalism be adopted where democratic politics is aligned with global markets. Consequently, it is important that the national state is maintained and the needs of international economy are also catered for. As a result of this, the nation will in most cases pursue the objective of achieving global economic integration before considering other objectives. The national democracy can also be used in order to reduce the goals and visions of the international economic integration and going for limited globalization as was witnessed in post war in Bretton Woods’s regime where there was more capital control and minimal trade liberalization (Rodrik, 102). Although, this system led to failure of the approach given, it is thus important that for more globalization to be achieved, national democracy or national sovereignty must be reduced. Furthermore, this clearly illustrates that national democracy is one of the factors that determine the state and pace of globalization in a country. The potential effect of globalization is the reduction of national democracy, which also reduces global fiscal competition. In that sense, it is important that democracy be provided in a way that promotes civil rights, although this will lead to low economic growth but cause high social stability. In addition, this can help in expanding global civil rights (Rodrik, 110). This also clearly indicates that economics is an important political decision-making processes that requires global order. Furthermore, although globalization is one of the factors for economic growth in both rich and poor countries, it is currently producing a different result