The Firm Intensive System: Polity Functioning and National Accommodations in US, EU, Japan

Abstract

All nations face collective needs. State authorities have evolved as the effective institutions to resolve many of these collective needs. In doing so, state authorities secure and enjoy a political monopoly. This allows state authorities to acquire and practise political influence. The circumscription of the economic system by state institutions brings with it political dynamics and political influences that usually go beyond the initially posed problems and proposed solutions. Resolution of economic imperfections requires the functioning of and intervention by the state, this in turn can lead to political influences that may run counter to the intended resolution of collective needs, and furthermore, may bias the structure of the economic system and undermine its performance. In the previous chapter, it was emphasized that the business community in a firm intensive economic system, FIM, and the population at large, call on state authorities and national politics to provide collective solutions for problems they cannot solve privately. This chapter will examine the needs for polity and the behaviour of the polity in general terms as well as their practical accommodation in countries with a firm intensive economic system.