| Abstract: | The greater part of regional development theory and thinking focuses most attention either upon spatial structure within nation states or upon inherent tendencies/free market forces within capitalist social formations/domestic economies. The great significance that is attached to the nation state is entirely understandable in terms of the historical specificity of the re-emergence of regional development studies in the post-war era. It is, however, no longer a sufficiently adequate basis for analysis Rather, it is necessary to commence analyses with a consideration of shifts in the global capitalist economy. Whilst the significance of the impacts of the growth in the internationalisation of production have been noted, more attention needs to be devoted to shifts from public to private economic power and from order to disorder in international finance markets. These shifts are not accidental They can be traced to internal weaknesses and inconsistencies in the Bretton Woods arrangements which eroded their ultimate foundation, that of monetary stability. As one consequence, the unregulated growth of private economic power, endemic instability and extreme volatility in international finance markets have all directly and indirectly undermined and eroded the extent of control over domestic economic policy on the part of the nation state |
