Nations as economic regions

Nations are first of all political regions. Their significance as economic regions derives from the political regulation of economic affairs. Never have such regulations been more pervasive, complex, and economically disruptive than in the 20th century. Politicians seek to extend their power over the subjects whom they govern as well as the power of their nation over other nations. In liberal democratic nations, politicians frequently respond to appeals for protection from economic hardship, thereby courting the favor of those whom they protect. In nations with centrally planned economies, the power of politicians rests on the implementation of ideological doctrines incompatible with open national borders. Politicians of any nation, reluctant to use the military arsenal at their command for fear that an armed conflict may escalate into a nuclear holocaust, may resort to economic warfare instead. All such policies contribute to the economically disruptive nature of national boundaries.