The second crisis is the most profound and it is arising out of globalisation.Globalisation is weakening the territorial nation state, the essential frameworkwithin which the public life of citizens is lived. For various reasons, of whichglobalisation is only one, this particular form of the state is in trouble.Globalisation and free market capitalism are limiting the capacity of the stateto act. States can no longer control.. So they also cannot remedy. The citizenhas been replaced by the customer. In a discussion with (Francis) Fukuyama I hadat a recent conference, he asked me, 'But surely, there is no harm if a citizendecides to vote by what he buys'. But there is a vast difference. Forcitizenship confers not only rights but also obligations. The customer has onlythe former. For various reasons states no longer control their subjects. This istrue even of very strong states. Britain, for example could not control theinsurgency in Northern Ireland for thirty years. This is a novelty. It had neverhappened before. You have had similar experiences, and the Americans are seeinghow difficult it is, in Iraq. There has been a proliferation of lethal smallarms and explosives, and more and more of it is finding its way into privatehands. Today the state has a monopoly only of very big, super arms.