The state or the political organization of society is created to establish order and security. Plato deemed the state as the environment for the moral development of humanity. Because the result of aiming at individual’s purposes is disagreement, a healthy state can only exist when the common good is recognized as the goal. Politics indirectly and directly affects the state within which individuals make decisions such as the size of families or investing and these decisions, in turn, change the future economic dynamics of a country when looking at the cycles of growth or collapse.
The dynamic interaction among population structures and economic and political development is a subject that has been looked at by economists and political scientists. National power or the ability of a nation to influence the behavior of others is comprised of three elements: the size of the national population, economic productivity and political capacity. As power derives from a combination of these elements, it is useful to combine the forecasting techniques for overall income with the theoretical outcomes identified by power transition theory.
Population is one of the most important criteria for great power status, providing the potential resource pool from which a nation can mobilize and extract resources. Without a relatively large population, a nation cannot hope to become either a great power or a dominant state. The size of the population ultimately determines the power potential of a nation and is the element that determines which will remain major powers.
Demographic change results in changes in national power and changes in the structure of the world. To have power, a state needs both population and politics. The cycle of growth or collapse usually follows the function of income and influence in states. Poor people in poor countries receive little social benefits both because thy lack political influence and because their governments have little to provide.
On the other hand, as countries become richer, workers in the state sphere or in major industries are able to organize and to demand pension reform and unemployment compensation. State formations may last over centuries as in Western Europe states or could emerge with a big bang as with many colonized states in the twentieth century. Whatever the case, state formation comprises of a series of rapid events that are triggered by a sudden collapse of colonial empires such as Japan occupied Pacific Asia at the end of World War II.
Imperial collapses leave a vacuum in which political power is suddenly up for grabs by whoever wants it and with this type of power the center of power rests on the elites and the masses. Different state formation patterns have different consequences for the structure of the new state. Elite unity implies unified authority and offers a favorable condition for the creation of a cohesive structure while elite fragmentation poses tremendous obstacles to achieving any stable structure.
Elite compromise may allow some structure to emerge with authority divided among a small number of factions. This structure is not cohesive and depends on how long the compromises last. Elite polarization is likely to produce violent confrontations and civil wars that result in either state breakups or the physical destruction of losing factions by the winner. Because of the human condition and human reaction the cycle of growth and collapse is and always will be inevitable.