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The state has become too big for the small things, and too small for the big things.
Under the present system there are gains to uncoordinated action. It pays any one country to put up protectionist barriers, whether others do so or not; to build up its arms promises security to any one country, whether others do so or not; any one country can to its advantage pollute the common air and the oceans, whether others do so or not. It pays any one country to attract capital from abroad by tax incentives, whether others do so or not, thereby eroding the tax basis. These ultimately self-damaging and possibly self-destructive actions can be avoided, in the absence of self-restraint, only by either a dominant world power imposing the restraints, or by co-operation, or by delegation of some powers to a transnational authority, with the power to enforce restraint...
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