economy
April 4, 2026
Where the Market Ends, the State Begins
It was long believed that the market, if left enough space, would find its own equilibrium and ensure stable growth. Globalization further strengthened this belief – borders seemed to be disappearing, goods, capital, and technologies circulated without major obstacles, and competition itself solved most problems. Recent major crises have shown the limits of such a model – and brought the role of the state back to the forefront. For a period, such an approach yielded results. However, recent years have shown that things are not so simple. The pandemic, energy crisis, and disruptions in global supply chains have raised a question that is no longer theoretical: what happens when the global system ceases to function as intended?
TL;DR
- Globalization's belief in self-regulating markets and free circulation of goods has been challenged by recent crises.
- In times of crisis, nations increasingly rely on their own capacities, highlighting the state's role in ensuring stability and economic continuity.
- Economic patriotism is gaining traction as a practical approach for states to identify, protect, and develop their interests.
- Major economies like the US, EU, and China are investing in domestic industries and prioritizing national interests despite global openness.
- The market is no longer a neutral space but an arena where states actively protect their positions and long-term interests.
- Complete reliance on market rules does not always lead to greater competition; it can result in power concentration.
- The state acts as a corrective to the market, setting frameworks and ensuring stability to protect the public interest.
- Economic prosperity is now linked to national sovereignty, with control over key sectors like energy and food enabling independent decision-making.
- Serbia's experience during the pandemic and energy crisis demonstrates the state's crucial role in maintaining supply stability and avoiding disruptions seen in more developed economies.
- Openness is a tool, not a strategy; it requires clear goals and state direction for sustainable development.
- Future economic competitiveness depends on states' ability to track and guide new development trends, including technological advancements.
- Economic patriotism is a pragmatic necessity, a response to a world where market boundaries have become clear, ensuring a nation's future by actively managing its economy.