Sovereignty is a term that is used to refer to the independence and autonomy of modern nation states. Unlike earlier eras where countries were ruled by Kings in historic times and by colonial powers in the 18th and 19th centuries, sovereignty refers to the fact of absolute independence and autonomy that nation states have with respect to the decisions taken by them in matters concerning their citizenry.

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1. Providing public goods 

Goods and services that are “non-excludable” and “non-rivaling”, for services where you can’t exclude anyone from using it or there is no trade-off if more participants are using it. 

Examples: Public Defense might be the best example for highlighting the two concepts of non-excludable and non-rivaling goods. When a country protects its territory, then you cannot exclude a citizen living in this country from the service of this defense. It is also no different if another person joins the country as the whole region is protected, this extra citizen consumes the service, but it doesn’t rival other citizens, so they get all the same protection as before. 

2. Managing Externalities 

One of the most critical but also most discussed points is the management and interference with externalities. These externalities can be positive but also negative. Usually, the positive externalities are managed by state-owned companies or very regulated public/private companies. Most of the negative externalities are usually……

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