Globalization and Governance in the Light of the World Economy "Trilemma"

The globalization process has a crucial impact on the world economy and national states position. Developing the international division of labour the states strengthen globalization on one hand while they may slow it on the other. Along with hyperglobalization the national state role becomes weaker and various forms of transnational governance arise. According to D. Rodrik, the state submits to the global governance non-adequately. Nevertheless, globalization cannot be stopped; the forms of global governance can be only modified. The EU and its institutions oscillate between the transnational governance and the member states sovereignty observance. However, in spite of the transnational intervention limits, the economic crisis forces progress to a higher degree of integration. Thus, global governance is supported to the detriment of the national state.