Stresses the dangers of the widespread current belief that the current world economy is ungovernable and argues for the need for and the feasibility of extended public government at national and international levels. Only thus can economic growth and trade openness be combined with fairness within and between nations. The extent to which capital is “footloose”, embodied in homeless transnational corporations, has been exaggerated, and the potential for concerted action to control the financial markets has been underestimated. The case for regulation and stabilization of financial markets is a strong one, but it will only work if the major states impose common rules on the system. Such concerted action will strengthen rather than weaken states. The scope for national policy remains large, if electorates are willing.
