ABSTRACT
This chapter attempts to answer some questions, such as why new states are being created and why they will, probably, continue to be created. By creating a new state, a subjugated people is freed from foreign rule and given a state in which they can now govern themselves. This need to liberate subjugated peoples from foreign rule has justified the transformation of European overseas colonies into independent and sovereign states, a process which started in 1947 and has been mostly completed. The desired outcome of the mobilization is the creation of a sovereign and independent state on that territory, controlled by the former minority national group and recognized as an equal member of the international system of sovereign states. The new secessionist authorities introduce new currencies and new monetary and fiscal policies, raise foreign loans and attract foreign investment.
