The nationally embedded and relatively broad-based economies characteristic of developed industrial countries are usually seen as the incarnation of a modern economy. These economies are largely internally oriented and are based, to a relatively great extent, on production and services based on local and national needs. Their provenance is generally assumed to have been processes of development that began in the sixteenth century and that, in the nineteenth century, accelerated with the expansion of industrial production and the growth of global (...) trade. This article challenges that assumption. It argues that today’s modern economies represent, not the culmination of long-term processes, but a recurring phenomenon within capitalism. It argues that, in the history of capitalism, there have been phases of nationally embedded and global free market capitalism – periods when capital is relatively more, and relatively less, free from the regulation of nation state. Today’s nationally embedded economies represent, not a further point along a unilinear developmental trajectory, but a return to features of the moral economies that characterized both European and non-European societies before the nineteenth century. (shrink)

This contribution argues, first, that pre-national forms of state were not displaced or supplanted by a new, national form. What we call the nation-state was not the successor to imperial or city-states but was itself a form of the European imperial city-states that had driven the expansion of capitalism in previous centuries. It argues, second, that national states emerged only after 1945 and only in a handful of states where, through welfare reforms and market and industry regulation, investment and production (...) were made to serve the expansion and integration of national markets. Third, with the dismantling of Keynesian policies in these states, pre-national (pre-Keynesian) structures are resurfacing. What scholars describe as the emergence of ‘post-national spatialities’ and of ‘global cities’ and city regions represents the resurgence of a durable and historically dominant form of state: the imperial city-state form. The ‘re-scaling’ of nation-states and growing prominence of ‘global cities’ and ‘city regions’ are heralding the end of the brief history of actually existing nation-states and the re-deployment of the imperial city-state model. (shrink)