ABSTRACT
This chapter explores the contradiction between the global sweep of capitalism and the persistence of national entities by tracing, in very broad strokes, some of the connections between capitalism and the nation-state from the beginning until now. It explores the interconnections between the modern state system and the development of global capitalism from the perspective of historical materialism than from more conventional theoretical vantage points. Global capitalism is more than ever a global system of national states, and the universalization of capitalism is presided over by nation-states, especially one hegemonic superpower. Each nation's working class has its own class formations, practices, and traditions; and while no one would deny that capital is far mobile and less place-rooted than labour, we are still a long way from a truly global capitalist class. The global economy is integrated, and rapid movements of capital across national boundaries, especially in the form of financial speculation, are a dominant feature of the world economy.
