Leaving the Necessity of Political and Economic State Acceptance

We are living in the age of globalization, the high level of technical and technological, organizational and other changes, never observed in human civilization. The changes and problems are of such intensity that is hard to follow them, and in particular to adapt and anticipate, and they have spread to natural and social order. These problems do not happen partially and with limited, i.e. local effects. On the contrary, they often occur at the same time, at national or global level, such as the simultaneous occurrence of the earthquake and tsunami, i.e. earthquake as a natural phenomenon and the economic crisis, wars, or national conflicts. In a word, today we are living according to the principle that everything is changing, and only the fundamental and radical changes are constant and continual. Although we are living with constant changes in all spheres, on the other side there are traditional institutions that change slowly and do not coordinate their actions with the changing environment. They include the states as the most complex organizations, which still live based on the past, which is one more reason for these institutions to become unsuccessful. This conclusion is obvious, because it shows that if organization does not change at least at the speed of changing environment, it lags behind and is doomed to failure. It turns out that using an outdated philosophy and concepts of governance, i.e. classical economics and management modern problems cannot be solved, because they appeared due to inadequate application of the concepts, but that resolving of the future problems will not be possible using today’s concepts, technologies, and business philosophy. Thus, traditional institutions, and above all the classical state becomes a break in rapid changing of business and other organizations at national, regional, or global level. Although the state has all the mechanisms to be “momentum” in the economic, social, cultural, and other activities, this is not the case, which impose an urgent need to review some of the postulates based on which a modern state operate. This paper deals with the problems and stereotypes used by the contemporary states in managing economic development, regardless of the level of development, socio-political system, cultural sociology and other characteristics in order to highlight the unsustainability of certain concepts and the necessity of introducing new approaches so the state could be able to respond to new challenges and complexities at national and global level more efficiently. In particular, it underlined the problems in the Republic of Serbia and the need for restoring forgotten, domestic economy as the only objective source of progress and prosperity of the state.