States have the power to shape the conditions of our lives. They can protect people’s wellbeing, support shared goals, and guide economies through periods of change. When states work well, they help ensure that households, markets, and commons all function in ways that meet human needs within planetary boundaries.
But today, several forces are undermining how states function. Austerity policies reduce funding for essential services. Privatisation shifts control of public goods to private companies. Corruption and state capture allow powerful interests to shape decisions. Global rules and capital flows limit what states can do. And ecological breakdown creates mounting pressure.
Together, these threats weaken the state’s ability to care for people and the planet. They are shaped by the powerful neoliberal narrative that has dominated policymaking for decades (Section 5.1.5). This narrative prioritises businesses in markets over state power, while co-opting state power for private interests. Understanding these threats and the ideas behind them is key for designing states that truly serve the common good.
At the end of Subtopic 5.2 you should be able to:
discuss various threats to state functions, including: budget limits and austerity policies; privatisation; state capture and corruption; globalisation and loss of state sovereignty; and planetary boundaries overshoot.