Introduction

The state was invented in Europe in order to provide security to a population. After the Second World War, the nation-states would be called upon to play an increasingly important role in regulating the economy. Liberal democracies agreed fairly easily on the new role of the state. On the basis of Keynesian doctrine, it was argued that economies had to operate under free market practices and the protection of private interests. However, the state gave itself a regulatory role in order to correct market shortcomings, especially macroeconomic shortcomings. The state set itself the task of stabilizing the economy. It worked to promote full employment, growth, price stability and external balance. The state also set itself the task of ensuring an increase in the standard of living and regional development. A number of states nationalized strategic sectors of their economies to ensure better control over the economy and to promote national industrial development.