Globalisation and the State - Discuss Literature review

Globalisation and the State - Discuss - Literature review Example This term provides, in a nut shell, the idea of capitalist globalisation. The transnational capitalist class consists of four segments. These are the owners and affiliates of the transnational corporations that control the business objectives and activities of these corporations; politicians and bureaucrats from different nations; professionals working globally in different sectors and finally the consumerist elite class consisting of rich merchants and media professionals (Sklair, 2001). The transnational capital has become an important part of the capital endowment of the world. Different classes in the Marxist understanding refer to the divisions among workers all over the world on the basis of the relation they have with the social production function (Fouskas and Gokay, 2012). The translational capitalist class has no national boundaries and they are forerunners of the modern spree of globalization. This new bourgeoisie class is recognised as the capitalist class and they repres ent the transnational capital. ... However, recently, the concept of sustainable development has evolved and companies are now concerned about the sustainability of their business activities (Robinson, 2003). Great depression of 2008: Capitalism Perspective Various economists and researchers have studied the phenomenon of the global depression which was a consequence of the large scale financial crisis that occurred during 2007-2008. The global depression of the 2008 has been viewed by many scholars under the light of the global capitalist theory (Krugman, 2009). The rise of the transnational capital and transnational capitalist class has led to the emergence of a â€Å"globally integrated production and financial system† (Robinson, 2012). According to the reports published by commentators of events of economic and political significance in the world, the crisis has its roots in the sub-prime loan fiasco in the United States that had surfaced in mid-2007 (Jones, 2004). It has been emphasised that the financial debacle had been taking its shape for a long period of time even before it came to public notice in mid-2007. The overall global recession followed inevitably and remained effective over the next year. The original cause of the crisis lies deep in Marxist understanding. It can be stated with evidence that the crisis situation was a result of contradictions of state power and over-accumulation. Capitalism strives and progresses by the means of capital accumulation. However, over accumulation of capital restricts the direct productive involvement of human capital in the process of the production. Due to over accumulation, the economic system cannot expand. Marginalization of a considerably high portion of the working population from direct productive participation and downward pressure on wages