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The eighteenth century presented humankind with two visions, namely, a vision of economic prosperity based on free markets and a vision of "liberty, equality and fraternity" based on democratic political institutions. The "first industrial revolution" in England was the forerunner of material prosperity while the French Revolution raised the banner of a liberal policy and society. For nearly two centuries after the English and French revolutions, the struggle to construct a liberal political and economic system occurred within the boundaries of independent states. Despite the internationalism of "free traders" and parts of the socialist movement, political and economic liberalism, perhaps paradoxically, were closely bound up with nationalism. The implicit assumption was that it was possible to have "Economic liberalism in one country." Today that assumption is being challenged by the forces of economic globalization. State boundaries gradually are becoming less important as large and rapidly growing flows of trade, investment,...

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