Alvin Toffler predicted that supranational corporations would replace the state by diminishing its role, but the sovereignty of the state and its ability to protect the fundamental rights of its citizens remains important. Globalization is erasing the boundaries between countries, but the role of the state in protecting the rights of its citizens and the pursuit of profit are inherently different.
In his book The Third Wave, American economist Alvin Toffler predicted the collapse of the state, arguing that a world divided into independent, sovereign nations would be overwhelmed by an economic network of transnational corporations. With astronomical economic power, transnational corporations are no longer beholden to their home countries. They will cooperate with, exploit, and implement their own policies, gradually diminishing the role of the state and eventually replacing it, he argued. Toffler warned that if the economic foundations of the state collapse, the traditional concept of the state will also gradually fade away. According to him, this process is not just an economic phenomenon, but a political, social, and cultural change that will eventually lead to a reorganization of the world order.
The word that defines the 21st century is globalization. The corporate-driven trend of globalization has paved the way for people around the world to communicate across physical boundaries. This means that the world has become a village without borders. Globalization is not just an economic phenomenon; it has also changed the way we live our lives as technology advances and the distribution of information accelerates across the globe. The development of the internet and communication technology has made it possible to share information across borders in real time, which is changing the way people think and even their consumption patterns. So, as Alvin Toffler predicted, will the state become irrelevant in the future, giving way to giant multinational corporations? There is no stopping the rise of transnational corporations, and they already exist, such as Google. However, I can assure you that the concept of the state will not be eliminated by giant multinational corporations.
The constitutions of most countries state that the state consists of a sovereign, a people, and a territory. If the state is replaced by corporations, the people become employees of the corporations. Constitutions stipulate that the state must protect the fundamental rights of its citizens and that its power comes from the people. On the other hand, the purpose of corporations is to maximize profit. Corporations evaluate their employees on their efficiency, and control is given to a few executives, not the employees. If the corporation replaces the state, the constitution becomes irrelevant. The law of the land, the raison d’être of business ethics, disappears. Corporations are no longer obligated to uphold the fundamental rights of the people, and their operations are no longer subject to the will of the people. To prevent this moral hazard, the state’s role today is to monitor companies and set minimum boundaries for them to follow. This is the most fundamental difference between a corporation and a state, and it emphasizes the need for a state. Without the state, competition between companies would be infinitely fierce without institutional regulation, and the side effects of this would likely lead to destabilization of societies and economies around the world.
While the spread of globalization has facilitated the interaction between far-flung countries, it has also led to cultural homogenization. This means that the culture of some groups with a comparative economic advantage becomes the universal culture, and traditional cultures are lost. Unity of culture and consciousness means individuation, which hinders development and spells the end of economic and cultural growth. Therefore, as globalization accelerates, so does localization to maintain cultural identity and economic independence. Regional communities such as the EU and APEC are the result of these efforts. In recent years, many countries have pursued policies to preserve and strengthen their cultural identity, and some have expressed resistance to homogenization by emphasizing cultural pluralism. This means that the state should not remain merely an organization that pursues economic interests. The raison d’être of the state is also to protect and respect the individuality and diversity of its citizens.
The neologism “bananageddon” refers to the recent extinction of the banana. The monocultivation of bananas to increase productivity has left them vulnerable to the spread of infectious diseases. The new concept of the state, created by transnational corporations, poses the same danger. Alvin Toffler’s future society, in which economic power is the only differentiating factor between nations, implies an era of weak and infinite competition. In the end, only the strongest economic powers (corporations) will survive, unifying the cultures and consciousness of the world. Creativity is the engine of development and comes from individuality. Unification of consciousness without creativity means the downfall of entrepreneurship and will lead to the end of human civilization. While a monolithic system like the banana may provide short-term economic benefits, the results can be destructive, suggesting that true creativity and development can only occur within a pluralistic structure sustained by the state.
Over the course of history, the state has changed its form depending on how wealth is produced (the economic system) and how it is coerced. States have always existed, just with slightly different modes of operation. Transnational corporations have overcome the physical limitations of the existing state, but they have not been able to protect the lives and fundamental rights of the people, nor have they been able to fulfill the raison d’être of the state, which is the people. In addition, the uniformization of culture due to the corporatization of the state will cause the end of civilization. The development of enterprises is only possible in a stable country, that is, in a state where governance is functioning normally. As industries develop, the size and role of corporations grows larger and larger. However, the existence of a country that provides a strong social foundation to check and support them will never disappear. We won’t be singing the national anthem while looking at the Google flag anytime soon.
