Capitalism transforms its own social foundations even as it holds forth the prospect of continuing human advancement. This paper examines changes in nation-state, civil society, and democracy in response to the forces of global capitalism. These institutions, all associated with Western liberalism and the advent of industrialization, represent forms of social integration important to the success of capitalism. However, they appear to be deeply affected by economic globalization, and their capacities to ensure social stability are in question. This analysis leads to policy directions for reducing the socially-corrosive effects of global capitalism, strengthening the capacities of foundation social institutions, and exploring a value synthesis between liberalism and moral community.
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