In the 21st century, the public sector in the nation state has lost some of its insular structure. Its decision-making power has been subjugated to the forces of political and economic liberalism that are sweeping the global economy. This volume provides a framework for the study of spillovers of the global economy on the functioning of the public sector in the nation state. The first part gives an overview of what constitutes the global economy and analyses the changing role of the public sector in the nation state in the face of global and regional spillovers. The second examines models of public sector behaviour - from traditional to leviathan - in light of changes in the world economy. The "club" arrangement as a global government is offered as an example for governance in the 21st century.