QUO VADIS GLOBALIZATION

In this paper, we propose a political-economic approach towards globalization and economic theory. We dialectically arrive to the conclusion that globalization is a process of transforming territorial (national) states into a market state dominated by transnational (or mega) corporations and international (or mega) financial institutions. This represents a new stage in the development of capitalism, a stage we call cybernetic mega-capitalism or capitalism III (Adam Smith’s free market capitalism would be capitalism I and Keynes's state interventionism would be capitalism II). Within such a context, we suggest that the existing economic theory is lost in the labyrinth of such a transition. We are afraid that the dynamic of globalization might transform the existing neoclassical economic theory into neuro-neoclassical economic paradigm that might raise many outstanding issues for both economists and politicians such as the issue of global governance or the issue of democratic deficit.