The economics and history of the closing years of the 20th century may turn out to mark the era of transformation when the nation-states lose most of their ability to maneuver in economics as finance and investment become transnationalized. In the European Community and similar associations, the nation-state loses some formal powers and has to modify its policies to fit those of its neighbors and the association. An economically sustainable social democracy may be beyond the reach of any one nation, and reforms based in a single middle-sized country may be impossible.

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