Guide to the Phenomenon of State (Manifesto of the State's Nature)

 

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Contemporary meaning of the wealth of nations

There are a lot of theoretical exercises, which are trying to explain why some countries are rich while the others are poor. At the same time, common prevailing apprehension of the reasons for national prosperity quite often is still reduced to a primitive Marxist idea of imperialistic domination (or globalization in newer version) of rich countries, which in one way or another are obstructing development of poor nations.

Few observations need to be made on this account. First of all it is hardly external factors, what is influencing national development especially in the long run. As a consequence of socialist and Keynesian tradition too much attention is drawn now to different outer pressures on normal pass of economic and social development. In reality the main negative external influence stands in imported socialist ideologies and in imposed as a result various market restrictions and income redistributions. On the other hand, there is no denial that negative external influences on economic and social development of underdeveloped countries are somewhat opposed, especially in the short and medium-term perspective, by positive external factors such as foreign investments and international trade for example.

In the long-term perspective the one and the only reason why certain countries are richer while the others are poorer is the difference in their societal systems or even the different stages of social evolution among nations. Certain countries are more affluent because their system of social and property relations is superior to the one of underdeveloped countries. And why is it superior? For a simple reason that it incorporates less exclusive social and property rights based on power and coercion, less economic inefficiency and less social injustice and less corruption. The more just and efficient is societal system the richer is the country. While justice and efficiency of particular social system have little to do with external factors. They are conditioned exclusively by internal factors and, first of all, by historical counteraction of any imperfections in the system of property and social relations and by the level of legal corruption in society.

Recipes for elimination of the gap between poor and rich countries are also dominated quite a false approach, which is significantly explaining why this gap is either permanently growing or at least not diminishing. It is not a secret that majority of underdeveloped countries are dictatorships, semi-dictatorships or at most are countries with cosmetic democracy. It is, first of all, because of that they are poor. Under these circumstances in no way we can equalize interests of the people and those of the State or interests of the State and economic development. Normally those interests are one hundred percent opposite because an ultimate economic, social and political objective of the State is to extract as much money from people as it is only possible for internal consumption of superior state bureaucracy. Helping the State in these circumstances means to act against the people. Big idea must be exactly an opposite - to help people against the States otherwise any international development and any international aid are futile or even detrimental.

Classical school of economics supplied fundamental guidelines both for understanding of reasons and causes for the wealth of nations and of what we call a “free market” society. Later societal experience and first of all the notions of exclusive rights and coercion are calling for a slight extension of these definitions. It is exactly the power and coercion what is always limiting and restraining economic development and we have to take them into the most serious consideration if we wish to explain reasons for the wealth of nations. How wealthy or how prosperous the nations are, is explained by one single fundamental factor – how advanced are their systems of social and property relations or how suppressed are any exclusive (based on power and coercion) social and property rights in society. Therefore not only and not so much economic factors are playing here, but much more superior is the role of political or social factors because exclusive property rights are all about politics, power and coercion and have little to do with economy. The less of excusive rights incorporates particular society the wealthier it is and vice-a-versa. “Free market” at any times neither means an abundant quantity of non-monopolistic buyers and sellers, nor it suppose a lack of price influence situation on behalf of particular buyers or sellers, nor even it is implying a lack of economic monopolization. The one and the only deviation from free market conditions are exclusive property rights based on mechanisms of power and coercion. “Free market” is a societal construction (not just an economic one, but predominantly political one), which does not allow any exclusive property rights. Most probably in its pure version such societal construction has never been achieved by mankind so far and hard to imagine whether it will be possible to reach it in the future. However, the closer to “free market” conditions the nation comes, the wealthier it is and vice a versa.

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Theoretical foundations

Exclusive Property Rights

Property Rights Imperfections

Monopoly’s Strength and Monopoly’s Elimination

General Theory of the State and Social Evolution

social parasitism An Addition to the Theory of Human SocietyNEW!!!

 

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