The Role of Business in Transforming the Political Organization of the World

Abstract

Having moved to the global level, capitalist political economy today is turning into a dominant way of governance in world politics, undermining the state-centrist model that has been developing since the time of the Westphalian peace treaties. As a result, we are witnessing a Schumpeterian phenomenon of “creative destruction” i.e., destruction of old accompanied by creation of new. The current world politics is dominated by the logic of destruction, and this destruction is not limited to changing interstate relations, as it is represented in most studies, but involves at the same time at least three levels of political organization of the world, forming a synergy effect: the level of the Westphalian world order; the level of interstate relations; the level of the national state. The Westphalian ststem is being blurred largely by transnational business activity. Entrepreneursinnovators form capitalism of co-participation. This capitalism rests not on interest, but on values and social ties that unite people in networks. Examples of such capitalism are various forms of sharing, peer-topeer networks, wiki-platforms, block-chain technology. Capitalism of sharing unites in- formational networks and human potential, the main resource of such capitalism is precisely human capital, human trust and social relations. The sharing is being transmitted to the international political sphere, supplementing the principle of the Westphalian sovereignty with the potential of eventually replacing it. At the same time, practices are being introduced into the political organization of the world from other projects of the political organization of the world, in particular Islamic (Islamic banks, hawala money transfer system, etc.).

Keywords

• schumpeter
• the economy of co-participation
• transnational business
• political organization of the world
• networks
• world politics
• the westphalian system
• innovation
• destruction
• creation