South Korea, which has taken advantage of global markets, has not only become wealthier, but has also reduced the gap between itself and the rich countries. Similarly, since 1978, China has taken advantage of global markets to triple its GNP, and thus has raised the incomes of hundreds of millions of people. On the other hand, some 50 countries failed to advance during the period of high economic globalization in the 1990s, in part because of weak i nstitutions and inept policies. It is hard to think of any countries that have become richer while shutting themselves off from global markets, but openness alone is not enough. At the same time, one should not exaggerate the constraints.
Welfare states are alive and well in most developed countries.
It is true that external influences add constraints on state policies, but economic integration is still at a relatively low level. Moreover, opinion polls show that political loyalties are still fixed primarily at the national level in most countries. There is not a global political community to support it. Minorities acquiesce to the will of the majority when they feel part of the same community, and that is not the case in a world of separate nation states. On the other hand, the growth of global interdependence creates incentives for states to develop institutions to enhance their cooperation and reduce the frictions that arise from their interactions.