Competition State 

Succeeding generations of functionalists and integrationalists have regarded economic interaction as the primary vehicle for developing a regional or world society; from which political restructuring would inescapably flow.

The predominant implication associated with the concept of globalization is that of a decline in the capacity of the state. In the new financial geography, the coherence of national financial spaces is dissolving.

A state needs to have a healthy economy and healthy economy will lead to social welfare. If money is borrowed more and more and thus fails to keep the house in order then at national level there is a problem.

To what extents does the state remain a significant producer of economic goods? There are lots of debates about demise of the states as a controlling element within the global economy. States are not what they are simply because of what globalization has done to them. The case for globalization and the consequent reduction of state capacity is most insistently made in the economic sphere.

The states have no longer policy autonomy as regards the management of their own economic arrangements thus eroded from the outside by the forces of economic globalization.

All states have adopted uniformly and become similar kind of economic actors. The values of competition are imposed from the outside and the economic state must conform to them if it is to succeed. The state may reshape itself so that certain functions are given up or delegated to other actors. At the same time, it may acquire responsibilities for new areas of social activity, such as consumer protection, environmental management and the regulation of relationship hitherto deemed to fall within the private sphere.

The global economy divides every society into new camps of conflicting economic interests. The imaging of globalization as progressive inequality both within and across borders suggests that the disjunctive is not simply one between state and global economy but more generally between the economically advantaged and disadvantaged wherever they might be and of which state policy is as much a symptom as cause. At any rate the connection between globalization and inequality is made confirming one assessment that a universal state of equal integration in worldwide economic activity is precisely what globalization is not. 

Features of a competition state-

There needs to be a change in the structure. People are practical in competition state. As against the notion of the state as guardian of domestic economic interest, stabilizing the international economy while protecting domestic corporatists bargains, Neoliberalism has entailed a relative demotion of the state’s domestic prioritize.

Any state has refashioned itself to the global forces. Once the global changes are done then it depends on the state how to do it. Then the state can redefine its role vis-à-vis global changes.  

They lay a stress on heavy domestic good governance. Set the house in order and fashion the foreign economic policy.

They believe that economic accountability by the state also is important.

State should have fiscal discipline, reduce its expenditures reduce the luxuries. 

Internally create a dependency syndrome when unable to keep house under control. 

Economic globalization erodes certain aspects of national sovereignty but not the institution of the nation state itself. Area of sovereignty is the area of legitimacy.

If sovereignty is the only source of legitimacy they say that sovereignty is a legalistic shift from political security, eco-politics, unless economically prudent then the state will not prosper.

Unless state produces enough wealth then it cannot compete and thereby have a deficit. 

State should set its house in order and the compete. Autonomy depends on economy.

There is no retreat of the state but ask it to be accountable to economy and finance. The notion should change and state should recast itself and accept that charity begins at home. State is a strong player and should ask for economic and financial stability.

Higher levels of social expenditures should be checked argued on the theory of interdependence.

Interdependence has all the appearance of being a natural outgrowth of state policies, something closely related to the pursuit of domestic goals.

Globalization tends to be understand as a condition imposed autonomously by technology just is often deemed to be and exogenous obstacle to state interests. 

They are calling for economic prudence for social welfare. Less government less expenditures on itself fiscal discipline is the key to political success.

Thus a shift from political ideology to economic prudence. Competition state is a state that is competitive economically.