The failure of the welfare nation applied by the economic and political policy experts due to the forceful hit and wave of the economic crisis should become a lesson to review the legal wrongs of the state. According to John Perkin's term of corporatocracy syndicate, it aims to gain profits by promoting corruption, collusion, and nepotism from the third nations, and it operates like a mafia syndicate ( Perkins, 2008:12–13). Neoliberalism incorporates capitalist economy and free trade systems as tools to create a market syndicate. Subsidies as the assurance of basic need services are assumed as inefficient. The transformation of the capitalistic paradigm creates a big leap into neoliberalism. That simple picture explains the immense paradox of the welfare paradigm. Moreover, Fukuyama (2005:xix) describes the diminishing roles and strategic functions of nations that worsen poverty and social gap – and possibly igniting social conflicts and civil war. The case is not merely the decline of 'the nation-state', as Mishra contends that globalization has hindered the nation's capacity to have social protection ( Ramesh, 2000). These identities used to be the main guidance, but they fade and collapse due to the surge of globalization ( Ohmae 1995:11–17). As an institution, the state is no longer perceived as an important agent as the reality of a borderless world describes a vital consequence the diluting ethics of border identities (nationalism, religion, community). The declining power of a nation is definite in the rise of the global economy. Ohmae (1995:11–17) explicitly announces the end of the ‘nation-state’. As a legal institution, a state must not ignore the people into a position of incapability to fulfill their basic needs in providing basic social services ( Setiawan, 2011). Economic, social, and political issues are mostly related to the nation's failure to undergo its roles well. Globalization hugely influences the nation's existence as the economic controller.
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